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Thursday 3 November 2016
Stamford Man Pleads Guilty to Federal Gun OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CALEEB BROWN, 25, of Stamford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of a firearm by a previously convicted felon,
According to court documents and statements made in court, on October 8, 2015, Stamford Police searched BROWN’s residence and seized a .22 caliber handgun, a 6.35 mm pistol, 14 rounds of .22 caliber ammunition, a quantity of heroin and items used to package narcotics for distribution.
Prior to October 2015, BROWN had sustained multiple felony convictions for possessing with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Arterton scheduled sentencing for April 26, 2017, at which time BROWN faces a maximum term of imprisonment of 10 years.
BROWN has been in federal custody since February 10, 2016.
This matter is being investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Six Southern Missouri Men Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six southern Missouri men have been indicted by a federal grand jury, in separate and unrelated cases, for receiving and distributing child pornography over the Internet.
Each of the defendants was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, Nov. 2, 2016.
Sergio Rivera, 25, an active duty service member stationed at Ft. Leonard Wood, Mo., allegedly received and distributed child pornography between Oct. 9, 2015, and May 17, 2016. This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the South Central Missouri Computer Task Force.
Martin Vern Ellis, 26, of Carl Junction, Mo., allegedly received and distributed child pornography between April 24, 2015, and Oct. 17, 2016. This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force.
William M. Walker, 74, of Branson, Mo., allegedly received and distributed child pornography between June 1 and Aug. 10, 2016. This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the South Central Missouri Computer Task Force and the Taney County, Mo., Sheriff’s Department.
Casey Robert Caudle, 33, of Oronogo, Mo., allegedly received and distributed child pornography between Aug. 19, 2015, and June 22, 2016.
Brian G. Long, 38, of Oronogo, Mo., allegedly received and distributed child pornography between June 5 and Aug. 31, 2016.
Aaron Sean Fletcher, 31, Aurora, Mo., allegedly received and distributed child pornography between Sept. 11 and Oct. 24, 2016.
These cases are being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. They were investigated by the Southwest Missouri Cyber Crimes Task Force
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sentencings for October 31 - November 2, 2016Read the Press Release
Terry Ray Hoff, 51, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 2, 2016, for possession with intent to distribute methamphetamine. Hoff was arrested in Cheyenne, Wyoming. He received 84 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Gillette Police Department, the Campbell County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Jesus Perez-Sanchez, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 31, 2016, for illegal re-entry of a previously deported alien into the United States. Perez-Sanchez was arrested in Park County, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Luis Villalpondo, 47, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 31, 2016, for illegal re-entry of a previously deported alien into the United States. Villalpondo was arrested in Campbell County, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael Eugene Dwinell, 43, of Payson, Arizona, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 31, 2016, for conspiracy to distribute methamphetamine. Dwinell was arrested in Payson, Arizona. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Arizona Department of Public Safety.
Ty Zimmerschied, 38, of Buffalo, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 31, 2016, for conspiracy to distribute methamphetamine and for being a felon in possession of a firearm. Zimmerschied was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Casper Police Department, the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cynthia Rae Pruett, 44, of Billings, Montana, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 31, 2016, for conspiracy to distribute methamphetamine and for being a felon in possession of a firearm. Pruett was arrested in Casper, Wyoming. She received 110 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case was investigated by the Casper Police Department, the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Saratoga Resident Sentenced to A Three Month Prison Term After Pleading Guilty to Managing Elephant Ivory Trafficking OperationRead the Press Release
SAN FRANCISCO – Shahram “Ron” Roohparvar was sentenced on November 2, 2016, to three months in custody followed by three months of home confinement for illegally trafficking elephant ivory announced United States Attorney Brian J. Stretch and Special Agent in Charge of the U.S. Fish and Wildlife Services (USFWS) Law Enforcement Jill Birchell. The sentence was handed down by the Honorable Charles Breyer, United States Senior District Judge, following a guilty plea entered in July of this year.
According to his plea agreement, Roohparvar, 61, of Saratoga, admitted he falsified documents in order to illegally sell and ship protected elephant ivory to international purchasers. In addition to the African elephant ivory, Roohpavar admitted that he illegally sold other wildlife protected by law to international purchasers. This wildlife included leopard, helmeted hornbill, and red coral. Roohparvar owned and operated a website through which he sold the protected wildlife.
The sale of elephant ivory has been largely banned and highly regulated since 1976. Federal statutes and international agreements regulate the export of elephant ivory and make it a crime to, among other things, export such products without the proper permits and declarations.
“Illegally wildlife trafficking presents a significant challenge for threatened and endangered wildlife like the African elephant, helmeted hornbill and coral,” said U.S. Attorney Stretch. “This office will vigorously investigate and prosecute those people whose illegal activities threaten to drive these precious resources into extinction.”
"One of the highest priorities of the USFWS Office of Law Enforcement is to investigate individuals and companies that are involved in the unlawful commercial trafficking and smuggling of protected animals and plants here and around the world,” said Special Agent in Charge Jill Birchell. “Many species are teetering on the brink of extinction due to poaching to supply the illegal wildlife trade, and elephants, in particular, have become increasingly susceptible to this unlawful exploitation. This investigation demonstrates our commitment to bring to justice those who violate fish and wildlife laws for personal or commercial gain as well as those who drive the illegal trade nationally and internationally."
In addition to the prison term and home confinement, Judge Breyer sentenced Roohparvar to two years of supervised release, a fine of $20,000, restitution of $20,000 payable to the Lacey Act Reward Fund, and a special assessment of $100. Roohparvar currently is free on bond; Judge Breyer ordered him to surrender on or before February 3, 2017, to begin serving his prison sentence.
Assistant U.S. Attorney Laura Vartain Horn is prosecuting the case with the assistance of Ana Guerra and Theresa Benitez. The prosecution is the result of an investigation conducted by the USFWS Office of Law Enforcement.
Sandusky man charged with trafficking heroin and cocaineRead the Press Release
A Sandusky man was arrested today and charged in federal court with trafficking heroin and cocaine, law enforcement officials said.
Daniel N. Hallingshead, 21, was charged with conspiracy to possess with intent to distribute at least one kilogram of heroin and possession with intent to distribute at least 500 grams of cocaine.
Hallingshead and others sold large amount of heroin and cocaine from several houses in the Sandusky area from at least October 2015 through this week, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Duncan Brown following an investigation by the Drug Enforcement Administration, the Sandusky Police Department, the Ohio Bureau of Criminal Investigation, the Perkins Township Police Department and the Erie County Sheriff’s Office.
If convicted, the defendant's sentence will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation is ongoing.
San Benito Man Convicted of Posing as Licensed Vocational NurseRead the Press Release
McALLEN, Texas ‐ A San Benito man has entered a guilty plea to falsely holding himself out as a Licensed Vocational Nurse, announced U.S. Attorney Kenneth Magidson.
In December 2014, Juan Manuel Perez, 35, obtained employment with Cleveland Health Care LLC in McAllen, claiming to be a Licensed Vocational Nurse (LVN). The license number presented by Perez, however, belonged to another individual of the same name. Perez is not licensed by the Texas Board of Nursing and is not an LVN.
Perez, posing as the LVN, conducted patient home visits and provided medical services from December 2015 through July 2016 while employed with Cleveland Health Care.
Perez pleaded guilty to aggravated identity theft which carries a mandatory two‐year prison term. He is scheduled for sentencing on Jan. 24, 2017.
The U.S. Department of Health and Human Services‐Office of Inspector General, FBI and the Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
San Antonio Woman Sentenced to Federal Prison for Embezzling over $450,000Read the Press Release
In San Antonio today, 44-year-old Helen Benevides Mora Picaso, former office manager for a San Antonio businessman, was sentenced to 20 months in federal prison for embezzling from her employer announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs.
In addition to the prison term, United States District Judge Orlando Garcia ordered that Benevides pay $464,132.27 restitution to her former employer and be placed on supervised release for a period of three years after completing her prison term. Judge Garcia also ordered that Benevides surrender to federal authorities on or before February 9, 2017, in order to begin serving her prison term.
On November 9, 2015, Benevides pleaded guilty to ten counts of embezzlement. By pleading guilty, she admitted that for over six years until she was fired in May 2014, she stole monies from her employer by writing approximately 485 unauthorized business checks to herself, her family members, or to pay her personal credit card bills. Benevides admitted concealing her scheme by making false entries on check stubs with respect to amounts and payees.
This case was investigated by FBI and prosecuted by Assistant United States Attorney Christina Playton.
Rock Island Man Sentenced to 25 Years in Prison for Heroin Distribution Resulting in DeathRead the Press Release
Rock Island, Ill. – U.S. District Judge Sara Darrow today sentenced Phil Trent, 52, of Rock Island, to serve 25 years in federal prison for distributing and conspiring to distribute heroin that resulted in the death of a 21 year old man in August 2014.
On July 1, 2016, a jury convicted Trent on all counts charged related to his distributing and conspiring to distribute heroin in the Rock Island area from early July through September 2014. Evidence presented by the government at trial demonstrated that directly or through co-conspirators, Trent distributed heroin to undercover agents on three specific occasions: Aug. 13, Oct. 1, and Oct. 2, 2014. The jury also convicted Trent for distribution of heroin that resulted in the death of Tyler Corzette, on Aug. 29, 2014.
