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20 December 2016
Executive Office for Immigration Review Announces Final Rule on the Recognition of Organizations and Accreditation of Non-Attorney RepresentativesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced a final rule titled, Recognition of Organizations and Accreditation of Non-Attorney Representatives. This new rule, effective Jan. 18, 2017, amends the regulations governing the requirements and procedures for authorizing representatives of non-profit religious, charitable, social service, or similar organizations to represent persons in proceedings before EOIR and the Department of Homeland Security (DHS). This announcement comes after EOIR published a proposed version of this rule in the Federal Register in October 2015 and sought public comment through a series of public meetings to discuss the proposed rule’s potential impact.
The purpose of the rule is to promote the effective and efficient administration of justice before EOIR and DHS by increasing the availability of competent, non-lawyer representation for low-income and indigent persons. The rule is also intended to reduce the likelihood that such persons become victims of fraud and abuse.
Set forth in the rule are a variety of measures to achieve its objectives. In addition to amending the regulations to increase the number of accredited representatives for underserved populations, the rule also clarifies the recognition and accreditation (R&A) application processes, establishes greater oversight and accountability for recognized organizations and accredited representatives, and enhances the management of the R&A roster. Moreover, the rule updates the disciplinary process to ensure that recognized organizations are subject to sanctions for conduct that violates the public interest. The rule also relocates management of the R&A Program from the Board of Immigration Appeals to the Office of Legal Access Programs (OLAP).
The rule is published in the Federal Register at: https://www.federalregister.gov/documents/2016/12/19/2016-29726/recognition-of-organizations-and-accreditation-of-non-attorney-representatives. EOIR will be holding a stakeholder webinar/teleconference on Wednesday, Dec. 21, 2016 at 1 p.m.to discuss the effects of the rule on the agency’s R&A Program.
Employee of Medical Equipment Provider Pleads Guilty to Health Care Fraud, Aggravated Identity Theft and Defrauding the IRSRead the Press Release
Baltimore, Maryland – Elma Myles, age 52, of Baltimore pleaded guilty to health care fraud in connection with schemes to defraud Medicaid and other health benefit programs; aggravated identity theft; and conspiracy to defraud the IRS by not reporting income from the health care fraud scheme. The guilty plea was entered on December 19, 2016.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to Myles’ plea agreement, co-defendant Harry Crawford owned, and was President and CEO of RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. Myles worked at RXRS as a biller. Beginning in 2012, co-defendant Matthew Hightower worked as a delivery driver for RXRS.
Myles admitted that from 2010 through May 2014, she conspired with Crawford, and others to defraud Medicaid and other health benefit programs by having RXRS bill for supplies that were never provided, overcharge for materials actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician.
According to Myles’ plea agreement, Myles and Crawford worked closely together, lived together and were once domestic partners. Both were the managers/supervisors of all business activities at RXRS. Myles and her co-conspirators used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, Crawford and his co-conspirators delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. According to the plea agreement, a co-conspirator would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery.
On February 4, 2014, federal agents executed a search warrant at RXRS and Myles and Crawford’s home. Agents recovered almost $60,000 in cash from a clothes bin beside the bed in Crawford’s room. In addition, Myles had made a makeshift closet containing tens of thousands of dollars’ worth of clothing and designer shoes, including apparel for her then three-year-old granddaughter who competed in beauty pageants. Agents also recovered boxes of patient files from the house. From RXRS agents recovered emails documenting a criminal plan at the inception of RXRS, and fraudulent delivery tickets from December 2013 and January 2014. For example, there were delivery tickets for a patient who died in November 12, but the bills continued through 2014, including after the search warrant was executed.
An analysis of RXRS billing of Medicaid from 2007 through 2014 establishes that the loss to Medicaid just for incontinence supplies billed but not provided is approximately $1.2 million.
Finally, Myles admitted that she conspired to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. A review of bank records shows that Myles and Crawford used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for their personal benefit, including mortgage payments, payments to Myles’ daughter and to a business entity set up for the benefit of Myles’ daughter, to a private school for their granddaughter, personal travel, restaurants, and hosting social events. The IRS determined that Myles owes $40,194.36 in federal taxes and $13,000 for state taxes for tax years 2010 through 2013.
The total amount of restitution owed by Myles to Medicaid is $1,207,585.38.
Myles faces a maximum penalty of 10 years in prison for health care fraud; a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft; and a maximum of five years in prison for conspiracy to defraud the United States. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Myles on February 22, 2017, at 9:30 a.m.
