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4 January 2017
Previously Convicted Felon Pleads Guilty to Fraud Charge, Admits Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VOLOSHIN, 60, formerly of New Haven and Woodbridge, pleaded guilty today in Hartford federal court to one count of wire fraud and also admitted to violating a condition of his federal supervised release.
On May 17, 2012, U.S. District Judge Robert N. Chatigny sentenced VOLOSHIN to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders. As part of the schemes, VOLOSHIN forged signatures and used fabricated bank account statements, tax returns, mortgage releases and loan applications. VOLOSHIN was released from prison on May 16, 2014, and began serving a three-year term of supervised release.
Shortly after his release from prison, in an attempt to gain permission from the U.S. Probation Office to travel to London, VOLOSHIN repeatedly lied to and misled his supervising probation officer by concocting a bogus job for a real estate concern in London. On November 7, 2014, Judge Chatigny sentenced VOLOSHIN to an additional nine months of imprisonment and 27 months of supervised release for violating the terms and conditions of his federal supervised release.
VOLOSHIN was released from prison on June 8, 2015, and began serving his 27-month term of supervised release.
According to court documents and statements made in court, beginning in the fall of 2015, VOLOSHIN engaged in another fraud scheme by soliciting money from individuals and representing that the money would be fully invested to generate very high returns. Although VOLOSHIN did invest some of the victims’ money, he used substantial portions of the victims’ money for personal expenses, including a $20,000 payment toward a luxury apartment in Manhattan, and for plastic surgery, fine dining, retail shopping and alcohol.
VOLOSHIN has been detained since his arrest on May 26, 2016.
VOLOSHIN pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000. He also admitted to one violation of the terms and conditions of his federal supervised release, which carries a maximum term of imprisonment of two years. He is scheduled to be sentenced by Judge Chatigny in Hartford on May 4, 2017.
The matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and David T. Huang.
Pair Sentenced on Federal Methamphetamine ChargesRead the Press Release
Abingdon, VIRGINIA – A pair of men, who conspired with others to traffic ICE methamphetamine into Southwest Virginia for further distribution, were sentenced today in the United States District Court for the Western District of Virginia, United States Attorney John P. Fishwick Jr. announced.
Roger Coley, 60, of Rossville, Ga., previously pled guilty to one count of conspiring to possess with the intent distribute ICE methamphetamine. Today in District Court, Coley was sentenced to 57 months in federal prison.
Also in District Court today, Randall Nelson Doss, 52, of Chattanooga, Tenn., who previously pled guilty to one count of conspiring to possess with the intent to distribute ICE methamphetamine, was sentenced to 84 months in federal prison.
“This conspiracy brought large quantities of a very potent form of methamphetamine into Southwest Virginia and preyed upon the addictions of others,” United States Attorney Fishwick said today. “Law enforcement in this case worked cooperatively to dismantle this conspiracy and bring these defendants to justice.”
According to evidence presented at previous hearings, Coley and Doss assisted in a conspiracy to traffic ICE methamphetamine from Tennessee into Virginia. Specifically, Coley and Doss supplied ICE methamphetamine to co-conspirators Mike Warren, Summer Delp, Kevin Roark, Tim Montgomery, and others, who would typically travel from Virginia to Tennessee to purchase the methamphetamine. Once the methamphetamine arrived in Virginia, the group would further distribute the drug.
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; United States Marshals Service; and Virginia State Police. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jonathan May, 49, of Omaha, Nebraska, was sentenced on January 4, 2017 in Lincoln, Nebraska, to 48 months in prison by Senior United States District Judge Richard G. Kopf, for possession of child pornography. After his release from prison, May will also serve five years of supervised release and be required to register as a sex offender.
Investigators of the Nebraska Attorney General’s Office, observed an IP address belonging to the Defendant, making files available for sharing. On June 18, 2014, a search warrant was obtained from the Cass County Court and served at the defendant’s address in Plattsmouth, Nebraska. Investigators made contact with the defendant. After a forensic examination of May’s computer, Investigators were able to verify that over 500 video files which depicted minors, including prepubescent minors, engaging in sexually explicit conduct. Contained within the total number were 14 known series of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska Attorney General’s Office.
Oklahoma Medical Clinics Agree to Pay $315,000 to Settle Allegations of False Claims for Medical Services Provided to Federal EmployeesRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey, United States Attorney for the Western District of Oklahoma, announces that REHABILITATION MEDICINE OF OKLAHOMA, PLLC and BCOT, PLLC dba REHABILITATION MEDICINE OF OKLAHOMA – TULSA have paid $315,000 to settle civil claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the Office of Workers Compensation Programs of the United States Department of Labor ("DOL-OWCP").
Rehabilitation Medicine of Oklahoma, PLLC and BCOT, PLLC dba Rehabilitation Medicine of Oklahoma – Tulsa ("RMO") are Oklahoma professional limited liability companies that operate medical clinics in Oklahoma City and Tulsa. RMO provided medical services to federal employees under the Federal Employees’ Compensation Act (FECA). FECA provides compensation benefits to civilian employees of the United States for disability due to personal injury sustained while in the performance of duty, and for employment-related disease. Benefits include rehabilitation, medical, surgical and necessary expenses. Claims for services provided under FECA are submitted to DOL-OWCP.
The United States contends that from December 8, 2010, through December 31, 2012, RMO submitted false claims for payment to DOL-OWCP. Specifically, it is alleged that RMO submitted claims to DOL-OWCP for medical services furnished to federal employees of nine federal agencies that were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.
In order to resolve the allegations brought by the United States, RMO has paid $315,000.
In reaching this settlement, RMO did not admit liability and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
New York Man Sentenced 15 Years in Prison for Participating in Oxycodone Distribution Conspiracy and Failing to Appear in CourtRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Manuel Tirado (34) of New York City, was sentenced on Tuesday to serve 15 years in prison for participating in a conspiracy to distribute oxycodone pills and failing to appear in Court.
Court documents and statements in court showed that Tirado was a New York-based source of supply who provided oxycodone pills to a group of drug traffickers who were distributing the pills in Manchester, New Hampshire. During a law enforcement investigation in 2013 and 2014 that included the use of controlled purchases of drugs and multiple wiretaps, investigators learned that Samuel Garcia, Jennifer Nunez, and others were actively involved in the distribution of oxycodone pills. Wiretap conversations revealed that Tirado arranged to supply some of these pills. On multiple occasions, intercepted calls showed that members of the conspiracy (Raul Hernandez and Jose Nunez) traveled to New York, obtained pills from Tirado, and then brought them back to New Hampshire. On one occasion, Jose Nunez was stopped in Massachusetts while transporting $18,900 in cash that was to be used to pay for oxycodone pills that were being supplied by Tirado.
Several targets of the investigation were arrested in Manchester on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash, and three firearms were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Tirado was later indicted on a drug conspiracy charge. On July 23, 2015, he was arrested in New York. He was released on bond by a judge in New York and was directed to appear for an arraignment in federal court in New Hampshire on August 4, 2015. Tirado did not appear in Court and a warrant was issued for his arrest. He was arrested again in New York on August 17, 2015.
Tirado pleaded guilty to the drug conspiracy charge and the failure to appear charge on August 23, 2016.
All of the other individuals who were involved in this conspiracy also have pleaded guilty.
Samuel Garcia (36) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is awaiting sentencing.
Jose Nunez (61) pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). He is awaiting sentencing.
Jennifer Nunez (26) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is awaiting sentencing.
Johanna Nunez (30) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. On June 23, 2015, she was sentenced to 51 months in prison, followed by three years of supervised release.
Raul Hernandez (29) pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. On June 23, 2015, he was sentenced to 48 months in prison, followed by three years of supervised release.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
In addition to these defendants, several additional individuals who obtained oxycodone from this organization and resold it to customers have pleaded guilty to federal drug conspiracy charges. Ryan Demers, William Alba, Bonnie Labrie, Krystal Mailhot, and Yonajaira Galarza Ramos have all entered guilty pleas in federal court.
Demers was sentenced on September 22, 2015, to 57 months in prison, followed by three years of supervised release. That sentence was affirmed on appeal by the United States Court of Appeals for the First Circuit.
Labrie was sentenced on March 11, 2016, to 72 months in prison, followed by three years of supervised release.
Alba was sentenced on June 17, 2016, to 72 months in prison, followed by three years of supervised release.
Mailhot and Ramos are awaiting sentencing.
“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Michael J. Ferguson. “Opiate abuse is a major problem in New Hampshire and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively pursue any group or individual that traffics these drugs.”
U.S. Attorney Rice stated, “Many individuals begin their journey to opiate addiction through oxycodone use. While these pills have a legitimate medical use, the illicit distribution of these potentially addictive drugs has been a significant factor in the development of the opiate crisis that is affecting New Hampshire. The U.S. Attorney’s office will continue to work with the law enforcement community to stop the flow of opiates and opioids onto the streets of New Hampshire. This includes identifying and prosecuting sources who are arranging to bring these dangerous drugs into our state. This office also will take aggressive steps to prosecute those who disregard court orders by failing to appear in court.”
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). 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. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
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Neosho Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography.
Blake Altman, 33, of Neosho, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 16, 2015, federal indictment.
By pleading guilty today, Altman admitted that he received and distributed child pornography over the Internet from Aug. 14 to Oct. 1, 2014. Law enforcement officers executed a search warrant at Altman’s residence after he was identified in an undercover investigation into the distribution of child pornography via peer-to-peer file-sharing software. Undercover officers downloaded images and videos of child pornography from Altman’s computer. Officers seized Altman’s laptop computer, which contained images and videos of child pornography.
