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Thursday 10 November 2016
Springfield Man, Woman Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and woman were sentenced in federal court today for their roles in a heroin trafficking conspiracy.
Donald D. Johnson, 27, and Dionne T. Ackerley, 39, both of Springfield, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark. Johnson was sentenced to 32 years in federal prison without parole. Ackerley was sentenced to 19 years and six months in federal prison without parole.
Johnson and Ackerley each pleaded guilty to their roles in the drug-trafficking conspiracy, which lasted from May 29, 2013, to Feb. 12, 2015.
Johnson admitted that he bought heroin in the Chicago, Ill., area and had it transported in vehicles to the Springfield area for distribution. Johnson also admitted that he bought heroin in the St. Louis, Mo., area. Johnson sold heroin to other co-conspirators.
Johnson admitted that he sold heroin to an undercover law enforcement officer and a confidential informant on three occasions. On March 13, 2014, he sold .7 grams of heroin for $275 in a transaction in Springfield. On March 18, 2014, he sold 2.2 grams of heroin for $500 in a transaction in Ozark, Mo. On Feb. 12, 2015, he sold .93 grams of heroin for $270 in a transaction in Springfield.
Ackerley was present when law enforcement officers executed a search warrant at a Springfield residence. She had 21 individual baggies of heroin weighing 1.47 grams in her purse, and two firearms – a Glock 9mm semi-automatic pistol and a Smith and Wesson revolver – inside a safe in the bedroom. Ackerley told law enforcement officers that she traded heroin for the firearms.
Law enforcement officers searched a unit rented by Johnson and Ackerley at Bradford Mini Storage in Springfield on May 29, 2014. Inside the storage unit they found a Bushmaster .223-caliber semi-automatic rifle.
Johnson and Ackerley are among five co-defendants who have been sentenced. Two co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
South Carolina Woman Sentenced to 51 Months in Tax Fraud SchemeRead the Press Release
Montgomery, Alabama – Willie May Ford, 62, of Lamar, South Carolina, was sentenced today to 51 months in prison following her conviction on federal access device fraud charges, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
On July 29, 2016, Ford pled guilty to one count of access device fraud. Evidence collected during the investigation established that on July 27, 2013, officers with the Auburn, Alabama, Police Department met with employees at a retail establishment in Opelika regarding counterfeit travelers checks that had been passed at the store. Ford and another individual used counterfeit travelers checks to purchase items at two separate stores, which led to their arrest.
After the arrest, numerous traveler’s checks, credit and debit cards, and pieces of personal identifying information were seized from the vehicle that Ford had traveled in to Alabama. A subsequent investigation revealed that the personal information of over 400 individuals was used to file fraudulent federal income tax returns.
“Willie Ford learned the hard way that IRS-Criminal Investigation has an unwavering pursuit to expose and investigate those who choose to commit identity theft and refund fraud,” stated Special Agent in Charge Veronica F. Hyman-Pillot. “The strategy will not change. Anyone that engages in similar schemes will face similar consequences.”
“Identity theft and tax fraud is costing the American taxpayers millions each year,” stated U.S Attorney beck. “I am proud of the work my office is doing with our partnering law enforcement agencies to seek out these criminals and protect our citizens.”
In addition to 51 months’ imprisonment, Ford was sentenced to a three-year term of supervised release following her period of imprisonment and restitution in the amount of $1,672,971.
The Internal Revenue Service-Criminal Investigation, United States Secret Service, and the Auburn, Alabama, Police Department investigated this case. Assistant United States Attorney Todd A. Brown prosecuted the case.
Slidell Man Sentenced for Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN GRACO, age 36, of Slidell, was sentenced today after previously pleading guilty to receiving images and videos depicting the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced GRACO to 97 months imprisonment, followed by 5 years of supervised release. Additionally, GRACO was also ordered to pay restitution in the amount of $2,000 and will be required to register as a sex offender under the Sex Offender Registration Notification Act.
According to court documents, on May 27, 2014, law enforcement officials executed a search warrant at GRACO’s residence, during which time they seized several electronic items, including three computers, one external digital storage device, and three removable digital storage devices. A preliminary review of the electronic devices determined that a desktop computer contained images and videos depicting the sexual victimization of children. A more intensive forensic examination of the device revealed that GRACO had used the desktop computer to access Internet websites and networks devoted to the advertisement and distribution of child pornography. Between June 4, 2013 and May 27, 2014, GRACO discussed matters pertinent to the sexual abuse of children to search for, download, and save images and videos of children as young as five (5)-years-old engaging in sexually explicit conduct. The forensic examination determined that GRACO possessed at least10,264 images and 130 videos of children engaging in sexually explicit conduct. After downloading the images and videos, GRACO stored them on special folders he created on his computer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and Special Assistant United States Attorney J. Ryan McLaren were in charge of the prosecution.
Sixth Conspirator in Treasure Valley Drug Distribution Ring SentencedRead the Press Release
BOISE – Isela Garza, 30, of Nampa, Idaho was sentenced today to 48 months in prison for conspiracy to distribute controlled substances in the Treasure Valley, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge ordered that Garza serve four years of supervised release following her release from prison. Garza was indicted on December 8, 2015, in a superseding indictment and entered her guilty plea on August 17, 2016.
The drug conspiracy was led by Stacy Duane Wilfong, 40, of Nampa, Idaho and involved 11 people. Wilfong was sentenced on October 4, 2016, to 220 months in prison for conspiracy to distribute controlled substances. Throughout the course of the investigation, law enforcement officers discovered that Wilfong and his co-conspirators bought and sold methamphetamine, heroin, pills including oxycodone, and a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts” to individuals throughout the Treasure Valley. Garza obtained methamphetamine from Wilfong and distributed it on his behalf.
In addition to Garza and Wilfong, four other co-conspirators have been sentenced. Anthony “Tony” Kitchen, 48, was sentenced to 71 months. Jocelin Jessica Gonzalez, 19, to 40 months and Elizabeth Ann Gaytan, 37, to 100 months. All three are from Nampa. Regina Wade, 50, of Boise was sentenced to 41 months.
Two co-defendants have entered guilty pleas and are awaiting sentencing. Breeannyn Nicole Pederson, 25, of Parma, is scheduled to be sentenced on November 15, 2016, and David Anthony Wales, 31, of Boise, is scheduled to be sentenced on February 22, 2017. Two other co-defendants are scheduled to enter guilty pleas. Adam William Dillon, 28, of Nampa is scheduled for a plea change on November 22, 2016, and Jason Lee Burgess is scheduled for a plea change on November 16. One co-defendant, John Matthew Caviness, Jr., 34, of Caldwell, is currently set for trial on December 13.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Sentencings for November 4 - November 10, 2016Read the Press Release
Brian Dewayne Johnson, 38, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine. Johnson was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives
Steven Timothy Brown, 56, of Lead, South Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine. Brown was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Natrona County Sheriff’s Office, the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Jaimie Lynn High Horse, 26, of Kyle, South Dakota, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2016, for possession with intent to distribute methamphetamine, heroin, and marijuana. High Horse was arrested in Rawlins, Wyoming. She received 60 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by Rawlins Police Department and the Wyoming Division of Criminal Investigation.
Rick Olsen, 49, of Casper, Wyoming, was sentenced by Federal District Court Scott W. Skavdahl on November 10, 2016, for possession of child pornography. Olsen was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Federal Bureau of Investigation.
Christopher Edward Isgrigg, 53, of Wheatland, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 10, 2016, for being a felon in possession of firearms. Isgrigg was arrested in Cheyenne, Wyoming. He received time served and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ashley Aloysius Addison, Sr., 41, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 8, 2016, for possession with intent to distribute methamphetamine. Addison, Sr., was arrested in Lander, Wyoming. He received 24 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Bureau of Indian Affairs with the assistance of the U.S. Marshals Service.
Candace April Roberts, 34, of Pryor, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 4, 2016, for being a felon in possession of a firearm and ammunition. Roberts was arrested in Casper, Wyoming. She received time served and was placed on three years of supervised release. Roberts was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Bureau of Indian Affairs.
Second Wichita Man Sentenced for Armed Robbery at Park City Liquor StoreRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Thursday to 138 months in federal prison for attempting to rob a Park City liquor store, U.S. Attorney Tom Beall said.
Roland D. Ross, 28, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during a commercial robbery. In his plea, he admitted that on May 24, 2016, he and a co-defendant, Michael Ray Phillips, both brandished firearms when they tried to rob the MGS Liquor Store at 6200 North Broadway in Park City.
An employee of the store produced a firearm and fired two rounds at the robbers. Ross surrendered and the store employee held him at gunpoint until police arrived.
Phillips was struck in the chest by the employee’s shots. Although he was injured, he fled the store before police arrived. He was arrested later when he sought treatment for the gunshot wound at a hospital in Kansas City. Phillips was sentenced earlier this month to seven years.
Beall commended the Park City Police Department, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated and Assistant. U.S. Attorney Lanny Welch for their work on the case.
Sault Ste. Marie Man Sentenced for Habitual Domestic ViolenceRead the Press Release
MARQUETTE, MICHIGAN — Justin Ryan Wykoff, 28, of Sault Ste. Marie, Michigan was sentenced to 42 months in federal prison for domestic violence by a habitual offender, U.S. Attorney Patrick Miles announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Wykoff to serve three years of supervised release following his prison term.
Wykoff pled guilty to the charge in August of this year. The charge stems from an incident last December in which Wykoff assaulted a woman in the parking lot of the Sault Ste. Marie Tribal Health Center. A passerby witnessed the assault and reported it to the Sault Ste. Marie Tribal Police. Wykoff had previously been convicted of domestic violence offenses against the same woman on May 22, 2015 and September 2, 2015, in the 91st District Court, Chippewa County, Michigan. In imposing the sentence for the December assault, Judge Maloney noted both the physical abuse and the insidious psychological abuse Wykoff had inflicted upon the victim.
Before the federal charges were brought, Wykoff pleaded no contest to a misdemeanor charge in tribal court for the same December incident. But a conviction in tribal court does not foreclose federal prosecution and, after consultation with tribal authorities, the U.S. Attorney’s Office pursued the federal charges as well.
The Sault Ste. Marie Tribal Police and the Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Sault Ste Marie Man Sentenced to 168 Months for Assaulting Federal Officers with A KnifeRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Eric Michael Verwiebe, 37, of Sault Ste. Marie, Michigan, was sentenced in U.S. District Court to 168 months’ imprisonment for Assault on a Federal Officer with a Dangerous Weapon. He was also ordered to serve three years of supervised release following incarceration. While imposing sentence, Hon. Paul L. Maloney stated that assaulting federal law enforcement is a serious offense and Verwiebe’s sentence was needed not only to deter the defendant from future criminal conduct, but also to deter others who may consider assaulting law enforcement.
On July 27, 2016, Verwiebe pled guilty to assaulting two Bay Mills Tribal Officers who encountered him while on patrol in August of 2015. The officers received a notice that Verwiebe had committed an assault earlier in the day and was now armed with a knife. The officers found Verwiebe walking in the middle of the road. When the officers got out of their patrol vehicle and approached Verwiebe, he pulled a large kitchen knife, with a blade of approximately seven inches long, from the pocket of his sweatshirt. He then raised the knife and pointed it towards the officers. Officers ordered Verwiebe to put the knife down. Verwiebe responded by yelling obscenities, threatening to kill the officers, and raising the knife over his head (blade pointing towards officers) as he walked towards officers. When Verwiebe was approximately 7-10 feet from the officers, one of the officers deployed his Taser hitting Verwiebe in the chest. Verwiebe dropped the knife and fell to the ground. As officers approached, Verwiebe stood up, took a fighting stance, and attempted to punch the officers. Verwiebe continued to resist officers until he was handcuffed and secured in the patrol vehicle.
The Bay Mills Tribal Police and the FBI investigated the case. Assistant U.S. Attorney Hannah N. Bobee prosecuted the case.
