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3 January 2017
Justice Department Files Brief to Address Solitary Confinement of Juvenile Offenders in New YorkRead the Press Release
The Justice Department filed a statement of interest today addressing the harmful effects of subjecting juvenile offenders to solitary confinement. The statement of interest was filed in V.W. et al. v. Conway et al., a class action brought by six juveniles and their parents and natural guardians to challenge the placement of youth in solitary confinement in the Onondaga County Justice Center in Syracuse, New York.
The statement of interest, filed in the U.S. District Court for the Northern District of New York, advances the United States’ position that juveniles should not be placed in restrictive housing, including solitary confinement, as explained in the department’s January 2016 Report and Recommendations Concerning the Use of Solitary Confinement. That report provided that in very rare circumstances, juveniles may be separated from others, but only as a temporary response to behavior posing a serious and immediate risk of physical harm. This statement of interest states that accordingly, the Federal Bureau of Prisons has ended the practice of using restrictive housing for juveniles. The filing also explains that, consistent with scientific consensus from many child psychology experts and researchers that solitary confinement should be banned for juveniles, courts have recognized the developmental vulnerability of juvenile brains and the irreversible damage that solitary confinement can inflict on adolescents.
In V.W. et al. v. Conway et al., the plaintiffs allege that the Onondaga County Sheriff’s Office unconstitutionally imposes solitary confinement on juveniles in its custody at the Justice Center. Plaintiffs describe this practice as involving at least 23 hours a day in an approximately 60 square foot cell with minimal furnishings, inadequate mental health care and virtually no contact with others except for adult inmates in neighboring cells who routinely harass and intimidate them. Plaintiffs allege that between Oct. 1, 2015 and Aug. 31, 2016, at least 86 juveniles were placed in solitary confinement. As a result, the juvenile plaintiffs allege they regularly experience anxiety, hopelessness, irritability, stress, sadness, post-traumatic symptoms, agitation and suicidal ideations.
“Both the Supreme Court and experts in the field agree that juveniles are developmentally different from adults,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Accordingly, they must be treated differently and provided additional protections while in custody. This brief advances the Justice Department’s efforts to protect juveniles from serious harm to their physical, psychological and social development.”
In recent years, the department has taken several steps to address the use of solitary confinement on juveniles in jails, including the ongoing investigation of the Jefferson County Jail in Alabama and the 2016 investigation and subsequent consent decree in which the Hinds County Jail in Mississippi agreed to eliminate solitary confinement as a disciplinary sanction for juveniles. In 2015, the department investigated and entered into a consent decree with the New York City Department of Correction Jails on Rikers Island, in which the jails agreed to ban punitive solitary confinement for juveniles. In 2014, the department investigated and reached an agreement with the state of Ohio to reduce significantly, and ultimately eliminate, its use of seclusion on young people in its custody.
V.W. et al. v. Conway et al. was filed in December 2015. Plaintiffs filed a motion for class certification in September 2016, and a motion for preliminary injunction in December 2016. The court will hold a hearing on plaintiffs’ motion for preliminary injunction on Jan. 27, 2017.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
V.W. v. Conway Statement of InterestJamaican Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of Jamaica, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Victor Palmer, a/k/a Patrick Brown, age 33, of Jamaica, as the sole defendant.
According to the indictment, on or about December 2, 2016, Palmer was found in Monroeville, Allegheny County, Pennsylvania, after having unlawfully re-entered the United States following removal on four previous occasions.
The law provides for a maximum total sentence of two 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.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) 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.
Inmate with Marijuana Gets Two More Months in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of possession of contraband in prison, and immediately was sentenced to two months in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, to run concurrent with his present sentence, Acting United States Attorney Soo C. Song announced today.
Charles Jones, 30, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on November 21, 2015, Jones was in possession of marijuana.
Assistant United States Attorney Stephanie L. Haines, prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Jones.
Huntington man sentenced to federal prison for role in multistate drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who participated in a multistate drug ring was sentenced today to a year and a day in federal prison, announced United States Attorney Carol Casto. Parker Wyatt Mays, 27, previously pleaded guilty to conspiracy to distribute marijuana.
Mays admitted that from the summer of 2014 to May of 2016, he conspired with others, including codefendants Corey Bruce Toney and Roy Bills, to distribute marijuana from California in the Huntington area. Mays and others regularly acquired large quantities of marijuana from a source in California. The marijuana was transported to Huntington by automobile and through the mail. Once in Huntington, Mays and others distributed the marijuana to various customers and then pooled the proceeds to acquire additional marijuana. Mays admitted that the group distributed up to 400 kilograms of marijuana during the conspiracy.
Toney pleaded guilty in September 2016 to distributing heroin and is awaiting sentencing. Toney admitted that he conspired with others to distribute large quantities of drugs that were transported from California and Michigan to Huntington, including heroin, crack, marijuana, and Xanax. Bills pleaded guilty in November 2017 to conspiracy to distribute marijuana and is also awaiting sentencing.
This prosecution arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
In addition to Mays, Toney, and Bills, seven additional defendants have been convicted for their roles in this drug ring. Atari Seantay Brown, Sean Lee Braggs, Samuel E. Nelson, III, Tanisha Lynette Wooding, and Deandra Sheen Jones have all pleaded guilty to federal drug charges and are awaiting sentencing. Arthur James Canada was sentenced to three years and 10 months in federal prison and Matthew Michael Meadows was sentenced to a year and a half in federal prison for their roles in the conspiracy.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences and is presiding over these cases.
These cases are 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 illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Harvey Man Pleads Guilty to Conspiracy to Commit Financial Aid FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BOBBY R. LOWE, age 66, a resident of Harvey, pled guilty today to one count of conspiracy to commit mail fraud.
According to court documents, LOWE owned and operated a printing company in Harvey. In early 2013, LOWE conspired with student applicants to produce fraudulent high school transcripts and diplomas, as well as fraudulent GED certificates and transcripts, which were sent to the Office of Admissions at Delgado Community College in New Orleans. LOWE also provided his co-conspirators with envelopes with return addresses for the Department of Education and the Louisiana Community & Technical College System in Baton Rouge. LOWE instructed his co-conspirators to mail the documents from Baton Rouge, so the documents would look more legitimate. The purpose of the scheme was to obtain federal financial aid from the United States Department of Education and Delgado Community College.
LOWE faces up to five years imprisonment and/or a fine of not more than $250,000, a period of supervised release after imprisonment of up to three years, plus a mandatory special assessment of $100.00. U.S. District Judge Jay C. Zainey set sentencing for April 10, 2017.
U.S. Attorney Polite praised the work of the United States Department of Education-Office of Inspector General and the United States Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Guilford Man Sentenced to 21 Months in Prison for Distributing Heroin and OxycodoneRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Willie Harper, 48, of Guilford was sentenced today in U.S. District Court to 21 months in prison to be followed by three years of supervised release for distribution of heroin and oxycodone. Harper pleaded guilty to the charges on June 1, 2016.
According to court records, on August 13, 2015, Harper sold a quantity of heroin to an undercover law enforcement officer at a location in Guilford, Maine. Two weeks later, Harper sold the undercover officer ten oxycodone pills at a different location in Guilford. In imposing the sentence, Judge John Woodcock noted that Harper had contributed to Maine’s ongoing heroin problem and that Harper has “a horrible criminal record.” Harper’s criminal record includes felony convictions in Illinois for armed robbery, unlawful use of a weapon by a felon, and unlawful delivery of a controlled substance, and in Maine for sexual abuse of a minor.
The investigation was conducted by the Drug Enforcement Administration and the Greenville, Maine Police Department.
Former physician pleads guilty to obtaining pain pills by fraudRead the Press Release
HUNTINGTON, W.Va. – A former physician who practiced in Barboursville pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Gregory Donald Chaney, 52, entered his guilty plea to obtaining a controlled substance by fraud.