Under federal statutes, Altman is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 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 hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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."
Nampa Man Sentenced to 30 Months in Prison for Access with Intent to View Child PornographyRead the Press Release
BOISE – Troy A. Paul, 48, of Nampa was sentenced today in United States District Court to 30 months in prison followed by five years of supervised release for access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced. Paul pleaded guilty on August 16, 2016.
According to the plea agreement, agents with the Department of Homeland Security learned that an electronic device at Paul’s residence viewed images of child pornography on a Russian photo-sharing website several times between January and June of 2014. Further investigation revealed that a device at Paul’s residence received an e-mail in March of 2014 which contained images of child pornography. In February of 2015, agents with the Department of Homeland Security interviewed Paul, who admitted viewing child pornography on the Russian photo-sharing website, and receiving images of child pornography in his e-mail account. Paul admitted viewing images of child pornography in his e-mail account approximately 100 times, using an iPhone assigned to him by his employer. In March of 2015, agents with the Department of Homeland Security served a search warrant for the contents of Paul’s e-mail account, and discovered e-mails containing images of child pornography.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the FBI and the Ada County Sheriff’s Office, and 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.”
Nampa Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
BOISE – Fernando Morales, 50, of Nampa pleaded guilty today in United States District Court to sexual exploitation of children, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, officers with the Nampa Police Department contacted Morales at his residence in Nampa on August 23, 2016, after a sixteen-year-old minor living at the residence called 911. The minor victim informed arriving officers that Morales had sexual contact with the minor victim for several years and had nude images of the minor victim on his cell phone. During an interview with Nampa Police detectives, Morales admitted that he had sex with the minor victim on numerous occasions, beginning in approximately June of 2015 in El Paso, Texas. Morales, the victim, and two other children later moved to Nampa in July of 2016. Morales also admitted that he recorded videos and pictures of himself and the minor victim engaged in sexually explicit conduct, and that the videos and pictures were saved on his cell phone.
Nampa Police detectives seized several electronic devices from Morales. The devices were analyzed by a computer forensic agent with the Department of Homeland Security, resulting in the discovery of twenty-three videos and twenty-one still images of the minor victim engaged in sexually explicit conduct. Nineteen of the videos and all of the still images depicted Morales engaged in sexually explicit conduct with the victim. Two of the videos and nine of the still images contained data showing they were produced in the state of Texas, then transported to the state of Idaho.
Sentencing is scheduled before Chief U.S. District Judge B. Lynn Winmill on March 27, 2017. Sexual exploitation of children is punishable by a mandatory minimum 15 years, and up to 30 years imprisonment, a $250,000 fine, not less than five years and up to lifetime supervised release, and a $5,000 special assessment. As part of his plea, Morales also agreed to forfeit two cell phones and a laptop computer used in the commission of the offense.
The case was investigated by the Nampa Police Department and the Department of Homeland Security, with assistance from the Canyon County Prosecutor’s Office, and 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.”
Mineral County man pleads guilty to illegal possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Hawke Anthony Coffman, 26, of Ridgeley, West Virginia, pled guilty to illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Coffman, who had previously been convicted of felony offenses in West Virginia and Maryland, is prohibited from possessing a firearm. He admitted to possessing a .7mm caliber rifle in Hampshire County, West Virginia in November 2015.
Coffman pled guilty to one count of “Felon in Possession of a Firearm.” He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia Division of Natural Resources investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Announces $95 Million Recovery from Deutsche Bank in Fraudulent Conveyance Case Related to Federal Income Tax AvoidanceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced a settlement between the United States of America and DEUTSCHE BANK, A.G., DB U.S. FINANCIAL MARKETS HOLDING CORP., and DEUTSCHE BANK SECURITIES, INC. (“DEUTSCHE BANK”), resolving a civil lawsuit in which the United States alleges that DEUTSCHE BANK participated in a series of transactions that amounted to fraudulent conveyances carried out with the purpose and effect of evading tens of millions of dollars in federal tax liability.
Manhattan U.S. Attorney Preet Bharara said: “Using a web of shell companies and series of calculated transactions, Deutsche Bank sought to escape liability for tens of millions of dollars in taxes. The Government, through this action and settlement, has made Deutsche Bank admit to its actions designed to avoid taxes and pay $95 million to the United States to account for this conduct.”
According to the allegations of the Complaint previously filed by this Office against DEUTSCHE BANK in Manhattan federal court:
In 2000, DEUTSCHE BANK acquired a corporation that held stock with a very low cost basis, meaning that when this stock was subsequently sold, significant taxable income would be incurred. In order to dispose of the stock without paying the taxes that would be due on this transaction, DEUTSCHE BANK entered into a fraudulent plan with a tax shelter promoter. Pursuant to this plan, DEUTSCHE BANK transferred the shares of the acquired corporation to a shell company (“BMY”) created by the promoter, which then transferred the stock back to DEUTSCHE BANK in such a way as to cause the shell company to get stuck with the tax bill. DEUTSCHE BANK and the promoter structured this transaction (the “May 2000 Transaction”) so that the shell company would have little or no assets and would be unable to pay the taxes due. The net result: DEUTSCHE BANK would be able to cleanse the stock of its low cost basis and purport to leave the tax liability with a “taxpayer” – the shell company – that would be unable to pay the tax. Ultimately, this transaction left the shell company BMY with a liability of more than $52 million in taxes, plus interest and penalties.
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Pursuant to the Settlement Agreement approved today by the United States District Court for the Southern District of New York, DEUTSCHE BANK agrees to pay the United States $95 million to resolve the claims in the Complaint.
In the Settlement Agreement, DEUTSCHE BANK also “admits, acknowledges, and accepts responsibility for” certain key facts related to the Government’s allegations in the complaint, including the following:
- “DEUTSCHE BANK engaged in the May 2000 Transaction in order to avoid having to pay the built-in tax liability associated with” the stock.
- “Each aspect of the May 2000 Transaction was pre-planned” and “[a]s a result of the May 2000 Transaction, BMY realized substantial taxable gain.”
- “Deutsche Bank knew or, had it made reasonable inquiries, would have known that BMY did not have legitimate tax losses to offset this gain.”
- BMY nonetheless “claimed [to the IRS] that no tax was due because the income was offset by unrelated foreign currency transaction losses” that “were attributable to a tax shelter known as a Currency Option Investment Strategy (‘COINS’) tax shelter.”
- DEUTSCHE BANK itself had “participated in this COINS tax shelter,” and, “[a]s Deutsche Bank admitted in 2010” in a statement of facts accompanying a non-prosecution agreement entered into by this Office’s Criminal Division, “the COINS shelter, in which it participated willfully and knowingly, was a fraudulent tax shelter, and it was unlawful for Deutsche Bank to have participated in the COINS tax shelter.”
- “IRS disallowed [these] claimed foreign currency transaction losses and assessed BMY tens of millions of dollars of tax (plus interest and penalties) resulting from the sale of” the stock.
- “Deutsche Bank knew that BMY had no material assets and no operating business,” and “Deutsche Bank knew or should have known that as a result of the May 2000 Transaction, BMY lacked the funds necessary to pay the substantial taxes resulting from the sale of” the stock.
Mr. Bharara thanked Frederick C. Mutter of the Office of Chief Counsel, Internal Revenue Service, for his extraordinary assistance on this matter.
The case has been handled by this Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorneys Robert William Yalen, Christine S. Poscablo, Natasha Waglow Teleanu, Anthony J. Sun, and Ellen M. London have handled this matter.
- “DEUTSCHE BANK engaged in the May 2000 Transaction in order to avoid having to pay the built-in tax liability associated with” the stock.
Lee's Summit Woman Sentenced for Stealing $5.3 Million from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman was sentenced in federal court today for embezzling nearly $5.3 million from her employer.
Jane Barnes, 54, of Lee’s Summit, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court also ordered Barnes to pay $5,293,300 in victim restitution. Barnes has paid partial restitution by turning over three properties bought and/or improved using proceeds from her fraud scheme, plus her profit sharing account with former employer ACI Boland Architects.
On Aug. 2, 2016, Barnes pleaded guilty to wire fraud, bank fraud and aggravated identity theft.
Barnes began working for ACI Boland Architects, a prominent architecture company in Kansas City, Mo., in 1998 and worked as the office manager from 2008 until her resignation in March 2016. Barnes abused her position of trust as the office manager for ACI Boland in order to enrich herself. Barnes fraudulently stole money from ACI Boland and forged the signature of a principal partner on hundreds of occasions over a 10-year period.
Barnes admitted that she conducted two schemes to defraud and embezzle a total of at least $5,293,300 from ACI Boland.
In Barnes’ first fraud scheme, she used the payroll system to pay herself unauthorized amounts in excess of her approved salary/bonus. Barnes inflated her bi-weekly salary without the authorization of ACI Boland. Barnes admitted that she embezzled at least $1,622,078 in her first scheme, which lasted from at least 2006 until 2011.
In her second fraud scheme, Barnes created unauthorized payroll checks to herself, which did not reflect on her W-2 forms; thus federal income and other taxes were not deducted from her checks through this scheme. Barnes issued 359 unauthorized checks to herself directly from ACI Boland’s payroll account. Barnes signed the checks with the forged signature of one of the principals of ACI Boland and deposited them into her personal bank accounts. Barnes admitted that she embezzled a total of $3,671,222 from ACI Boland in her second scheme, which began in 2010 and lasted until her resignation in March 2016.