Two other defendants, Kyle Hull and Curtis Land, both pled guilty in May 2015, to their respective role in distributing the fatal dose of heroin to Corzette. On Aug. 17, 2016, the two were sentenced to federal prison; Hull to serve eight years; Land to serve 11 years.
The Rock Island Police Department, with assistance from the Quad City Metropolitan Enforcement Group, investigated the charges. The case was prosecuted by Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo.
Richmond Heroin Trafficker Sentenced to 27 Years in PrisonRead the Press Release
RICHMOND, Va. – Sylvester R. Booker, 55, of Richmond, was sentenced today to 27 years in prison for conspiracy to distribute one kilogram or more of heroin.
Booker pleaded guilty on May 5. According to court documents, Booker was the leader of a large-scale drug trafficking organization, which was responsible for distributing dozens of kilograms of heroin from 2012 through 2015. Booker used various members of his organization to transport up to 30 kilograms of heroin from Brooklyn for distribution in the Richmond area. As part of the DEA investigation in November and December 2015, law enforcement obtained a court-ordered wiretap on Booker’s cellphone. The DEA intercepted numerous calls that implicated Booker and others in the heroin conspiracy. Federal and state law enforcement conducted surveillance of Booker’s various residences and corroborated his involvement in the conspiracy to distribute large amounts of heroin. Booker was previously convicted for essentially the same crime in 1999 in federal court and much of this conspiracy took place while Booker was on supervised release for his previous conviction.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge James R. Spencer.
This case was investigated by the DEA, with assistance from the Henrico County Police Division, Richmond Police Department, Chesterfield County Police Department and the Virginia State Police, as part of the DEA Task Force. Assistant U.S. Attorney Peter S. Duffey is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-23.
Richmond Actuary Pleads Guilty to Fraud ChargesRead the Press Release
RICHMOND, Va. – James M. DeGrandis, Jr., 54, of Fredericksburg, pleaded guilty to a criminal information charging him with making a false statement in relation to a document required by the Employee Retirement Income Security Act (ERISA).
According to the statement of facts filed with the plea agreement, DeGrandis was employed as an actuary by a regional actuarial firm located in Richmond but had not satisfied the appropriate legal standards and qualifications to be an enrolled actuary. Nevertheless, DeGrandis signed off as an enrolled actuary on a statement of accuracy and completeness on a Schedule SB for an Employee Retirement Account Plan and Trust in Baltimore. The Schedule SB is part of the IRS Form 5500 and is an actuarial report regarding the plan’s asset valuation, funding target, at-risk status, effective interest rate, and target normal cost.
DeGrandis faces a maximum penalty of five years in prison when sentenced on Feb. 14, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Schloss, Regional Director for the Philadelphia Regional Office of the Employee Benefits Security Administration, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-134.
Prior Sex Offender from Silver City Facing Federal Child Exploitation and Child Pornography ChargesRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Michael Ray Sepulveda, 38, of Silver City, N.M., with child exploitation and child pornography charges. Sepulveda remains in custody pending trial.
Sepulveda was arrested on Oct. 28, 2016, on a criminal complaint alleging that he enticed a child to engage in sexual activity and to produce child pornography, which was transmitted in interstate commerce. According to the criminal complaint, Sepulveda committed these crimes between July 2015 and Nov. 2015. Court filings reflect that law enforcement authorities began investigating Sepulveda for the alleged crimes in the summer of 2016 after learning about the alleged crimes while investigating other conduct.
According to the criminal complaint, Sepulveda allegedly used an online social networking website to engage in sexually explicit communications with a 14-year-old child (victim) between July 2015 and Nov. 2015. In these communications, Sepulveda, who pretended to be a 16-year-old girl, allegedly sent sexually explicit photographs to the victim and persuaded the victim to send him sexually explicit photographs of himself to Sepulveda. Sepulveda also allegedly attempted unsuccessfully to meet with the victim for the purpose of engaging in sexual activity.
If convicted on the charge of enticing a minor to engage in unlawful sexual activity, Sepulveda faces a statutory mandatory minimum of 10 years and a maximum of life in prison. If convicted on the child pornography charge, Sepulveda faces a statutory mandatory minimum of 25 years and a maximum of 50 years in prison. Sepulveda faces this enhanced sentencing exposure because of his prior conviction on a child sex crime, for which he was required to register as a sex offender.
The charges in the complaint are merely accusations and Sepulveda is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Grant County Sheriff’s Office and the Las Cruces offices of FBI and HSI. Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Prior Felon from McKinley County Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Steve Coleman, 56, of Thoreau, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws. Under the terms of his plea agreement, Coleman will be sentenced to 84 months in prison followed by not more than three years of supervised release.
Coleman was arrested on Feb. 4, 2016, on a criminal complaint charging him with being a felon in possession of a firearm on Jan. 21, 2016, in McKinley County, N.M.
Coleman was subsequently indicted on Feb. 24, 2016, and charged with being a felon in possession of a firearm and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Coleman was prohibited from possessing firearms or ammunition because of his previous felony convictions which include, unlawful sale of migratory birds, dangerous use of explosives and bribery/retaliation of a witness.
During today’s proceedings, Coleman pled guilty to being a felon in possession of firearms and admitted that on Jan. 21, 2016, he was in possession of two pistols, which he was not allowed to possess because of his prior felony convictions. Coleman further admitted that he discharged one firearm at his neighbor’s dogs. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the McKinley County Sheriff’s Department. Assistant U.S. Attorney Edward Han is prosecuting the case.
Pensacola Man Sentenced to 15 Years in Federal Prison for Online Child ExploitationRead the Press Release
PENSACOLA, FLORIDA –Robert M. Grafton Jr., 30, of Pensacola, was sentenced today to 15 years in federal prison and will be required to register as a sex offender. A jury convicted Grafton of attempted enticement of a minor for sex, and Grafton also pled guilty to possession of child pornography just prior to jury selection for the trial. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2015, Grafton communicated online with an undercover law enforcement officer for the purpose of meeting a 12-year-old special needs child for sexual activity. Grafton was arrested when he arrived at the arranged meeting location in Pensacola. A search of his cellular telephone and digital media at his residence revealed numerous images and videos of child pornography. This included electronic folders in a hidden partition, which contained child pornography involving infants and toddlers.
“Tragically, the advantages of advanced technology also bring opportunities for child predators to contact and victimize the most vulnerable members of our communities,” said United States Attorney Canova. “Together with our law enforcement partners, we will continue to aggressively pursue and prosecute offenders who seek to harm children.”
“This predator attempted to target the most vulnerable in our society, a special needs child,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The hard work of our HSI special agents and partners prevented him from harming a child, and our communities are safer with him behind bars.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, Gulf Breeze Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pennsylvania man pleads guilty to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jewel D. Woods, 19, of McKees Rocks, Pennsylvania, pled guilty to the distribution of heroin in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Woods admitted that he sold heroin in Harrison County, West Virginia in January 2016 and he now faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Palmetto Bay Resident Pleads Guilty and Is Sentenced for Illegal Spearfishing ActivityRead the Press Release
On November 1, 2016, a Palmetto Bay resident pled guilty and was sentenced for illegal spearfishing activity in Key Largo, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, made the announcement.
Tone Calle, 52, of Palmetto Bay, Florida, pled guilty to impeding and interfering with a law enforcement officer within the waters of the Florida Keys National Marine Sanctuary, contrary to the Marine Protection and Sanctuaries Act, Title 16, United States Code, Section 1436(3)(B). Following the plea, United States District Court Judge K. Michael Moore sentenced Calle to two years’ probation and ordered him to pay a criminal fine of $2,500. Calle will forfeit his spearfishing gear to the United States government.
According to the court record, including the criminal Information, a joint factual statement and information presented during proceedings, in May 2014, Calle was aboard his vessel within the Special Management Zone in Key Largo (KLMA), part of the Florida Keys National Marine Sanctuary. A Florida Fish & Wildlife Conservation Officer, cross-designated to enforce sanctuary laws and regulations, observed Calle’s anchored vessel and noted it was displaying a “diver down flag.” Calle was seen in the water wearing a camouflage diving suit while tethered to a spearfishing float. As the Officer neared the vessel, Calle dove out of sight, and subsequently resurfaced and boarded his vessel empty-handed. Calle denied engaging in any spearfishing activity at the site, although inspection revealed several spear guns aboard the vessel and speared fish in a cooler. Initially, only a written warning was given by the officer, noting that it was a violation of Sanctuary regulations to be anchored in the KLMA with spearfishing equipment aboard the vessel.
However, further investigation revealed that since Calle had, upon boarding his vessel, immediately weighed anchor, the vessel had drifted from the original point of contact. The officer had marked the initial contact point on a GPS receiver and shortly thereafter returned to the coordinates and dove the site. The officer immediately located a fully rigged customized spear gun on the bottom, similar to those seen on Calle’s vessel.
Later review of a public web site maintained by Calle, to promote his spearfishing guiding activities and his manufacture and sale of spear guns, revealed photographs depicting Calle both in the water and on land, displaying a customized spear gun exhibiting the unique camouflage patter of the weapon seized in the KLMA.
Mr. Ferrer commended the investigative efforts of NOAA Fisheries Office of Law Enforcement and the Florida Fish & Wildlife Conservation Commission. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald.
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.
Oswego Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Richard S. Buffham, 49, of Oswego, New York, pled guilty today before Senior United States District Judge Norman A. Mordue to three counts of distribution of child pornography, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. Buffham, who was ordered detained pending sentencing, faces a minimum sentence at least five (5) years and up to twenty (20) years imprisonment on each of the distribution counts. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Buffham will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for March 13, 2017, in Syracuse, New York.