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San Joaquin County Man Sentenced to 14 Years in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Alejandro Munoz Galvan, 39, of Lathrop, was sentenced today by United States District Judge Troy L. Nunley to 14 years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between 2009 and March 2, 2012, Munoz Galvan was the leader of a group of individuals who distributed quarter-pound, half-pound and pound quantities of crystal methamphetamine in Solano County and elsewhere. Munoz Galvan received methamphetamine orders from smaller-scale drug traffickers and, to avoid personally possessing the drugs, employed multiple runners to deliver the drugs and stash house sitters to store the drugs. He hired lawyers for his runners and stash house sitters when they were arrested, so long as they refused to cooperate with law enforcement.
This case was the product of an investigation by the Federal Bureau of Investigation’s Violent Gang Task Force, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the police departments of Vacaville, Fairfield, Vallejo, Suisun City, Dixon, San Jose, and Manteca; the sheriff’s offices of Solano County and Nevada County, and the Solano County District Attorney’s Office of Investigations. Assistant U.S. Attorney Richard Bender prosecuted the case.
Co-defendants Alejandro Pantoja and Jose Miguel Cruz-Solario were each sentenced to seven years and three months in prison in 2015.
This case was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Saint Paul Gang Members Indicted for Gun ConspiracyRead the Press Release
United States Attorney Andrew M. Luger, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jim Modzelewski and Saint Paul Police Chief Todd Axtell today announced a federal indictment charging five members of a criminal street gang known as the Hit Squad for conspiring to illegally possess firearms.
“This indictment is part of an innovative strategy to combat gang violence in our state,” said U.S. Attorney Luger. “Working with our partners at the ATF and Saint Paul Police Department, prosecutors from this office are going after the gang members and their illegal guns. Together, we are making communities safer, neighborhood by neighborhood.”
“Our goal is to significantly reduce or eliminate gang violence in St. Paul and other communities in our area of responsibility,” said James Modzelewski, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ St. Paul Field Division. “We are committed to protecting communities from gun violence and will pursue violent criminals to the fullest extent of the law. The ATF is proud to work alongside the men and women of the St. Paul Police Department who have made reducing gang violence a priority in their city. Additionally, we wouldn’t have had such a successful investigation without the assistance of the Washington County Sheriff’s Office who helped us out early on in the case. With the strong partnership between these agencies, more can be done to make Saint Paul a safer place for everyone.”
“Gang and gun violence is an insidious problem that rips at the fabric of our community,” said Axtell. “This indictment is a testament to a region-wide commitment to holding accountable those who put children, community members and others in danger with their careless disregard for the law, civility and safety of others. We are thankful for the other agencies who helped secure the indictment and look forward to continued efforts to keep our streets safe.”
According to the indictment and documents filed in court, the Hit Squad originated in 2010 in Saint Paul’s Westside neighborhood. The main purpose of the Hit Squad gang is to prevent rival gang members from entering or being within Hit Squad “territory.” Hit Squad members obtain money through the commission of crimes such as armed robbery, illegal drug distribution, burglary, theft, and other violent crimes. Hit Squad members often use the proceeds of these illegal activities to purchase firearms. They also steal firearms, trade drugs for guns, and share guns with one another.
According to the indictment and documents filed in court, the five Hit Squad members indicted today, including TYVION WAYNE BENSON, a/k/a “Tavi,” MICHAEL TREVINO, a/k/a “Mike Mike,” JOHN WELSEY EPPS, a/k/a “King Savage,” DAMARIUS DANTE GILBERT, a/k/a “Boss Sleep,” and KENDALL DVONTAE PRUITT, a/k/a “Tinki,” conspired together and with others to illegally obtain and jointly possess firearms.
According to the indictment and documents filed in court, between at least July 2014 and November 7, 2016, members of the Hit Squad were in a gang war with rival gangs including the “Ho’s and Money” (HAM) Crazy gang. This gang war has resulted in the shooting of several gang members of both sides of the conflict.
According to the indictment and documents filed in court, the indicted co-conspirators were involved in drive-by shootings and other shootouts in Saint Paul. They illegally possessed firearms near the Arlington Hills Recreation Center in Saint Paul, in common areas outside of residential apartment complexes and while driving around various neighborhoods in Saint Paul.
According to the indictment and documents filed in court, the indicted co-conspirators conspired to illegally possess at least 14 handguns during the indicted period.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Saint Paul Police Department, and the Washington County Sheriff’s Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Benjamin Bejar are prosecuting the case.
Defendant Information:
DAMARIUS DANTE GILBERT, a/k/a “Boss Sleep,” 20
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 2 counts
TYVION WAYNE BENSON, a/k/a “Tavi,” 22
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
JOHN WELSEY EPPS, a/k/a “King Savage,” 21
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
KENDALL DVONTAE PRUITT, a/k/a “Tinki,” 19
Saint Paul, Minn.
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
MICHAEL TREVINO, a/k/a “Mike Mike,” 21
Charges:
- Conspiracy – Felon in Possession of a Firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Ransomville Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Timothy S. Woodean, 53, of Ransomville, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 kilograms or more of marijuana, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that, between 2002 and April 2010, the defendant conspired with Edward C. Lynch and Bonnie R. Gordon and others to possess and distribute 100 kilograms or more of marijuana. Woodean and others arranged for bulk quantities of marijuana to be smuggled from Canada into the United States, often times using spare tires stuffed with marijuana. The vehicle used in the smuggling would then be driven to one of several locations in Niagara County, where the tire would be taken apart and the marijuana recovered for further distribution to suppliers. The suppliers purchased multiple kilogram quantities of the marijuana that had been smuggled into the United States and then sold the marijuana to other customers. Similarly, money was pooled by and between the defendant, Lynch, and others, which was secreted and transported to Canada from the United States for payment for the bulk quantities of marijuana referenced above.
Defendants Lynch and Gordon have been convicted and sentenced.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Philadelphia Man Charged with RobberyRead the Press Release
Armond Suber, 28, of Philadelphia, Pennsylvania, was charged today by indictment with committing a bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Suber robbed the Citizens Bank branch located at 4949 North Broad Street on October 8, 2016.
If convicted, he faces approximately 77 to 96 months’ imprisonment, a fine of up to $250,000, a special assessment of $100, and up to three years of supervised release.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Pharmacist Kian Gohari Convicted in Manhattan Federal Court for Conspiring to Distribute Oxycodone and Conspiring to Commit Healthcare FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that pharmacist KIAN GOHARI was convicted yesterday of narcotics and healthcare fraud charges for his role in a conspiracy to distribute medically unnecessary oxycodone pills and fraudulently bill Medicaid for those oxycodone pills. The jury convicted GOHARI following an eight-day trial before U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “A unanimous jury found that Kian Gohari had turned his Brooklyn pharmacy into an illegal oxycodone distribution mill, unlawfully diverting tens of thousands of oxycodone pills for resale. This Office and our law enforcement partners are committed to stemming the illegal flow of oxycodone, a primary driver of opiate abuse in our country.”
According to court papers and evidence admitted at trial:
From 2012 to 2015, KIAN GOHARI, who owned Ekwunife Pharmacy in Brooklyn, New York, distributed over 25,000 medically unnecessary oxycodone pills and fraudulently billed the majority of those pills to Medicaid. GOHARI had an agreement with a co-conspirator, whereby GOHARI would distribute the oxycodone pills only if the co-conspirator brought GOHARI prescriptions for high-end medications – many of which were also medically unnecessary – such as HIV medications, psychiatric medications, and expensive pain gels. GOHARI then billed Medicaid for those prescriptions for hundreds of thousands of dollars. The co-conspirator subsequently sold the oxycodone pills in Brooklyn and Manhattan.
For these activities, GOHARI was convicted of one count of conspiracy to distribute narcotics and one count of conspiracy to commit healthcare fraud. GOHARI faces a maximum sentence of 30 years in prison. GOHARI is scheduled to be sentenced on March 9, 2016, before Judge Rakoff. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Health Care Fraud Task Force, which includes investigators from the FBI, the NYPD, and other federal, state, and local law enforcement agencies.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jordan Estes, Jason A. Richman, and Edward Diskant are in charge of the prosecution.
Owner of Debt Collection Company Sentenced in Manhattan Federal Court to Five Years in Prison for Massive Debt Collection FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN TODD WILLIAMS, a/k/a “JT,” a/k/a “Joe Steele,” was sentenced today to five years in prison for perpetrating a multi-year debt collection fraud scheme that defrauded more than 6,000 victims around the country out of millions of dollars. WILLIAMS owned and operated a debt collection company based in Norcross, Georgia, called WILLIAMS, SCOTT & ASSOCIATES, a/k/a “WSA,” a/k/a “Warrant Services Association,” (“WSA”). WILLIAMS and his co-conspirators, whom he employed as debt collectors at WSA, tricked and coerced victims into making payments to WSA by making false threats and telling a host of lies. These threats included falsely claiming that warrants had been issued for the victims’ arrest or that criminal charges were pending against them. A jury convicted WILLIAMS of conspiracy to commit wire fraud on July 12, 2016, after a five-day trial. WILLIAMS was sentenced today in Manhattan federal court by the Honorable Richard J. Sullivan, who also presided over WILLIAMS’s trial.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found in convicting him, John Todd Williams was the ring-leader of a ruthless and predatory fraudulent debt collection operation that victimized thousands of people across the nation. His criminal network of collectors used lies and threats, including false claims of being law enforcement who would arrest them, to get vulnerable victims to pay up. For his callous crime, Williams himself now has been sentenced to prison.”
According to the evidence presented at trial:
Between approximately 2009 and May 2014, employees working for WSA, led by WILLIAMS, routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Employees of WSA typically used aliases, sometimes referring to themselves as “Detective” or “Investigator,” falsely advised consumers they had committed purported crimes such as “check fraud” or “depository check fraud,” and told consumers that if they failed to make immediate payments to WSA to resolve the matters, warrants would be issued for their arrest. WSA employees also falsely claimed that WSA had contracts with, or was otherwise affiliated with, certain federal or local law enforcement agencies, including the Department of Justice and the Federal Bureau of Investigation.
Among other false statements, WSA employees also claimed that WSA was a law firm or otherwise worked with lawyers, and that they would have the victims’ driver’s licenses suspended if those victims did not make payment to WSA. To falsely create an appearance of legitimacy, and further trick their victims into making payments, WSA employees routinely used legal terminology to invent legitimate-sounding, but completely bogus, explanations for the supposed imminent arrest of the victims, including for example, that the “statute of limitations” on the victims’ “civil legal rights” had expired and therefore the matter was now a criminal matter that could be resolved only by voluntary payment to WSA, or arrest. WILLIAMS and WSA employees also attempted to collect debts from victims who had already paid off their loans. When victims told WSA employees that they had already paid their debts, they were told, at WILLIAMS’s instruction, that “you can’t pay a debt with a debt instrument,” i.e., a credit card.
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In addition to the prison term, Judge Sullivan ordered WILLIAMS, 50, of Norcross, Georgia, to pay over $3.9 million in restitution to his victims.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Consumer Financial Protection Bureau (“CFPB”) for referring this case to this Office, and the Federal Trade Commission (“FTC”) for its assistance in this investigation. Mr. Bharara also acknowledged with appreciation the extraordinary partnership between this Office and both the FTC and CFPB in the Office’s ongoing effort to combat consumer fraud.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, consider the following link to publications issued by the Federal Trade Commission:
http://www.consumer.ftc.gov/articles/0149-debt-collection
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah E. Paul and Benet J. Kearney represented the Government at trial and at sentencing.
Orlando Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Luis Serrano (24, Orlando) to 20 years in federal prison, followed by 15 years of supervised release, for producing child pornography. The Court also ordered him to register as a sex offender upon his release. Serrano pleaded guilty on August 8, 2016.
According to court documents, Serrano enticed and persuaded a minor victim to engage in sexual activity for the purpose of producing visual depictions of the conduct beginning when the child was 14 years old. Serrano initially befriended the girl on a chat website when she was 13 and, during the next two years, he persuaded and directed her to engage in sexual activity during live video chats that he recorded. He also persuaded the child to record herself engaging in sex acts and to send the images to him over the Internet. When the victim was 16 years old, Serrano convinced her to meet him in person to engage in sex acts, and he took explicit photographs of the conduct. Serrano distributed the pornographic images of the victim to as many as 10 individuals.