Barnes used the stolen money to travel, buy cars, furnish her house, eat out, give money to relatives and generally live well above her means. The investigation revealed Barnes’ spending of the stolen funds included:
- $1,969,210 in various credit card payments;
- $770,393 in transfers to relatives;
- $425,493 in entertainment, retail and travel;
- $424,945 in vehicle expenses, including car loan payments;
- $302,636 in cash and cash equivalents;
- $253,856 in home expenses, excluding mortgage payments;
- $124,412 in taxes
- $119,375 in insurance and medical expenses; and
- $107,683 in restaurant and food expenses.
Under the terms of her plea agreement, Barnes must forfeit to the government $5,293,300, a 2014 Ford F150 Crew Cab Raptor 4WD, a 2014 Ford Explorer Utility 4D Sport 4WD and a 2013 Lincoln MKS, all of which was derived from the proceeds of her fraud.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Justice Department Releases Report on Civil Rights Division’s Pattern and Practice Police Reform WorkRead the Press Release
The Justice Department released a comprehensive report today that provides an overview of the Civil Rights Division’s police reform work under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994.
The report, “The Civil Rights Division’s Pattern and Practice Police Reform Work: 1994-Present,” is designed to serve as a resource for local law enforcement agencies and communities by making the division’s police reform work more accessible and transparent. It examines a range of topics, including the history and purpose of Section 14141, initiation and methodology of pattern-or-practice investigations, negotiation of reform agreements, the current reform model and its rationale, conclusion of agreements and the impact of pattern-or-practice enforcement on police reform and community-police trust. To supplement the report, the division also published an interactive Police Reform Finder, which allows users to search how reform agreements have addressed specific kinds of policing issues.
“Over the years, countless law enforcement officials and community members have requested additional information about the Civil Rights Division’s policing work,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We hope stakeholders find our report and interactive tool useful in our collective efforts to advance constitutional policing, strengthen police-community trust and promote officer and public safety.”
Since 2009, the Civil Rights Division has opened 25 investigations into law enforcement agencies and is currently enforcing 19 agreements, including 14 consent decrees and one post-judgment order.
Police Reform Report
Police Reform Finder
Police Reform AccomplishmentsIraqi Man Who Lied About Being Army Translator Sentenced for Visa FraudRead the Press Release
KANSAS CITY, KAN. - An Iraqi man who falsified his application for a visa by claiming to have worked as a translator for the U.S. Army in Iraq was sentenced Wednesday to two years in federal prison, U.S. Attorney Tom Beall said.
Goran Sabah Ghafour, 35, who lived in Lawrence, Kan., while he was a graduate student at the University of Kansas, pleaded guilty to one count of visa fraud and one count of aggravated identity theft.
In his plea, Ghafour admitted he applied for a visa under a program allowing Iraqi nationals who worked for or on behalf of the U.S. government in Iraq to qualify for a visa. To support a false claim that he worked as a translator for the U.S. Army Ghafour fabricated a letter from an Army officer recognizing his work. In fact, the officer whose name was on the letter did not know Ghafour and did not consent to Ghafour writing the letter.
Beall commended Homeland Security Investigations and Assistant U.S. Attorney Chris Oakley for their work on the case.
Inland Empire Man Pleads Guilty in Wire Fraud Scheme Stemming from Use of Fraudulent Checks Made with Info Stolen from U.S. MailRead the Press Release
LOS ANGELES – A Hemet man pleaded guilty today to a federal conspiracy charge for participating in a scheme in which he and another man used information obtained from stolen mail to create fraudulent checks and identity documents which were used to purchase goods that were later returned to major retail outlets to obtain cash.
Jason William Leonard, 37, pleaded guilty today to conspiracy to commit wire fraud, admitting he participated in a scheme that caused more than $114,000 in losses.
Leonard pleaded guilty before United States District Judge Stephen V. Wilson, who is scheduled to sentence the defendant on March 20.
In a plea agreement filed in United States District Court two weeks ago, Leonard admitted that he conspired with another man – Michael Joseph Tomassacci, 39, of San Jacinto – to create checks that they used in a scheme to purchase merchandise at retail stores with the intent to later return the merchandise for cash. In his plea agreement, Leonard specifically admitted that he and his co-conspirator used personal identifying information from approximately 265 victims to create checks that were used to purchase goods at stores, including Walmarts in Redlands and Santee.
The total intended loss of the conspiracy was more than $250,000, and actual losses totaled $114,565.
“Mail theft is a crime that is much more than an inconvenience for postal customers,” said United States Attorney Eileen M. Decker. “This type of crime leads to identity theft and significant losses to financial institutions and other American businesses.”
Tomassacci is a fugitive being sought by authorities. If you have any information about this fugitive, please contact the: U.S. Postal Inspection Service at 1-877-876-2455 (select Option 2) and reference case number 2026956-MT.
When he is sentenced by Judge Wilson, Leonard will face a statutory maximum penalty of 20 years in federal prison.
This case is being investigated by the United States Postal Inspection Service.
Los Angeles Division Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to bring to justice those responsible for mail theft. Prosecution alone, however, will not solve this problem. That's why Postal Inspectors across the region have teamed up with community leaders to help educate citizens on prevention measures to better secure their mail, helping protect them from financial damage and inconvenience. Concerned citizens who have information related to mail theft or have observed suspicious activity are encouraged to contact the Postal Inspection Service at 1-877-876-2455."
This case is being prosecuted by Assistant United States Attorney Victoria A. Degtyareva of the General Crimes Section.
Husband of Former U.S. Embassy Official in Morocco Sentenced to 30 Months in Prison for Sexually Abusing Household Staff MemberRead the Press Release
The husband of the former Deputy Chief of Mission in Rabat, Morocco, was sentenced today to 30 months in prison for sexually abusing a former household staff member from 2010 to 2013.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Labib Chammas, 65, of McLean, Virginia, pleaded guilty on Oct. 12, 2016, to one count of abusive sexual conduct before U.S. District Judge Christopher R. Cooper of the District of Columbia. Judge Cooper also sentenced Chammas to a five-year term of supervised release and ordered him to pay a $15,000 fine. Chammas is required to register as a sex offender for a period of 15 years.
In pleading guilty, Chammas admitted that between August 2010 and February 2013, while living in State Department-owned housing in Rabat, he sexually abused a woman who had worked at the residence for 16 years. According to the plea agreement, Chammas supervised the staff at the residence and repeatedly threatened to fire staff members. Out of fear that she would lose her job, the victim complied with Chammas’s requests that she massage his legs, hip and back, and then with his subsequent demands that she “massage” his genitalia. On at least five occasions, Chammas took the victim by her head or hair and attempted to force her to perform oral sex.
DSS’s Office of Special Investigations investigated the case. Assistant U.S. Attorney Andrea Hertzfeld of the District of Columbia and Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
Husband of Former U.S. Embassy Official in Morocco Sentenced to 30 Months in Prison for Sexually Abusing Household Staff MemberRead the Press Release
WASHINGTON – The husband of the former Deputy Chief of Mission in Rabat, Morocco was sentenced today to 30 months in prison for sexually abusing a former household staff member from 2010 to 2013.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia, and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Labib Chammas, 65, of McLean, Virginia, pleaded guilty on Oct. 12, 2016, to one count of abusive sexual conduct before U.S. District Judge Christopher R. Cooper of the District of Columbia. Judge Cooper also sentenced Chammas to a five-year term of supervised release and ordered him to pay a $15,000 fine. Chammas is required to register as a sex offender for a period of 15 years.
In pleading guilty, Chammas admitted that between August 2010 and February 2013, while living in State Department-owned housing in Rabat, he sexually abused a woman who had worked at the residence for 16 years. According to the plea agreement, Chammas supervised the staff at the residence and repeatedly threatened to fire staff members. Out of fear that she would lose her job, the victim complied with Chammas’s requests that she massage his legs, hip and back, and then with his subsequent demands that she “massage” his genitalia. On at least five occasions, Chammas took the victim by her head or hair and attempted to force her to perform oral sex.
DSS’s Office of Special Investigations investigated the case. Assistant U.S. Attorney Andrea Hertzfeld of the District of Columbia and Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
Honduran Man Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN ANTONIO GARCIA-PINOTT, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal re-entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court records, GARCIA-PINOTT was found in the United States on October 3, 2016, after having been previously deported.
GARCIA-PINOTT faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Kurt D. Engelhardt set sentencing for April, 12, 2017.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter.
Harrisburg Man Sentenced for Illegally Selling Prescription PainkillersRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Williams, age 55, of Harrisburg, Pennsylvania, was sentenced today to 86 months’ imprisonment by United States District Court Judge Yvette Kane for unlawfully distributing prescription painkillers.
According to United States Attorney Bruce D. Brandler, on March 9, 2015, Williams distributed 50, 10 mg. hydrocodone pills and on March 19, 2015, he distributed 60, 10 mg. oxycodone pills to an individual cooperating with the Drug Enforcement Administration.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Dauphin County Drug Task Force, and the Harrisburg Police Department. Assistant United States Attorney William A. Behe prosecuted the case.
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Former Terrebonne Sheriff’s Detective Sentenced for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr. announced that former Terrebonne Parish Sheriff’s Office (TPSO) Detective DAWN C. FORET, age 38, of Houma, was sentenced today after previously pleading guilty today to a one count Bill of Information for theft of government funds.
U.S. District Judge Sarah S. Vance sentenced FORET to 3 years of probation, restitution of $14,728 to the Louisiana Highway Safety Commission, and a $100 special assessment.