As part of his guilty plea, Buffham admitted that he distributed images of child pornography to an online chat group on September 23, 2015, September 24, 2015, and September 27, 2015.
This case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Orlando Gas Station Owner Sentenced to Prison for Theft of Postal Money OrdersRead the Press Release
Orlando, FL – United States District Court Judge Carlos E. Mendoza today sentenced Meghaj Reddy Kuchakulla (49, Orlando) to 12 months in federal prison for theft of $555,561.69 in United States Postal Service (USPS) money orders. Prior to sentencing, he repaid $275,000 to the USPS. As part of his sentence, he was ordered to repay the balance as restitution.
Kuchakulla pleaded guilty on February 10, 2016.
According to court documents, Kuchakulla was a licensed USPS money order vendor for the four gas stations he owned in Orange and Lake Counties. As a licensed vendor, he had access to create, print, and disburse USPS money orders. From October 2009 through April 2010, Kuchakulla fraudulently created and printed more than 1,100 money orders in his own name, without actually purchasing them. He deposited the funds from the money orders into his personal bank accounts and then used them to pay business expenses, personal expenses, and to pay back the USPS for previous money orders that he had fraudulently created, printed, and deposited.
“This criminal exploited the postal service financial system and embezzled more than half a million dollars,” said Susan L. McCormick, special agent in charge of HSI Tampa. “With the partnership of the U.S. Postal Inspection Service, he is now being held accountable for his crimes.”
This case was investigated by the U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
North Miami Beach Resident Sentenced to 3 Years in Prison for Possessing 225 Stolen IdentitiesRead the Press Release
A North Miami Beach resident was sentenced to 36 months in prison, to be followed by three years of supervised release, for possessing 225 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Vicky Egalite Pierre, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, during a probation compliance check of Pierre’s residence, law enforcement located a notebook in her night stand that contained over 225 names, social security numbers and date of births. The notebook containing the personal identifying information was processed for latent prints, and six latent prints from various pages in the notebook belonged to the defendant.
Law enforcement spoke with one individual whose name, date of birth, and Social security number were in the notebook, and confirmed that he/she did not authorize Pierre to be in possession of the personal identifying information. The defendant knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, ICE-HSI, and the NMBPD, and thanked the State of Florida Probation Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
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.
North Carolina man pleads guilty to unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Russell Cary Owens, 51, of Thomasville, North Carolina, pled guilty to illegally possessing a firearm in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Owens, who was previously convicted of a felony in Texas, was discovered in possession of over ten firearms in Monongalia County, West Virginia, in June of this year. He pled guilty to one count of “Prohibited Person in Possession of a Firearm,” and he now faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Carolina Woman Sentenced to 48 Months in Prison for Fleeing Country to Avoid Telemarketing Fraud SentenceRead the Press Release
A Greensboro, North Carolina, woman was sentenced to 48 months in prison today for fleeing the United States after being sentenced to 60 months in prison for her role in managing a telemarketing scheme that induced victims to send money for a falsely promised sweepstakes prize, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Jessica Anne Brown, 40, was sentenced by U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina. The 48-month sentence will run consecutive to the previously-issued 60-month sentence. Brown pleaded guilty on June 1, 2016, to one count of failure to surrender for service of sentence and one count of contempt of court.
As part of her guilty plea, Brown admitted that she violated her court-ordered release conditions by removing her location monitor and using an unlawfully-obtained passport to flee to Canada after having been ordered to surrender for a 60-month prison sentence stemming from her role in managing an illegal call center in Costa Rica that defrauded hundreds of U.S. victims. Brown further admitted that she fled to Canada with the intent of avoiding her sentence.
This case was investigated by the U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Department of State. Trial Attorneys Gustav Eyler and William Bowne of the Criminal Division’s Fraud Section prosecuted the case. The Canada Border Services Agency and the Criminal Division’s Office of International Affairs also provided substantial assistance.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Nine People Indicted for Trafficking Heroin, Fentanyl and CocaineRead the Press Release
BIRMINGHAM – A federal grand jury last month indicted nine people as part of an illegal drug ring trafficking heroin, fentanyl and cocaine in Jefferson County, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Special Agent in Charge Stephen G. Azzam.
A 57-count indictment filed in U.S. District Court charges ANTHONY LEVY WARD, 35, of Chelsea, FERLANDO CARMISE MIMS, 19, ONANDAS CARMECE BEARD, 19, ANTHONY LEVY ALEXANDER, 56, BETTY LEVY ALEXANDER, 50, and COREY DARNELLE HAYNES, 36, all of Birmingham, and JOSE AGUSTIN GUTIERREZ, 31, JESUS UBALDO MONTOYA, 22, and MARAHAI ARDIZO ENRIQUEZ, 24, all of Phoenix, Ariz., with conspiracy to distribute the drugs between September 2015 and October 2016.
The indictment seeks a $1.7 million monetary judgment against the defendants as proceeds of illegal activity. A federal judge unsealed the indictment today after Betty Alexander was taken into federal custody.
“These defendants are charged as part of a drug-trafficking ring that brought large quantities of heroin, fentanyl and cocaine, into the Birmingham area,” Vance said. “All of those drugs are dangerous and highly addictive, but heroin and fentanyl are also deadly, and fentanyl profoundly so. A few salt-sized grains of fentanyl, a synthetic opioid about 50 times more potent than heroin, can kill, and most heroin users have no idea whether the drug they are using has been cut with fentanyl or whether the heroin they purchased is actually diluted fentanyl. DEA and its law enforcement partners have saved lives by taking these people off the streets and bringing them forward for prosecution.”
“Even a small amount of fentanyl can be lethal,” Azzam said. “There is a disturbing trend across the nation, including here in the Birmingham area, of heroin dealers adding fentanyl to their heroin to increase the potency. As a result, we have seen an alarming increase in overdoses, many of which have resulted in death. DEA will continue to work with our law enforcement partners, as shown in this investigation, to aggressively pursue those who ruthlessly traffic these and other dangerous drugs.”
The indictment includes special findings of the grand jury regarding the amount of cocaine or heroin attributable to various defendants as part of the drug-trafficking conspiracy.
Ward, his father Anthony Alexander and his aunt Betty Alexander, along with Mims and Gutierrez, are charged with conspiring to traffic 1,000 grams or more of heroin. That charge carries a minimum 10-year prison sentence and a maximum prison penalty of life. Ward, having previously been convicted in state and federal court for drug trafficking, could face a minimum of 20 years and a maximum of life in prison if convicted on the current charges.
Ward, Gutierrez, Montoya and Enriquez are charged with conspiring to traffic five kilograms or more of cocaine, which also carries a maximum sentence of life in prison and a $10 million fine.
Haynes and Beard are charged with conspiring to traffic 100 grams or more of heroin, which carries a minimum prison sentence of five years and a maximum of 40, plus a $5 million fine.
In underlying distribution charges in the indictment, Mims faces two counts of distributing fentanyl in September 2015, and a third count of possessing fentanyl with the intent to distribute it, along with Beard, in April 2016. Mims also faces five counts of possessing with the intent to distribute or distributing heroin between December 2015 and August 2016.
Beard also faces a separate count of distributing heroin in October 2015.
Haynes faces two counts of possessing with the intent to distribute or distributing heroin, one in November 2015 and one in June 2016.
The indictment charges Gutierrez, Montoya, and Enriquez with possessing with the intent to distribute at least five kilograms, or more than 11 pounds, of cocaine between Aug. 9, 2016, and Aug. 11, 2016.
Betty Alexander faces one count of possessing with the intent to distribute at least one kilogram of heroin on Sept. 28, 2016.
Ward and Anthony Alexander are charged with attempted possession with intent to distribute fentanyl on Sept. 30, 2016.
Ward also faces two counts of illegal gun possession, one for using an FN 5.7x28mm pistol in relation to a drug-trafficking crime, and one for being a convicted felon in possession of the pistol on Oct. 13, 2016. Ward was convicted in Jefferson County Circuit Court in August 2011 for trafficking illegal drugs and was convicted in federal court in the Northern District of Alabama in February of 2011 for distributing cocaine.
Mims faces one illegal gun count for using a Ruger pistol during a drug-trafficking crime on April 26, 2016.
Thirty-eight counts of the indictment charge various defendants with using telephones to facilitate a drug-trafficking crime.
The charges of distributing five kilograms or more of cocaine and distributing a kilogram or more of heroin both carry a minimum 10-year prison sentence and a maximum of life, plus a maximum $10 million fine. The minimum prison term is 20 years if previously convicted of a drug-trafficking crime.
The remaining distribution charges each carry a maximum sentence of 20 years in prison and a $1 million fine.
The maximum penalty for using a gun during a drug-trafficking crime is five years in prison and a $250,000 fine, and the maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.
Each count of using a telephone in furtherance of a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine.
Today’s indictment supersedes a September indictment that charged Ward, Mims, Beard, Gutierrez, Montoya and Enriquez with one count of conspiracy to distribute heroin, cocaine and fentanyl between April 2016 and August 2016.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama is prosecuting the case.