Harry Crawford, age 56, of Baltimore, Maryland, pleaded guilty to collection of a debt by extortionate means from victim David Wutoh; to health care fraud conspiracy; and to conspiracy to defraud the United States. Judge Garbis scheduled sentencing for Crawford on March 28, 2016, at 11:30 a.m. Crawford is released under the supervision of U.S. Pretrial Services.
Co-defendant Matthew Hightower, age 34, also of Baltimore, was convicted of extortion and the murder of David Wutoh on September 22, 2016, after a seven-day trial.
Hightower is scheduled to go to trial on charges related to the health care fraud scheme on January 23, 2017.
United States Attorney Rod J. Rosenstein commended the HHS-OIG, IRS-CI, and Baltimore County Police Department for their work in the investigation, and thanked the Maryland Attorney General’s Office Medicaid Fraud Control Unit for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sandra Wilkinson, who are prosecuting the case.
Elkhart Man Sentenced to 168 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Aurelio Cervantes, 53, of Elkhart, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for possession with intent to distribute cocaine.
Cervantes was sentenced to 168 months imprisonment and 3 year supervised release.
According to documents in this case, Cervantes was involved with distribution of cocaine. Cocaine would be shipped from Texas to Elkhart, Indiana and then distributed to Ohio. Cervantes acknowledged that he should be held responsible for 50-150 kilograms of cocaine
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation Division. This case was handled by Assistant United States Attorney Frank E. Schaffer.
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El Reno Woman Sentenced to 112 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHELLE LEA DAVIS, age 39, of El Reno, Oklahoma, was sentenced to 112 months imprisonment for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Information alleged that on or about April 30, 2016, in the Eastern District of Oklahoma, the Defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charge arose from an investigation by the McAlester Police Department, the District 18 Task Force, the Pittsburg County Sherriff’s Office, and the Drug Enforcement Administration.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
Department of Justice Announces Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program Will Continue to Improve the Exchange of Critical Data
The Department of Justice announced today 11 tribes selected to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes. TAP allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
Phase Two of TAP will grant access to national crime information databases and technical support to the following tribes:
- Metlakatla Indian Community, Annette Island Reserve, Alaska
- Navajo Nation, Arizona, New Mexico & Utah
- Pueblo of Laguna, New Mexico
- Yurok Tribe of the Yurok Reservation, California
- Standing Rock Sioux Tribe of North & South Dakota
- Tohono O’odham Nation of Arizona
- Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, South Dakota
- Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation, Montana
- Reno-Sparks Indian Colony, Nevada
- Lac Courte Oreilles Band of Lake Superior Chippewa Indians, Wisconsin
- Makah Indian Tribe of the Makah Indian Reservation, Washington state
“Since its launch in 2015, this project has not only helped law enforcement locate suspects, rescue victims and extradite captured fugitives, but it’s also made it easier for civil courts to enter and enforce orders of protection for domestic violence victims,” said Deputy Attorney General Sally Q. Yates. “I’m proud that the Justice Department is continuing to act as a responsible partner with tribal governments in this landmark effort, which strengthens both sovereignty and safety for American Indian and Alaska Native people.”
This phase was funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART), and Community Oriented Policing Services (COPS), and supported with technical assistance from the Department of Justice Office of the Chief Information Officer (OCIO). It will focus on assisting tribes that have either a Sex Offender Registry pursuant to the SORNA, or a tribal law enforcement agency that is not a BIA direct service agency. The COPS Office and the SMART Office each provided $1 million in prior fiscal year funding towards the expansion, which will be used for the 11 kiosks.
In the fall of 2015, the department selected tribes to participate in the initial User Feedback Phase of TAP. This partnership focused on testing the department’s technology solution and training support; it also enabled tribes to identify and share best practices regarding the use of national crime information databases to strengthen public safety.
During 2016, participating tribes received a kiosk workstation that provided access to national systems as well as training to support whole-of-government needs. User Feedback Phase tribes have elected to implement TAP in a variety of criminal and civil agencies. Those tribal criminal agencies included law enforcement agencies, prosecutors, criminal courts, jails, and probation departments. The tribal civil agencies and programs that were eligible to use TAP included agencies whose staff and volunteers have contact with or control over Indian children; public housing agencies; child support enforcement agencies; Head Start programs; civil agencies that investigate allegations of abuse, neglect, and exploitation of children; civil courts that issue orders of protection, restraining orders or other keep away orders; and sex offender registration programs.
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced off-reservation; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the DOJ Chief Information Officer, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24/7 Help Desk.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
For more information about the Department of the Interior Bureau of Indian Affairs, visit https://www.indianaffairs.gov/.