Chaney was the owner of Tri-State Medical Center, which is now out of business. On December 1, 2015, Chaney wrote a prescription for one of his employees for 120 thirty milligram oxycodone pills. Chaney admitted that he wrote the prescription without any physical examination of the employee and without medical necessity. Chaney then instructed the employee to have the prescription filled at Ross Drug Pharmacy in Ceredo in Wayne County. Prior to having the prescription filled, it was agreed between Chaney and the employee that the pills would be turned over to him in exchange for approximately $830 in lieu of unpaid wages. The next day, the employee had the prescription filled and gave the pills to Chaney in exchange for the money as planned. Chaney admitted that he wrote the prescription with the intent to illegally obtain oxycodone and to conceal the true recipient of the pain pills.
Chaney faces up to four years in federal prison and a $250,000 fine when he is sentenced on April 3, 2017.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey handled the prosecution. Chief United States District Judge Robert C. Chambers presided over the plea hearing.
This prosecution was brought 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 prescription drugs 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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Former New York City Human Resources Administration Employee Pleads Guilty to Fraud and Cocaine TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that PETRONILA PERALTA, a/k/a “Petra,” a former employee with the New York City Human Resources Administration (“HRA”), pled guilty to defrauding a public assistance program that she had administered during the time when she worked for HRA, resulting in the theft of more than $600,000 in public funds, and to trafficking more than 50 kilograms of cocaine following her separation from HRA. PERALTA, who was arrested in December 2015, entered her pleas today before U.S. District Judge Gregory H. Woods, and was ordered remanded. She is scheduled to be sentenced by Judge Woods on April 4, 2017.
U.S. Attorney Bharara stated: “As she admitted today, in addition to cocaine trafficking, Petronila Peralta defrauded the public by stealing more than $600,000. This money was intended to aid the neediest New Yorkers, including children, by helping to defray the costs of basic nutrition and housing.”
According to the Complaint, Indictment, plea agreement, other information in the public record, and today’s proceeding:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among others, administering the federally funded Supplemental Nutrition Assistance Program (more commonly known as “food stamps”), administering the federally funded Temporary Aid to Needy Families Program, and providing rental assistance to low-income families and individuals.
Between 2005 and August 2014, PERALTA worked at HRA, most recently as a Job Opportunity Specialist in a job center in Queens, New York. In that capacity, PERALTA was supposed to provide economic support and employment-related services to persons in need. Starting by approximately 2009, PERALTA abused her position by fraudulently issuing more than approximately 800 supplemental issuances to individuals who were not entitled to such payments. A “supplemental issuance” is a supplemental transmission of funds to a public assistance beneficiary who did not receive the amount of funds he or she was due previously. Between approximately 2009 and May 2011, PERALTA repeatedly issued such funds not to individuals who were entitled to them, but to co-conspirators, and took steps to conceal her conduct, including by using the computer system log-in information of a former employee of HRA, rather than her own. The scheme led by PERALTA resulted in the loss of more than approximately $600,000 in public funds.
Following her separation from HRA, between approximately January 2013 and March 2015, PERALTA agreed to and did receive, and help others to receive, through the mail more than 50 kilograms of cocaine meant for re-distribution.
* * *
PERALTA, 52, of the Bronx, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a statutory maximum of 20 years in prison, and one count of conspiracy to distribute and possess cocaine, which carries a statutory maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the work of the New York City Department of Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service.
The case is being prosecuted by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Daniel C. Richenthal and Shawn G. Crowley are in charge of the prosecution.
Former Director of Child and Adult Care Food Program Sponsor Agency Pleads Guilty to $1.5 Million FraudRead the Press Release
LaShane Hayes, 44, of La Vergne, Tennessee, pleaded guilty today to conspiracy and wire fraud after being charged with defrauding the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP) through her sponsor agency, All About Giving, Inc., announced David Rivera, United States Attorney for the Middle District of Tennessee.
The Child and Adult Care Food Program was created to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations are responsible for, among other things, enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to child care providers.
According to the charging document and plea agreement, between March 2015 and July 2016, Hayes made monthly CACFP reimbursement requests to the Tennessee Department of Human Services knowing that these requests overstated the number of providers enrolled in CACFP through All About Giving; overstated the number of meals served to children by All About Giving providers and, therefore, caused the State of Tennessee to deposit more money into All About Giving’s bank account than All About Giving and its providers were entitled to receive.
During the same time frame, Hayes and her co-conspirators created fictitious provider records which, among other things, overstated the number of meals served to children and listed fictitious children’s names in an effort to create the appearance that All About Giving’s monthly reimbursement requests to the Tennessee Department of Human Services were accurate. Hayes and her co-conspirators also created fictitious provider lists which included individuals who were not providing any child care and physical addresses which do not exist. Hayes also wrote checks from All About Giving’s bank accounts to alleged child care providers in an effort to create the appearance that she was distributing meal reimbursement money to child care providers, however, after receiving these checks, many of the alleged providers would cash them and return a portion of the money they received to Hayes. Over $1.5 million of CACFP funds was defrauded by Hayes and her co-conspirators.
Hayes faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on April 12, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Five More Sentenced as Part of Federal Methamphetamine CaseRead the Press Release
ABINGDON, VIRGINIA – Five more defendants who were part of a conspiracy that trafficked methamphetamine in and around Virginia and Kentucky, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Robert Holman, 35, of Winder, Georgia, previously pled guilty to one count of conspiracy to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Holman was sentenced to 100 months in federal prison.
Billy Ray Marlow, 43, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Marlow was sentenced to 216 months in federal prison.
Jeremy Reden, 38, of Tazewell, Va, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime. Today in District Court. Reden was sentenced to 188 months in federal prison.
Rebeca Metcalf, 32, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Metcalf was sentenced to 27 months in federal prison.
Kaelea Meagan Thomas V, 27, of Middlesboro, Kentucky, previously pled guilty to one count of possessing and using a firearm in furtherance of a drug trafficking crime. Today in District Court, Thomas was sentenced to 36 months in federal prison.
“These defendants, and the others they conspired with to bring methamphetamine into Southwest Virginia and Kentucky, will be held accountable for their actions,” United States Attorney Fishwick said today. “We will continue to work with our federal, state and local law enforcement partners to stop the flow of this dangerous drug into our communities.”
Along with the five individuals sentenced today, a total of 15 defendants have been charged with being part of the conspiracy, three of which have already been sentenced to federal prison terms. Tracie Cartwright was previously sentenced to 188 months in federal prison for her role in the conspiracy, Amanda Szemac was sentenced to 12 months and one day in prison for her role in the conspiracy and Curtis Howerton was sentenced to 57 months in federal prison for his role in the conspiracy.
Several other defendants previously convicted as part of the conspiracy will be sentenced later this week in federal court in Abingdon.
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesboro, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Federal Inmate Admits Possessing ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of attempting to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
Douglas Vines, 45, pleaded guilty before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 20, 2015, Vines attempted to obtain a quantity of suboxone.
Judge Gibson scheduled sentencing for April 18, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 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 of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Vines.
East Lyme Resident Charged with Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that on December 7, 2016, a federal grand jury in New Haven returned an indictment charging REGAN TIPPETT, 41, of East Lyme, with filing false tax returns.
According to the indictment and statements made in court, TIPPETT is a partner in the bails bonds company, Statewide Bail Bonds. It is alleged that, for the 2009 through 2012 tax years, TIPPETT failed to report approximately $260,000 in taxable income that was derived from bail bond fees.
The indictment charges TIPPETT with four counts of filing a false tax return, an offense that carries a maximum term of imprisonment three years on each count.
TIPPETT appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and pleaded not guilty to the charges. He was released on a $50,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Columbus, Ohio woman sentenced for transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Kasie A. Morgan, 24, of Columbus, Ohio was sentenced to 35 months in federal court today for transporting stolen goods across state lines, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Morgan conspired to steal smart phones, tablets, head phones, game stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000. She pled guilty to one count of “Conspiracy to Transport Stolen Goods in Interstate Commerce” in October 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Columbus man sentenced to prison for possessing heroin in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – A Columbus man caught with heroin in Huntington in 2015 was sentenced today to eight months in federal prison, announced United States Attorney Carol Casto. Tyshawn Desmeon Davis, 28, previously pleaded guilty to possession with intent to distribute heroin.