On March 4, 2016, federal agents executed a search warrant at Serrano’s home and located the images of the victim on Serrano’s electronic devices. Agents also located 340 images and 175 videos depicting the sexual abuse and exploitation of other minors, many of which depicted the sexual abuse of infants and toddlers. Serrano told agents that he had obtained and shared these illicit images with others on the Internet through a file-sharing program.
“The most important thing a society can protect is our children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents utilized all of our investigative techniques and authorities to save a young child from further victimization and now this predator will be behind bars unable to harm other children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Christina R. Downes and Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
One Individual Indicted in November Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
NAAMAN JOE MCCOY, age 27, of Pocasset, Oklahoma
Theft in Indian Country
On or about September 13, 2016, in the Eastern District of Oklahoma, within Indian country, as defined in 18 U.S.C. § 1151, the defendant, an Indian, did take and carry away, with the intent to steal and purloin, the personal property of a non-Indian, with a value exceeding $1,000.00. The charge is in violation of Title 18, United States Code, Sections 661 and 1152, punishable by no more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Choctaw Tribal Police, and the Federal Bureau of Investigation.
Special Assistant United States Attorney Shelly Harrison
Nurse Who Operated Spa in Laguna Niguel Agrees to Plead Guilty to Illegally Dispensing Botox Not Approved for Use in United StatesRead the Press Release
SANTA ANA, California – A registered nurse who owned and operated a day spa in Laguna Niguel has agreed to plead guilty to a federal charge related to the illegal distribution of Botox that was not approved for use in the United States.
Bridget “Gigi” Goddard, 50, of Dana Point, who owned Pure Indulgence Skin Rejuvenation in Laguna Niguel, has agreed to plead guilty to one count of receipt and delivery of a misbranded drug, a crime that carries a statutory maximum penalty of three years in federal prison.
Federal prosecutors today filed a criminal information against Goddard, as well as a plea agreement in which she agrees to plead guilty to the felony offense.
“Drugs and medical devices are regulated to protect the American public,” said United States Attorney Eileen M. Decker. “Those who circumvent those regulations pose a very real risk to patients who could be subject to unsafe products that can do serious harm.”
All Botox products approved for distribution in the United States by the United States Food and Drug Administration are manufactured by Allergan and must be administered under the supervision of a licensed physician. Goddard admitted in her plea agreement that, over the course of several years, she ordered Botox over the internet from Canadian companies that sold unapproved drugs to customers in the United States. (One of those companies, SB Medical Inc., pleaded guilty in federal court in Alexandria, Virginia, and was ordered to pay a $45 million fine and to forfeit $30 million for smuggle misbranded pharmaceuticals into the United States.) The Botox that Goddard purchased had been manufactured for distribution in foreign nations such as Turkey and was not approved by the FDA for distribution in the United States.
In April 2016, Goddard offered to administer Botox to a person she thought was a Pure Indulgence customer, but who in fact was an undercover agent with the FDA. Goddard told the undercover agent that the undercover agent did not need to be examined by a physician before the Botox injections were administered, and Goddard knowingly misled the agent as to whether the Botox was approved for use in the United States.
“Consumers rely on FDA oversight to ensure that the drugs they take are safe and effective. When criminals attempt to distribute unapproved drugs in the U.S. marketplace, they put the public's health at risk,” said Lisa Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations. “Our office will continue to pursue and bring to justice those who would jeopardize the health and safety of the public.”
Goddard has agreed to make her first appearance in this case in United States District Court in Santa Ana on December 12.
The investigation into Goddard was conducted by FDA’s Office of Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana branch office.
Norwood Man Pleads Guilty to $120,000 Farm FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Norwood, Mo., man has pleaded guilty in federal court to engaging in a scheme to sell livestock and farm equipment that was held as collateral by the Farm Service Agency.
Robert Keehner, 49, of Norwood, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, Nov. 9, 2016, to a federal information that charges him with fraud using property mortgaged or pledged to farm credit agencies.
Keehner admitted that he engaged in a scheme from Oct. 20, 2011, to March 27, 2014, to sell mortgaged livestock, as well as dairy and farm equipment, that had been pledged to the Farm Service Agency (FSA, a farm credit agency) without notifying FSA of the sales. While selling the collateralized livestock and equipment, Keenher did not report a majority of the sales of collateralized property to the FSA. Keehner did not instruct purchasers to address proceeds checks to the FSA as well as to him, and he did not remit any of the proceeds of the sales to FSA, as was required by the terms of his loans.
Between Oct. 7, 2005, and July 18, 2007, Keehner and his wife applied for and received two operating loans from the U.S. Department of Agriculture, acting through the FSA, in the amounts of $65,000 and $120,000. The limited purpose of the loans was to buy livestock and dairy and farming equipment for the purpose of running a dairy farm.
In violation of the express terms of his loans, and with fraudulent intent, Keehner conducted livestock and equipment sales in the name of his sister, and sold farm equipment to private parties, to avoid detection while selling collateral signed over to the FSA from loans in his name. The sale of the livestock held as collateral by the FSA was conducted through Norwood Producers Auction Yards, Inc. Payments in the form of checks for the sale of the livestock and equipment were made by Norwood Producers Auction Yards, Inc., were then deposited into the joint bank accounts held by Keehner and his wife. Keehner did not instruct the purchasers to list FSA on the checks, as was required, nor were the proceeds submitted to the FSA. Instead, Keehner used the proceeds for his own personal enjoyment.
Keehner has since ceased making repayments on his FSA loans. The outstanding principal balance still owed to the USDA through the FSA is $120,543, without interest or penalties.
Under federal statutes, Keehner is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.
North Country Man Admits Role in False Statement Made During Gun PurchaseRead the Press Release
ALBANY, NEW YORK – Jonathon P. Shappy, age 29, of Schuyler Falls, New York, pled guilty yesterday to aiding and abetting the making of a false statement during the purchase of a rifle.
The announcement was made by U.S. Attorney Richard S. Hartunian; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and New York State Police Superintendent George P. Beach II.
During his plea, Jonathon Shappy admitted that on March 6, 2016, after being denied the purchase of a Henry Repeating Arms .22 caliber rifle from a store in Plattsburgh, he called his uncle, Donald J. Shappy, Jr., and asked Donald to purchase the gun for him. On March 7, 2016, Donald Shappy purchased the firearm and in so doing falsely certified he was the true purchaser of the firearm.
Donald Shappy pled guilty on August 4, 2016 to making a false statement during the purchase of a firearm. He is scheduled to be sentenced on December 1, 2016.
As a result of his conviction, Jonathon Shappy faces up to 10 years in prison, a fine of up to $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced by U.S. District Judge Mae D’Agostino on March 13, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Nineteen Individuals in the Southern District of Florida Receive Attorney General AwardsRead the Press Release
Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Nineteen individuals from the Southern District of Florida are honored with an award.
“The honorees from the Southern District of Florida represent federal prosecutors and their law enforcement partners whose steadfast commitment to public service has had an international impact on the illicit narcotics trade and resulted in justice for defrauded investors,” stated U.S. Attorney Wifredo A. Ferrer. “These award recipients have made invaluable contributions to the mission of the Department of Justice and their respective agencies. I am incredibly proud of their work and applaud their well-deserved recognition.”
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
The following individuals from the Southern District of Florida were recognized for the following awards:
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice. Two Awards for Excellence in Law Enforcement were presented this year.
One award recognized, from the U.S. Attorney’s Office of the Southern District of Florida, Assistant U.S. Attorney Marton Gyires; from the DEA’s Miami Field Office, Group Supervisor Jarod A. Forget, Special Agents John P. Garcia, Amber M. McKeone and Robert J. Roth and Intelligence Analyst Christine M. Galluccio; from the Fort Lauderdale Police Department, Detective Karin Alvarez; from the city of North Miami Beach Police Department, Sergeant William Beauparlant; from the Davie Police Department, Detective Lisa V. Choquette; from the Coconut Creek Police Department, Detective Angela L. Hofer; from the city of Coral Springs Police Department, Detective Chad L. Kuschel; and from the Miami-Dade Police Department, Detective Robert D. Love.
Operation Driving Dirty dismantled the Consolidated Priority Organization Target linked to transnational drug trafficking organizations, to include Los Urabeños, at an unprecedented rate. The recipients worked extensively with foreign DEA offices and host country counterparts in China, Hong Kong, Guatemala, Venezuela, Chile, Colombia, Mexico, Spain, Panama, Canada and the Netherlands. The international partnerships were unparalleled as Operation Driving Dirty led to significant worldwide seizures, arrests and prosecutions. As a result of leads provided to the DEA Caracas Country Office, Venezuelan counterparts seized $7 million, deemed one of the largest currency seizures in that country’s history. Additionally, while working with its partners at the U.S. Attorney’s Office, the team conducted a substantial financial investigation into the drug trafficking organization’s money laundering operations, which led to the civil forfeiture of numerous bank accounts. This cooperative effort with the U.S. Attorney’s Office led to the arrest and prosecution of over 50 high-level defendants to include the regional priority organization target, Ronen Nahmani, who was identified as one of the largest synthetic marijuana distributors in the United States. To this end, Operation Driving Dirty led to seizures totaling 6,349 kilograms of cocaine, 28 kilograms of heroin, 15 pounds of methamphetamine, 100 pounds of synthetic marijuana and precursor chemicals, 21 weapons and $30 million.
The Attorney General’s Award for Distinguished Service is the Justice Department’s second-highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Seventeen Distinguished Service Awards were presented this year to individuals or teams of people.
A Distinguished Service Award was presented to Assistant U.S. Attorneys Michelle B. Alvarez, Jeffrey N. Kaplan, Lawrence D. LaVecchio, Alison W. Lehr, Paul F. Schwartz, Evelyn B. Sheehan and Madeleine Shirley of the U.S. Attorney’s Office for the Southern District of Florida.
In October 2009, it was discovered that attorney Scott Rothstein was conducting one of the largest Ponzi schemes in American history through the operation of the Ft. Lauderdale, Florida, law firm of Rothstein Rosenfeldt & Adler P.A. (RRA). The basis of the scheme was the sale of securities in which investors purchased the rights to a stream of payments from corporate entities which ostensibly had reached confidential settlements with purported plaintiffs in sexual harassment, employment discrimination and whistleblower cases. Settlements were available for purchase in amounts ranging from hundreds of thousands to tens of millions of dollars. During the operation of the scheme, hundreds of investors remitted more than $1.2 billion to RRA, which funds were utilized to pay previous investors in the scheme to finance a lavish lifestyle for the participants, and to make political and charitable contributions which enhanced the prestige and visibility of RRA, thereby enhancing RRA’s ability to attract new investors. During the ensuing six years of litigation, 29 defendants, including attorneys and public officials, were convicted and sentenced on charges including racketeering, wire fraud, money laundering, income tax fraud, campaign finance violations, obstruction of justice, extortion and civil rights violations. Additionally, through forfeiture proceedings instituted by the government, coupled with proceedings in bankruptcy court and other ancillary civil proceedings, more than $400 million in assets were ultimately recovered, resulting in full restitution to the defrauded investors.
Nine South Florida Residents Charged with Stealing over $800,000 from the United States Department of Veterans AffairsRead the Press Release
Nine South Florida residents are charged with stealing more than $800,000 from the United States Department of Veterans Affairs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
Mary Flynn, 67, of Miami; George Byrnes, 55, of Coral Springs; Marta Correa, 58, of Miami; Judy Jasiecki, 54, of Davie; Gregory Kramer, 64, of Fort Pierce; Leroy Weston, 58, of Pembroke Pines; Devorah Rosello, 52, of Miami; Beverly Anne Garcia, 62, of Lake Worth; and Peggy Karrh, 61, of Royal Palm Beach are each charged with theft of government funds, in violation of Title 18, United States Code, Section 641. If convicted, the defendants each face a statutory maximum penalty of up to 10 years in prison.
According to allegations in the Indictments, Mary Flynn, George Byrnes, Marta Correa, Judy Jasiecki, Gregory Kramer, Leroy Weston, Devorah Rosello, Beverly Anne Garcia, and Peggy Karrh obtained and utilized, for their own unauthorized personal use, federal government benefit funds of deceased veterans or their beneficiaries. All nine defendants failed to notify the U.S. Department of Veterans Affairs (VA) of the benefit recipients’ death; thereby, enabling continued payments for several years and in one case up to 14 years. In total, the VA made over $800,000 in fraudulently induced payments to the defendants.