Defendant Sentenced to 88 Months in Prison for Providing Material Support to Islamic Movement of UzbekistanRead the Press Release
Irfan Demirtas, 58, a dual Dutch-Turkish citizen, was sentenced today to 88 months in prison after earlier pleading guilty to providing material support to the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The sentencing was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Demirtas pleaded guilty on Sept. 15, in the U.S. District Court for the District of Columbia. The plea agreement called for Demirtas to be removed from the U.S. upon completion of his prison term. The defendant was sentenced by the Honorable Randolph D. Moss. The sentence accounts for 62 months’ credit for time served in France.
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least January 2006 through May 2008, when Demirtas was a resident of the Netherlands and acted as an IMU fundraiser and facilitator. In January 2015, Demirtas was arrested in Germany based on an Interpol red notice that had been issued on these charges. He was detained and then extradited to the U.S. on July 17, 2015.
According to the government’s evidence, the IMU is a militant Islamic group which was formed in 1991 with the stated purpose to overthrow the government of Uzbekistan and to create an Islamic state under Sharia law. The IMU has conducted military operations in Uzbekistan and Pakistan and participated in combat operations against coalition forces in Afghanistan. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001.
Between January 2006 and May 2008, according to the government’s evidence, Demirtas acted on the IMU’s behalf in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the U.S. During this period, he provided, attempted to provide and conspired to provide personnel and funding to the IMU, knowing that it is a designated terrorist organization that has engaged and engages in terrorism. Specifically, Demirtas admitted in his plea to providing funds to the leader of the IMU.
The case was investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Ari B. Redbord of the District of Columbia, and Trial Attorney Brian K. Morgan of the National Security Division’s Counterterrorism Section. Assistance was provided by the Department of Justice’s Office of International Affairs.
Defendant Sentenced to 88 Months in Prison for Providing Material Support to Islamic Movement of UzbekistanRead the Press Release
WASHINGTON – Irfan Demirtas, 58, a dual Dutch-Turkish citizen, was sentenced today to 88 months in prison after earlier pleading guilty to providing material support to the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The sentencing was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Demirtas pleaded guilty on Sept. 15, 2016, in the U.S. District Court for the District of Columbia. The plea agreement called for Demirtas to be removed from the U.S. upon completion of his prison term. The defendant was sentenced by the Honorable Randolph D. Moss. The sentence accounts for 62 months’ credit for time served in France.
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least Jan. 2006 through May 2008, when Demirtas was a resident of the Netherlands and acted as an IMU fundraiser and facilitator. In Jan. 2015, Demirtas was arrested in Germany based on an Interpol red notice that had been issued on these charges. He was detained and then extradited to the United States on July 17, 2015.
According to the government’s evidence, the IMU is a militant Islamic group which was formed in 1991 with the stated purpose to overthrow the government of Uzbekistan and to create an Islamic state under Sharia law. The IMU has conducted military operations in Uzbekistan and Pakistan and participated in combat operations against coalition forces in Afghanistan. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001.
Between January 2006 and May 2008, according to the government’s evidence, Demirtas acted on the IMU’s behalf in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the United States. During this period, he provided, attempted to provide and conspired to provide personnel and funding to the IMU, knowing that it is a designated terrorist organization that has engaged and engages in terrorism. Specifically, Demirtas admitted in his plea to providing funds to the leader of the IMU.
The case was investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Ari B. Redbord of the District of Columbia and Trial Attorney Brian K. Morgan of the National Security Division’s Counterterrorism Section. Assistance was provided by the Department of Justice’s Office of International Affairs.
Cushing Man Sentenced to 135 Months in Prison for Obtaining Child Pornography via Facebook and Then Distributing ItRead the Press Release
Oklahoma City, Oklahoma – CARLOS OZZ FRITINGER, 24, of Cushing, was sentenced today by United States District Court Judge Robin Cauthron to serve 135 months in federal prison for distributing child pornography that he acquired from minors on Facebook, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records and information from court proceedings, in 2014 and 2015, Fritinger, using a fake name, persuaded a 13-year-old girl and a 14-year-old girl to produce and send him pornographic photographs via private Facebook messages. Using explicit anatomical detail, Fritinger directed the minors, telling them how he wanted them to produce the images of their genitalia. Fritinger later distributed a pornographic image of the 13-year-old to a third party. A search of Fritinger’s cell phone revealed numerous images of child pornography.
A federal grand jury returned an Indictment against Fritinger on July 20, 2016, charging him with producing, possessing, and distributing child pornography. He pled guilty to distributing child pornography on September 13, 2016.