According to the court documents, FORET was charged for improperly overbilling a federally funded law enforcement grant designed to curb underage drinking known as the Juvenile Underage Drinking Enforcement Grant (“JUDE”) for the years 2009 through 2012. The JUDE Grant was funded by the United States Department of Transportation to the Louisiana Highway Safety Commission, which also administered the grant. After receiving the approval to access the grant funds in October of 2009, the TPSO appointed FORET to administer the grant with regards to recruiting volunteers for the overtime work, determining the operations plan, and then writing up the reports from the evening’s work. In sum, this law enforcement grant paid overtime hours for officers to investigate bars and convenience stores to see if they were illegally providing alcohol to minors.
The focus of the inquiry concerned FORET’s billing of the JUDE grant began in the fall of 2010. Starting on November 6, 2010, FORET began including herself in the TPSO police reports/narratives that followed each JUDE operation in a way that suggested that FORET was physically participating in each operation. From that point on, FORET inserted herself into practically every TPSO JUDE grant narrative as being present and she billed for every hour of operation as the other TPSO officers who did the work. In fact, FORET billed for the full time even if the evening’s operation resulted in no summons being issued and the report was essentially a page or two in length. From November 6, 2010, through the end of the grant on July 18, 2012, TPSO conducted 130 JUDE grant overtime operations and FORET’s name appeared on every single police report except for six occasions. FORET admitted in the factual basis that she did not in fact physically participate in any of the JUDE grant operations from November 6, 2010 until the grant expired in July of 2012. The total loss to the grant is $14,728.00.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Edward J. Rivera and Bill McSherry were in charge of the prosecution.
Former Postal Employee Faces Five Years in Federal Prison for Working as a Personal Trainer While Receiving Workers' Compensation Disability BenefitsRead the Press Release
DALLAS — Less than one week before her trial was scheduled to begin in federal court in Dallas, a Grand Prairie, Texas, woman, Andria Victoria Booker, a/k/a Andria Victoria Crosby, 36, pleaded guilty before U.S. District Judge Sidney A. Fitzwater to one count of making false statements or fraud to obtain federal employees’ compensation, announced U.S. Attorney John Parker of the Northern District of Texas.
Booker, who is in custody, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the plea agreement filed in the case, Booker agrees to pay $41,395 in restitution to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP). Sentencing is set for April 21, 2017, before Judge Fitzwater.
In March 2012, Booker claimed she was injured by a dog bite on her finger through a residential mail slot while she was working for the U.S. Postal Service. OWCP accepted her injury claim and began paying her disability benefits.
As part of the OWCP benefits program, a claimant must annually truthfully complete Form EN-1032 that requires a claimant to report employment, self-employment activities, volunteer activities, or any activities that may affect the claimant’s eligibility for payments. Form EN-1032 encompasses all activities for the 15-month period preceding the date of the claimant’s signature.
According to plea documents filed in her case, Booker admits that she did not immediately report to OWCP her employment or employment activity, and she concealed the fact that she was working when she signed and dated Form EN-1032 in September 2014. Booker admits that she worked as a personal trainer at I.T. Fitness in Grand Prairie, Texas, and elsewhere, including forming her own personal training business while she was receiving disability compensation benefits from the OWCP and had stated she did not work. Booker further admitted that she did not report any of her volunteer activities to the OWCP, as she was required to do, when she regularly volunteered for her son’s football program as team representative.
The case was investigated by the U.S. Postal Service Office of Inspector General. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
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Former Joplin Police Officer Sentenced for Civil Rights ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., police officer was sentenced in federal court today for violating the civil rights of a woman he arrested by attempting to get her case dismissed in exchange for a sexual relationship.
Brian Rogers, 30, of Joplin, was sentenced by U.S. Magistrate Judge David P. Rush to three years of probation, including six months of home detention with electronic monitoring.
On Sept. 19, 2016, Rogers pleaded guilty to the misdemeanor charge of deprivation of rights under color of law. Rogers – who was a Joplin police officer at the time – arrested a woman identified in court documents as Jane Doe for driving under the influence in October 2015. She was subsequently charged with DUI by the Joplin Prosecuting Attorney’s Office.
Rogers admitted that he communicated with Jane Doe via texts and Facebook Messenger in December 2015 and offered to get the charge dismissed. Rogers said he would like to see Jane Doe’s body and asked her to send him pictures, which she refused to do. Rogers asked Jane Doe what she was offering and said he wanted her to “show me one hell of a time!” Rogers also asked her to come by his office, which she also refused to do.
On Dec. 28, 2015, Rogers approached city prosecutor Becky Seidl and suggested she dismiss the case. Rogers stated that he had experienced a maintenance issue with the breathalyzer that he had used to take the sample from Jane Doe. Rogers told Seidl they would have a hard time of making the case stick and he was inclined to give Jane Doe the benefit of the doubt.
Seidl told Rogers she agreed and the case would need to be dismissed. After speaking with Rogers, Seidl spoke to police officials, who contacted the FBI. When federal agents interviewed Jane Doe, she agreed to place a recorded phone call to Rogers. During the call Rogers stated he had spoken with the city prosecutor and he believed the charges would be dropped. Rogers also stated he would check up on the status of the case the following day.
On Jan. 25, 2016, federal agents interviewed Rogers. Rogers admitted that he had hoped his actions in helping to dismiss Jane Doe’s case would lead to him and Jane Doe developing a friendship and then a sexual relationship. Rogers had hoped that after getting the charges dropped Jane Doe would meet with him.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Joplin, Mo., Police Department.
Former DHS Employee Sentenced to Prison in Scheme to Steal USDA Funds Intended to Feed Hungry Children & Little Rock Man Pleads Guilty in Same SchemeRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Wednesday that United States District Court Judge James M. Moody Jr., sentenced Tonique Hatton, 39, of North Little Rock, to prison for her role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Hatton, who pleaded guilty to conspiring to commit wire fraud on September 6, 2016, to 108 months’ imprisonment, to be followed by two years of supervised release. She was also ordered to pay restitution in the amount of $7,632,871.77 and to forfeit $17,681.49.
In a separate case also heard Wednesday, Michael Lee, 26, Little Rock, pleaded guilty to an Indictment charging him with wire fraud. The charges stem from a similar scheme to steal money which was intended to feed children. Lee’s plea hearing took place before Chief United States Judge Brian S. Miller, who will sentence Lee at a later date.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Lee was a sponsor for a feeding program through Our Children of Tomorrow. Lee had two approved feeding sites which were located in Arkadelphia and Little Rock. At these two sites, he claimed as many as 800 children. In truth, no more than 30 children were ever fed at the Arkadelphia site and no children were fed at the Little Rock site. Because of the inflated claims, Our Children of Tomorrow received approximately $666,428.07.
Hatton is the third defendant sentenced who was charged with involvement in this scheme to fraudulently obtain USDA feeding program funds. Kattie Jordan was sentenced to 63 months in federal prison on March 15, 2016, and Reuben Nims was sentenced to 21 months in federal prison on November 2, 2016. Gladys Waits, Christopher Nichols, Waymon Weeams, James Franklin, Francine Leon, Maria Nelson, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before Judge Moody.
Hatton worked for DHS and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding sites. Hatton was responsible for approving the feeding programs for co-defendants Mills and Jordan at various times between January 2012 and August 2014. Mills and Jordan made bribe payments to Hatton to ensure those programs were approved. Some sponsors would claim that hundreds of children were fed at their sites, when few or no children were actually fed there. Hatton also helped Mills and Jordan avoid DHS’s detection of the fraud.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree. If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Former Church Youth Leader Pleads Guilty to Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former church youth leader in Iberia, Mo., pleaded guilty in federal court today to attempting to entice a minor for illicit sex.
Jamey Lee Becker, 45, of Iberia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an Aug. 24, 2016, federal indictment.
By pleading guilty today, Becker admitted that he used the Internet and a cell phone in an attempt to entice an individual under the age of 17 to engage in illegal sexual activity between Feb. 1 and June 10, 2016.
Under federal statutes, Becker is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol and the Miller County, Mo., Sheriff’s Department.
Foreign Currency Exchange Dealer Pleads Guilty to Antitrust ConspiracyRead the Press Release
First Individual Plea in Ongoing Investigation
A foreign currency exchange (FX) dealer pleaded guilty to participating in a price-fixing conspiracy in the FX market, the Justice Department announced today.
According to the one-count information filed in the U.S. District Court for the Southern District of New York, Jason Katz was a dealer of Central and Eastern European, Middle Eastern and African (CEEMEA) currencies on the New York FX desks of three successive financial institutions. From approximately January 2007 until July 2013, Katz and FX dealers at competing institutions conspired to suppress and eliminate competition by fixing prices in CEEMEA currencies, in violation of the Sherman Act, 15 U.S.C. § 1. As part of this conspiracy, Katz and his co-conspirators manipulated prices on an electronic FX trading platform through the creation of non-bona fide trades, coordinated the placement of bids and offers on that platform and agreed on currency prices they would quote specific customers, among other conduct. Under his plea agreement, Katz has agreed to cooperate with the department’s ongoing investigation into the FX market.
“These conspirators engaged in blatant collusion and succeeded in manipulating exchange rates for multiple currencies to their advantage,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Conspiracies such as this undermine the integrity of our financial markets, and the Antitrust Division is committed to ensuring that they are pursued and punished.”
“The Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) is pleased to join the Antitrust Division and our law enforcement colleagues in pursuing this investigation of price fixing in the foreign currency exchange market,” said Acting Inspector General Frederick W. Gibson of FDIC OIG. “We are committed in our efforts to ensure that those who seek to undermine the integrity of the financial services industry will be held accountable.”