Navajo Man from Standing Rock, N.M., Sentenced to 21 Years for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Julius H. Willie, 31, an enrolled member of the Navajo Nation who resides in Standing Rock, N.M., was sentenced this morning in Albuquerque, N.M., to 21 years in prison followed by a lifetime of supervised release for his aggravated sexual abuse conviction. Willie will also be required to register as a sex offender after he completes his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, 11th Judicial District Attorney Division 2 Karl Gillson, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Director Jesse Delmar of the Navajo Nation Division of Public Safety, and Chief Robert Cron of the Gallup Police Department.
Willie was charged in April 2014, in a five-count indictment with kidnapping, three counts of aggravated sexual abuse, and abusive sexual contact. According to the indictment, Willie committed the crimes on Aug. 26, 2012, on the Navajo Indian Reservation in McKinley County, N.M. He was transferred to federal custody on April 24, 2014, from state custody where he had been held for two years on related state charges.
On June 9, 2016, Willie pled guilty to Count 2 of the indictment charging him with aggravated sexual abuse. In entering the guilty plea, Willie admitted that on Aug. 26, 2012, he forced the victim to engage in a sexual act.
Willie’s 21-year federal term of imprisonment commenced today without credit for the four years he already has served in state primary custody on pending related state charges. The 11th Judicial District Attorney’s Office will now move forward with prosecuting Willie on his pending state charges.
The Crownpoint office of the Navajo Nation Division of Public Safety, the Gallup office of the FBI and the Gallup Police Department investigated this case with assistance from the 11th Judicial District Attorney’s Office.
Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-agency Operation in Fresno Results in 28 Arrests for Drug Trafficking and Firearm OffensesRead the Press Release
FRESNO, Calif. — Following a year-long investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the California Department of Justice’s Bureau of Investigation, Special Operations Unit; the Multi-Agency Gang Enforcement Consortium (MAGEC); and the Fresno Police Department, targeting local criminal street gangs in Fresno, 20 defendants were arrested today on federal charges and another eight defendants were arrested on state charges. The various charges include conspiracy to traffic illegally in firearms, illegal possession and sales of firearms, drug trafficking, and promoting prostitution.
Phillip A. Talbert Acting U.S. Attorney for the Eastern District of California; Jerry Dyer, Fresno Chief of Police; ATF Special Agent in Charge Jill Snyder; FBI Special Agent in Charge Monica M. Miller, and California Attorney General Kamala Harris made the announcement.
Acting U.S. Attorney Talbert stated: “The seven indictments and the arrests today are part of a strategic plan to maximize state and federal resources to reduce gun violence in Fresno and keep its streets safe.”
“Gangs cannot be allowed to operate with impunity, jeopardizing public safety and terrorizing communities in California," said California Attorney General Kamala D. Harris. "I thank our California Department of Justice Special Agents, as well as the Fresno Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California Highway Patrol for working diligently and collaboratively to keep our communities safe from violent crime.”
“Just as operation Dog Track served to dismantle the notorious Dog Pound gang, Operation Slide Lock will serve to cripple the Strother Boys gang,” said Chief Jerry Dyer. “I look forward to working with our local, state, and federal law-enforcement partners as we prepare to focus on the next targeted street gang.”
“Today’s arrests demonstrate the FBI’s commitment to helping make Fresno a safer place to live,” said FBI Special Agent in Charge Monica M. Miller. “The FBI will continue to work with its state, local and federal partners to aggressively pursue those who would traffic in illegal firearms in our neighborhoods.”
“Firearms trafficking is one of the most pressing issues today,” stated ATF Special Agent in Charge Jill Snyder. “At ATF, our highest priority is reducing violent crime within our communities. Firearms trafficking leads to guns getting into the hands of violent criminals, gangs, drug trafficking organizations and prohibited people. Operations, like the one conducted today, make our neighbors safer by stopping the drivers of violence in our communities. We would like to thank all of the agencies involved in this operation for their hard work and dedication that made today a success.”
The 17 federal defendants are charged as follows:
- Dejohn Wiley, 22, one count of conspiracy to engage in the business of dealing firearms without a license, one count of engaging in the business of dealing firearms without a license, two counts of possession of an unregistered firearm, 14 counts of being a felon in possession of a firearm, three counts of possession of a firearm in a school zone, and nine counts of distribution of methamphetamine;
- Chris Wiley, 24, one count of conspiracy to engage in the business of dealing firearms without a license, one count of being a felon in possession of a firearm, one count of possession of a firearm in a school zone, and two counts of distribution of methamphetamine;
- Anthony Latimore, 21, one count of conspiracy to engage in the business of dealing firearms without a license, one count of engaging in the business of dealing firearms without a license, four counts of being a felon in possession of a firearm, and one count of distribution of methamphetamine;
- Garry Sampson, 38, one count of conspiracy to engage in the business of dealing firearms without a license, one count of being a felon in possession of a firearm;
- Vonshay Robinson, 29, one count of conspiracy to engage in the business of dealing firearms without a license;
- Rashawn Alkobadi, 22, one count of conspiracy to engage in the business of dealing firearms without a license, one count of engaging in the business of dealing firearms without a license, five counts of possession of a firearm in a school zone, and two counts of distribution of methamphetamine;
- Federico Garcia, 24, one count of conspiracy to engage in the business of dealing firearms without a license, possession of a firearm in a school zone, and two counts of distribution of methamphetamine.
- Omar Gonzalez, 24, one count of possession with intent to distribute cocaine;
- Darien Hatcher, 26, one count of possession with intent to distribute cocaine;
- Charlie Stevenson, 31, one count of conspiracy to engage in the business of dealing firearms without a license, three counts of being a felon in possession of a firearm, and one count of possession with intent to distribute methamphetamine;
- Jamar Johnson, 21, one count of conspiracy to engage in the business of dealing firearms without a license, two counts of being a felon in possession of a firearm, and one count of use of a cellphone to promote prostitution;
- Khalif Campbell, 33, one count of conspiracy to distribute and possess with intent to distribute cocaine base;
- Raymond Jones, 60, one count of conspiracy to distribute and possess with intent to distribute cocaine base;
- Danny Valenzuela, 50, one count of conspiracy to distribute and possess with intent to distribute cocaine base;
- Anthony Thomas, 24, one count of being a felon in possession of a firearm;
- Devone Johnson, 30, one count of possession of a firearm after suffering a misdemeanor domestic violence conviction;
Dione Singleton, 39, one count of being a felon in possession of a firearm, one count of possession of a firearm in a school zone, and one count of distribution of cocaine base.
The following federal defendants were arrested today on criminal complaints: Stephen Hill, 26, and Rashad Halford, 29, are charged with using a cellphone to promote prostitution and using a cellphone to facilitate a drug trafficking offense. Jesus Velazquez, 23, is charged with conspiracy to engage in the business of dealing firearms without a license and possession of an unregistered firearm. Darien Hatcher and Charlie Stevenson who were indicted have also been charged by a criminal complaint along with Robert Gonzalez, 33, for conspiracy to distribute methamphetamine.
These federal cases are the product of an investigation by the ATF, the FBI, the Fresno Police Department, MAGEC, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Department of Justice, the California Highway Patrol Special Operations Unit (SOU). The Special Operations Unit (SOU) is a collaborative investigative effort between the California Department of Justice and the California Highway Patrol (CHP) that provides statewide enforcement for combating violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers.
Also assisting today was the Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol.
Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.
If convicted the defendants face the following maximum sentences: five years in prison for conspiracy to engage in the business of dealing firearms without a license; five years in prison for engaging in the business of dealing firearms without a license; 10 years in prison for being a felon in possession of a firearm; 10 years in prison for possession of a firearm after suffering a misdemeanor domestic violence conviction; five years in prison for possession of a firearm in a school zone; 10 years in prison for possession of an unregistered firearm; 20 years to life in prison for conspiracy to distribute and possess with intent to distribute methamphetamine; 20 years to life in prison for distribution of methamphetamine; 20 years in prison for distribution of cocaine base; 20 years in prison for conspiracy to distribute and possess with intent to distribute cocaine base; 20 years in prison for possession with intent to distribute cocaine, and five years in prison for use of a cellphone to promote prostitution.
Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Milford Resident Sentenced to 10 Years on Bath Salts and Gun ChargesRead 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 Edwin Hamel, 60, of Milford was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 years in prison and three years of supervised release for conspiring to distribute bath salts and being a felon in possession of firearms. He pleaded guilty on November 16, 2015.
According to court records, between January 1, 2012 and March 11, 2014, the defendant conspired to distribute the “bath salts” MDPV and Alpha-PVP in Penobscot County. The defendant obtained the drugs from China over the internet, paid for them by wire transfers, had them shipped to the United States, and repackaged them for distribution by dealers who sold them for $100 or more per gram.
In addition, the defendant possessed two rifles which he acquired in exchange for bath salts. They were recovered by law enforcement agents on March 11, 2014 when the defendant was arrested. The defendant was prohibited from possessing the firearms because he had a prior felony marijuana trafficking conviction.
The case was investigated by the Maine Drug Enforcement Agency; the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Middleburgh Man Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Aaron M. Bowman, age 33, of Middleburgh, New York, pled guilty today to being a felon in possession of a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and New York State Police Superintendent George P. Beach II.
As part of his plea, Bowman admitted that on March 11, 2016, he possessed a Smith & Wesson model 432PD .32 caliber revolver, and ammunition for 3 types of firearms. Six months earlier, Bowman had posted photos of the same revolver to his Facebook page and offered to sell it. Bowman was prohibited from possessing the revolver and ammunition because he has four felony convictions.