Mr. Ferrer commended the investigative efforts of the VA OIG, Criminal Investigations Division. These cases are being prosecuted Assistant U.S. Attorneys Gera Peoples, Jonathan Stratton, Breezye Telfair, Rilwan Adeduntan, and Matthew Langley.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Orleans Man Pleads Guilty to Use of an Interstate Facility to Promote ProstitutionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MICHAEL WHITE, JR., a/k/a “Prince Loyalty,” age 33, of New Orleans pled guilty today to two counts of use of an interstate facility to promote prostitution.
According to court documents, WHITE operated a prostitution business based in New Orleans. To recruit costumers, WHITE used the internet website Backpage to post “escort” ads and market women for prostitution. In August 2015, WHITE arranged for a victim, a 19-year-old woman from Shreveport, whom he met over the internet, to visit him for a date. When WHITE picked up the victim from the bus station, WHITE told the victim he was a pimp. WHITE persuaded and enticed the victim to engage in commercial sex acts for his personal financial benefit, by posting advertisements of her for commercial sex services on Backpage. WHITE also pled guilty to advertising a 19-year-old female victim from New Orleans on Backpage in January 2013. WHITE received all the proceeds from the commercial sex acts both victims performed as result of WHITE’S Backpage postings.
For each count, WHITE faces up to five years imprisonment and/or a fine of not more than $250,000, up to three years of supervised release following imprisonment, plus a mandatory special assessment of $200. U.S. District Judge Eldon E. Fallon set sentencing for February 16, 2017.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and Homeland Security Investigations in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
New Orleans Heroin Dealer SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HOMER GROSS, age 32, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to distribute 100 grams or more of heroin and possession of a firearm in furtherance of a drug crime in violation of 21 U.S.C. § 846 and 18 U.S.C. § 924, respectively.
U.S. District Judge Eldon E. Fallon sentenced GROSS to 180 months in prison to be followed by eight years of supervised release, and a special assessment of $200.
According to court documents, GROSS pled guilty to distributing heroin to confidential informants working with ATF from 2011 to 2013. The court documents also indicated that GROSS admitted to using a .40 caliber Glock in furtherance of his heroin distribution business.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Monongalia County man sentenced for bank fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Altmann, 67, of Morgantown, West Virginia, was sentenced to twelve months and one day in prison for bank fraud, United States Attorney William J. Ihlenfeld, II, announced.
Altmann, an insurance agent, fraudulently solicited his employer’s clients to buy cheaper insurance from him by using a fictitious company. Instead of purchasing an insurance policy, Altmann and used their money and the incoming premium payments for his own personal living expenses.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General investigated.
U.S. District Judge Irene M. Keeley presided.
Missouri Man Pleads Guilty to Robbing Two Illinois BanksRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on November 10, 2016, Brendon M. Collier, 39, of St. Louis, Missouri, pled guilty to an indictment charging him with two counts of Bank Robbery. Collier faces a term of imprisonment of up to twenty years, a fine of up to $250,000, or both, and a term of supervised release of not more than five years on each count. The defendant’s sentencing has been scheduled for February 24, 2017, in East St. Louis, Illinois. Collier has been held without bond since his arraignment on July 16, 2015.
The offense charged in Count One arose when, on January 28, 2015, Collier, aided and abetted by another individual, who has already pled guilty and been sentenced, went to a U.S. Bank branch located inside of a Schnuck’s grocery store in Edwardsville, Illinois. Collier approached the teller claiming that he needed to make a withdrawal but handed the teller a note that demanded loose bills that were $20s or over, and said "no alarm."
The offense charged in Count Two arose when, on February 10, 2015, Collier and his accomplice went to a second U.S. Bank branch located inside of a Schnuck’s grocery store in Fairview Heights, Illinois. During the second robbery, Collier again told a teller that he needed to make a withdrawal. On this occasion, Collier handed the teller a note demanding money quickly and that no one would get hurt.
Collier was apprehended after he and his accomplice robbed a third U.S. Bank branch located inside of a Schnuck’s grocery store in St. Peters, Missouri. Collier confessed to the St. Peters robbery as well as the two bank robberies in Illinois, claiming that the robberies were motivated by his need to buy heroin and pay for hotel rooms and food.
The case was investigated by the Edwardsville Police Department, the Fairview Heights Police Department, the Illinois State Police Metro-East Forensic Laboratory, the St. Peters, Missouri, Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Angela Scott.
Melton Sentenced to Life for Kidnapping Case of Wake Forest ManRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, 51, was sentenced by Chief United States District Judge James C. Dever, III, to life plus 84 months consecutive imprisonment. Judge Dever further recommended that MELTON serve both his federal sentence and the remainder of his North Carolina life sentence at the ADX Super Max Federal Penitentiary in Florence, Colorado in the most secure part of that facility.
On June 21, 2016, MELTON was found guilty in a jury trial of Conspiracy to Commit Kidnapping, Attempted Kidnapping and Aiding and Abetting, Kidnapping and Aiding and Abetting, and Using, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Crime of Violence, that being Kidnapping and Aiding and Abetting.
Frank Janssen was taken from his home against his will on April 5, 2014. One Eight Trey Blood member MELTON, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s Polk Correctional Institution in Butner, North Carolina, to transmit instructions to co-conspirators in the plot who then sent threats to Janssen’s wife. Specifically, MELTON gave instructions on how to kill Mr. Janssen, dispose of his body and sanitize the crime scene.
Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014, at a residence in Southeast Atlanta.
United States Attorney John Stuart Bruce stated, “The federal prosecution of Kelvin Melton is now complete, and justice has been served. The credit for this successful prosecution goes to the hard-working prosecutors in our office, the dedicated agents of the FBI, and scores of officers from state and local agencies who worked together to rescue the victim and solve the case.”
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Maryland Man Found Guilty of Assaulting Five Women at Knifepoint in Attacks Near Metro StationsRead the Press Release
WASHINGTON - Demetrius Banks, 32, of Riverdale, Md., has been found guilty of 23 felony counts for assaulting five women at knifepoint who were walking home alone from the Fort Totten and Brookland Metro stations, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD). Two of the victims were sexually assaulted.
The verdicts were delivered yesterday and today and followed a four-week trial in the Superior Court of the District of Columbia. Banks was found guilty of three counts of first-degree sexual abuse while armed with aggravating circumstances; one count of attempted first-degree sexual abuse with aggravating circumstances; one count of third-degree sexual abuse with aggravating circumstances; five counts of robbery while armed; four counts of kidnapping while armed; four counts of assault with a dangerous weapon; four counts of threats, and one count of credit card fraud. The Honorable José M. Lopez scheduled sentencing for Jan. 27, 2017. Banks remains in custody pending sentencing.
According to the government’s evidence, the assaults occurred over a one-month period, from July 28 to Aug. 28, 2015, and included this series of attacks:
July 28, 2015: The defendant’s first victim, a 21-year-old cashier, was walking home alone after work, headed from the Fort Totten Metro station at about 10:30 p.m. The victim encountered Banks, a stranger to her, standing in the unit block of Riggs Road NE. As she passed him, he suddenly grabbed her from behind, pressed a knife to her side, and threatened to kill her. He forced her at knifepoint into a dark driveway behind a school. He then raped her and robbed her. The victim was taken to Washington Hospital Center, where she underwent a sexual assault examination, which included collection of forensic evidence.
July 31, 2015: The second victim, a 26-year-old bartender, was walking home from the Fort Totten Metro station at about midnight, in the 800 block of Gallatin Street NE. Banks pretended to be leaving a house on the block, then grabbed the victim from behind and forced her at knifepoint into a dark alleyway, where he robbed her.
Aug. 4, 2015: The third victim, a 26-year-old government employee, was walking home from the Fort Totten Metro station at approximately 10:30 p.m., taking the same route as the first victim. In the unit block of Riggs Road NE - across the street from where the defendant had committed a sexual assault exactly one week earlier - Banks grabbed this victim from behind, threatened her with a knife, and began dragging her by her hair into a nearby wooded area. When a passerby saw the assault and intervened, Banks grabbed the victim’s purse and fled.
Aug. 23, 2015: The fourth victim, a 41-year-old server, was walking home from the Fort Totten Metro station at about 3:30 a.m. when Banks approached her and demanded she give him her property. He was again armed with a knife. This robbery occurred in the 600 block of Gallatin Street NE, a couple of blocks from the July 31, 2015 attack.
Aug. 28, 2015: The fifth victim, a 22-year-old waitress, was walking home from the Brookland Metro station, one stop from the Fort Totten station, at about midnight. Banks pretended to arrive at a house, and when the victim passed him by, he grabbed her from behind and forced her at knifepoint into a dark driveway. In the driveway, he raped and robbed her. The victim was able to escape and ran naked into the middle of the street, where police officers happened to drive by and find her. She was also taken to Washington Hospital Center and underwent a sexual assault examination, which included collection of forensic evidence.
Detectives with the Metropolitan Police Department obtained surveillance footage of the defendant using the fifth victim’s credit card shortly after sexually assaulting and robbing her. This footage was broadcast by the news media, and tips led to the identification of Banks as a suspect. In subsequent forensic testing, the defendant’s DNA was found on evidence collected during the sexual assault examinations of the two victims. The police investigation also uncovered that Banks had used the credit cards of the third and fifth victims at convenience stores shortly after those assaults. In addition, investigation by the Metro Transit Police Department revealed that Banks had been using the Metro cards of both sexual assault victims to travel around the city. When search warrants were executed for the defendant’s home and property with the assistance of the Prince George’s County Police Department, police recovered numerous items of property belonging to the third and fifth victims, as well as victims from unrelated cases. Banks was arrested on Sept. 4, 2015.
In announcing the verdicts, U.S. Attorney Phillips and Interim Chief Newsham commended the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit and Fourth Police District, as well as the Metro Transit Police Department. They also commended those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Patricia A. Riley, Chrisellen Kolb, and Deborah Sines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists D’Yvonne Key, Angelina Slagle, Michelle Wicker, Kathryn Hoey, and Benjamin Kagan-Guthrie; Victim/Witness Advocates Lezlie Richardson, Tracey Hawkins, and Veronica Vaughan; Litigation Technology Specialists Leif Hickling and Anisha Bhatia; David Foster, Katina Adams-Washington, and La June Thames, all of the Victim/Witness Assistance Unit; Criminal Investigators Durand Odom and Mark Crawford; Investigative Analysts William Hamann and Sharon Johnson, and Computer Forensic Examiner John Marsh. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Jason Park and Julianne Johnston, who investigated and are prosecuting the case.
Manhattan United States Attorney Announces Charges Against Turkish and Iranian Nationals for Conspiring to Evade U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging HABIBOLLAH ZAREI, a/k/a “Adasi Habik,” a/k/a “Emre Polatkan,” BORA DENIZ, NESTEREN ZAREI DENIZ, and ABDULLAH EVREN ERDEM with using the U.S. financial system to conduct hundreds of millions of dollars’ worth of transactions on behalf of the Government of Iran and other Iranian entities, which were barred by United States sanctions; laundering funds in connection with those illegal transactions; and defrauding several financial institutions by concealing the true nature of these transactions. The four defendants are alleged to have orchestrated fraudulent transactions that were intended to hide the fact that the transactions were for the benefit of Iranian entities and to have laundered funds in connection with that illegal activity. The case is assigned to United States District Judge Crotty.
All four defendants currently remain at large.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, these defendants conspired and schemed to hide millions of dollars’ of financial transactions specifically to evade U.S. sanctions laws. These alleged transactions were criminal violations of long-standing economic sanctions against the government of Iran, and warrant strong legal action. This Office and its law enforcement partners are committed to policing sanctions laws designed to protect the security of the United States.”
Assistant Director-in-Charge William F. Sweeney Jr. stated: “The United States has stringent laws against dealings with Iran because of the threat posed to our national security. The subjects named in this case allegedly concealed how they were aiding entities in Iran, and knowingly evaded sanctions. Our job in the FBI is to make sure entities with ties to the Iranian government can’t use our banking and businesses communities to unwittingly harm our country by hiding their origin and intent.”