Katz is the first individual to plead guilty as a result of the department’s ongoing investigation into antitrust and fraud crimes in the FX market, and the third individual to be charged. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty at the parent level and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of U.S. dollars and euros exchanged in the FX market. A fifth bank, UBS AG, pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and agreed to pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation. On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme.
This antitrust investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC OIG and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
A violation of the Sherman Act, 15 U.S.C. § 1, carries a maximum penalty of ten years in prison and a $1 million fine. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
The charge was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the New York Office of the Antitrust Division at (212) 335-8000, call the Antitrust Division’s Citizen Complaint Center at (888) 647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Katz InformationFinal Conspirator Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – Nathan Antonio Davis, age 37, of Capitol Heights, Maryland, pleaded guilty late on January 3, 2017, to conspiracy to possess with the intent to distribute 500 grams or more of cocaine; and conspiracy to possess firearms in furtherance of a drug trafficking crime.
Co-defendants Raymond Dexter Parker, age 37, of District Heights, Maryland; Adrian A. Vinson, a/k/a Buck Man, age 37, and Wayne Ellis Hampton, Jr., age 40, both of Laurel, Maryland; and Tavon Lee Crews, age 19, of District Heights, previously pleaded guilty to their roles in the conspiracy.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to their plea agreements, from at least November 2015 through May 3, 2016, Davis, Parker, Vinson, Hampton, and Crews conspired to rob certain drug dealers operating in Maryland, to possess with the intent to distribute cocaine, and to possess firearms in furtherance of drug trafficking. On April 13, 2016, at a location in Maryland, Davis and Parker met with an undercover agent (UC) working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to discuss the upcoming armed robbery of a drug stash house.
During a follow-up meeting on April 21, 2016, Davis, Parker, Vinson and Crews met with the UC to discuss how they would execute the robbery and obtain the cocaine. Davis stated that he and Parker committed robberies like this, as did Vinson. Vinson stated that he would use a badge to pose as a police officer to facilitate the robbery.
On May 3, 2016, the day of planned robbery, the UC met with Davis and his co-conspirators. On the way to the meeting location Crews was a passenger in Parker’s vehicle and picked up a gun which was on the floor of the vehicle. Crews then put the gun back on the floor underneath the front passenger seat. After arriving at the final meeting place, Davis, Parker, Vinson, Hampton, and Crews, discussed, in detail, plans for the upcoming robbery with the UC. Davis informed the robbery crew that he was in possession of a 60,000-volt taser, revolver, gloves, and duct tape; and asked whether the robbery crew should leave the armed guards alive in the stash house. As part of the plan, Crews was to remain in the car as a lookout for the robbery crew. During the conversation, the UC observed Parker with a firearm and saw Parker wiping off the firearm with his shirt. The UC told Parker to put the firearm back in the vehicle because it was not yet needed. Hampton instructed his co-conspirators to remove the license plates from a rental vehicle that they planned to use for the robbery and replace them with license plates from an unaffiliated vehicle parked in the parking lot to evade detection by law enforcement during and after the armed robbery of the stash house. At some point during the conversation, Parker began to remove the license plates.
Law enforcement arrested Davis, Parker, Vinson, Hampton, and Crews. Law enforcement recovered nylon stockings, blue nitrile gloves, disinfecting wipes, duct tape, a stun gun box, paracord, screwdrivers, and a pocket knife from the vehicle that Davis had driven that day. Law enforcement also recovered a stun gun from the scene and the following loaded firearms from the vehicle driven by Parker: two .38 special caliber revolvers; and a Ruger 9 millimeter caliber semi-automatic handgun. During the investigation, law enforcement determined that the Ruger handgun was stolen.
Davis was detained after his arrest. During his detention, Davis wrote a letter to an individual in Waldorf, Maryland, and instructed that person to retrieve a firearm from a residence in Suitland, where Davis had been staying prior to his arrest, and take it back to the individual’s home for safe keeping. At Davis’ direction, the same individual had previously recovered narcotics, drug paraphernalia and cash, while Davis was detained.
While he was detained, Davis also wrote to an individual at a residence in Washington, D.C., where Davis had also stayed prior to his arrest. Davis instructed that individual to get cocaine from a package in a dresser in the residence and sell the cocaine. Davis further stated that a portion of the proceeds from the sale of the cocaine were to be sent to Davis in jail, and the rest was to be used to fund the marijuana grow operation in the Washington, D.C. residence. Davis also discussed the marijuana grow operation with this individual on recorded jail calls.
After intercepting Davis’ letters, law enforcement executed search warrants at the residences in Waldorf, Suitland, and Washington, D.C. on June 9 and 10, 2016. From the residence in Waldorf, law enforcement recovered, among other items, drug paraphernalia (including items needed to maintain a marijuana grow operation), and $2,480 in cash. From the residence in Suitland, law enforcement recovered: 28 grams or more of crack cocaine; powder cocaine; marijuana; four firearms, including a firearm located in the exact location that Davis had described in his jail letter; 38 rounds of ammunition; and $900 in cash. From the residence in Washington, D.C., law enforcement recovered: cocaine; marijuana and a marijuana plant; a firearm; and 28 rounds of ammunition. Davis had previous felony convictions which made it illegal for him to possess a firearm and ammunition.
Davis, Vinson, Parker and the government have agreed that if the Court accepts their plea agreements Davis and Vinson will each be sentenced to between 12 and 15 years in prison, and Parker will be sentenced to 10 years in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for Davis on May 10, 2017; for Parker on May 1, 2017; and for Vinson on May 11, 2017.
Crews is scheduled to be sentenced on March 23, 2017, and Hampton on March 24, 2017, both at 8:30 a.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jennifer R. Sykes and Menaka Kalaskar, who prosecuted the case.
Developer Pleads Guilty to Defrauding Investors seeking Citizenship under Federal Immigration ProgramRead the Press Release
A Bellevue developer who raised more than $150 million from immigrant investors pleaded guilty today to fraud charges in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. LOBSANG DARGEY, 43, entered guilty pleas to two federal felonies alleging that DARGEY defrauded immigrant investors, federal regulators, and institutional investors. The charges allege that DARGEY promised to use the immigrant investors’ investment funds to construct two Puget Sound-area developments in compliance with a federal immigration program designed to stimulate growth and create jobs. DARGEY admitted at the court hearing that, contrary to his promises to investors, regulators and others, he secretly diverted tens of millions of dollars of investor funds to unauthorized uses and attempted to make up the resulting funding shortfall by raising additional capital using falsified financial records.
“Mr. Dargey exploited the dreams of his investors to line his own pockets,” said U. S. Attorney Annette L. Hayes. “He promised to use the money he received in a way that would allow investors to apply to become permanent U.S. residents. Instead, Mr. Dargey secretly sent millions of dollars overseas and used millions more for his own pet projects. In doing so, he harmed his investors financially and risked their dreams of legal status in the United States.”
According to records filed in the case, between 2012 and 2015, DARGEY recruited overseas investors, primarily in China, to fund two development projects – one in Everett, Washington known as the “Path American Farmer’s Market” and one in Seattle’s Belltown neighborhood known as the “Potala Tower.” DARGEY promoted the projects under a federal program known as the “EB-5” program, which allows immigrant investors to qualify for permanent residency if they create American jobs by investing $500,000 in a qualifying American business project. DARGEY represented to the immigrant investors and to the U.S. Department of Homeland Security that he was investing all of investors’ funds in the Everett and Seattle projects in compliance with program requirements.
DARGEY admitted at the court hearing that, contrary to his promises, he used tens of millions of investor dollars for uses not allowed under the federal program and not disclosed to investors. This included approximately $11.5 million of investor funds that DARGEY secretly used to pay unauthorized sales expenses, including sales commissions to Asian brokers, as well as $16.8 million that DARGEY used for unrelated real estate projects. In addition, DARGEY told investors and the United States government that DARGEY would contribute $32.5 million of his own money toward the projects. DARGEY admitted at the hearing that, in fact, he made no contribution to the projects. DARGEY’s fraud resulted in tens of millions of dollars in funding shortfalls for the projects. DARGEY admitted that he attempted to fill these shortfalls by using a falsified bank statement to obtain a $25 million construction loan, and by using altered financial statements to obtain $60 million in additional funding from a private institutional investor.
DARGEY’s fraudulent conduct came to an end in August 2015 when the Securities and Exchange Commission filed a civil suit and won a court order freezing his assets. The FBI simultaneously executed search warrants at DARGEY’s offices in Bellevue and Everett.
Each of the two criminal counts carries a prison term of up to five years, for a total maximum term of ten years. DARGEY has agreed to provide restitution of more than $24 million to the investors. Sentencing is currently scheduled in front of U.S. District Judge Thomas S. Zilly on April 6, 2017.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorneys Justin Arnold and Seth Wilkinson. The Department of Justice appreciates the assistance of the Securities and Exchange Commission and United States Citizenship and Immigration Services in connection with this matter.
Clarion Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Jonathan Sebert, age 24, of Clarion, Iowa, has been charged with sexual exploitation of a child, receipt of child pornography, and possession of child pornography. The charges are contained in an Indictment unsealed on December 28, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2012 and 2016, Sebert produced, received, and possessed child pornography.
If convicted, Sebert faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 70 years’ imprisonment, a $750,000 fine, $15,300 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Sebert appeared for a detention hearing on December 30, 2016, in federal court in Cedar Rapids and was held without bond. Sebert’s next appearance for trial is set for February 27, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office and the Mason City Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3054.
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Cincinnati Man Charged with Promoting Child PornographyRead the Press Release
CINCINNATI – A federal grand jury has charged James Denney, 30, of Cincinnati, with two counts related to the promotion of child pornography in an indictment returned in Cincinnati.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI) announced the indictment returned today.