On June 29, 2015, law enforcement executed a search warrant at 1751 Buffington Avenue in Huntington after a confidential informant purchased heroin at the residence. Agents located Davis in the residence during the search and found him in possession of approximately 18 grams of heroin. Davis admitted to agents that he had been involved with other individuals in distributing heroin from the residence.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought 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 prescription drugs 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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California Man Pleads Guilty to Sexual AssaultRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Alberto F. Islas, age 59, from the Los Angeles, California area, today entered a guilty plea to assault with intent to commit aggravated sexual abuse before the Honorable Clay D. Land, Chief United States District Judge for the Middle District of Georgia, in Columbus.
In pleading guilty, Mr. Islas admitted that on September 25, 2016, he assaulted a woman on the Fort Benning Military Reservation by threatening her with a firearm in an effort to coerce sexual relations.
Mr. Islas faces a maximum sentence 20 years in prison, a maximum fine of $250,000, or both. Sentencing will take place in about 60 days following a presentence investigation. Mr. Islas remains in custody, as he has been since the day of the incident.
United States Attorney Peterman said “This matter was resolved through swift action by the Military Police at Fort Benning and rapid investigation by the FBI, which arrested Mr. Islas and obtained the physical and testimonial evidence necessary to this successful prosecution on the day of the incident.”
This case was investigated by the Columbus office of the Federal Bureau of Investigation. Assistant United States Attorney Melvin E. Hyde, Jr. is handling the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Brewer Man Sentenced to Five Years Probation for Failure to Register as a Sex OffenderRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Charles Roberson, 44, of Hermon, Maine, was sentenced today in U.S District Court by Judge John A. Woodcock, Jr. to five years probation for Failure to Register as a Sex Offender. The defendant pled guilty to the charge on July 21, 2016.
According to court records, in 2004, Roberson was convicted in Minnesota of Criminal Sexual Conduct in the First Degree. This felony conviction made Roberson a lifetime sex offender registrant. In or about the fall of 2015, Roberson moved from Minnesota and began living and working in Hermon, Maine. He did not notify the Minnesota Predatory Offender Registration unit that he was moving. Further, up until his arrest on February 23, 2016, he made no attempt to register with the Maine State Police Sex Offender Registry.
The case was investigated by the United States Marshals Service.
Boardman man charged with defrauding investors out of $1.2 millionRead the Press Release
A Boardman man was charged in federal court with defrauding investors out of nearly $1.2 million and related tax violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI and Troy Stemen, Acting Special Agent in Charge of the IRS’s Cincinnati Field Office.
George N. Krinos was charged in a two-count criminal information with engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
The information alleges that Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in the Northern District of Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission. Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds.
The information alleges that from 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings. Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions. To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share. Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account.
The information further alleges that Krinos submitted falsified letters and statements to reflect high balances in his accounts. Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms. Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels. Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013.
Over the course of his securities fraud scheme, Krinos caused more than ten victims to lose nearly $1.2 million.
The information also alleges that, in addition to the securities fraud scheme, Krinos improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS. Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS.
“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Rendon said.
“Krinos’ victims extend not only include those who entrusted their financial assets to Mr. Krinos, but his employees and the taxpayers whose payroll taxes were squandered to further his personal gain,” Stemen said. “IRS-Criminal Investigation will continue devote our investigative resources to ensure honesty and integrity in the financial and tax systems and hold those accountable who threaten them.”
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not excess the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Blacksburg Man Pleads Guilty to Pair of Federal ChargesRead the Press Release
ROANOKE, VIRGINIA – A Blacksburg man pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to a pair of federal charges, United States Attorney John P. Fishwick Jr. announced today.
Matthew Jeremey Holland, 23, of Blacksburg, Va., pled guilty today to one count of distribution of cocaine and one count of possessing a firearm by a previously convicted felon.
“Drugs and guns are a deadly combination,” United States Attorney Fishwick said today. “We will continue to work to make our communities safer by ridding them of illegal drugs and taking guns out of the hands of prohibited users like Mr. Holland.”
According to evidence presented at today’s hearing by Assistant United States Attorney Andrew Bassford, Holland was charged after attempting to sell cocaine and a firearm to an informant with the New River Regional Drug Task Force.
The investigation of the case was conducted by New River Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Bank Robber Sentenced to 46 Months in PrisonRead the Press Release
Assistant U.S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – January 3, 2017
SAN DIEGO – Alvin Lee Neal was sentenced today by U.S. District Judge Anthony J. Battaglia to 46-months in prison for robbing a Wells Fargo Bank branch in downtown San Diego. Judge Battaglia also ordered Neal to pay $565 in restitution to Wells Fargo Bank.
In his plea agreement, Neal, 56, admitted that on May 13, 2016, he entered the Wells Fargo bank located on 610 First Avenue, San Diego, and approached a teller. At first, Neal swiped his Wells Fargo debit card through the Wells Fargo customer card reader located at the counter. Neal’s bank profile appeared on the teller’s computer screen. When the teller asked Mr. Neil what he wanted to do at the branch, the defendant responded, “You’re being robbed. Don’t make a mistake.” Neal also handed a note to the teller that read, “You’re being robbed no mistake [sic]” and further told the teller “You don’t want anyone to get hurt, don’t make a mistake.” Neal took $565 and fled from the bank.
Based on the information from Neal’s customer profile, FBI agents and San Diego Police Department detectives established surveillance around Neal’s residential address and ultimately arrested Neal.
DEFENDANT Case Number: 16CR1188-AJB
Alvin Lee Neal Age: 56
SUMMARY OF CHARGE
Bank Robbery, in violation of Title 18, United States Code, Section 2113(a)
Maximum penalty: 20 years in prison
AGENCY
Federal Bureau of Investigation
San Diego Police Department
Alleged Confidence Man Charged with Luring Victims Through Matchmaking and Networking Sites to Commit Fraud and Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and Timothy Gallagher, Special Agent-in-Charge of the Newark Field Office of the Federal Bureau of Investigation (“FBI”), announced that JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” was charged in a five-count indictment today. TAYLOR had previously been charged by complaint, and first appeared in this district on December 21, 2016. The case has been assigned to U.S. District Judge Laura Taylor Swain. TAYLOR is expected to be arraigned later this week before Judge Swain.
Manhattan U.S. Attorney Preet Bharara said: “John Edward Taylor allegedly trolled dating websites to find unsuspecting women for his ‘romance’ scam, designed to steal their money. While masquerading as a millionaire businessman with romantic and professional interest in his victims, Taylor was in reality an alleged con artist. When confronted by some of his victims for looting their bank accounts, Taylor took his insidious crime another step further, allegedly threatening to release sexually explicit photos of them.”
FBI Special Agent-in-Charge Timothy Gallagher said: “Today’s charges illustrate the FBI’s commitment to combating the growing threat of online dating scams and financial fraud. Our job is to protect victims and ensure those who commit these egregious crimes are held accountable.”
According to the allegations in the Complaint and Indictment filed in federal court:[1]
JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” stole, or attempted to steal, money, credit, and personal information from more than a dozen women (the “Victims”) in cities across the country, including New York City, Chicago, Atlanta, and Philadelphia.
TAYLOR contacted Victims using online matchmaking and networking websites, such as Match.com, eHarmony, Craigslist, and Seeking Arrangement. TAYLOR typically introduced himself as “Jay” and often falsely described himself as a wealthy businessman with oil and land interests in North Dakota. To some Victims, TAYLOR feigned interest in hiring the Victims to work on a new business TAYLOR purported to be creating. To other Victims, TAYLOR expressed an interest in a romantic and personal relationship. To most Victims, TAYLOR purported to be interested in both a personal and a professional relationship.