According to the allegations contained in the Indictment,[1] unsealed today in Manhattan federal court:
Beginning in 1979, the President has repeatedly found that the situation in Iran constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with the threat. Pursuant to these Presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities pursuant to the International Emergency Economic Powers Act (the “IEEPA”). This sanctions regime prohibits, among other things, financial transactions involving the United States or United States persons that were intended for the Government or Iran or Iranian entities.
Between at 2014 and 2016, HABIBOLLAH ZAREI, BORA DENIZ, NESTEREN ZAREI DENIZ, and ERDEM conspired to conduct international financial transactions on behalf of and for the benefit of Iranian businesses. As part of the scheme, the defendants caused U.S. banks to conduct at least $100,000,000 in international financial transfers in furtherance of Iranian steel and copper transactions. Specifically, the defendants facilitated the export of thousands of tons of copper and steel from Iran, routing the financial transactions linked to these exports through U.S. financial institutions. Using shell companies, the defendants concealed from the U.S. banks, however, the fact that these transactions were related to metal exports from Iran.
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HABIBOLLAH ZAREI, 67, is a resident of Turkey and dual citizen of Turkey and Iran. BORA DENIZ, 44, is a resident and citizen of Turkey. NESTEREN ZAREI DENIZ, 39, is HABIBOLLAH ZAREI’s daughter and BORA DENIZ’s wife, and is a resident of Turkey and dual citizen of Turkey and Iran. ERDEM, 32, is HABIBOLLAH ZAREI’s son-in-law and a resident and citizen of Turkey. Each defendant is charged with conspiracy to defraud the United States, which carries a maximum sentence of five years in prison; conspiracy to violate the IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Elizabeth Cannon of the Counterintelligence and Export Control Section. Assistant United States Attorney Jaimie Nawaday is principally responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man who Oversaw Drug Trafficking Operations of Crips Street Gang Sentenced to 20 Years in Federal Racketeering CaseRead the Press Release
LOS ANGELES – A leading figure in the Five Deuce Broadway Gangster Crips (BGC) street gang has been sentenced to 20 years in federal prison after pleading guilty to racketeering and drug trafficking charges stemming from his role as the primary narcotics supplier to the gang.
Roosevelt Sumpter, also known as “TuTu,” 43, of Los Angeles, was sentenced on Monday to 240 months in prison by United States District Judge S. James Otero. After completing his prison term, Sumpter will be on supervised release for 10 years, and during that time he will be barred from residing in the gang’s claimed South Los Angeles territory.
Sumpter pleaded guilty in July to participating in a racketeering conspiracy, conspiring to distribute crack cocaine, illegally possessing a firearm, and selling crack cocaine near schools.
Sumpter acted as a “central drug supplier” to BGC, managed the operation of the gang’s “stash houses,” and supplied these locations with crack cocaine that was given to other BGC members for street-level sales, according to a sentencing memorandum filed by prosecutors. When he pleaded guilty, Sumpter admitted unlawfully possessing firearms, including a sawed-off shotgun, in connection with his drug trafficking on three separate occasions.
“In addition to being a prolific supplier of narcotics himself, this defendant employed other BGC gang members to run stash houses and directed them to transport drugs to other sellers,” said United States Attorney Eileen M. Decker. “Given his longtime involvement with the gang, his strong presence in the gang’s drug activities and because he was often armed, justice has been served with the imposition of the two-decade prison sentence.”
Sumpter was among 72 defendants charged in a federal racketeering indictment that targeted BGC, a street gang that claims territory in South Los Angeles and controls drug sales in an area just west of the “Skid Row” district of Los Angeles. The indictment outlined two decades of criminal conduct, including murders, robberies, extortion, illegal firearms possession, witness intimidation and narcotics trafficking.
Seventy-one of the defendants named in the indictment have now appeared in federal court to face charges in the indictment (the final defendant is in state custody), which include conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), violent crimes in aid of racketeering, a series of robberies that targeted bank customers, weapons offenses and various drug trafficking charges. Four other top defendants in the case are scheduled to go on trial January 3.
The two lead defendants in the RICO case – Tyrine Martinez and Tracy Harris – pleaded guilty this past summer to federal charges. Martinez and Harris are scheduled to be sentenced by Judge Otero on December 19, at which time both defendants will face potential life sentences and mandatory minimum prison terms of 15 and 10 years, respectively.
The investigation into BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
The investigation into BGC, which was called Operation “Gremlin Riderz,” was jointly conducted by the FBI and the LAPD under the auspices of the FBI’s Task Force on Violent Crime in the City of Los Angeles.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section.
Louisville Convicted Felon Sentenced to 84 Months in Prison for Impersonating an Officer and Unlawful Transport of FirearmsRead the Press Release
Possessed a fake badge and several firearms when arrested
LOUISVILLE, Ky. – A Louisville convicted felon was sentenced in United States District Court today, by District Court Judge David J. Hale, to seven years in prison for impersonating an officer, on more than one occasion, and for unlawfully transporting firearms, announced United States Attorney John E. Kuhn, Jr.
“Connard impersonated a federal officer to accost, then assault people,” stated U.S. Attorney John Kuhn. “This false assertion of police power is exceedingly dangerous and creates a risk of undermining the good work of legitimate law enforcement. We are pleased the Court has dealt with this serious crime sternly and appropriately.”
Michael A. Connard, 28, was charged in a three-count federal grand jury indictment on November 11, 2015. He pleaded guilty to the charges on August 8, 2016 and has remained in federal custody.
According to the plea agreement, Connard admitted that on two separate occasions, on June 22, 2015, in Metro Louisville, he impersonated a police officer and on one occasion referred to himself as a “Federal Agent.” Further, Connard admitted that on both occasions he unlawfully possessed a firearm while being a convicted felon.
Connard, along with a second man, not charged in the federal Indictment, approached D.J. and ordered him out of his car near Hancock and East Gray Streets in Louisville. Connard was dressed in outwardly visible body armor, displayed a badge on a chain hanging from his neck, and identified himself as “police.” Connard brandished a firearm and struck D.J. causing a bruise on his forehead. Later in the same day, Connard repeated the activity with another victim, J.S., and in this instance, identified himself as a “Federal Agent.” Connard forced J.S. from his vehicle in the 500 block of South Clay Street in Louisville and in doing so, brandished a firearm and struck J.S. in the forehead.
Louisville Metro Police Officers were alerted to these activities and arrested Connard in the 800 block of East Chestnut Street. Officers found the defendant armed with a Taurus PT 24/7, 40 caliber handgun and a Kel-Tec, .380 and a fake badge that was carried by Connard.
In addition to the firearms which were in Connard’s possession at the time of his arrest, Connard possessed three additional firearms at his home including a .38 caliber snub nose revolver, a Bushmaster AR-15 type assault rifle, and a Savage Arms, Model 320, 12 gauge shotgun.
Further, Connard was a two time convicted felon. In 2006, he was convicted in Christian County Circuit Court of Burglary I and Possession of Burglary tools. Later in 2008, Connard was convicted in a separate case of Burglary II. Connard has pending charges in Jefferson County Circuit related to a similar incident on June 2, 2015.
This case was prosecuted by Assistant United States Attorney Randy R. Ream and was investigated by Louisville Metro Police and the with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Lexington Resident Sentenced to 78 Months for Receiving Thousands of Images of Child PornographyRead the Press Release
LEXINGTON, Ky. — A Lexington man, who was convicted earlier this year of receiving thousands of child pornography images, has been sentenced to 78 months in federal prison.
Today, Chief U.S. District Judge Karen K. Caldwell sentenced Xiang Wang, 32, for receipt of child pornography, and ordered him to serve 10 years of supervised release following the completion of his sentence. Under federal law, Wang will have to serve at least 85 percent of his prison sentence.
Wang previously admitted to possessing a computer that contained approximately 7,900 images depicting children engaged in sexually explicit conduct.
The investigation started in September of 2015, when an Internet Crimes Against Children (ICAC) Task Force Officer identified an internet user who was making child pornography pictures and videos available for download on the internet. The detective discovered the user was Wang. In December of 2015, law enforcement officers executed a search warrant at Wang’s residence and seized a computer and two external hard drives that contained the child pornography.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; James M. Gibbons, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Richard W. Sanders, Kentucky State Police Commissioner, jointly made the announcement.
The investigation was conducted by the Department of Homeland Security (DHS and the Kentucky State Police’s Electronic Crime Branch. Assistant U.S. Attorney David Marye prosecuted this case on behalf of the federal government.
Lead Methamphetamine Trafficker Sentenced to 23 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On Nov. 9, 2016, Richard Alan Davis, 44, of Atlanta, was sentenced to serve 23 years in federal prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Davis will be supervised for five years by the U.S. Probation Office.
Davis pleaded guilty to a federal indictment charging him with conspiring to distribute methamphetamine (meth). He was a leader of a drug distribution network that trafficked high purity meth obtained in Atlanta into northeast Tennessee and southwest Virginia, operating out of several high-end hotel rooms in the Atlanta area and supplying dozens of conspirators with large quantities of meth.
The investigation into Davis and his associates resulted in a series of nine federal cases in the Eastern District of Tennessee and dozens of individuals prosecuted by the state of Tennessee in the Third Judicial District. Related cases were also brought in the U.S. District Court for the Western District of Virginia and by the Tennessee First Judicial District Attorney General. Davis was the primary source of supply of the dozens of individuals prosecuted in these related cases. The operation has also resulted in the seizure of approximately five kilograms of meth and 20 firearms.
This investigation was a multi-year collaborative effort of numerous law enforcement agencies including the Greene County Sheriff’s Office, Greeneville Police Department, Hawkins County Sheriff’s Office, Third Judicial Drug Task Force, First Judicial Drug Task Force, Sandy Springs (Georgia) Police Department, Hall County (Georgia) Sheriff’s Office, Tennessee Bureau of Investigation, U.S. Department of Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration. The Third and First Judicial District Attorney’s Offices in Tennessee actively partnered with the U.S. Attorney’s Office in a coordinated effort to advance this operation. The Rabun County, Georgia District Attorney’s Office provided critical early assistance. The U.S. Attorney’s Office for the Western District of Virginia also provided assistance in the shared efforts to combat Davis’ drug trafficking operations. Assistant U.S. Attorney Zachary Lee represented the United States in the Western District of Virginia. Assistant U.S. Attorney J. Christian Lampe represented the United States in the Eastern District of Tennessee.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Lancaster Man Pleads Guilty to FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Dillon, 52, of Lancaster, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, between May 2010 and November 2013, Dillon conspired with others to fraudulently obtain money and property from investors. As part of the scheme, Dillon and co-conspirator Gilbert Lynagh formed two companies – i2i Capital LLC and i2i Settlement Partners LLC – which were incorporated in Delaware but listed a business address in Lancaster, NY.Thereafter, Dillon, Lynagh and other members of the conspiracy caused 27 victims to invest over $5,000,000 in i2i Capital and/or i2i Settlement Partners. False and fraudulent representations were made to victims regarding the nature of the investment and the associated risks, duration and rates of return. Victim funds were wire transferred from the victims bank accounts to bank accounts controlled by Dillon and Lynagh at Alliance Bank in Oneida, NY. The majority of victim funds were utilized by Dillon, Lynagh, and other members of the conspiracy in a manner that was not authorized by the victims, including for personal use. None of the victims received the promised return on their investments, and none saw the return of their original investment funds as promised by Dillon, Lynagh, and other members of the conspiracy. As a result, at least five investors suffered substantial financial hardship by losing retirement or other savings or investment funds.
Gilbert Lynagh was convicted for his role in the conspiracy in July 2016.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for March 13, 2017, before Judge Arcara.
Lakeland Couple Convicted of Large Scale Immigration FraudRead the Press Release
Tampa, Florida– United States Attorney A. Lee Bentley, III announces that a federal jury has found Domenico (68) and Rosa Cingari (67) guilty of conspiracy, mail fraud, and making false statements in immigration applications and petitions. They each face up to 5 years in federal prison on the conspiracy count and up to 20 years in federal prison on each of the 6 mail fraud counts. Domenico Cingari was convicted of two counts of making false statements in immigration applications and his wife was convicted of four counts, each of which carries a maximum penalty of 10 years in federal prison. Their sentencing hearing is scheduled for February 2, 2016.
The couple was indicted on July 9, 2015.