The indictment alleges that in December Denney knowingly promoted a URL on the DarkWeb containing child pornography and that Denney allegedly aided another in accessing the pornography of a minor engaging in sexually explicit conduct.
According to investigators, Denney allegedly provided an undercover agent with web links to an online board featuring dozens of links to child pornography chat rooms, video/image board sites, as well as “community” support groups and online security advice for child pornographers.
Promoting a URL that contains child pornography is punishable by a range of five to 20 years in prison. Aiding in accessing child pornography carries a maximum potential penalty of 20 years in prison. Each crime also includes a potential lifetime of supervised release.
U.S. Attorney Glassman commended the investigation of this case by HSI, and Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Charleston man pleads guilty to making false statement to FBI agentRead the Press Release
CHARLESTON, W.Va. – A Charleston man who falsely told the FBI that he did not get any money from anyone related to the West Virginia Prep Academy pleaded guilty today, announced United States Attorney Carol Casto. Daniel Andrew Hicks, 43, entered his guilty plea to making a materially false statement to an FBI agent.
In 2013, the FBI, along with the South Charleston Police Department, investigated whether any federal criminal violations had occurred in connection with the operation of the West Virginia Prep Academy, a college preparatory school purportedly set up to give students the opportunity to compete for college football and basketball scholarships. When an FBI Special Agent, along with an officer with the South Charleston Police Department, served a federal grand jury target letter on Hicks in the course of that investigation, Hicks stated that he “did not get a dime” from anyone related to the Prep Academy. Hicks later admitted that this statement was materially false, as he had deposited a check from the mother of a student into the bank account of the Prep Academy. Hicks further admitted that he did not return those funds to the mother when her son did not attend the Prep Academy. As part of the plea agreement, Hicks agreed to pay restitution of $11,808.59 to 23 individuals.
As part of a separate prosecution, Hicks previously pleaded guilty to a federal heroin crime, admitting that on several occasions in January and February of 2016, he sold heroin to a confidential informant working with law enforcement. Following his arrest on February 18, 2016, law enforcement found Hicks with close to five grams of heroin that he intended to distribute. Additionally, officers executed a search warrant on an apartment Hicks had rented at 112 Henson Avenue in South Charleston and seized $4,924 in cash stored in a shoe box on the kitchen counter. Next to the shoe box, officers also discovered three sets of digital scales and three cell phones.
Hicks faces a total of up to 25 years in federal prison for his crimes - up to five years for making a false statement to an FBI agent and up to 20 years for distribution of heroin. Hicks will be sentenced for both federal crimes in a consolidated proceeding on April 4, 2017.
The investigation of Hicks for his involvement in the West Virginia Prep Academy was conducted by the South Charleston Police Department and the FBI. Assistant United States Attorneys Meredith George Thomas and John File are in charge of the false statement prosecution. The Metropolitan Drug Enforcement Network Team conducted the heroin investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution of the drug crime. United States District Judge Thomas E. Johnston is presiding over these cases.
The drug case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of pain pills and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Bellevue Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 4, 2017, a federal grand jury returned an indictment against Darren M. Warner, also known as, “Krazy” (age: 54) of Bellevue, Wisconsin.
Warner faces a charge alleging he possessed actual methamphetamine (“Ice”) with the intent to distribute contrary to Title 21, United States Code, Sections 841(a) and 841(b)(1)(A). He faces a mandatory ten years’ imprisonment and up to a lifetime of imprisonment, a $10,000,000 fine, and between five years and a lifetime on supervised release.
This case was investigated by the U.S. Drug Enforcement Administration, the Wisconsin State Patrol, and the Brown County Drug Task Force comprised of investigators from the Brown County Sheriff’s Department, Green Bay Police Department, Ashwaubenon Public Safety Department, and the De Pere Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For Additional Information Contact:
Acting Public Information Officer Elizabeth Makowski
(414) 297-1700
Attorney Admits Role in Life Insurance SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID QUATRELLA, 61, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a conspiracy charge stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of QUATRELLA and other investors, also known as a stranger-originated life insurance (“STOLI”) scheme.
According to court documents and statement made in court, between approximately June 2008 and January 2016, QUATRELLA and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies. QUATRELLA, who is an attorney, and his co-conspirators offered the insureds the promise of free life insurance for two years, after which QUATRELLA and his co-conspirators would attempt to sell the policy and provide a share of the proceeds to the insured. The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source. As part of the scheme, QUATRELLA and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.
QUATRELLA and his co-conspirators then caused to be submitted to various life insurance providers applications containing false and misleading information, and which failed to disclose the third-party premium funding arrangements for the policies.
QUATRELLA and his co-conspirators received large commissions from the providers as a result of the issuance of insurance policies on the lives of the insureds, and QUATRELLA personally profited approximately $272,000 as a result of the scheme. QUATRELLA and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.
QUATRELLA pleaded guilty to one count of conspiracy to commit wire fraud. Judge Thompson scheduled sentencing for April 28, 2017, at which time, QUATRELLA faces a maximum term of imprisonment of five years. QUATRELLA also has agreed to forfeit $272,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Arkansas State Representative Pleads Guilty to Bribe ConspiracyRead the Press Release
WASHINGTON – An Arkansas state representative pleaded guilty today to conspiring to authorize and direct a total of $600,000 in state government funds to two non-profit entities in exchange for tens of thousands of dollars in kickback payments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Micah Neal, 42, of Springdale, Arkansas, pleaded guilty today before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds (GIF) to a pair of non-profit entities in exchange for bribes. Specifically, Neal and the senator authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of $600,000 in GIF money to the two non-profit entities. Of the $600,000, Neal personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from officials at those non-profit entities.
The Federal Bureau of Investigation and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.
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Arkansas State Representative Pleads Guilty to Bribe ConspiracyRead the Press Release
An Arkansas state representative pleaded guilty today to conspiring to authorize and direct a total of $600,000 in state government funds to two non-profit entities in exchange for tens of thousands of dollars in kickback payments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Micah Neal, 42, of Springdale, Arkansas, pleaded guilty today before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
As part of his guilty plea, Neal admitted that, between January 2013 and January 2015, while serving in the Arkansas House of Representatives, he conspired with an Arkansas state senator to use their official positions to appropriate government money known as General Improvement Funds (GIF) to a pair of non-profit entities in exchange for bribes. Specifically, Neal and the senator authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of $600,000 in GIF money to the two non-profit entities. Of the $600,000, Neal personally authorized and directed a total of $175,000 to the entities. In return for his official actions, Neal received approximately $38,000 in bribes from officials at those non-profit entities.
The Federal Bureau of Investigation and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorney Kyra Jenner of the Western District of Arkansas are prosecuting the case.
3 January 2017
Winchester Man Indicted on Federal Drug ChargeRead the Press Release
Harrisonburg, VIRGINIA – A federal grand jury, sitting in the United States District Court for the Western District of Virginia in Harrisonburg, has charged a Winchester man with a federal drug conspiracy charge, United States Attorney John P. Fishwick Jr. announced today.
Joshua Dillon Burkhart, 26, of Winchester, Va., was charged today in an indictment returned in the United States District Court in Harrisonburg with one count of conspiring with others to distribute and possess with the intent to distribute 1,000 grams or more of heroin and to distribute and possess with the intent to distribute cocaine.
The investigation of the case was conducted by Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, which is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office and the Clarke County Sheriff’s Office. Assistant United States Attorney Erin M. Kulpa will prosecute the case for the United States.
U.S. Attorney Kerry B. Harvey Announces ResignationRead the Press Release
LEXINGTON, Ky. – Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, has announced his resignation, effective Friday, January 13, 2017. U.S. Attorney Harvey has served in office since May 14, 2010.
“The opportunity to serve as United States Attorney for the Eastern District of Kentucky has been a distinct honor,” United States Attorney Harvey said today. “I will be forever grateful for the trust placed in me by President Obama and the opportunity to serve in the Department of Justice during such consequential times. I am inspired by the tremendous work of the state, local and federal law enforcement communities with which I have served, and I will always treasure the chance to work alongside the exceptional staff of the United States Attorney’s Office for the Eastern District of Kentucky. We have accomplished a great deal together, and their commitment to the cause of justice will continue.”
“As United States Attorney for the Eastern District of Kentucky since 2010, Kerry Harvey has been an indispensable partner in our work to build a stronger and safer nation for all Americans," said Attorney General Loretta E. Lynch. "Under Kerry's leadership, his office has played a crucial role in the Justice Department's initiatives to prosecute fraud, corruption, and white-collar crime. And he has been a visionary leader in our work to end the devastating opioid epidemic, joining with state and local authorities to hold accountable those who illegally distribute heroin, prescription drugs, and other substances that ravage our communities. Kerry's work with the families of those who have fallen victim to this epidemic has given voice to those who have suffered and helped to steer countless others way from the same path. His efforts are in the highest traditions of the Department of Justice. I want to thank Kerry for his tireless efforts on behalf of the American people over the last seven years, and I wish him the very best as he begins the next chapter of his distinguished career."
Harvey’s efforts include serving on the National Heroin Task Force; serving three years on the Attorney General’s Advisory Committee (AGAC), a select group appointed by the Attorney General to serve as advisors to the Attorney General and as the voice for all United States Attorneys nationwide; serving as Co-Chairman of the AGAC’s Healthcare Fraud Working Group; establishing the highly successful U.S. Attorney’s Heroin Education Action Team (“USA HEAT”), an initiative to increase public awareness of the opioid epidemic in Kentucky; achieving landmark criminal convictions and civil recoveries for fraudulent healthcare practices; prosecuting significant public corruption cases; and prosecuting large-scale drug trafficking organizations. Under Harvey’s leadership, his office has become a national leader in federal prosecution of drug-overdose cases. His time in office has seen significant change – twenty-one of the forty-four Assistant United States Attorneys allocated to the office have been hired under Harvey’s leadership.