Using a variety of false pretenses, TAYLOR obtained the Victims’ personal identifying information, often including birthdates, addresses, and bank and credit account numbers. TAYLOR used the Victims’ personal identifying information to purchase goods, transfer funds, and open new accounts – all without authorization. In certain circumstances, TAYLOR opened accounts without the Victims’ knowledge. In other circumstances, TAYLOR opened accounts that he assured Victims were business accounts, but were, in fact, personal accounts in the Victims’ names, over which TAYLOR maintained exclusive control.
Often within a matter of months, Victims would discover thousands of dollars in unauthorized charges and transfers in their existing accounts, receive bills for accounts they had never created, or learn their existing accounts had been closed due to delinquency.
Independent of each other, multiple Victims confronted TAYLOR about his activities. To some, TAYLOR responded with insults. To others, TAYLOR responded with promises to repay the losses – and on at least one occasion attempted to repay one Victim with funds unlawfully obtained from another Victim. On multiple occasions, TAYLOR threatened to transmit sexually explicit images of the Victims – which he had obtained as part of his purported romantic relationships with them – to the Victims’ employers if the Victims tried to collect their debts.
TAYLOR’s fraud and attempted fraud totaled hundreds of thousands of dollars in losses.
* * *
TAYLOR, 47, has been charged with one count of wire fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of bank fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and two counts of threatening communications, each of which carries a maximum sentence of two years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the FBI for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jonathan Rebold and Andrew Thomas are in charge of the case.
The charges contained in the Complaint and Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the descriptions of the Complaint and Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Agreement Ensures Effective Communication with Hearing Impaired Individuals at John Dempsey HospitalRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the John Dempsey Hospital, which is a part of the University of Connecticut Health Center, has entered into a voluntary resolution agreement with the U.S. Attorney’s Office for the District of Connecticut and the U.S. Department of Health and Human Services, Office for Civil Rights (OCR), to ensure effective communication with, and enhance the quality of services for, persons who are deaf or hard of hearing.
This matter was initiated by a complaint filed with the Department of Justice (DOJ) by Connecticut’s Office of Protection and Advocacy for Persons with Disabilities alleging violations of Title II of the Americans with Disabilities Act (ADA). Specifically, the complaint alleges that an individual who is deaf and communicates using American Sign Language (ASL) was discriminated against and denied an interpreter when John Dempsey Hospital failed to timely provide auxiliary aids and services during an Emergency Department visit for medical treatment. According to the complainant, she was forced to rely on her boyfriend’s limited ability to interpret her symptoms during the medical examination because her request for an ASL interpreter was denied by hospital staff. Within two days after discharge, the complainant’s symptoms had escalated, and she ultimately had an emergency appendectomy at another hospital because her appendix had burst.
Title II of the ADA prohibits public entities, including hospitals, from discrimination against qualified individuals with disabilities by excluding such individuals from participation in or denying them the benefits of the services, programs, or activities of a public entity, or subjecting them to discrimination by any public entity. A public entity is required to furnish appropriate auxiliary aids and services where necessary to afford individuals with disabilities, including applicants, participants, companions, and members of the public, an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity of a public entity. The U.S. Attorney’s Office investigates allegations of violations of the ADA and commences enforcement action as and when appropriate.
In coordination with DOJ, HHS-OCR initiated a compliance review of John Dempsey Hospital with regard to the Hospital’s policies and procedures for ensuring effective communication with individuals who are deaf or hard of hearing to determine the Hospital’s compliance with Section 504 of the Rehabilitation Act of 1973. Section 504 of the Act prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance. The investigation raised concerns about the Hospital’s policies and procedures to ensure effective communication with deaf or hard of hearing individuals.
Under the agreement, which resolves both the DOJ complaint investigation and the HHS-OCR compliance review, John Dempsey Hospital is obligated to take critical steps toward improving access to ensure communication with deaf and hard of hearing individuals is as effective as communication with those without disabilities, including revising its policies and procedures, revising its training, and performing initial and ongoing assessments of the need for auxiliary aids and services for patients and their companions who are deaf or hard of hearing.
John Dempsey Hospital also has agreed to pay the complainant $20,000 to resolve the matter.
The agreement is effective for two years, during which time both HHS-OCR and the U.S. Attorney’s Office will monitor the Hospital’s compliance.
“An important component of our federal law enforcement responsibilities is the protection of vulnerable communities, especially people struggling with disabilities,” said U.S. Attorney Daly. “Enforcement of the ADA is one of many tools we use to help achieve that goal. We are gratified with the number of ADA settlements that we have reached with public and private entities in Connecticut, and applaud the level of cooperation that these entities have demonstrated. UConn Heath Center, in particular, has already implemented a number of changes at John Dempsey Hospital that will benefit not only individuals who are deaf and hard of hearing, but others with a broad range of disabilities, and ultimately all hospital patrons and companions.”
A copy of the voluntary resolution agreement may be found at: www.ada.gov/jdh_sa.html.
This matter was handled by Assistant U.S. Attorney Vanessa Roberts Avery.
To learn more about the ADA and its application to public entities, places of public accommodation and commercial facilities, call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
31 December 2016
U.S. Attorney’s Office Collects $3.1 million in Fiscal Year 2016Read the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s Office collected $3,149,500 in criminal and civil actions in fiscal year 2016, U.S. Attorney William J. Ihlenfeld, II, announced today.
According to Ihlenfeld, $1,001,768 was collected in criminal actions and $2,147,731 was collected in civil actions, and his office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $155,650.00 in cases pursued jointly with those offices.
U.S. Attorneys’ Offices throughout the country are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
30 December 2016
“Bmb” Gang Member Pleads Guilty to Bronx Murder in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARTIN MITCHELL, a/k/a “Tyliek,” pled guilty today to involvement in a racketeering conspiracy in connection with his membership in the “Big Money Bosses” (“BMB”), a violent street gang that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx. As part of his guilty plea, MITCHELL admitted that he committed the murder of Keshon Potterfield, on or about June 22, 2014, in the vicinity of East 232nd Street in the Bronx. MITCHELL’s guilty plea was presided over by Magistrate Judge Barbara Moses.
U.S. Attorney Preet Bharara said: “Martin Mitchell, as a member of the violent Bronx street gang Big Money Bosses, admitted to shooting and killing a 17-year-old boy at a birthday party. This type of senseless gang violence threatens the safety and security of all New Yorkers, and we will continue to work with our law enforcement partners to confront it aggressively.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
BMB is a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine and marijuana.
MITCHELL was a member of BMB. On June 22, 2014, MITCHELL and other members of BMB attended a birthday party in the backyard of a residence in the vicinity of 232nd Street in the Bronx. Potterfield was one of the guests at the party and was shot by MITCHELL in connection with BMB’s rivalry with another street gang. Potterfield was 17 years old.
MITCHELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. The Indictment, which was unsealed on April 27, 2016, charged 63 members and associates of BMB with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. To date, 30 of these defendants have pled guilty.
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MITCHELL, 22, of the Bronx, New York, was arrested on April 27, 2016, in the Bronx, New York, and has been in federal custody since. MITCHELL pled guilty today to one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the judge. MITCHELL is scheduled to be sentenced by United States District Judge Alison J. Nathan on April 6, 2017, at 3:30 p.m.
Mr. Bharara praised the outstanding work of the NYPD’s Bronx Homicide Task Force, the NYPD’s 47th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
Waterloo Heroin Dealer Sentenced in Federal CourtRead the Press Release
A Waterloo woman who possessed heroin with intent to distribute near Morris Park in Waterloo, Iowa, was sentenced yesterday to 21 months in federal prison.
Michelle Hanson, age 28, from Waterloo, Iowa, received the prison term after an October 3, 2016, guilty plea to possession with intent to distribute heroin and fentanyl near Morris Park in Waterloo, Iowa on March 2, 2016.