According to evidence presented at trial, Rosa and Domenico Cingari owned and operated R.E.P.C. Accounting and Translations out of their residence in Lakeland. The Cingaris assisted illegal aliens in obtaining Florida driver’s licenses by filing fraudulent immigration documents. Specifically, they would file I-589 (Applications for Asylum and Withholding of Removal), I-130 (Petitions for Alien Relative), and I-765 (Work Authorization) forms. Most of these applications and petitions submitted to United States Citizenship and Immigration Services by the Cingaris contained materially false information. The Cingaris charged their clients between $500 and $1,300 for the fraudulent immigration applications.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorneys Stacie B. Harris and Simon Gaugush.
Jupiter Attorney Sentenced Federally for Filing False Tax Returns with the IRSRead the Press Release
A Jupiter trust and estate attorney, who filed false personal income tax returns with the Internal Revenue Service (IRS), was ordered to pay $923,695 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kathleen Kozinski, previously pled guilty to a criminal information charging her with two counts of filing a false tax return, in violation of Title 26, United States Code, Section 7206(1), for tax years 2008 and 2011. United States District Judge Robin L. Rosenberg in West Palm Beach sentenced Kozinski to eight months’ incarceration, to be followed by a year of supervised release and ordered her to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102.
According to court documents, Kozinski was an attorney with a solo estate planning and probate practice, Kathleen G. Kozinski, PA, located in Jupiter, Florida. For tax years 2007 through 2012, Kozinski failed to report all of her income on her individual Form 1040 tax returns.
Specifically, Kozinski willfully failed to report all of the gross receipts from Kathleen G. Kozinski, PA on her Form 1120S, Income Tax Return for an S Corporation. Shareholders of S corporations are required to report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Kozinski underreported her income on her individual Form 1040 tax returns by not reporting all of the gross receipts from her law practice on her Form 1120S.
In addition to not including all of the gross receipts, Kozinski also falsely claimed “mortgage write-off” losses in the amount of $137,293.00 in tax year 2007, while she knew she had not provided an actual loan to another individual and was not entitled to this deduction. In tax year 2011, Kozinski claimed a loss of $113,745 on a “Schedule F Farm Loss” by falsely claiming that she paid labor expenses and insurance expenses, but the defendant did not operate a farming business and knew she was not entitled to these deductions. In 2012, Kozinski claimed a “Home Office” expense of $39,001, but the defendant knew that she was not entitled to claim this deduction because she did not have a home office.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Aurora Fagan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jonesborough Resident Sentenced to Serve 42 Months in Prison for Possession of a Firearm After a Felony ConvictionRead the Press Release
GREENEVILLE, Tenn. –Benjamin Harold Hall, 35, of Jonesborough, Tenn., was sentenced on Nov. 10, 2016, by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 42 months in federal prison.
Hall pleaded guilty in June of 2016 to being a felon in possession of two firearms. The firearms were discovered when he was arrested by officers, after an August 2015 domestic altercation at his residence in Jonesborough. Federal law makes it a crime for anyone convicted of a felony to possess a firearm or ammunition.
Agencies involved in this investigation included the Washington County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney, J. Gregory Bowman, represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Investigation and Prosecution Team in Dzhokhar Tsarnaev Case Receive Department of Justice’s Highest AwardRead the Press Release
BOSTON – Seven members of the U.S. Attorney’s Office received the Attorney General’s David Margolis Award for Exceptional Service – the highest honor in the Department of Justice – during a ceremony today at the Justice Department for their role in investigating and prosecuting Boston Marathon bomber Dzhokhar Tsarnaev.
“As the world watched, this extraordinary team worked countless hours, under tremendous pressure, to ensure the successful prosecution of Dzhokhar Tsarnaev,” said United States Attorney Carmen M. Ortiz. “Their efforts went well beyond the normal scope of preparing for a trial, combing through warehouses full of evidence, working closely with the families of the deceased and the many severely injured victims, all in the face of intense media scrutiny and security challenges. I am honored to work alongside these committed public servants whose collective accomplishments, compassion, and dedication are nothing short of remarkable.”
In prepared remarks, Attorney General Loretta E. Lynch said, “We also express our gratitude to the team that successfully investigated and prosecuted the case against the surviving perpetrator of the Boston Marathon terrorist attacks. You undertook this emotional, complex, and high-stakes case with quiet dedication. You forged a tightly knit team from a wide array of law enforcement agencies, and together, you built an incredible body of evidence. When you tried the case in court, you spoke not simply for this department – you spoke for the people of Boston and this great nation who sought justice for this cold-blooded and cowardly attack.”
The following individuals from the United States Attorney’s Office were honored at the 64th Annual Attorney General’s Award for Exceptional Service for their role in the investigation and prosecution of Dzhokhar Tsarnaev: Assistant U.S. Attorneys William Weinreb, Aloke Chakravarty and James Farmer; Christina DiIorio-Sterling, Chief of Public Affairs; Cara Henderson, Community Outreach Program Manager; and Victim/Witness Specialists Kathleen Griffin and Jessica Pooler. The trial team also included former AUSA Nadine Pellegrini, who was ineligible for the nomination as she has departed from the USAO. The USAO and her colleagues would like to acknowledge Ms. Pellegrini’s outstanding contribution to the Tsarnaev case.
On April 15, 2013, Dzhokhar and Tamerlan Tsarnaev detonated two powerful IEDs near the Boston Marathon finish line, killing two young women and an eight-year-old boy, maiming 17, and injuring hundreds more in the largest mass-casualty terrorist attack on U.S. soil since 9/11. Following a manhunt during which the brothers killed an MIT police officer, Tamerlan Tsarnaev was killed in a shoot-out with police and Dzhokhar Tsarnaev was arrested. The worldwide investigation involved more than 6,000 items of physical and digital evidence, over 100,000 photographs and videos, and more than 1,000 witness interviews.
The high-profile trial commenced less than two years after the bombings. Over the course of 10 weeks, the prosecution team introduced over 1,000 exhibits and called more than 100 witnesses to the stand, including 14 victims who lost limbs in the bombings, family members of those killed, other survivors and eye witnesses, experts in the areas of fingerprints, DNA, bombs, and ballistics, law enforcement officers and terrorism experts. The prosecutors also cross-examined nearly 50 defense witnesses. A jury found Tsarnaev guilty on all 30 counts in the indictment charging terrorism and other violent offenses. The same jury later sentenced Tsarnaev to death following an approximately three-week sentencing trial. He was sentenced to death on six counts and consecutive life sentences on seven others, and ordered to pay $101 million in restitution to the victims.
In addition to the U.S. Attorney’s Office employees, 29 investigators, legal professionals and operational support personnel from the Federal Bureau of Investigation, U.S. Marshals Service and National Security Division, among other agencies, were also being recognized for exceptional service.
Inland Empire Brothers Plead Guilty to Federal Charges Related to Cache of Machineguns and Other Illegal Weapons Found at HomeRead the Press Release
LOS ANGELES, California – Two brothers from San Jacinto have pleaded guilty to federal weapons charges related to nearly three dozen machineguns, as well as short-barrel shotguns and silencers, that were found at their residence by authorities conducting an investigation in another matter.
Alfred Arviso, 35, and Nathaniel Arviso, 33, each pleaded guilty yesterday in federal court to one count of illegally possessing machine guns.
The cache of weapons at the Arvisos’ residence was discovered by Riverside County Sheriff’s Department on May 15 during the execution of a search warrant in an unrelated investigation. During the search, law enforcement discovered 33 machineguns (which includes 15 short-barrel rifles), another seven short-barrel rifles that were not automatic weapons, and eight silencers without serial numbers.
“Federal law strictly regulates firearms that have a high potential for causing mass casualties, such as automatic weapons that can fire multiple rounds with one trigger pull,” said United States Attorney Eileen M. Decker. “The cache of dangerous weapons found in this case could have made their way into the hands of criminals, endangering public safety.”
Alfred Arviso, who was remanded into custody yesterday after pleading guilty, is scheduled to be sentenced by United States District Judge S. James Otero on February 27, 2017. Nathaniel Arviso, who remains free on bond, is scheduled to be sentenced on March 6. At sentencing, each brother faces a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Riverside County Sheriff’s Department.
This case is being prosecuted by Assistant United States Attorney Julius J. Nam of the Riverside branch office.
Houston Pharmacist Pleads Guilty to Role in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
Nermin Awad El-Hadik, 40-year-old owner of Hope Pharmacy, Inc. in Houston, faces up to five years in federal prison and has agreed to pay more than $5 million restitution after pleading guilty to paying kickbacks in a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr.
Appearing before U.S. Magistrate Judge Andrew Austin yesterday afternoon in Austin, the Houston resident pleaded guilty to a one count Information charging her with willful offer and payment of illegal remuneration in relation to a federal health care program. By pleading guilty, El-Hadik admitted that from March 2015 to December 2015, she paid kickbacks totaling $5,334,303.04 to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs. El-Hadik paid Craighead cash for patient referrals of federally-insured employees in need of prescription services; and, for his influence in encouraging physicians to prescribe compounded medications for patients, which would then be furnished at Hope Pharmacy.
El-Hadik remains on bond pending sentencing before U.S. District Judge Sam Sparks in Austin. No sentencing date has been scheduled.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
Houma Postal Worker Pleads Guilty to Bribery and Houma Man Pleads Guilty to Drug DistributionRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr., announced that on Tuesday, EBONIE SMITH, age 37, of Houma, pled guilty to one counts of bribery of a public official, and DARNOLD DEVILLE, age 50, of Houma, pled guilty to one count of conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, in January 2015, DEA agents began investigating a drug-trafficking organization based in Terrebonne Parish that obtained methamphetamine through sources of supply in Texas and in California, including through the mail. Upon his arrest on December 10, 2015, DEVILLE was in possession of 84 grams of methamphetamine and a digital scale. Between August and October 2015, SMITH, in exchange for cash payments, used her employment with the United States Postal Service to facilitate the shipment and delivery of parcels, which contained methamphetamine, to other members of the same conspiracy in Terrebonne Parish.
DEVILLE, who was charged by Bill of Information with a prior conviction for a felony drug offense, faces a mandatory minimum sentence of 20 years in prison, a maximum sentence of life in prison, at least 10 years of supervised release after the term of imprisonment, a fine of up to $20,000,000, and a mandatory special assessment of $100. SMITH faces a sentence of up to 15 years in prison, up to 3 years of supervised release after the term of imprisonment, a fine of up to $250,000, and a mandatory special assessment of $100. U.S. District Court Judge Jay C. Zainey will sentence both DEVILLE and SMITH on February 7, 2017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Nicholas D. Moses, James S. C. Baehr, and André Jones are in charge of the prosecution.
Hamburg Man Sentenced for Sinking A Boat in the Black Rock CanalRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Paul E. Van Voorhees, 56, of Hamburg, NY, who was convicted of obstruction of waterways, was sentenced to one year of probation and ordered to pay restitution in the amount of $6,416.50 to the United States Coast Guard by U.S. Magistrate Judge Michael J. Roemer.
According to Assistant U.S. Attorney Aaron J. Mango, who handled the case, the defendant was the Dock Master at the Buffalo Yacht Club and was responsible for maintenance of the buildings, grounds, and marina. On November 5, 2015, Van Vorhees and another employee of the Buffalo Yacht Club towed a damaged 13’ aluminum row boat that had been floating in the water in front of the Buffalo Yacht Club into the Black Rock Canal. After reaching a certain location in the canal, the defendant released the boat into the canal with the intention of sinking it in the canal. A witness alerted the United States Coast Guard (USCG). During an initial interview with USCG personnel, Van Voorhees denied releasing the boat into the canal. The boat was eventually recovered by the USCG from the Black Rock Canal. In a subsequent interview on December 23, 2015, the defendant admitted that he attempted to sink the boat in the canal.The sentencing is the culmination of an investigation by the United States Coast Guard, Buffalo Sector, under the direction of Captain Brian Roche, and by the Coast Guard Investigative Service, Buffalo Resident Agent Office, under the direction of Resident Agent in Charge Cindy C. Buckley.