Signature achievements under Harvey’s leadership include:
Securing a number of public-corruption convictions against former state and local officials, including Richie Farmer, former Kentucky Commissioner of Agriculture; Timothy Longmeyer, former Secretary of the Commonwealth of Kentucky’s Personnel Cabinet and former Deputy Attorney General of Kentucky; Timothy Conley, former County Judge -Executive of Morgan County; Keith Hall, former member of the Kentucky House of Representatives; Robert Porter, former Mayor of Paintsville; Arch Turner, former superintendent of the Breathitt County Public Schools, and Tim Fegan, former Director of the Buffalo Trace Narcotics Task Force;
Securing landmark civil recoveries under the False Claims Act against two hospitals – $40.9 million from King’s Daughters Medical Center in Ashland and $16.5 million from Saint Joseph’s Hospital in London – to settle allegations of unnecessary cardiac procedures; and securing the criminal convictions of Dr. Richard Paulus and Dr. Sandesh Patil for their roles in performing unnecessary cardiac procedures;
Securing a $15.75 million civil recovery against an addiction treatment center (“SelfRefind”), a clinical laboratory (“PremierTox”), and two physician owners to resolve allegations that they fraudulently billed federal healthcare programs for medically unnecessary and excessive urine screens;
Securing a $16 million civil judgment against Nurses’ Registry Home Health Corporation and the estate of its former owner Lennie House, resolving allegations of widespread healthcare fraud;
Collecting more than $182 million on behalf of taxpayers during 2014 alone, an amount that represents the highest annual recovery in the Office’s history and more than twenty times the Office’s annual budget;
Securing criminal convictions of numerous pain clinic owners, pharmacists, doctors, and other health care professionals for the illegal distribution of prescription pain medication and other controlled substances, including pain-clinic owners William Singleton, Joel Shumrack and Michael Leman, pharmacist Charles Terry Tenhet, and Dr. James “Ace” Chaney;
Securing the criminal conviction of Lexington attorney Bryan Coffman and his co-defendant Gary Milby on charges relating to a fraudulent $36-million-dollar oil-and-gas investment scheme;
Developing an Overdose Prosecution Initiative to combat Kentucky’s opioid epidemic. The Initiative employs significant federal penalties for drug trafficking that results in death or serious bodily injury. It has resulted in dozens of prosecutions involving overdoses and has become a national model for other U.S. Attorney’s Offices; and
Creating the Office’s Civil Rights Program to prosecute criminal and civil violations of federal civil rights law, including prosecution of the first case in the nation charged under the Shepard-Byrd Hate Crimes Act.
As of January 14, 2017, Carlton S. Shier, IV, will assume leadership of the Office as Acting United States Attorney. Shier has been the First Assistant United States Attorney since April of 2013 and has been with the Department of Justice since 2010.
Two New Castle Men Charged with Sex Trafficking a Minor, Producing Child PornographyRead the Press Release
PITTSBURGH - Two residents of Lawrence County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of production of material depicting the sexual exploitation of a minor, interstate transportation of a minor for purpose of engaging in unlawful sexual activity, conspiracy to commit sex trafficking, and sex trafficking of a child, Acting United States Attorney Soo C. Song announced today.
The four-count Indictment named Ronald Kyle Hartman, 27, of New Castle, Pennsylvania, and David Michael Monrean, 24, of New Castle, Pennsylvania, as the defendants.
According to the Indictment, on August 15, 2016, Hartman produced image files of the sexual exploitation of a minor. From August 14, 2016 to August 16, 2016, for the purpose of private financial gain, Hartman and Monrean did knowingly and willfully transport or arrange, induce, procure, or facilitate the travel of Minor A, who had not attained the age of 18 years, in interstate commerce, from Pennsylvania to Ohio, with the intent that Minor A would engage in prostitution and other sexual activity for which a person could be charged with a criminal offense, and aided and abetted such conduct. Also, from August 14, 2016 to August 16, 2016, Hartman and Monrean knowingly entered into a conspiracy to recruit for sex trafficking a female minor who had not attained the age of 18 years. The Indictment further alleges that from August 14, 2016, to August 16, 2016, Hartman and Monrean knowingly recruited, enticed, harbored, transported, provided, obtained and maintained by any means, in and affecting interstate commerce, a female minor under the age of 18 years, and did benefit financially or by receiving anything of value from participation in a venture engaged in commercial sexual acts, knowing and in reckless disregard of the fact, and having had a reasonable opportunity to observe Minor A, that Minor A had not attained the age of 18 years and that Minor A would be caused to engage in a commercial sex act.
For Hartman, the law provides for a maximum total sentence of life imprisonment, a fine of $1,000,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. For Monrean, the law provides for a maximum total sentence of life imprisonment, a fine of $750,000.00, and a term of supervised release for any term of years not less than five, and up to life, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation leading to the indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Men Convicted in Unrelated Cases for Producing and Distributing Child Porn Sentenced to Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two men who were convicted in unrelated cases earlier this year on child pornography offenses have been sentenced to lengthy federal prison sentences by federal judges in Fort Worth, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, U.S. District Judge Reed C. O’Connor sentenced Ronald Eric Ary, 55, of Erath County, Texas, to 360 months in federal prison. Ary pleaded guilty in September 2016 to one count of distributing child pornography. He has been in custody since his arrest in July 2016 on a related federal criminal complaint. According to documents filed in his case, Ary admitted that he used the Internet and an instant messaging application to distribute and trade child pornography, including a sexually explicit video of an infant child and adult man. The FBI and the Erath County Sheriff’s Office investigated this case.
On Friday, December 30, 2016, Friday, U.S. District Judge John McBryde sentenced Robert Eugene Sanders, 74, of Hood County, Texas, to 360 months in federal prison, fined him $10,000, and ordered him to pay nearly $65,000 in restitution. Sanders pleaded guilty in July 2016 to one count of production of child pornography, and he has been in custody since his arrest in May 2016 on a related federal criminal complaint. According to documents filed in his case, in August 2011, Sanders knowingly used, persuaded, and induced two prepubescent female victims to engage in sexually explicit conduct that he photographed. U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Keller Police Department and the Hood County Sheriff’s Office investigated this case.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney A. Saleem prosecuted both cases.
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St. Joseph Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man pleaded guilty in federal court today to robbing UMB Bank.
Terry L. Hager, 49, of St. Joseph, pleaded guilty before U.S. District Judge Fernando J. Gaitan to the charge contained in a May 19, 2016, federal indictment.
By pleading guilty today, Hager admitted that he stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
Under federal statutes, Hager is subject to a sentence of up to 20 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 hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
Roanoke Man Sentenced on Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentencing of a local man on a federal drug charge.
Herbert Lee Childs, of Roanoke, Va., previously pled guilty to one count of distribution of cocaine. Today in District Court, Childs was sentenced to 151 months in federal prison.
“Keeping our communities free of illegal drugs in the first step to allowing residents to lead safer, more productive lives,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, Childs previously sold cocaine to a police informant out of his Roanoke apartment.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Registered Sex Offender Sentenced to More Than 19 Years for Second Offense Involving the Sexual Abuse of MinorsRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Michael Ray Enzor (34, Jacksonville) to 19 years and 6 months in federal prison for transporting, and aiding and abetting the transportation of, child pornography. He also was ordered to serve a supervised release term of 15 years, register as a sex offender, and pay restitution to a victim of his offense. Enzor pleaded guilty on October 4, 2016.
According to court documents, in 2007, Enzor was convicted in Duval County of attempted capital sexual battery on a child less than 12 years old. Consequently, he was sentenced to 10 years in state prison and was released in June 2014. In October 2014, while under conditional release for the state conviction, law enforcement officers discovered that Enzor was sharing child pornography on a social networking chat website based out of Canada.
In addition to sharing child pornography, Enzor had also solicited young girls and mothers and daughters to connect with him on social media for the purpose of providing “extreme” videos to him.
On March 24, 2015, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at a residence Enzor shared with other convicted sex offenders. Forensic analyses of Enzor’s electronic media revealed more than 100 video files depicting child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the York Regional Police in Ontario, Canada. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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, 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.
Phillip Wilson Pleads Guilty in Vermont to Drug and Gun ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Phillip Wilson, age 36, originally of the Bronx, New York and recently a resident of Chittenden County, Vermont, pled guilty today in federal court in Brattleboro to drug and gun charges arising from his heroin-related drug trafficking activity.
Wilson, who is being detained, appeared before Judge J. Garvan Murtha and pled guilty to a Superseding Information charging him with (1) distributing heroin in Vermont on or about February 23, 2016, (2) possessing heroin with intent to distribute on or about July 6, 2016, and (3) possessing firearms on or about July 6, 2016, in furtherance of a drug trafficking crime.
Under the terms of the proposed plea agreement filed with the Court—acceptance of which was deferred until sentencing proceedings on May 10, 2017 in Brattleboro—Wilson will be sentenced to 7 years in prison if the Court accepts the agreement.