Bowman faces up to 10 years in prison, and up to 3 years of post-imprisonment supervised release, when he is sentenced on March 14, 2017 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the ATF and New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAVIER DE JESUS PEREZ-JIMENEZ age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.
According to court documents, on or about August 23, 2010, PEREZ-JIMENEZ was found in the United States after having been officially deported and removed on or about August 4, 2010.
PEREZ-JIMENEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for November 9, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement, in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Manager of Real Estate Investment Company Sentenced to Prison for Multi-Million Dollar Securities FraudRead the Press Release
CHARLOTTE, N.C. – United States District Judge Robert J. Conrad, Jr. today sentenced a Charlotte man to 60 months in prison for his role in a securities fraud scheme involving bogus real estate investments, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Frank Enrique Lleras, 31, was also ordered to serve three years under court supervision after he is released from prison, and to pay $2.7 million dollars in restitution to his victims.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS).
According to documents filed with the court and today’s sentencing hearing, Lleras was the managing member of Optimum Income Property Investments, LLC (Optimum), a real estate investment company that purported to make money for victim investors by purchasing distressed and foreclosed real estate, and then reselling or leasing those properties. From about 2013 to about 2014, Lleras induced more than 20 victim investors from the Dominican Republic medical community to invest approximately $3,000,000 in the fraudulent real estate scheme. According to court records, to execute the scheme, Lleras established bank accounts in the name of limited liability companies (LLCs) associated with each victim-investor, and then purported to purchase property for each victim in the name of those LLCs.
Court documents also show that to convince his victim investors the scheme was legitimate, Lleras provided fraudulent investment statements showing that victim investors had gained interest on their investments. Lleras also provided fabricated deeds and bogus real estate tax bill receipts, causing victim investors to believe that their funds had been used as promised and that taxes on their properties had been paid. Contrary to promises made to investors, court documents indicate that Lleras did not invest victim investor funds but instead diverted their money to other business ventures and to support his personal lifestyle, including to purchase expensive jewelry.
Lleras pleaded guilty in January 2016 to one count of securities fraud and one count of wire fraud. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of the case was led by the FBI and USPIS. Assistant U.S. Attorney Corey F. Ellis of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Man Sentenced for Sugar Land Bank Robbery and Others in Multiple StatesRead the Press Release
HOUSTON – A 50-year-old Louisiana man has been ordered to federal prison in relation to the September 2015 robbery of BBVA Compass Bank in Sugar Land, announced U.S. Attorney Kenneth Magidson. Charles Wood, of Farmersville, Louisiana, pleaded guilty Aug. 12, 2016, admitting he robbed the local bank and banks in four other states.
Today, U.S. District Judge Sim Lake granted the government’s request for an upward departure and ordered Woods to serve a total of 84 months in prison. Woods will also be required to serve three years of supervised release following completion of the prison term.
On Sept. 14, 2015, Wood entered the BBVA Compass Bank located at 14121 North Southwest Freeway in Sugar Land. He pulled out a black BB gun from his jacket and displayed it to the teller, asking for a withdrawal of 20s, 50s and 100s. The teller complied.
A brief pursuit with law enforcement ensued which resulted in his apprehension a short distance from the bank.
At the time of the plea today, Wood also admitted to committing four additional bank robberies which occurred throughout the country. Those include the Feb. 18, 2015, robbery of U.S. Bank at 4140 John F. Kennedy Blvd. in Little Rock, Arkansas; the Aug. 11, 2015, robbery of Great Western Bank located at 3800 East 15th Street in Loveland, Colorado; the Aug. 15, 2015, robbery of American West Bank located at 1290 South West St. in Woods Cross, Utah; and the Aug. 27, 2015 robbery of Valley View Bank located at 8100 West 151st Street in Overland Park, Kansas.
Woods will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Bank Robbery Task Force conducted the investigation. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Liberty Attorney Indicted for Obstruction of JusticeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Liberty, Mo., attorney has been indicted by a federal grand jury for obstruction of justice after stealing funds earmarked for victim restitution.
Robert J. Young, II, 47, of Liberty, was charged in an indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Nov. 2, 2016. That indictment was unsealed and made public today upon Young’s arrest and initial court appearance.
According to the indictment, Young represented defendant Rodney J. Tatum, who was indicted by a federal grand jury and convicted of mail fraud in connection with the embezzlement of funds from his employer. The federal indictment alleges that Young obstructed justice by embezzling money that was given to him by Tatum’s family for the purpose of paying restitution in the criminal case.
Young allegedly engaged in a scheme to spend restitution funds to purchase a motorcycle for himself, to make numerous cash withdrawals, to make rent payments and to make retail purchases. Young was not able to provide the restitution at Tatum’s sentencing hearing on Jan. 21, 2016. The total amount of restitution not provided at that time was $62,412, which was later paid. The sentencing hearing was continued to March 3, 2016, at which time the court ordered Tatum to pay a total of $442,810 in restitution. Tatum was sentenced to 15 months in federal prison.
Young utilized an Interest on Lawyers Trust Account to accept four separate deposits from Tatum’s wife for the purpose of making restitution, the indictment says. Tatum’s wife also made one deposit into Young’s business account for restitution purposes. These checks totaled $42,412.
In addition, Young allegedly advised Tatum’s wife to draft a check, made payable to Young, as the FBI was pursuing money laundering charges against Tatum and the Tatums’ joint checking account would be frozen. Young allegedly stated he would be able to protect the funds in his business account. Tatum’s wife gave Young a check for $20,000.
During the scheme, the indictment alleges, Young made numerous transfers of restitution funds from the trust account to his business account.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Lancaster Man Charged with Obstruction of Justice and PerjuryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Angel Luis Carrasco-Rivera a/k/a Manuel Calcagno, age 54, of Lancaster, Pennsylvania, was indicted on November 2, 2016, for obstructing justice and committing perjury.
According to United States Attorney Bruce D. Brandler, Carrasco-Rivera was charged with obstruction of proceedings and perjury in connection with his recent prosecution and conviction for mail fraud. The fraud prosecution involved Carrasco-Rivera obtaining more than $102,000 by filing false claims for unemployment compensation benefits from 2008 through late 2012. He was sentenced in June 2016 to serve 18 months in prison for that offense.
Today’s indictment alleges that during the official proceedings in federal court, Carrasco-Rivera lied about his identity to influence the court’s decision about the appropriate sentence for his mail fraud conviction.
The case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. Prosecution has been assigned to Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the perjury offense under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine; the maximum penalty for the obstruction offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Lafayette man sentenced to 57 months in prison for stealing nearly $1.5 million from disabled sisterRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Monday to 57 months in prison for stealing approximately $1.5 million from an insurance settlement his sister received while she was incapacitated.
Kevin Ralph Andrus, 37, of Lafayette, was sentenced by U.S. District Judge Dee D. Drell on one count of wire fraud. He was also sentenced to three years of supervised release and must pay $1,449,999.37 in restitution. According to the March 17, 2016 guilty plea, Andrus, after being appointed as the curator for his sister’s estate when an automobile accident left her incapacitated and unable to manager her own affairs, stole almost $1.5 million in settlement funds his sister received from a lawsuit related to the automobile accident. After partially recovering from her injuries, Andrus’ sister discovered that settlement funds had been transferred to the defendant’s own personal and business accounts, and squandered, even though he took an oath to spend the money only on approved expenses for the benefit of his sister.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and David C. Joseph prosecuted the case.
Jury Convicts Conroe Man of Trafficking Cocaine and Conspiring to Launder Drug MoneyRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 44-year-old local man of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and conspiracy to launder money, announced U.S. Attorney Kenneth Magidson. The returned its verdict against Oscar Benitez, 44, of Conroe, following one day of deliberations and three days of trial.
The jury heard that the investigation began in early 2011. At that time, agents with the Drug Enforcement Administration (DEA) in Philadelphia, Pennsylvania, seized approximately four kilograms of cocaine from a vehicle that had been driven there from the Houston area. The investigation revealed the vehicle had recently been sold by Bensol Auto Sales in Arcola, Texas - a used car dealership that Benitez owned.
Houston agents then realized one of their confidential sources (CS) had already been speaking to Benitez about trying to buy large amounts of cocaine from him and his drug supplier. Benitez subsequently had told the individual that he moved large amounts of cocaine (25-100 kilograms at a time) and that he had a very well-connected drug supplier who could make such large deals happen.
The jury heard that on June 16, 2011, a North Carolina Highway Patrol trooper pulled over a Ford F-150 pickup truck in Monroe for a traffic violation. Reuben Orozco-Garcia was driving with Juan Gonzalez-Bejar as a passenger. The truck contained 81 kilograms of cocaine. Testimony at trial revealed that Orozco-Garcia had made a deposit of $9,000 into a bank account belonging to Bensol Auto Sales and Benitez the day of the cocaine seizure. The jury also heard that Benitez was using this Bensol Auto Sales account to launder the drug trafficking proceeds and that he supplied vehicles from Bensol to his drug supplier to transport drugs to other parts of the United States.
Orozco-Garcia and Gonzalez-Bejar previously pleaded guilty.
The evidence at trial also showed that in the fall of 2013, an individual delivered approximately 20 kilograms of cocaine to Benitez on a ranch he owns in Conroe. This delivery happened in the early morning hours and was directed by Benitez’ drug supplier, who was then located in Mexico.
The jury convicted Benitez on all accounts as charged.
U.S. District Judge Vanessa Gilmore presided over the trial and set sentencing for Feb. 21, 2017. At that time. Benitez faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine. He was permitted to remain on bond pending sentencing.