Gun License “Expediter” Pleads Guilty in Manhattan Federal Court to Bribery in Connection with NYPD-Issued Gun LicensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALEX LICHTENSTEIN, a/k/a “Shaya,” pled guilty to bribery and offering a bribe in connection with his efforts to pay bribes to obtain gun licenses through the New York City Police Department’s (“NYPD”) License Division. LICHTENSTEIN pled guilty before United States District Judge Sidney H. Stein today.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, Alex Lichtenstein acted as a corrupt gun ‘expediter,’ bribing police officers to obtain gun licenses, offering thousands of dollars per license. In a recorded conversation, Lichtenstein bragged of using his NYPD connections to obtain 150 gun licenses. This type of corruption not only undermines public confidence in law enforcement, but it undermines public safety. And it cannot be tolerated. I thank the FBI and the NYPD for their dedication and commitment to this case and this important investigation.”
According to the Complaint and Indictment filed in Manhattan federal court and statements made during the plea proceeding:
LICHTENSTEIN is a member of the Borough Park Shomrim, a volunteer, ostensibly unarmed, Orthodox Jewish patrol society whose mission includes combating criminal activity and locating missing people. LICHTENSTEIN ran a business charging clients thousands of dollars to expedite their gun license applications. LICHTENSTEIN charged his clients as much as $18,000 per gun license.
In April 2016, LICHTENSTEIN approached an officer for the NYPD and offered the officer cash bribes in order for the officer to help LICHTENSTEIN obtain gun licenses for LICHTENSTEIN’s customers from the NYPD’s License Division. The License Division is responsible for reviewing, investigating, and approving or disapproving all applications for gun licenses in New York City. The License Division receives approximately 5,000 applications for gun licenses per year. LICHTENSTEIN told the officer that he charged customers thousands of dollars to help obtain License Division approval for their gun license applications, and that he was able to get the licenses approved using his own connections in the License Division, although those connections had recently cut him out.
The officer did not agree to assist LICHTENSTEIN, and reported the encounter to the NYPD Internal Affairs Bureau (“IAB”). Working with the Federal Bureau of Investigation (“FBI”) and IAB, the officer set up and recorded a meeting with LICHTENSTEIN, at which LICHTENSTEIN offered the officer $6,000 per license application that the officer could help get through the License Division. In that recorded meeting, LICHTENSTEIN told the officer that he had obtained gun licenses for approximately 150 individuals in the past, and that his customers needed his services because the License Division would otherwise reject applications “for the biggest stupidity,” such as a history of moving violations. LICHTENSTEIN boasted that he was able to use his connections in the License Division to “expedite” the application process, i.e., to forego the full investigation typically conducted before the NYPD License Division approves or disapproves an application. The officer asked LICHTENSTEIN if his previous connections in the License Division were making money, to which LICHTENSTEIN responded, “now they cut down, now nobody’s making money.”
In fact, LICHTENSTEIN had substantial connections to a sergeant in the License Division, David Villanueva, who had worked at the License Division for more than a decade. A Commanding Officer at the NYPD with whom Villanueva was friendly introduced LICHTENSTEIN to the License Division and Villanueva in or about 2013. From that introduction through early 2016, LICHTENSTEIN spent significant time at the License Division with Villanueva, often on a near daily basis. From at least 2012 through 2016, LICHTENSTEIN gave Villanueva cash bribes and other benefits to pay for Villanueva’s work in expediting and approving gun license applications for LICHTENSTEIN’s clients. Richard Ochetal, a police officer who worked under Villanueva, did first-level review of many of these applications and was instructed to approve them. Ochetal was compensated in the form of some of the cash that LICHTENSTEIN gave to Villanueva. Villanueva[1] is currently charged in a case pending before Judge Stein, and Ochetal pled guilty to accepting bribes in exchange for the approval of gun license applications, and is cooperating with the Government in the investigation.
In reviewing and approving applications for LICHTENSTEIN’s clients, Villanueva and Ochetal omitted some of the required checks, such as criminal history checks, and in other instances ran checks only after they approved licenses. They also approved applications despite red flags that, had they not been bribed, may have led those applications to be rejected. For example, they approved applications of individuals with prior arrests and previous allegations of domestic violence. In addition, Villanueva and Ochetal approved applications for licenses to carry firearms, which require certain business-related justifications, in scenarios were there was no real business justification for the request. A review of the applications of LICHTENSTEIN’s clients reveals that Villanueva and Ochetal were able to secure licenses for those clients often within weeks, whereas the process normally takes months to, in some instances, over a year. Villanueva and Ochetal did this for LICHTENSTEIN’s clients because of the cash payments coming from LICHTENSTEIN, as well as other benefits, such as limousine rides, bottles of liquor, and a wine tour.
* * *
LICHTENSTEIN, 44, who now resides in Pomona, New York, has pled guilty to one count of bribery, which carries a maximum term of 10 years in prison, and one count of offering a bribe, which carries a maximum term of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the NYPD Internal Affairs Bureau, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kan M. Nawaday, Russell Capone, Martin S. Bell, and Lauren Schorr are in charge of the prosecution.
[1] Villanueva was charged in an indictment unsealed on June 20, 2016, with one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. The charges against Villanueva are merely accusations, and he is presumed innocent unless and until proven guilty.
Former U.S. Representative Aaron Schock Indicted for Fraud, Theft of Government Funds, False Statements and Filing False Income Tax ReturnsRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury returned an indictment today charging former U.S. Representative Aaron Schock with allegedly defrauding the federal government and his campaign committees and covering it up with false and fraudulent statements, claims and invoices.
“I appreciate the time and attention that the grand juries have given this matter, to thoroughly review the facts and the evidence and to reach this decision,” said U.S. Attorney Jim Lewis, Central District of Illinois. “These charges allege that Mr. Schock deliberately and repeatedly violated federal law, to his personal and financial advantage. Mr. Schock held public office at the time of the alleged offenses, but public office does not exempt him or anyone else from accountability for alleged intentional misuse of public funds and campaign funds.”
According to allegations in the 24-count indictment, from as early as 2008, and continuing to at least October 2015, Schock, 35, of Peoria, engaged in a scheme to defraud the government, his campaign committees, and others for his direct personal benefit and for the benefit of others. Schock allegedly repeatedly submitted and caused false and fraudulent claims, invoices, and vouchers to be submitted to the U.S. House of Representatives (House) for payment from his Member’s Representational Allowance and from funds of his campaign committees: Schock for Congress (SFC); Schock Victory Committee (SVC); and GOP Generation Y Fund (Gen Y).
Schock allegedly generated income to himself, which resulted in a loss of more than $100,000 to the government, Schock’s campaign committees, and others. In addition, Schock is charged with filing false federal income tax returns for tax years 2010 through 2015, for failure to report additional income he received.
Several of the alleged instances of fraud from the indictment are summarized below:
- From as early as 2008 and continuing to about October 2014, Schock received total mileage payments from the House and his campaign committees of approximately $138,663, for official and campaign-related travel. Assuming all of the miles driven on Schock’s vehicles were official and campaign-related, and no personal miles were driven during this time period, Schock allegedly caused the House and his campaign committees to reimburse him for approximately 150,000 miles more than the vehicles were actually driven.
- In July 2014, Schock caused Schock for Congress to purchase a new 2015 Chevrolet Tahoe for him at a total cost of $73,896. Schock then caused the Tahoe to be titled in his name. To accomplish the purchase, Schock caused SFC to purchase his used 2010 Tahoe from him for $31,621. He then caused SFC to trade in the 2010 Tahoe with a $26,000 used car or trade-in allowance, and wrote a SFC check to the dealership for $73,896, thus causing a loss to SFC. As part of the scheme, and to conceal and cover it up, Schock allegedly caused SFC to file a false report with the Federal Election Commission (FEC) that the entire $73,896 payment was for a transportation expense of SFC rather than the purchase of a vehicle for Schock’s exclusive use. Schock allegedly made no effort to reimburse SFC for his personal use of the 2015 Tahoe.
- Schock allegedly caused the House to fraudulently reimburse him $29,021 for his September 2014 purchase of camera equipment. The equipment was for his use and the use of a congressional and campaign staff member who was also his personal photographer and videographer. In November 2014, Schock allegedly instructed the staff member to create and submit a false invoice for ‘multimedia services’ to Schock’s congressional office. After various changes to the invoice, it was submitted to the House, which authorized payment of $29,021 to the staff member. The funds were deposited in the staff member’s bank account and were later used by the staff member to make direct payments to Schock’s personal credit card account for the camera equipment purchase.
- In late 2013, Schock allegedly accused a former staffer of inappropriately accessing a friend’s social media account and falsely advised the former staffer that the FBI and Capitol Police were investigating the matter. As a result of Schock’s accusation and false representation, the former staffer retained a lawyer and incurred legal fees of more than $10,000, which were paid by the former staffer’s father. Schock later acknowledged that his allegation of a law enforcement investigation of the matter was false and after being confronted by the former staffer’s father, agreed to reimburse the former staffer’s father for $7,500 of the legal fees. In February 2014, Schock allegedly wrote a check for $7,500 payable to the former staffer’s father. In April 2014, Schock had his political director issue a check from Gen Y to him in the amount of $7,500, which was falsely reported to the FEC as payment to a Washington D.C. attorney for legal fees incurred by Gen Y. In addition, Schock allegedly caused Gen Y to pay legal expenses that he personally incurred, and to file additional false reports with the FEC that the payment was for Gen Y’s legal fees.
- In November 2014, Schock hired an Illinois decorator, who in 2010 had decorated Schock’s Peoria apartment and Cannon congressional office, to redecorate and provide furnishings for his Rayburn congressional office at a cost of approximately $40,000, including a $5,000 chandelier. Schock allegedly caused vouchers and claims to be submitted to the House totaling $25,000 to be paid to the decorator. In the submission of the vouchers and claims, Schock allegedly made false representations that the claims were, “for services to assist the member in setting up our district and DC offices” and, “includes using materials from our district and rearranging/designing/structuring the space to best suit the member and staff’s needs.” In addition, Schock caused his three campaign committees to pay a total of approximately $8,263 in additional costs for carpentry, paint, and travel and lodging expenses for the decorator/designer, who provided no product or service to these committees.
A summons will be issued to Schock by the U.S. Clerk of the Court for a date when Schock is to appear in federal court in Springfield for initial appearance and arraignment.
Assistant U.S. Attorney Timothy A. Bass and First Assistant U.S. Attorney Patrick D. Hansen are prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are being investigated by the FBI, Springfield Division; IRS Criminal Investigations; U.S. Postal Inspection Service, Chicago Division; FDIC Office of Inspector General; and the Illinois State Police. These agencies participate in the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force.
U.S. Attorney Lewis thanked the investigative agencies and commended their respective agents who he said, “have worked long, hard and well to present this matter fairly.”
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The table below lists the counts charged in the indictment and the maximum statutory penalty for each respective charge.
Number of Counts
Charge
Maximum Statutory Penalty
Nine
Wire Fraud
20 years in prison
Five
Falsification of Federal Election Commission Filings
20 years in prison
One
Mail Fraud
20 years in prison
One
Theft of Government Funds
10 years in prison
Two
False Statements
5 years in prison
Six
Filing False Federal Income Tax Returns
3 years in prison
Former St. Joseph School Superintendent Sentenced for $662,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former superintendent of the St. Joseph School District and former president of the Board of Education was sentenced in federal court today for a fraud scheme in which he received more than $662,000 in pension payments to which he was not entitled.
Danny L. Colgan, 70, of St. Joseph, Mo., was sentenced by U.S. District Judge Dean Whipple to one year and one day in federal prison without parole. Colgan also made a final payment of $608,257 today to complete his court-ordered restitution.
Colgan, who pleaded guilty to one count of wire fraud on June 13, 2016, was the superintendent of the St. Joseph School District from July 1, 1992, until his retirement on Dec. 31, 2005. Colgan was entitled to retirement benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS) with the amount of the retirement benefits based upon his highest consecutive three years of reported salary.
Colgan admitted that he caused others to falsely report his salary to the PSRS in order to increase his retirement benefits. Colgan knew that the salary figures he caused the school district to submit to PSRS on his behalf included fringe benefits and other payments to Colgan that were not eligible to be counted as salary under state statutes.