As described during the change of plea proceedings in Court, in February 2016, law enforcement agents became aware that Wilson, who also goes by the aliases “Cody” and “Moscow,” was distributing heroin in Chittenden County, Vermont. Over the next few months, the Vermont Drug Task Force investigated Wilson and made five controlled purchases of heroin from Wilson. Subsequently, the Task Force obtained warrants to search two properties associated with Wilson. During the execution of those warrants on July 6, 2016, agents seized 160 bags of heroin, drug distribution paraphernalia, thousands of dollars in U.S. currency, and three firearms. Wilson has two prior convictions in state court for drug distribution.
The collaborative team investigating Wilson included agents from the Vermont Drug Task Force, the Vermont State Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the South Burlington Police Department. This case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. United States Attorney Miller again applauded the efforts of the agencies involved in the Heroin Initiative.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Wilson is represented by attorney Mark Oettinger.
Ohio woman sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Amanda Elaine Wright, 31, of East Liverpool, Ohio was sentenced to 30 months incarceration today for distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wright collaborated with other individuals to possess and distribute heroin in Hancock County, West Virginia. She pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Ohio Man Charged in July 2016 Gate-Crashing Incident at FBI-Pittsburgh HeadquartersRead the Press Release
PITTSBURGH - One resident of New Waterford, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of willfully injuring or committing depredation against any property of the United States, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Thomas Ross, as the sole defendant.
According to Indictment, on July 26, 2016, Thomas Ross drove his vehicle through the gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, Pennsylvania. Ross proceeded to ram through the security barriers at a high rate of speed, causing his vehicle to become airborne while inflicting extensive damage to the security barrier. Upon hitting the ground, the vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh, causing the light post to fall.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, the extent of the property damage, and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Pittsburgh FBI and Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Side Man Charged with Disposing of Car Used in Killing of Federal WitnessRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of being an accessory after the fact, Acting United States Attorney Soo C. Song announced today.
The two-count superseding indictment named Glenn Lee Thomas, 27, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the superseding indictment, Thomas was an accessory after the fact in relation to offenses committed by Price Montgomery in August of 2014. The superseding indictment specifically alleges that Thomas assisted Montgomery, after Montgomery and another person killed Tina Crawford on August 22, 2014. The nature of that assistance, as alleged in the superseding indictment, was that Thomas caused the getaway vehicle used in that homicide to be transported, after the homicide, outside of Pennsylvania to Virginia.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Thomas has been detained pending trial.
Assistant United States Attorneys Gregory J. Nescott and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Office of the Pennsylvania Attorney General and the Pittsburgh Police conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Oil Futures Trader Sent to PrisonRead the Press Release
HOUSTON – A 33-year-old resident of the Bronx, New York, has been ordered to federal prison following his convictions of wire and mail fraud, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Christopher Donrick Daley Sept. 21, 2016, following a two-day trial.
Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Daley a total sentence of 120 months in prison. He was further ordered to pay restitution in the amount of $614,950 and will serve three years of supervised release following completion of the prison term. In handing down the sentence, the court noted that Daley tried to appear as a family man when he ate with his victims. “You actually sat down with their children when you knew you were stealing them blind,” Hughes said.
Daley devised a scheme to defraud investors by falsely representing he operated a commodity pool which invested in oil futures contracts which would pay investors return of at least 20% per month and had never had a losing month. The evidence at trial showed that Daley received more than $1.4 million in investor funds, but he only invested approximately $195,000.
Daley lost all the investors funds he did invest.
The evidence also proved that Daley emailed monthly statements to his investors showing significant monthly returns when there were none. Daley also used money from the investor funds to purchase a new BMW and Range Rover.
Judge Hughes ordered Daley into custody immediately after the verdict was returned where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys John Braddock and Charles Escher prosecuted the case.
Navajo Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Sho’Nee Ganadonegro, 26, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pled guilty today in federal court to a child abuse charge. Under the terms of her plea agreement, Ganadonegro will be sentenced to a term of probation to be determined by the court.
Ganadonegro was arrested in Jan. 2016, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Nov. 1, 2015, in Indian Country in Cibola County, N.M.
During today’s proceedings, Ganadonegro entered a guilty plea to the indictment. In entering the guilty plea, Ganadonegro admitted that on Nov. 1, 2015, she negligently operated a motor vehicle recklessly within Laguna Pueblo while under the influence of alcohol. Ganadonegro admitted that her actions endangered the lives and health of the four Indian children who were passengers in the vehicle. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Monitor finds Seattle Police Department in Initial Compliance with Supervisor Requirements of Consent DecreeRead the Press Release
SEATTLE – A formal assessment of the Seattle Police Department’s (SPD) implementation of supervision-related provisions of the consent decree has found SPD to be in initial compliance with requirements of the Court-ordered agreement with the Department of Justice (DOJ), announced U. S. Attorney Annette L. Hayes. Federal Monitor Merrick Bobb on December 31st filed the assessment with the U.S. District Court and concluded that the progress to date and “current quality and extent of supervision” within SPD in four main areas supports a finding of initial compliance.
“Effective internal supervision is critical to the successful implementation of reform and to the successful management of the day-to-day operations of SPD,” said U. S. Attorney Annette L. Hayes. “The results of this assessment demonstrate that the Department is making progress in supervising, investigating, and counselling officers to help them do their jobs effectively and increase accountability.”
This was the tenth assessment conducted to date by the Monitor and DOJ. Previous assessments found SPD to be in initial compliance with requirements relating to crisis intervention, the Office of Professional Accountability, use of force reporting and investigation (finding initial compliance in three of the four areas assessed), and the Force Review Board. The Monitor also examined and found many positive developments and trends in public confidence and community trust regarding SPD.
The supervisor assessment filed today and attached below focused on four areas:
- The adequacy of supervision by the chain of command for a period from June 2014 through September 2016;
- Whether SPD personnel are assigned to a single, consistent, clearly identified first-line supervisor, also known as “unity of command”;
- The quality of sergeant training and ensuring that any personnel assigned as long-term “acting sergeants” receive specific training within 60 days of their appointment; and
- Whether SPD is deploying an adequate number of qualified supervisors to assure that the provisions of the Consent Decree are implemented, also known as “adequate span of control.”
The assessment found that in all four areas, SPD was in initial compliance. For example, the assessment found that the chain of command receives timely notice of and reviews and tracks uses of force. It also shows supervisors are taking appropriate action with their officers when the use of force is found to be problematic, including counseling officers, initiating referrals up the chain of command, noting performance issues in appropriate systems, and referring incidents that may implicate policy violations to the Office of Professional Accountability. Viewed from the officer’s perspective, the Monitor found that over 90% of officers surveyed reported receiving feedback from their sergeants, finding their sergeants to be “very available” to them, and feeling comfortable asking questions about day-to-day issues and seeking advice.
With respect to unity of command, the assessment found that 97% of the time officers are assigned to a single, clearly-identified supervisor, with each squad assigned to the same daily work schedule. This kind of consistent management structure is understood to lead to better policing and better morale in police organizations. In contrast, during DOJ’s investigation in 2011, the average officer saw his or her sergeant twice per week.
The Monitor also found that sergeant training materials prepare their sergeants for effective supervision and leadership and that supervisors reported finding these trainings valuable.
Finally, as to span of control, sergeant to officer ratios, which are now at 1:6 on average across the SPD precincts, were found to be more than adequate and, indeed, continue to trend downwards.
Although the Monitor made a finding of initial compliance regarding supervision, the assessment also identified a number of areas that either need improvement – including the Field Training Officer selection for which SPD will be setting forth new criteria – or require further examination. Notably, the previous use of force reporting and investigation assessment found deficiencies in supervisory review of Type II force cases based on a 2014 sample. A follow-up assessment is currently underway to determine if the quality and rigor of Type II investigations and reviews by supervisors have improved over the past two years. Moreover, the Monitor, as part of the evaluation of SPD’s search and seizure activity, will explore whether supervisors are sufficiently reviewing documentation of stops and appropriately flagging those stops that have incomplete documentation or for which officers articulated inadequate reasonable suspicion to make the stop.
Additional upcoming assessments in 2017, in addition to the above-referenced follow-up assessment regarding Type II investigations, will examine SPD’s use of force, Early Intervention System, and the use of Terry stops.
Filed assessmentMercer County, New Jersey, Man Sentenced to 135 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 135 months in prison for distributing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Shawn Brown, 35, of Ewing, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of a three-count an indictment charging him with distributing child pornography over the Internet. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Brown admitted that on July 14, 2013, he distributed a video depicting child sexual abuse on the Internet to another individual via instant messaging software. Authorities were first alerted to Brown’s conduct when an undercover agent discovered and downloaded images and videos containing child pornography that Brown had made available to users of a peer-to-peer file sharing network. Law enforcement traced the username and IP address of the sharer back to Brown’s residence. A review of Brown’s electronic devices, seized pursuant to a search warrant, revealed that Brown had been using aliases to contact underage girls online via instant messaging software and social media, where he had created a fake profile posing as a teenage boy.
In addition to the prison term, Judge Thompson sentenced Brown to lifetime supervised release.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Kyle Man Indicted for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Felony Child Abuse and Neglect.
Matthew Harold Iron, Sr., 32, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on December 29, 2016. He pleaded not guilty to the charge.
The penalty upon conviction is up to 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Iron exposing a child under the age of 7 to an environment constituting mistreatment, and threatening him with substantial harm near Kyle. The charge is merely an accusation and Iron is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Iron was detained pending trial. A trial date has not been set.
Kyle Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Lloyd Yankton, Jr., 36, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on December 30, 2016. He pleaded not guilty to the charge.
The penalty upon conviction is up to 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Yankton assaulting a woman near Kyle with a wooden board during an argument, causing multiple injuries. The charge is merely an accusation and Yankton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Yankton was detained pending trial. A trial date has not been set.