The DEA, Internal Revenue Service – Criminal Investigation and the North Carolina Department of Public Safety conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Richard Magness are prosecuting the case.
Investor Relations Professional and Registered Broker Plead Guilty to Securities Fraud for Participating in A $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, Jared Mitchell, an investor relations professional, and Maroof Miyana, a registered broker, pleaded guilty to securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The guilty pleas were each entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Mitchell and Miyana each face up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings and facts presented at the plea hearings, between January 2009 and April 2015, the defendants, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The defendants’ fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between October 2014 and April 2015, a ForceField executive paid commission payments, or kickbacks, to Mitchell in exchange for the registered broker defendants’ purchasing ForceField stock in their clients’ brokerage accounts; Mitchell would distribute a portion of the kickbacks to the registered brokers, including Miyana, and keep a portion of the kickback for himself. The registered broker defendants did not disclose to their clients the kickbacks they were receiving for purchasing ForceField stock. Mitchell, Miyana, and their co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendants:
JARED MITCHELL
Age: 34
Residence: New York, New YorkMAROOF MIYANA
Age: 36
Residence: Boca Raton, FloridaE.D.N.Y. Docket No. 16-CR-234 (BMC)
Hudson County Contractor Gets over A Year in Prison for Paying Bribes to Bayonne Official for Government-Funded ProjectsRead the Press Release
TRENTON, N.J. – A Bayonne, New Jersey, man was sentenced today to 15 months in prison for paying $65,000 in bribes to a Bayonne public official in return for the public official’s assistance in securing projects funded by the U.S. Department of Housing and Urban Development, U.S. Attorney Paul J. Fishman announced.
Joseph Arrigo, 47, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of paying bribes totaling approximately $65,000 to Anselmo Crisonino, 56, also of Bayonne, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD). Arrigo had also pleaded guilty to one count of theft and conversion of government funds in the amount of $40,000, and one count of submitting a false tax return for tax year 2011. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Arrigo was the owner of Shadow Contracting LLC, a general contracting company in Bayonne. The CBDCD was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants of up to $20,000 to low-income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash payments from Arrigo in exchange for Crisonino’s help in attaining HUD grant funds. From September 2010 to February 2013, Arrigo made approximately $65,000 in cash payments to Crisonino in exchange for Crisonino’s assistance in awarding approximately $426,000 in HUD grant funds to Arrigo from the CBDCD.
In September 2011, Arrigo assisted another contractor by supplying a bid on behalf of Shadow Contracting that was higher than the contractor’s bid to enable the other contractor to obtain HUD grant funds from Bayonne. The contractor then submitted the two bids to the CBDCD and, as a result of his collusion with Arrigo, the contractor fraudulently obtained $20,000 in HUD grant funds from the CBDCD. In December 2011, Arrigo caused the same contractor to provide Arrigo with a bid that was higher than Arrigo’s bid for the purpose of obtaining HUD grant funds. Arrigo submitted the contractor’s bid along with his own to the CBDCD and, as a result, fraudulently obtained another $20,000 in HUD grant funds from the CBDCD.
Arrigo also admitted that he failed to report $151,993 in income on his U.S. Individual Tax Return, Form 1040, for tax year 2011.
In addition to the prison term, Judge Sheridan sentenced Arrigo to three years of supervised release.
Crisonino previously pleaded guilty to his role in the bribery scheme and other charges in February 2014 and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney's Special Prosecutions Division in Newark.
Defense counsel: Charles J. Uliano Esq., West Long Branch, New Jersey
Harrisburg Man Indicted on Federal Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Kevin Dwight Holland, age 23, Harrisburg, Pennsylvania, on November 2, 2016, on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Holland possessed with the intent to distribute more than 28 grams of crack cocaine and possessed a firearm in furtherance of or in relation to drug trafficking. Additionally, Holland was charged as a felon in possession of a firearm.
The investigation was conducted by the Susquehanna Township Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
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.
Indictments are only allegations. All persons charged are presumed innocent unless and until found guilty in court.
The maximum penalties under federal law include 40 years for possession with intent to distribute 28 grams and more of crack cocaine, 10 years' imprisonment for a felon in possession of a firearm, and life for possession of a firearm in furtherance of drug trafficking.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted for Possession of A Short-Barreled ShotgunRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Jerome King on November 2, 2016, for possession of a short-barreled shotgun.
According to United States Attorney Bruce D. Brandler, King, a 29-year-old resident of Harrisburg, was arrested after he was seen possessing a short-barreled shotgun that did not have an identifiable serial number. Possession of a short-barreled shotgun violates federal law if the firearm is not properly registered or if the firearm does not have an identifiable serial number, and as a convicted felon, King is prohibited from possessing any firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Harrisburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli
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 with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harmony Man Sentenced to a Year and a Day for Oxycodone ConspiracyRead 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 Corey Pomerleau, 35, of Harmony, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to a year and a day in prison and three years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone. He was also fined $500. He pleaded guilty on January 25, 2016.
According to court records, in 2014, the defendant conspired with others to acquire oxycodone in Rhode Island and distribute it in the Dexter, Maine area.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office and the Piscataquis County Sheriff’s Office.
Fourth Member of Cincinnati Drug Trafficking Ring Receives Ten-Year SentenceRead the Press Release
CINCINNATI – Four defendants involved in a major cocaine and heroin trafficking ring in the Cincinnati area have been sentenced on related charges in U.S. District Court.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac, announced the sentences handed down by United States District Court Judge Timothy S. Black.
Christopher Whitfield, 42, of Cincinnati, Ohio was sentenced today to 120 months in prison after pleading guilty earlier this year to on one count of conspiracy to commit money laundering.
Tonia Whitfield, 41, of Cincinnati, Ohio was sentenced on December 14, 2015 to 12 months and one day in prison on three counts of money laundering.
Steven Griffin, 41, of Cincinnati, Ohio was sentenced on January 13, 2016 to 87 months in prison on one count each of possession with intent to distribute heroin and a felon in possession of a firearm.
Icierra Martin, 39, of Cincinnati, Ohio was sentenced on May 23, 2016 to three years of probation on two counts of money maundering.
A federal grand jury indicted the defendants in a 23-count indictment returned in April 2015. The indictment outlined that the group conspired to facilitate an illegal drug business, primarily cocaine and heroin.
As part of the conspiracy, the defendants operated “stash” houses to process, cut, package and store the drugs as well as firearms and money. In order to conceal the money generated from the drug sales, defendants would launder the profits by purchasing real and personal property and place assets in the names of other individuals.
Upon executing search warrants in this case, investigators seized more than $1 million in cash at the properties maintained by the narcotics trafficking organization.
Also included in forfeiture in this case are: seven firearms, three properties in Cincinnati, five vehicles including two luxury vehicles and a motorcycle, multiple pieces of jewelry, Gucci and Rolex watches, two ballistic vests, a number of “mink” fur coats and vests, 13 designer handbags and Beats headphones and ear buds.
“This is an important victory for the citizens of Cincinnati,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. We are committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
U.S. Attorney Glassman commended the cooperative investigation by local and federal law enforcement, including the IRS, FBI and Cincinnati Police Department, as well as Assistant United States Attorneys Karl Kadon and Jessica W. Knight, who represented the United States in this case.
Fourth Chicago woman sentenced for credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Chicago woman was sentenced today to five years of probation, with the first eight months to be served on home confinement, for credit card fraud, announced United States Attorney Carol Casto. Stephanie Stevenson previously pleaded guilty to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Stevenson admitted that she, along with three codefendants, Wynesha Wilson-Robinson, Christine Johnson, and Crystal Merritt, possessed over 100 counterfeit access devices. Stevenson, along with the other codefendants, drove from Chicago to attempt to use these credit cards. On June 5, 2015, they were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards. The four were arrested by law enforcement after store employees became suspicious of the multiple attempts to use the credit cards to complete a purchase.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This is the final sentencing as a result of this investigation. Wilson-Robinson was sentenced on August 11, 2016, to five months in federal prison, to be followed by five years of probation. Wilson-Robinson was further ordered to serve the first five months of her probation on home confinement. Johnson was sentenced on October 3, 2016, to six months of home confinement, to be followed by three years of probation. Merritt was sentenced on October 18, 2016, to five years of probation, with the first eight months to be served on home confinement.
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Former Veterans Hospital Nurse Pleads Guilty to Stealing MedicationRead the Press Release
RICHMOND, Va. – Allison Rulli, 34, of Mineral, pleaded guilty today to charges of obtaining controlled substances by misrepresentation, fraud, or deception.
According to the statement of facts filed with the plea agreement, Rulli was a registered nurse employed in the Spinal Cord Injury Ward at the Hunter Holmes McGuire Veterans Administration Medical Center in Richmond. From August 2015 to August 2016, Rulli fraudulently obtained 20 to 30 Oxycodone tablets from the medication dispensing cabinets for her own use. On occasion, Rulli removed the correct amount of Oxycodone prescribed for a patient but would only administer some of the tablets to the patient and would keep the remainder for herself. Rulli also fraudulently obtained eight to 10 Fentanyl patches, each 25-100 micrograms. Rulli used a scalpel to open the Fentanyl packaging and remove the patch, but would return the tampered packaging to the medication dispensing cabinet in order to hide the evidence. When confronted by law enforcement, Rulli admitted her wrongdoing.