At the guilty plea, Hanson admitted she sold heroin and fentanyl out of her Waterloo home, which was located near Morris Park. A search of her home by the Tri-County Drug Enforcement Task Force resulted in the seizure of over 12 grams of heroin and six patches containing fentanyl.
Hanson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hanson was sentenced to 21 months’ imprisonment and a special assessment of $100 was imposed. She must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. Hanson is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated as part of the National Heroin Initiative of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Tri-County Drug Task Force, which is comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2036. Follow us on Twitter @USAO_NDIA.
U.S. Attorney's Office Collects More Than $15 Million for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
LEXINGTON, Ky. — U.S. Attorney Kerry B. Harvey announced today that his office collected more than $15,765,000 in Fiscal Year 2016. Of this amount, more than $8,214,000 was collected in criminal actions and more than $7,551,000 was collected in civil actions.
In addition to funds collected solely by the United States attorney’s Office for the Eastern District of Kentucky, Harvey’s office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $3,353,000 in cases pursued jointly with those offices. Of this amount, $2,370,500 was collected in criminal actions and more than $982,000 was collected in civil actions. Federal FY 2016 ran from October 1, 2015 to September 30, 2016.
“Federal law enforcement in the Eastern District of Kentucky is a wise investment for the taxpayers,” said Harvey. “Our top priority will always be to enforce the laws which keep Americans safe. We are pleased, however, that our efforts also enhance and protect the public treasury, while securing restitution for crime victims. Last year, we recovered an amount representing more than twice our office’s annual budget in fines, forfeitures, and restitution. We will continue to work hard every day to be good stewards of the resources allocated for our use.”
Attorney General Loretta E. Lynch announced earlier this month that the U.S. Department of Justice collected nearly $15.4 billion in civil and criminal actions in FY 2016. This amount represents more than five times the 2016 appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the litigating divisions of the Justice Department, combined.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition to these collections, the U.S. Attorney’s Office for the Eastern District of Kentucky, working with partner agencies and divisions, also collected more than $12,356,000 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Tulsa Metro Area Serial Bank Robber Sentenced to Life ImprisonmentRead the Press Release
TULSA, Okla.— TULSA, Okla.—Chief United States District Court Judge Gregory K. Frizzell sentenced Jesse Bud Leaverton, 58, to life imprisonment under the three-strikes sentencing statute for robbing three banks in the Tulsa metro area, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Leaverton went on a bank robbery spree that begun on June 18, 2016, with the robbery of the Arvest Bank at 218 South Memorial Drive in Tulsa. On June 23, 2016, Leaverton robbed Bank of America at 5950 East Admiral in Tulsa and on June 24, 2016, Leaverton robbed Security State Bank in Fairfax, Oklahoma. Leaverton threatened the bank tellers with the use of a firearm and, in addition, threatened the Security State Bank teller with death.
Leaverton was located by the United States Marshals Violent Crimes Task Force in Missouri on June 30, 2016. On September 20, 2016, a jury found Leaverton guilty of all three bank robberies. Leaverton has an extensive criminal history. He has been convicted of numerous felonies, including: burglary, manslaughter, and armed bank robbery. Before he committed the instant robberies, Leaverton was convicted of robbing a bank in Missouri and received a sentence of 271 months. He was on federal supervised release when he committed the robberies in the Tulsa metro area.
This case was investigated by the Federal Bureau of Investigation, the Tulsa Police Department, the Osage County Sherriff’s Office, the Talala Police Department, and the United States Marshals Violent Crimes Task Force. Assistant United States Attorney Neal C. Hong prosecuted the case.
Sole Remaining Defendant in Local 17 Prosecution SentencedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Gerald H. Franz, Jr., 54, of Eden, New York, who was convicted of racketeering conspiracy, was sentenced to time served by Senior U.S. District Judge William M. Skretny. He was further ordered to pay, jointly and severally with his codefendants, restitution in the amount of over $890,000.00.
Franz was the eighth and final defendant, of the twelve members of International Union of Operating Engineers, Local 17, AFL-CIO (Local 17) charged in a 2008 Superseding Indictment, to be convicted and sentenced. Four Local 17 members charged in the Superseding Indictment were found not guilty following a jury trial.
The Local 17 members charged were alleged to have acted, between January 1997 and December 2007, as a criminal enterprise by extorting and attempting to extort construction contractors doing business in Western New York. Among those Franz and others extorted or attempted to extort were Zoldaz Construction, in connection with that company’s efforts to demolish certain homes in Buffalo and to perform work at the Dunkirk Landfill in Pomfret, New York, and the Wadsworth Golf Construction Company, in connection with that company’s golf course construction efforts in Orchard Park and Cheektowaga, New York. The acts of extortion and attempted extortion committed by Franz and Local 17 members included damaging the heavy equipment of one of the companies by pouring sand into the oil box of such equipment, and making various threats to employees and representatives of such companies.
Earlier this year in August, Local 17’s former president and business manager, Mark Kirsch, was sentenced principally to three years in prison by Judge Skretny. At that time, Skretny noted how the Local 17’s activities had far-reaching consequences on the region. “I think it set back the development of the Western New York business community for decades,” Skretny said. “It slowed good job opportunities instead of creating good job opportunities.”
The sentencing is the result of an investigation by the United States Department of Labor, under the direction of Special Agent-in-Charge Cheryl Garcia; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen; and the New York State Police, under the direction of Major Steven Nigrelli.Rochester Man Convcted of Armed Cocaine Trafficking Sentenced to 20 Years and 8 Months in Federal PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kenya Brown, 41, of Rochester, New York, who was convicted of conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (“crack” cocaine), and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 20 years and 8 months in prison and 5 years supervised release and ordered to pay a fine of $5,000 by U.S. District Judge Elizabeth A. Wolford. He was further required to forfeit any interest in $303,355.00 in drug trafficking proceeds, along with 12 shotguns, 8 rifles, and 472 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between 2006 and March 2012, Kenya along with his brother, Shawnta Brown, obtained kilogram quantities of cocaine, manufactured cocaine base from cocaine, broke down and packaged smaller quantities of cocaine and cocaine base for resale, distributed cocaine and cocaine base directly to others, operated drug houses where they directed and supervised lower-level members of the conspiracy who sold cocaine and cocaine base to others. The Brown brothers were arrested March 9, 2012, when officers raided 2294 Clifford Avenue, 138 Strong Street, 29 Aberdeen Street and other locations in Rochester utilized by the brothers in their drug trafficking operation. At these locations, officers seized more than 5 kilograms of cocaine, a quantity of cocaine base, firearms with ammunition, paraphernalia for the packaging, processing and weighing of narcotics, and receipts for gold and silver bars. A few days later, officers raided a residence in the Town of Red Creek, Cayuga County, seizing more firearms, dozens of rounds of ammunition, $303,355 in U.S. currency, and over $23,000 in gold and silver bars and coins. The investigation continued, and resulted in the arrest of Eric Contreras, 29, the California kilogram supplier on May 15, 2012, in Whittier, California. On April 9, 2013, Contreras was sentenced upon his conviction in the Western District of New York for conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine to 188 months imprisonment. Shawnta Brown, who was also convicted on conspiracy to possess with intent to distribute and to distribute cocaine and “crack” cocaine was recently sentenced to 20 years in prison.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Drug Enforcement Administration under the direction of Acting Resident Agent-in-Charge, William Reichard, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent-in-Charge, James Burroughs, and the United States Marshal Service, under the direction of United States Marshal Charles Salina.Rochester Man Convcted of Armed Cocaine Trafficking Sentenced to 20 Years and 8 Months in Federal PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kenya Brown, 41, of Rochester, New York, who was convicted of conspiracy to possess with intent to distribute and to distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base (“crack” cocaine), and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 20 years and 8 months in prison and 5 years supervised release and ordered to pay a fine of $5,000 by U.S. District Judge Elizabeth A. Wolford. He was further required to forfeit any interest in $303,355.00 in drug trafficking proceeds, along with 12 shotguns, 8 rifles, and 472 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between 2006 and March 2012, Kenya along with his brother, Shawnta Brown, obtained kilogram quantities of cocaine, manufactured cocaine base from cocaine, broke down and packaged smaller quantities of cocaine and cocaine base for resale, distributed cocaine and cocaine base directly to others, operated drug houses where they directed and supervised lower-level members of the conspiracy who sold cocaine and cocaine base to others. The Brown brothers were arrested March 9, 2012, when officers raided 2294 Clifford Avenue, 138 Strong Street, 29 Aberdeen Street and other locations in Rochester utilized by the brothers in their drug trafficking operation. At these locations, officers seized more than 5 kilograms of cocaine, a quantity of cocaine base, firearms with ammunition, paraphernalia for the packaging, processing and weighing of narcotics, and receipts for gold and silver bars. A few days later, officers raided a residence in the Town of Red Creek, Cayuga County, seizing more firearms, dozens of rounds of ammunition, $303,355 in U.S. currency, and over $23,000 in gold and silver bars and coins. The investigation continued, and resulted in the arrest of Eric Contreras, 29, the California kilogram supplier on May 15, 2012, in Whittier, California. On April 9, 2013, Contreras was sentenced upon his conviction in the Western District of New York for conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine to 188 months imprisonment. Shawnta Brown, who was also convicted on conspiracy to possess with intent to distribute and to distribute cocaine and “crack” cocaine was recently sentenced to 12 years in prison.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Drug Enforcement Administration under the direction of Acting Resident Agent-in-Charge, William Reichard, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent-in-Charge, James Burroughs, and the United States Marshal Service, under the direction of United States Marshal Charles Salina.Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Darrell Chase In Winter, age 24, was indicted on December 20, 2016. Chase In Winter appeared before U.S. Magistrate Judge Daneta Wollmann on December 23, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Chase In Winter failing to register and update his registration as a convicted sex offender between May 14, 2016, and September 29, 2016.