This fraud scheme began during the 1997-98 school year and lasted for eight years, until Colgan’s retirement. Colgan’s retirement benefits were calculated by using the amounts reported by the school district over the final three-year period before he retired.
During that final three-year period, the school district falsely reported that Colgan’s salary totaled $586,030. In reality, his salary totaled $343,286 – a difference of $242,744. As a result of the false statements to the PSRS, the school district made excess payments in the amount of $14,652 to the PSRS from 2003 through 2005, and Colgan was paid excess benefits that totaled $677,313 over a 10-year period.
Colgan’s salary reported for his final three years as school superintendent improperly included the following:
- Car Allowance/Travel Stipend: The $9,600 car allowance/travel stipend was a fringe benefit that was ineligible for retirement salary calculation purposes;
- Family Insurance Premiums: The family insurance benefits/premiums paid by the district of $5,225, $5,603, and $6,258 were fringe benefits that were ineligible for retirement salary calculation purposes;
- District Contribution to Taxable Annuity: The district payment for the school year 2004-2005 of $25,000 to purchase a taxable annuity for the superintendent was ineligible for retirement salary calculation purposes;
- “District Vehicle” Payments: In the final three years, the school district reported “District Vehicle” payments of $11,300, $11,300, and $28,975. The “District Vehicle” payments were separate from the $800 per month car allowance payments (described above). The “District Vehicle” payments were fringe benefits that were ineligible for retirement salary calculation purposes; and
- Unused Vacation Payment: An unused vacation payment in June 2005 of $10,820 was a fringe benefit that was ineligible for retirement salary calculation purposes.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Former Scott Credit Union Commercial Loan Officer Sentenced to Prison on Convictions for Fraud, Misapplication, Money Laundering and False ReportRead the Press Release
Theodore J. Longust, age 51, formerly from Columbia, Illinois, was sentenced to a total of 121 months in prison as a result of his convictions in a nine-count Indictment charging: Count 1: Financial Institution Fraud; Counts 2 - 5: Misapplication of Funds; Counts 6 - 8: Money Laundering; and Count 9: Making a False Record to Scott Credit Union With The Intent to Deceive, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Theodore J. Longust was an employee of Scott Credit Union in the commercial loan department from November 7, 2005 continuing through December 8, 2014 and held the title of Business Relationship Manager. Theodore J. Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security, and the issuance of letters of credit without the required documentation and security. He also knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000. There was evidence at sentencing that the overall loss to Scott Credit Union, which included criminal and civil losses, was approximately $25.8 million. Criminal direct losses were
determined to be $13,719,947.21. The Court ordered Longust to pay restitution of $5,012,362.52 to Scott Credit Union and $9,114,560.69 to CUMIS Mutual, the bonding company for Scott Credit Union. The safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct. The successful prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigation with the assistance of Scott Credit Union. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Former Robeson County Attorney/Onslow County Real Estate Developer Sentenced to 17 Years for Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in federal court, JOSEPH HAL KINLAW, JR., 64, of Bald Head Island, North Carolina, was sentenced to 17 years in prison for Bank Fraud. KINLAW was also ordered to serve 3 years of supervised release following imprisonment, and to pay $23,796,372 in restitution to the victims of his offense.
Based upon the Criminal Information and evidence offered at the time of KINLAW’s sentencing, KINLAW was a licensed North Carolina attorney who operated various alleged real estate investment and development entities on behalf of investors in the Hubert area of Onslow County. KINLAW used the entities to obtain real estate development loans from Branch Banking and Trust (BB&T), and First Citizens Bank. BB&T and First Citizens Bank extended loans to these entities under the auspices that the entities would be engaged in the development of residential real estate in various subdivisions in the area of Camp Lejeune in Onslow County.
Between 2004 and April of 2013, KINLAW used the real estate development entities to defraud BB&T and First Citizens Bank by falsifying the legal descriptions of the loan collateral, and by falsifying releases of the collateral. By drafting a false legal description of the property, KINLAW was able to use the collateral for other real estate investment activities and loans. By fraudulently releasing the banks’ collateral before the banks’ loans had been satisfied, KINLAW was able, in several instances, to convey the collateral to third parties for value and continue the scheme.
To perpetuate the scheme and prevent its discovery, KINLAW also used outside funds, that is, funds unrelated to the real estate development activity that was the subject of each loan, to make ongoing loan interest payments to BB&T and First Citizens Bank. In some instances, KINLAW used loan proceeds on one transaction to make loan interest payments on another transaction. In other instances, KINLAW fraudulently extracted funds from other investors and their business interests to make payments on the loans. Numerous victims spoke at the sentencing concerning how KINLAW had harmed them.
Ultimately, banks stopped loaning money to KINLAW and his related companies and investors. As a result, the existing loans went into default. Because KINLAW had substituted false legal descriptions of bank collateral, and fraudulently conveyed bank collateral, BB&T and First Citizens Bank were unable to capture their loan losses in foreclosure. Various title insurance companies and investors also lost substantial funds to due to the scheme. While the exact amount of the loss remains the subject of investigation, losses are presently anticipated to exceed $18 Million.
The investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represented the United States.
Former Redflex CEO Sentenced to 30 Months for Corruption in the Awarding of Chicago’s Red-Light Camera ContractsRead the Press Release
CHICAGO — The former chief executive of Chicago’s first red-light camera vendor was sentenced today to 30 months in federal prison and over $2 million in restitution for paying bribes to a city official to help procure the contracts.
As the CEO of Redflex Traffic Systems Inc., KAREN FINLEY would funnel cash and other financial benefits to the city official, JOHN BILLS, and his friend, MARTIN O’MALLEY, in exchange for improper assistance in awarding city red-light camera contracts to Redflex. The benefits included golf trips, hotels and meals, as well as hiring O’Malley as a highly compensated contractor for Redflex, some of which compensation was passed on to Bills.
The benefits flowed for nearly a decade, during which time the city expanded the Digital Automated Red Light Enforcement Program by awarding millions of dollars in contracts to Phoenix-based Redflex.
Finley, 57, of Cave Creek, Ariz., pleaded guilty last year to one count of conspiracy to commit bribery in a federal program. U.S. District Judge Virginia Kendall imposed the sentence in federal court in Chicago.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
All three defendants in the federal case have now been convicted and sentenced. Bills was sentenced in August to ten years in prison, while O’Malley was sentenced in September to six months in prison.
Redflex’s technology uses cameras to automatically record and ticket drivers who run red lights. The company was awarded its first contract with the city of Chicago in 2003. Over the next eight years, Bills used his influence as a transportation official to expand Redflex’s business with the city, resulting in millions of dollars in contracts for the installation of hundreds of red-light cameras.
Finley hired O’Malley as a contractor to ensure that Bills would continue to provide assistance to Redflex in obtaining and expanding contracts with the city. Finley personally signed O’Malley’s contract, which included provisions for lucrative increases in O’Malley’s compensation as new cameras were added. O’Malley testified at Bills’ trial that O’Malley often stuffed money he received from Redflex into envelopes and gave it to Bills during meals in Chicago restaurants. O’Malley also used some of the Redflex money to purchase and pay all expenses on a condo in Arizona that Bills used as his own.
The government is represented in the case by Mr. Fardon and Assistant U.S. Attorneys Laurie Barsella and Timothy Storino.
Former President of the Venezuelan Soccer Federation Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier this morning in federal court in Brooklyn, Rafael Esquivel, the former president of the Venezuelan soccer federation, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy, and three counts of money laundering conspiracy in connection with his participation in multiple bribery schemes related to the awarding of contracts for the media and marketing rights to international soccer tournaments. Esquivel, the president of the Venezuelan soccer federation from 1988 to 2015, was also a vice president of CONMEBOL, the South American soccer confederation, at the time of his arrest on May 27, 2015. As part of his plea, Esquivel also agreed to forfeit over $16 million. At sentencing, Esquivel faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Esquivel was involved in multiple criminal schemes involving the payment of and agreement to pay millions of dollars in bribes from sports marketing companies in connection with, among other things, the sale of media and marketing rights to soccer tournaments. These tournaments included the Copa Libertadores, South America’s premier club team tournament, and the Copa América, which features the men’s national teams of CONMEBOL’s 10 member associations as well as two national teams invited to participate from outside the CONMEBOL region. As part of his involvement in the criminal schemes, Esquivel used his influence as a soccer official to obtain millions of dollars in bribe payments from co-conspirators who sent the payments from overseas banks accounts into accounts Esquivel controlled at banks in the United States.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Samuel P. Nitze, M. Kristin Mace, Tanya Hajjar, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
RAFAEL ESQUIVEL
Age: 70
Nationality: VenezuelaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Long Beach Firefighter Pleads Guilty to Underground Disposal of SewageRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – November 10, 2016
SAN DIEGO – A former Long Beach firefighter pleaded guilty in federal court today to conspiring to illegally dispose of sewage underground, in violation of the Safe Drinking Water Act.
Kyle Vestermark admitted that he and the company he owned, Dunes Edge Storage, illegally discharged sewage from recreational vehicles (RVs) stored at Dunes Edge Storage in Brawley, California, as well as another location, Dunes Toy Storage in Holtville, California, without a permit from June of 2004 through April of 2015.
Vestermark acknowledged that he and his company obtained a permit in 2004 for a 10,000 gallon holding tank for RV sewage at the Dunes Edge location from the Imperial County Public Health Department, which specifically prohibited the installation of underground leach lines (an issue which Vestermark had raised during the permitting process). Vestermark further admitted that he also obtained a Conditional Use Permit from the Imperial County Planning Department in 2005 from the Imperial County Planning Board for the Dunes Toy Storage location in Holtville, which also specifically prohibited the installation of underground leach lines for the disposal of the RV sewage. The permits required Vestermark to hire a septage firm to pump out the RV sewage from the holding tanks and dispose of it at a wastewater treatment plant.
In spite of the specific prohibitions, Vestermark admitted that he used heavy equipment in 2005 and 2006 to install underground leach lines at both locations which would permit the RV sewage to leach out underground for disposal. Vestermark admitted that he used heavy equipment himself to install the leach lines, and hit the water table when installing the dump station at the Dunes Edge location – meaning that the sewage would contaminate the local water supply. The leach lines were removed in 2015 after Vestermark’s actions were discovered by Imperial County authorities. Vestermark also agreed to forfeit up to $200,000, if determined by the court to be the proceeds of the offense.
U.S. Magistrate Judge Barbara L. Major set a sentencing hearing February 17, 2017 at 9:30 a.m.
DEFENDANTS
Dune Edge Storage, LLC Incorporated: 2006 Brawley, California
Kyle Vestermark Age: 46 Long Beach, California
SUMMARY OF CHARGES
Count 1
Conspiracy to Illegally Discharge Sewage – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine ($500,000 for a corporation)
Counts 2-8
Unlawful Injection of Sewage – Title 42, U.S.C., Section 300h-2(b)(2)
Maximum Penalty – 3 years in prison and a $250,000 fine
AGENCY
U.S. Environmental Protection Agency, Criminal Investigation Division; Bureau of Land Management, Office of Law Enforcement
Former Kearney Probation Officer Sentenced to Prison for Civil Rights ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Peterson, age 57 of Kearney, Nebraska, was sentenced by the Honorable Richard G. Kopf, Senior United States District Judge, to nine years in prison to be followed by 5 years of supervised release following his conviction on four counts of violating the civil rights of female probationers under his supervision and one count of lying to the FBI when he submitted to an interview about the matter. Peterson was convicted in July by a federal jury sitting in Lincoln, Nebraska. The sentence imposed was the maximum the court could impose. Peterson was ordered to self-surrender at the facility designated by the Bureau of Prisons no later than January 9, 2017.
Evidence introduced at trial established that Peterson was a state probation officer with the District 9 probation office in Kearney. He supervised a caseload made up of offenders in need of intensive supervision. The jury heard evidence that from approximately 2010 through January of 2014, Mr. Peterson subjected four female probationers to unsolicited and non-consensual sexual contact. The jury also heard from three other women who had been supervised by Mr. Peterson who reported sexually charged advances or comments from Mr. Peterson which did not progress to the level of sexual contact. The jury found that Peterson had violated the civil rights of the four probationers by intruding into their constitutional rights to bodily integrity.
This matter was investigated by the Federal Bureau of Investigation.