Rulli waived indictment and pleaded guilty to a criminal information. Rulli faces a maximum penalty of four years in prison when sentenced on Feb. 4, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Jessica D. Aber is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-136.
Former San Francisco Halfway House Resident Sentenced to 192 Months for Attempted Bank RobberyRead the Press Release
SAN JOSE – Daniel Asa Hitesman was sentenced yesterday to 16 years in prison for attempted bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
On July 26, 2016, after a three-day trial before the Honorable Lucy H. Koh, U.S. District Judge, Hitesman was convicted by a jury of a single count of attempted bank robbery. During the trial, evidence showed that on July 23, 2013, Hitesman left a halfway house in San Francisco and made his way to Cupertino where he went to the branch of a bank located on Stevens Creek Boulevard. Hitesman entered the bank carrying a large bag and wearing a hat and sunglasses to cover his face. He stood in line and, when his turn came, approached the bank teller and said he had “a bag full of guns.” Hitesman demanded money and told the teller that if he did not receive it he would “start shooting.” The teller refused Hitesman’s demands and pressed the alarm. Hitesman thereafter fled.
Although Hitesman concealed his face during the attempted robbery, the FBI obtained and distributed bank surveillance photos. Personnel from the halfway house at which Hitesman was staying recognized the defendant in the photos and contacted the FBI. This identification and additional evidence linked Hitesman to the offense.
The sentence was handed down by Judge Koh. In addition to the prison term, Judge Koh sentenced the defendant to a three-year period of supervised release. Hitesman is currently in custody and will begin serving the sentence immediately.
Assistant U.S. Attorneys Scott Simeon and Jeffrey Backhus are prosecuting the case with the assistance of Ryka Barghi, Lakisha Holliman, and Yolanda Singletary. The prosecution is the result of an investigation by the FBI and the Santa Clara County Sheriff’s Office.
Former Postal Employee Sentenced for Stealing Public MoneyRead 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 Jennifer Passeck, 27, of Sodus Point, NY, who was convicted of theft of public money, was sentenced to two years probation to include six months home detention by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck stole stamp revenues, post office box rental payments, and issued money orders to herself, all totaling $19,504.
The sentencing is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Former Organization Director Pleads Guilty to Federal Charge in Theft of Nearly $250,000 from EmployerRead the Press Release
WASHINGTON – Tamara Kukla, who worked as the “Director of Membership” for a Washington based non-profit organization, has pled guilty to a federal charge involving the embezzlement of nearly $250,000 from her employer, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Kukla, 47, of Plano, Texas, pled guilty on Nov. 2, 2016, in the U.S. District Court for the District of Columbia, to interstate transportation of stolen property. The Honorable James E. Boasberg scheduled sentencing for Feb. 24, 2017. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Kukla faces a likely range of 12 to 18 months in prison and a fine of up to $250,000. She also has agreed to pay $248,755 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Kukla’s employer provided her with a credit card to assist her with her duties and responsibilities as the “Director of Membership.” Kukla’s duties and responsibilities included, among others, formulating and executing marketing plans designed to maintain and increase her employer’s membership rolls. Beginning around October 2009 and continuing through about December 2011, Kukla devised and carried out a scheme to defraud her employer by embezzling funds through her corporate credit card. Kukla used the credit card for both legitimate and personal purchases, but provided false descriptions of the personal purchases as work-related expenses so that her employer would pay for them. These unauthorized purchases and expenses included, among others, personal expenses related to travel, transportation, hotel lodgings, retail purchases, meals, food, and entertainment.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Ebert commended the work of those who investigated the case from the National Capitol Region Fraud Task Force of the U.S. Secret Service’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Special Assistant U.S. Attorneys Vesna Harasic-Yaksic and Zia Faruqui, who handled forfeiture issues, Paralegal Specialists Krishawn Graham and Angela Lawrence, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who is prosecuting the case.
Former Mount Vernon Police Officer Sentenced for ExtortionRead the Press Release
COLUMBUS, Ohio – Matthew L. Dailey, 45, of Howard, Ohio, was sentenced in U.S. District Court to 72 months in prison for Hobbs Act extortion under color of official right.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, Dailey was a Detective Sergeant with the Mount Vernon Police Department. He investigated general crimes and narcotics crimes. In September 2015, Dailey asked an individual who had served as an informant for Dailey for approximately seven years to sell drugs for him.
Dailey provided the individual with marijuana, methamphetamine, bath salts and ecstasy pills to sell and split the profits. A portion of the drugs came from the police department’s property room, which Dailey supervised in his role as evidence custodian.
Investigators also observed Dailey meeting with a second confidential informant who sold large quantities of oxycodone pills to Dailey approximately five days a week for seven months. The second confidential informant told investigators that Daily had asked him to sell marijuana, methamphetamine, and cocaine for him. The investigation revealed that Dailey possessed a firearm during the drug trafficking offenses.
Dailey was placed on administrative leave in September 2015. During an inventory of the property room, police discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills. The inventory analysis also revealed that the methamphetamine, bath salts and hundreds of oxycodone pills were missing from the property room.
Further investigation revealed that Dailey created forged and falsified Mount Vernon Police Department evidence destruction orders. Investigators found multiple copies of the falsified letterhead in Dailey’s desk drawer and filing cabinet. Investigators concluded that Dailey’s actions during his criminal scheme affected nearly forty cases.
Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.
U.S. Attorney Glassman commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI) and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who represented the United States in this case.
Former Marine Corps Base Quantico Official Sentenced for FraudRead the Press Release
ALEXANDRIA, Va. – Rupert Granville Miller, 56, of Chester, was sentenced today to one year and one day in prison for engaging in a travel fraud scheme that cost the government over $197,000. Miller was also ordered to pay full restitution in the amount of $197,505.83.
“Miller’s fraud cost taxpayers nearly $200,000,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We take these crimes seriously and will investigate and prosecute individuals who engage in this activity. I want to thank our investigative partners at the Defense Criminal Investigative Service and the Naval Criminal Investigative Service for their terrific work on this case.”
According to court documents, from in or about January 2011 through November 2015, Miller was employed as a deputy inspector general with Training and Education Command and Training Command at Marine Corps Base Quantico. During this time, Miller used the Department of Defense electronic travel management system to submit travel claims for what he claimed to be official business. As part of his legitimate duties, Miller travelled to Marine Corps locations around the country to inspect their facilities and operations. However, Miller began adding illegitimate rendezvous to his official trips, claiming they were for official business, and then receiving reimbursements for the rendezvous. Miller also submitted claims to travel to various foreign locations including Japan, Germany, Singapore, and the Dominican Republic. In order to justify his claims for travel, Miller forged his supervisor’s signature and created false documents in order to have his travel approved.
“Due to his greed, Rupert Miller chose to commit criminal acts, which violated the public's trust and the very principles of the position he held as the Deputy Inspector General of the U.S. Marine Corps (USMC) Training and Education Command,” said DCIS Special Agent in Charge Robert E. Craig, Jr. “His actions are not reflective of those of active duty service members and civilian employees of the USMC who serve their country honorably and with great pride. Along with our law enforcement partners, DCIS will continue to aggressively pursue allegations of fraud and corruption impacting the Department of Defense.”
“Fraud drains money and resources from the nation's warfighters,” said Jeremy Gauthier, Special Agent in Charge of the NCIS Washington DC Field Office. “NCIS is committed to investigating fraud and helping hold accountable those who place their personal gain above the needs of the nation's military.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Jeremy Gauthier, Special Agent in Charge of the NCIS Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorneys Sean K. Price and Angelissa D. Savino prosecuted the case along with former Assistant U.S. Attorney Paul J. Nathanson.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-71.
Former Dental Clinic Owners Indicted for $1 Million Health Care, Payroll Tax FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Marshfield, Mo., husband and wife have been indicted by a federal grand jury for their roles in health care fraud and payroll tax fraud schemes that totaled more than $1 million.
Pamela Van Drie, 57, and her husband, Lorin G. Van Drie, 57, both of Marshfield, were charged in a 40-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Wednesday, Nov. 2, 2016. That indictment was unsealed and made public today upon the arrest and initial court appearance of Pamela Van Drie.
Pamela and Lorin Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Mo., (until it closed in October 2014) and Bolivar, Mo. (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
$885,748 Health Care Fraud Conspiracy
Today’s indictment alleges that Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. According to the indictment, this conspiracy consisted of a fraud scheme related to dentures and other dental services and a fraud scheme related to orthodontic appliances. Both fraud schemes involved fraudulent Medicaid claims and payments.
Pamela Van Drie and a dentist at the clinics arranged for All About Smiles to provide dentures and other dental services to adults who did not qualify for Medicaid reimbursement. They allegedly submitted claims to Medicaid for those dentures and other dental services, knowing that Medicaid’s requirements were not met.
The indictment alleges that Pamela Van Drie, through All About Smiles, submitted and received $720,048 on numerous claims for dentures and other dental services that lacked the required written referral from a physician.
Additionally, according to the indictment, Pamela Van Drie and a dentist at the clinics purchased Oroth-Tain orthodontic appliances (designed to straighten teeth without braces) for approximately $50 each, provided them to Medicaid pediatric beneficiaries and billed each such appliance to Medicaid as a speech aid prosthesis for approximately $695. They knew the Ortho-Tain appliances should have been billed to Medicaid as orthodontic services, the indictment says; they also knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received precertification, which required review by a dentist/orthodontist employed by Medicaid. They allegedly billed the Ortho-Tain appliances as speech aid prostheses in order to bypass the precertification requirement.