The charge is merely an accusation and Chase In Winter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Chase In Winter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 28, 2017.
Pine Ridge Man Charged with MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder and Discharge of a Firearm During the Commission of a Crime of Violence.
Thomas Joseph Brewer, 26, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on December 28, 2016. He pleaded not guilty to the charges.
The maximum penalty upon conviction is life imprisonment, and/or a $250,000 fine, five years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Brewer shooting a man in the stomach after an argument, killing him. The charges are merely an accusation and Brewer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Brewer was detained pending trial. A trial date has not been set.
Picayune Resident Sentenced to Prison for Possession of Child PornographyRead the Press Release
Gulfport, Mississippi. – Elza Eugene Harter, 52, of Picayune, was sentenced today by Chief U.S. District Judge Louis Guirola, Jr., to serve 97 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced U.S. Attorney Gregory K. Davis. Harter was also ordered to pay a $10,000 fine.
On June 5, 2014, Harter was found to be in possession of a laptop and hard drive containing 111 images and 206 videos of minors engaging in sexually explicit conduct as defined in the federal laws for violations of the sexual exploitation of children. He pled guilty to the charge on September 21, 2016.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andrea Jones.
Okreek Man Charged with Sexual Abuse and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Sexual Abuse of a Minor, and Child Abuse.
Marcos Lorenzo Bear Shield, age 21, was indicted on December 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Aggravated Sexual Abuse is life in custody and a lifetime of supervised release. The maximum penalty upon conviction for both Sexual Abuse of a Minor and Child Abuse is up to 15 years in custody and 3 years of supervised release. Each offense carries a maximum fine of $250,000 and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 4, 2015, Bear Shield knowingly engaged in and attempted to engage in a sexual act with a minor. The Indictment also alleges that on the same date Bear Shield abused, exposed, tortured, tormented, and cruelly punished the minor victim. The victim had attained the age of twelve years, but had not attained the age of sixteen years, and was at least four years younger than Bear Shield. The charges are merely accusations and Bear Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Carrie Sanderson is prosecuting the case.
Bear Shield was temporarily remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Woman Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Yolanda Prue, age 31, was indicted on December 14, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 3, 2016, Prue knowingly and intentionally possessed with intent to distribute methamphetamine in South Dakota.
The charge is merely an accusation and Prue is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Prue was released on bond pending trial. A trial date has not been set.
Manhattan U.S. Attorney Announces Arrest of Georgia Man for Kidnapping, Heroin Trafficking, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), George P. Beach II, Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of EDWIN CABRAL MORA, a/k/a “Sosa.” CABRAL MORA was arrested yesterday in Gwinnett County, Georgia, and was presented today before a U.S. Magistrate Judge in the Northern District of Georgia and detained on consent.
CABRAL MORA is charged in four counts with conspiring to possess and distribute one kilogram and more of heroin, kidnapping, conspiracy to commit kidnapping, and brandishing a firearm in connection with these offenses. In relation to the kidnapping counts, CABRAL MORA is charged with luring an individual (“Victim-1”) from New York to Georgia, where Victim-1 was transported by car to an apartment in which CABRAL MORA and others blindfolded, bound, beat, and tortured Victim-1 by burning Victim-1’s skin.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Edwin Cabral Mora not only trafficked in large quantities of heroin, but turned to violence, including participating in a vicious kidnapping. In April of this year, Mora allegedly lured a victim from the Bronx to Georgia, ultimately blindfolding, beating, and torturing the victim. Thanks to the remarkable efforts of the DEA, this allegedly dangerous man is now off the streets and will face criminal charges in New York federal court.”
DEA Special Agent in Charge James J. Hunt said: “DEA’s REDRUM Group specializes in tracking down drug traffickers that cross the line into kidnapping, torture and at times, murder. This investigation took the team on the road to Atlanta to arrest Edwin Cabral Mora for his alleged crimes.”
State Police Superintendent George P. Beach II said: “Thanks to the hard work and partnership of law enforcement at the federal, state and local level, we are taking out a violent drug operation. This arrest should send the message that we will continue to aggressively pursue criminals who profit from illegal drugs at the expense of the safety and security of our neighborhoods.”
NYPD Commissioner James P. O’Neill said: “The defendant in this case is an alleged drug trafficker who blindfolded, burned, beat and finally tortured a kidnapping victim in a particularly heinous crime. I am thankful to the NYPD detectives, DEA agents, and others whose work resulted in these charges in the Southern District.”
As alleged in the Indictment[1]:
Heroin Trafficking
CABRAL MORA conspired with others to distribute substantial quantities of heroin from at least January 2016 through May 2016, in the Southern District of New York and elsewhere.
Kidnapping and Kidnapping Conspiracy
CABRAL MORA conspired with others to kidnap Victim-1, and did kidnap Victim-1 in April 2016. CABRAL MORA called Victim-1 by phone, when Victim-1 was in the Bronx, New York, to lure Victim-1 to Georgia. Once in Georgia, Victim-1 was transported by car to an apartment in which CABRAL MORA and others blindfolded, bound, beat, and tortured Victim-1 by burning Victim-1’s skin.
Firearms Possession
CABRAL MORA used, possessed, carried, and brandished firearms in relation to his heroin trafficking and kidnapping offenses.
* * *
CABRAL MORA, 38, of Gwinnett County, Georgia, is charged with conspiring to possess and distribute one kilogram and more of heroin, which carries a maximum sentence of life in prison, kidnapping, which carries a maximum sentence of life in prison, conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and brandishing a firearm in connection with the foregoing offenses, which carries a maximum sentence of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the DEA, and also thanked the Georgia State Police, the Georgia Bureau of Investigation, and Atlanta HIDTA Groups 1 and 2 for their assistance.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Sagar K. Ravi and Amanda L. Houle are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Internet Crimes Against Children (ICAC) Unit Arrest Spearfish Man for Enticement of a MinorRead the Press Release
PIERRE, S.D - Attorney General Marty Jackley and United States Attorney Randolph J. Seiler announced today that the Division of Criminal Investigation, the South Dakota Internet Crimes Against Children Task Force, Spearfish Police Department, and Homeland Security Investigations have arrested Nicholaus Tripp, 28, Spearfish, South Dakota, on one count of Attempted Enticement of a Minor Using the Internet (18 USC 2422(b).
Tripp was arrested on a criminal complaint on December 23, 2016, and made his initial appearance before U.S. Magistrate Judge Daneta Wollmann on December 27, 2016. He pled not guilty to the charge.
The maximum penalty upon conviction is 10 years’ mandatory minimum imprisonment up to life.
The charge relates to Tripp utilizing the internet to attempt to engage in unlawful sexual acts with a minor.
The investigation is being conducted by the Division of Criminal Investigation, the South Dakota Internet Crimes Against Children Task Force, Pennington County Sheriff’s Office, Rapid City Police Department, Spearfish Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Tripp has been detained pending trial. A trial date has been set for February 28, 2017. The charge is merely an accusation and Tripp is presumed innocent until and unless proven guilty.
INTERPOL Washington Highlights of 2016Read the Press Release
INTERPOL Washington had an exciting year in 2016!
[[{"fid":"921786","view_mode":"default","attributes":{"data-delta":"1"},"fields":{"format":"default","og_group_ref[und][0][default]":"1686"},"type":"media","field_deltas":{"1":{"format":"default","og_group_ref[und][0][default]":"1686"}}}]]Former Vice President of Maryland Bank Charged with Bank Embezzlement and Wire Fraud for Alleged Six-Year Scheme to Steal over $1.8 MillionRead the Press Release
Baltimore, Maryland – Melissa Strohman, age 54, of Nottingham, Maryland, is facing federal charges of wire fraud and bank embezzlement, arising from a six-year scheme to steal over $1.8 million from bank customers at the bank where she worked, and use the money for her own benefit.
The criminal information was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Patti Tarasca, Special Agent in Charge, New York Region, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the criminal information, from April 2010 through July 2016, Strohman was Senior Vice President at a federal savings bank in Maryland, which had branches in Pikesville and Highlandtown. Strohman was responsible for managing the bank’s savings department, including overseeing deposits and Individual Retirement Accounts for every customer. In addition, as the bank’s Bank Secrecy Officer, Strohman was responsible for filing Currency Transaction Reports and Suspicious Activity Reports for any transactions that were deemed to be suspicious or potentially illegal.
The criminal information alleges that, using her position at the bank, Strohman caused unauthorized transfers and withdrawals of funds from six customers’ bank accounts to pay for mortgages, credit card bills and property tax bills associated with Strohman and her family members. Three of the six victim customers were at least 80 years old, and for two of the accounts the customers were deceased.
Strohman allegedly used her supervisory override function on the bank’s electronic banking system to facilitate unauthorized transfers between Person One and Person Two’s accounts to accounts associated with Strohman; forged the signature of Person Two in order to complete an unauthorized transaction between Person Two’s bank account to an American Express account associated with Strohman; and caused unauthorized transfers of funds from Person One and Person Two’s accounts into Person Three through Person Five’s accounts to replace the monies Strohman stole from Person Three through Person Five and to conceal those thefts.
Strohman faces a maximum sentence of 20 years in prison for wire fraud, and a maximum of 30 years in prison for bank embezzlement. No court appearance has been scheduled yet for Strohman in U.S. District Court in Baltimore.
A criminal information is not a finding of guilt. An individual charged by information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FDIC Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Evan T. Shea, who are prosecuting the case.
Former Opa Locka City Commissioner Charged in Corruption SchemeRead the Press Release
Former City of Opa Locka Commissioner Luis Santiago has been charged for his participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Santiago is charged by Information with conspiring with former Opa Locka City Manager David Chiverton, former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka. The case against Santiago is assigned to United States District Judge Kathleen M. Williams (Case No. 16-20971-CR). Santiago had his initial appearance today before United States Magistrate Judge Alicia Otazo-Reyes.
As alleged in the Information, in exchange for the illegal payments, Santiago would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Santiago would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions.
Chiverton and Harris previously pled guilty. Chiverton was sentenced to 38 months in prison by United States District Judge Cecilia M. Altonaga, while Harris is awaiting sentencing before United States District Judge Beth Bloom.
If convicted, Santiago faces a maximum statutory sentence of five years’ imprisonment, a fine of $250,000 and three years of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
An Information is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Attorney Pleads Guilty to Defrauding Clients of More Than $824KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN O’BRIEN, 53, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of wire fraud related to his stealing more than $824,000 from clients of his law practice.
According to court documents and statements made in court, O’BRIEN was an attorney with an office located in Fairfield. Between approximately April 2011 and June 2014, O’BRIEN defrauded four clients by using funds from one client to pay off debts owed in connection with his representation of other clients, and also to pay for personal expenses, including the tuition for one of his children at a private high school.
In approximately May 2012, O’BRIEN accepted $458,343.06 into his Interest on Lawyer Trust Account (“IOLTA”) as proceeds of a reverse mortgage taken by a client (“Client 1”) and his client’s wife, both of whom are now deceased. The funds from the reverse mortgage were intended to pay debts that would keep the client’s family business sustainable. Between June 2012 and February 2014, O’BRIEN disbursed only $204,000 to the family business. In approximately July 2013, O’BRIEN received an additional $194,636.89 from bank accounts held in the name of his client and one of his client’s children. The funds were supposed to be distributed to the client’s children. Only $104,008 was distributed. In approximately April 2014, O’BRIEN accepted $837,250 into his IOLTA as proceeds of a sale of his client’s real property. Only $470,000 of that amount was disbursed to his client’s heirs. The first check written from O’BRIEN’s IOLTA account upon receipt of the $837,250 was to a prior unrelated client for a debt owed to that client. In total, O’BRIEN defrauded Client 1 of $712,221.95.
In May 2011, O’BRIEN deposited $74,250 from a second client (“Client 2”) into his IOLTA. The money was never disbursed to the client.
In approximately September 2011, O’BRIEN agreed to represent a terminally ill woman (“Client 3”) for estate planning. Upon this client’s death in January 2013, O’BRIEN received $137,000 from the estate into his IOLTA. After the deposit, O’BRIEN paid personal expenses from the IOLTA, including his son’s private school tuition and thousands of dollars to his ex-wife. Only $112,283.20 was distributed to the heirs of O’ BRIEN’s client. Upon a review of this matter by the Connecticut Bar Statewide Grievance Committee, O’BRIEN produced fraudulent memos allegedly written to the daughter of his client requesting “release” of various amounts. One of the memos included payment to the family business of Client 1 for a $15,000 lawnmower, which was paid for from Client 3’s estate. Client 3 did not purchase a lawnmower from the family business of Client 1.
O’BRIEN represented a client (“Client 4”) in the purchase of the client’s deceased mother’s home in Westport. In two payments in August 2013 and February 2014, the client transferred to O’BRIEN approximately $199,332 for purchase of the home, which O’BRIEN was supposed to pay to the fiduciary of the estate to complete the sale. In approximately April 2014, O’BRIEN finally paid the fiduciary of the estate to complete the sale. The check to the fiduciary of Client 4’s mother’s estate was the first check written from the defendant’s IOLTA upon receipt of the $837,250 in Client 1’s real estate sale proceeds. Because of the delay in the defendant’s transfer of payment to the fiduciary of the estate, Client 4 incurred approximately $13,558.38 in storage fees for belongings while the property was unavailable for occupancy by Client 4.
While O’BRIEN was engaged in the above conduct, he made withdrawals of thousands of dollars in cash from his IOLTA. On several occasions, deposits of the same or similar amounts were made into his personal bank account on the same day that the funds were withdrawn from his IOLTA.
O’BRIEN is scheduled to sentenced by Chief U.S. District Judge Janet C. Hall on March 23, 2017, at which time he faces a maximum term of imprisonment of 20 years, a fine of up to approximately $1.6 million, and restitution in the amount of $824,747.13.