Between Oct. 6, 2010, and Aug. 19, 2015, Pamela Van Drie submitted and received payment for approximately 241 claims submitted for speech aid prosthesis. On each claim, All About Smiles was paid between $675 to $695, for an approximate total amount of $165,700.
$194,751 Payroll Tax Fraud Conspiracy
In addition to the health care fraud conspiracy, Pamela and Lorin Van Drie are charged with participating in a conspiracy to defraud the government by failing to pay over the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the indictment says, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
According to the indictment, the Van Dries diverted substantial amount of money from their businesses during this period. They allegedly caused All About Smiles and PL Family Management Company to make thousands of dollars for their personal benefit while failing to pay over to the IRS payroll taxes withheld from their employees’ paychecks.
Rather than paying the payroll taxes due and owing, the indictment alleges, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), diamonds, several utility trailers, two golf carts, a motorcycle, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which Pamela Van Drie’s son used in pulling competitions throughout Missouri.
Additional Charges
In addition to the two conspiracy charges, Pamela Van Drie is charged with eight counts of health care fraud related to fraudulent claims for speech aid prosetheses, 10 counts of health care fraud related to fraudulent claims for dentures and other dental services and one count of theft of public money related to unemployment benefits that she was not entitled to receive. Lorin Van Drie is also charged with one count of theft of public money related to unemployment benefits that he was not entitled to receive and 18 counts of failure to pay over employment tax.
Today’s indictment also contains a forfeiture allegation, which would require Pamela Van Drie to forfeit to the government any property derived from the gross proceeds traceable to the alleged offenses, including at least $885,748.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Cindi S. Woolery and Special Assistant U.S. Attorney Shannon T. Kempf. It was investigated by the Department of Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Former Chief Financial Officer Pleads Guilty to EmbezzlementRead the Press Release
A former chief financial officer of a Clarkston, Michigan, credit union, pleaded guilty today to embezzling more than $18 million from his employer, U.S. Attorney Barbara McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Michael A. Lajoice, 37, pleaded guilty to one count of bank fraud before U.S. District Judge Gershwin A. Drain.
According to plea documents, LaJoice was employed by the Clarkston Brandon Community Credit Union (CBCCU), which was a federally insured financial institution. LaJoice began his employment as an Account Manager and later became CBCCU’s Chief Financial Officer in June 2015. As such, LaJoice was responsible for the accounting functions of CBCCU, which included producing CBCCU's financial statements, making general ledger entries and ACH transfers, tracking investments and reconciling CBCCU’s corporate account statements.
Between January 2003 and January 2016, Lajoice embezzled more than $18 million from CBCU. Over the years, Lajoice used a variety of methods to execute and cover up his embezzlement. In some instances, Lajoice issued cashier’s checks from various CBCCU accounts without authorization and deposited those funds into accounts at other financial institutions that he controlled. In other instances, Lajoice used Automated Clearing House (ACH) withdrawals to conduct unauthorized transfers from CBCCU’s accounts to his own personal accounts held at other financial institutions. To conceal the fraud, Lajoice created fictitious investments in certificates of deposit and bonds, and represented to auditors and bank examiners that the money he stole had in fact been invested in these vehicles.
Lajoice will be sentenced on March 21, 2017. He faces a statutory maximum term of 30 years’ imprisonment. The advisory sentencing guidelines contained in his plea agreement call for a term of imprisonment of between 121-151 months.
The case was investigated by the FBI, Oakland County Sheriff’s Department, and investigators from the Oakland County Prosecutor’s Office. Assistant United States Attorneys Abed Hammoud and John K. Neal are prosecuting the case. Assistant United States Attorney Philip Ross is handling the asset forfeiture proceeding
Fifteen Charged in Drug Trafficking Ring that Operated from Inside South Carolina PrisonsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina-------Acting United States Attorney Beth Drake, announced today that fifteen individuals, including South Carolina Department of Corrections (SCDC) inmates, have been charged federally for their roles in a wide-ranging drug trafficking conspiracy operating from behind prison walls. On September 14, 2016, a federal grand jury returned a twenty-one count sealed indictment alleging the defendants conspired to possess with intent to distribute and did distribute 50 grams or more of methamphetamine; used telephones and the U.S. Mail to facilitate a drug offense and conspired to launder drug money by conducting money transfers, cash withdrawals and purchases of and deposits onto pre-paid cash cards, all in violation of federal law. The indictment also alleges unlawful possession of a firearm and possession of a firearm in furtherance of a drug trafficking offense.
According to the indictment, five inmates capitalized on their access to cell phones to continue their criminal activities and to direct the criminal activities of nine “facilitators” outside of prison. Using contraband cellular telephones, the U.S. Mail and employing a network of suppliers, distributers and runners outside of prison, SCDC inmates brokered and managed the delivery and distribution of methamphetamine from California to the upstate of South Carolina and elsewhere in the state. The cellular telephones were often equipped with touch screens and internet access that enabled prisoners to coordinate drug transactions, confirm shipment and delivery and transfer drug proceeds.
The individuals charged are:
Nancy Phon, 40, of Fresno, California
Sok Bun a/k/a “Friday,” 27, an inmate at McCormick Correctional Institution
Paul Ray Davis a/k/a “Pop”, 39, an inmate at Ridgeland Correctional Institution
John Marlon Acosta, 24, an inmate at Perry Correctional Institution
James Robert Peterson, 28, an inmate at Lee Correctional Institution
Heather Nicole Rudicill, 29, of Cowpens, South Carolina
Beab Keo, a/k/a/ “Ma”, 52, of Boiling Springs, South Carolina
Terri Dianne Newman, 40, of Greer, South Carolina
Sokha Kao Aun, 47, of Wellford, South Carolina
Robert Earl Floyd, 55, of Piedmont, South Carolina
David Elijah Allen, 30, an inmate at Walden Correctional Institution
Jessica Lynn Gordon, 21, an inmate of Graham Correctional Institution
Samuel Travis Wiggins, a/k/a “Flash”, 37, an inmate at Broad River Correctional Institution
Melanie Renee Wiggins, 29, of West Columbia, South Carolina
Jonathan Brent Martin, 51, of Chesnee, South CarolinaThe indictment follows multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Service, Internal Revenue Service, Criminal Investigations, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Gaffney Police Department, Oconee County Sheriff’s Office, Union County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office and Homeland Security Investigations, Immigration and Customs Enforcement, Drug Enforcement Administration and the United States Marshals Service.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Federal and State Officials Promote Telephone Hotline for Reporting Election Fraud and Voting Rights AbusesRead the Press Release
In an effort to ensure that the November 8, 2016 elections are administered fairly in every city and town in Connecticut, Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael J. Brandi, Executive Director of the Connecticut State Elections Enforcement Commission, Denise Merrill, Connecticut Secretary of the State, and Kevin T. Kane, Connecticut Chief State’s Attorney, today announced that a telephone hotline will be available for use by anyone who witnesses or experiences voting irregularities on Election Day.
The hotline will be staffed by the Connecticut State Elections Enforcement Commission (SEEC) during polling hours on Election Day. Anyone with knowledge of election fraud or voting rights abuses is encouraged to call 1-866-733-2463 (1-866-SEEC-INFO) to report suspected violations. The number is toll-free statewide. Individuals also can call the SEEC at 860-256-2940. The SEEC staff will answer questions, advise on complaint procedures and, if appropriate, request the assistance of state criminal or federal law enforcement authorities in the investigation and possible prosecution of the matter.
Citizens can also send an email to [email protected] to communicate with the SEEC and the Secretary of the State’s office on Election Day.
The SEEC is the primary elections investigative and civil enforcement authority in Connecticut. The Secretary of the State’s office is charged with overseeing all elections in Connecticut, which includes advising and assisting local Registrars of Voters and Town Clerks on their statutory responsibilities regarding administration of elections.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
On Election Day, representatives of the U.S. Attorney’s Office and the FBI will be in direct contact with the SEEC, the Secretary of the State’s office and the office of the Chief State’s Attorney in order to receive any complaints of electoral corruption or civil rights violations. Assistant U.S. Attorney Susan Wines has been appointed to serve as the District Election Officer for the District of Connecticut. In that capacity, she is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The FBI in Connecticut and across the country will have special agents available to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office in New Haven can be reached directly at 203-777-6311, and the U.S. Attorney’s Office can be reached at 203-821-3700. In addition, complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington by calling 1-800-253-3931 or 202-307-2767, or by emailing [email protected].
Executive Director of Fairfield Non-profit Charged with Embezzling DOJ Funds Intended for Domestic Violence VictimsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Claudia Humphrey, 60, of American Canyon, charging her with theft of public money, obstruction of a federal audit, and falsifying records in a federal investigation, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey caused to be transferred over $270,000 in grant money that were to be used only for assisting victims of domestic violence into bank accounts that she controlled. Humphrey used over $50,000 of those victim funds on personal expenses such as travel, shopping, and payments to her family members, among other things.
According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of the OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and altered and falsified expense ledgers and time sheets.
This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Humphrey faces a maximum statutory penalty of 10 years in prison on each of the counts of theft of public money, five years in prison for obstruction of a federal audit, and 20 years in prison on each of the counts of falsifying a record in a federal investigation. Additionally, Humphrey faces a fine of $250,000 or twice the gross loss or gain. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.