O’BRIEN resigned from the Connecticut bar in June 2015.
This matter is being investigated by the U.S. Secret Service and the Connecticut Financial Crimes Task Force, with assistance from investigators of the Connecticut Statewide Bar Grievance Committee. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Eagle Butte Woman Indicted for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Ebony Hope Justyne Cook, age 20, was indicted on October 12, 2016. She appeared before U.S. Magistrate Judge Mark Moreno on December 13, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three occasions, July 19, 20, and 22, 2016, in Eagle Butte, Cook knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance.
The charges are merely an accusation and Cook is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Cook was released on bond pending trial. Trial is set for February 21, 2017.
Eagle Butte Man and Woman Charged with IncestRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Incest.
Daniel Mexican, age 43, and Santana Mexican, age 25, were indicted on December 14, 2016. They appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 20, 2016, Daniel Mexican and Santana Mexican knowingly engaged in consensual sex with each other, when they are within the degrees of consanguinity which would render a marriage void.
The charge is merely an accusation and Daniel Mexican and Santana Mexican are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Both Defendants were released on bond pending trial, which has been set for February 21, 2017.
Eagle Butte Man Charged with BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
Joseph Marshall, age 37, was indicted on December 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 20, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 18, 2016, Marshall unlawfully broke into the Ranch House Café with the intent to commit the crime of larceny.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
California Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
An El Cajon, California tax return preparer pleaded guilty today in the U.S. District Court for the Southern District of California, to three counts of aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Laura Duffy for the Southern District of California.
According to documents filed with the court, Marla Cunningham, 50, of San Diego, California, owned and operated Cunningham’s Tax Service, a tax preparation business in El Cajon, California. Cunningham admitted that she prepared false individual income tax returns for her clients for tax years 2008 through 2010 that included false charitable deductions, unreimbursed employee expenses, education credits, medical and dental expenses and business expenses. Cunningham agreed that she caused a loss of more than $1.2 million.
Cunningham faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of a false return, a period of supervised release, restitution and monetary penalties at her sentencing scheduled for March 10, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Duffy thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew Hoffman and Benjamin Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Blunt Man Charged with Felon in Possession of a Firearm and AmmunitionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Blunt, South Dakota, man has been indicted by a federal grand jury for two counts of Felon in Possession of a Firearm and Ammunition.
Robert Dwayne Spaid, age 60, was indicted on December 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 27, 2016, Spaid, having previously been convicted of a felony, did knowingly possess a firearm. The Indictment further alleges that on or about November 23, 2016, Spaid knowingly possessed ammunition.
The charges are merely accusations and Spaid is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Hughes County Sheriff’s Office and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spaid was released on bond pending trial. A trial date has not been set.
29 December 2016
Virginia Man Sentenced to 7 Years in Prison for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kelvin Robinson, age 25, of Newport News, Virginia was sentenced by United States District Judge Malachy E. Mannion, to serve 7 years in prison for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Robinson, previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence. Robinson was one of four individuals, including Tracy Whiting, age 24, of Newport News, Virginia, Kwa’shon Roane, age 24, of Gloucester, Virginia, and Rodney Whiting, age 23, of Scranton, who were indicted by a grand jury in March 2016 for the armed robbery of the Econo Lodge. Tracy Whiting, Rodney Whiting and Kwa’shon Roane also entered guilty pleas and are awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
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Valentine, Nebraska Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Valentine, Nebraska, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 12, 2016, by U.S. District Judge Roberto A. Lange.
Chelsey Sherri Little, a/k/a Chelsey Long Crow, age 22, was sentenced to 51 months in custody, 3 years of supervised release, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Little was indicted by a federal grand jury on March 15, 2016. She pled guilty on September 27, 2016.
Between January of 2015 and March of 2016, Little and others conspired and agreed to knowingly and intentionally distribute methamphetamine, a Schedule II Controlled Substance, in South Dakota. Little received distributable quantities of methamphetamine from individuals who knew that she intended to engage in further distribution of the drug. Little also provided methamphetamine to others knowing that they intended to engage in further distribution of the methamphetamine within the District of South Dakota. It was reasonably foreseeable to Little that at least 350 grams of methamphetamine would be distributed during the course of the conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Little was immediately turned over to the custody of the U.S. Marshals Service.
U.S. Attorney’s Office Collected Nearly $60 Million in Civil, Criminal and Asset Forfeiture Actions in Fiscal Year 2016Read the Press Release
CHICAGO — The United States Attorney’s Office for the Northern District of Illinois collected nearly $60 million in criminal, civil and asset forfeiture actions in Fiscal Year 2016, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
The 2016 collections included $16,872,634 in criminal actions, $11,240,052 in civil actions, and $31,823,808 in asset forfeiture actions. The total of $59,936,494 is more than double the Office’s Fiscal Year 2016 budget of approximately $28.6 million. The total includes more than $3.6 million in criminally forfeited drug proceeds from convicted members of the Sinaloa Cartel, and more than $200,000 in administrative and criminal forfeitures arising from the prosecution of Steven M. Brazile, a corporate executive who used fraud proceeds to operate a classic car business.
The Office this year was able to restore $15.4 million to victims of federal crimes. It also collected $3,584,521 in criminal and civil cases pursued jointly with other U.S. Attorneys’ Offices and components of the U.S. Department of Justice.
“Our attorneys and staff place a high priority on recovering funds for the federal treasury and for victims of federal crimes,” said U.S. Attorney Fardon. “The Office continues to deliver a valuable return to the taxpayers of our district.”
Nationally, Attorney General Loretta E. Lynch recently announced that the Justice Department collected more than $15.3 billion in civil and criminal actions in Fiscal Year 2016, which ended Sept. 30, 2016. This figure represents more than five times the approximately $3 billion budget appropriated to the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department in that period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The largest collections nationally were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals or corporations for violations of federal health, safety, mortgage, financial, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Overdose Investigations Lead to Heroin and Cocaine Distribution Charges against Bethel ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that PAUL MIGNANI, 51, of Bethel, was arrested last night on cocaine and heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
MIGNANI is charged by criminal complaint with possession with intent to distribute, and distribution of, heroin and cocaine. The charge carries a maximum term of imprisonment of 20 years. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
According the complaint, on July 31, 2016, Bethel Police responded to a residence in Bethel on report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. It is alleged that MIGNANI distributed heroin that was consumed by the victim shortly before her death. In addition, on December 11, 2016, members of the Bethel Police and medical personnel responded to the report of an unresponsive 25-year old female at MIGNANI’s residence. It is alleged that MIGNANI distributed the controlled substances that were consumed by this victim shortly before her death.
On December 12, 2016, law enforcement conducted a court-authorized search of MIGNANI’s residence and seized approximately three grams of cocaine. MIGNANI was arrested on related state charges on that date.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
New Haven, Connecticut Man Sentenced to 32 Months in Prison for Distribution of Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that D’Hati Coleman, 38, of New Haven, Connecticut was sentenced today by United States District Judge John A. Woodcock, Jr. in Federal Court in Bangor to a 32-month term of imprisonment and a three-year term of supervised release for distributing crack cocaine.
Court records and evidence introduced at the hearing demonstrated that on September 3, 2014, Coleman sold crack cocaine to an MDEA confidential informant. At the time of the transaction, Coleman was a fugitive from Connecticut, having escaped from a half-way house in that state. Evidence presented at the hearing also showed that during the time when Coleman was trafficking in drugs, he was also engaged in commercial sex trafficking by causing women to engage in prostitution for which Coleman received money. In sentencing the defendant, U.S. District Judge John A. Woodcock, Jr. told Coleman “it is bad enough to be selling drugs, but it is a different magnitude of evil to be involved in selling human beings.”
The case was investigated by the Maine Drug Enforcement Agency, the New Haven, Connecticut Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Department of Police Services.