After completing his 135-month prison term, Fritinger will have to register as a sex offender and will be placed on supervised release by the United States Probation Office for five years.
This case was investigated by the Oklahoma Internet Crimes Against Children Task Force, including the Oklahoma State Bureau of Investigation, the Payne County Sheriff’s Department, and the Cushing Police Department. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Colorado U.S. Attorney's Office, Working with Other Offices, Collects $50,860,097.41 in Civil and Criminal Actions for the United States Taxpayers in Fiscal Year 2016Read the Press Release
DENVER – Acting U.S. Attorney Bob Troyer announced today that the District of Colorado collected $50,860.097.41 for U.S. taxpayers. The office made these collections state-wide, both in cases it handled exclusively as well as while working with other U.S. Attorney’s Offices and components of the Department of Justice. Of this amount, $8,325,491.68 was collected in criminal actions and $42,534,605.73 was collected in civil actions. In cases handled exclusively by the U.S. Attorney’s Office, it collected $30,301,946.70; $8,289,601.25 in criminal actions and $22,012,345.45 in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“We have a whole Division of elite professionals (our Asset Recovery Division) that is hard at work recovering money due to the United States taxpayers and victims of crime,” said Acting U.S. Attorney Bob Troyer. “Thanks to their efforts, and in partnership with other U.S. Attorney’s Office and law enforcement agencies, this office routinely collects three times more than our annual budget through these efforts. These recoveries also confirm our deep commitment to getting justice for crime victims.”
This part year, the U.S. Attorney’s Office collected $18,000,000 in a settlement with Evercare Hospice. The settlement resolved a lawsuit brought by the government alleging that Evercare knowingly submitted or caused to be submitted false claims to Medicare for hospice care from Jan. 1, 2007, through Dec. 31, 2013, for Medicare patients who were not eligible for the Medicare hospice benefit because Evercare’s medical records did not support that they were terminally ill. The government’s complaint alleged that Evercare’s business practices were designed to maximize the number of patients for whom it could bill Medicare without regard to whether the patients were eligible for and needed hospice. These business practices allegedly included discouraging doctors from recommending that ineligible patients be discharged from hospice and failing to ensure that nurses accurately and completely documented patients’ conditions in the medical records.
The office also collected money from a criminal matter against Richard Armstrong and his co-defendants. Armstrong and his associates were involved in perpetrating and benefiting from the tax refunds received from an illegal scheme. Armstrong received approximately $1,600,000.00 in refunds by filing fraudulent tax returns along with fraudulent Forms 1099-OID. Armstrong argues that the IRS is not a valid institution as it is not included in the Constitution, but he was convicted in the criminal case, and the government forfeited the airplane, one real property, and one-half interest in the other real property. Upon sale of these assets, the U.S. Attorney’s Office was able to recover and return $589,979.98 to the Department of Treasury. This is one of multiple collections from defendants who attempted to defraud or obstruct the IRS.
In addition, the Colorado U.S. Attorney’s Office has continued its work in the Department’s ongoing effort to hold mortgage lenders accountable for fraudulent conduct, achieving significant recoveries. In separate settlements, Franklin American Mortgage Company and Primary Residential Mortgage Inc. each agreed to multi-million dollar payments to resolve separate allegations that the respective companies violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements. Franklin American Mortgage Company agreed to pay $70 million over time, more than $14 million of which the company paid in fiscal year 2016. Primary Residential Mortgage Inc. paid $5 million.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Colorado working with partner agencies and divisions, collected $7,317,124 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Cleveland woman sentenced to prison for taking Social Security benefits while her son was in county custodyRead the Press Release
A Cleveland woman was sentenced to six months incarceration for fraudulently receiving more than $35,000 in Social Security benefits, U.S. Attorney Carole S. Rendon said.
Andrea J. Smiley, 35, was previously found guilty of theft of government property. She was representative payee for her minor son who was receiving Social Security disability benefits. Smiley’s son was in the custody of the Cuyahoga County Department of Child and Family Services as of March 2011. She failed to notify the Social Security Administration that her son was no longer in her custody, according to court documents.
Smiley submitted four false annual reports that her son was living with her and that the benefits were used for his care. From April 2011 through May 2015 the defendant fraudulently received and converted to her own use $35,279 in SSA benefits, according to court documents.
Smiley was ordered to repay that amount to the Social Security Administration.
This case was prosecuted by Special Assistant U.S Attorney Lisa J. Sanniti following an investigation by the Social Security’s Office of the Inspector General.
Citizen of China Who Attempted Illegal Export of Advanced Military Computer Chips is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Mary B. McCord, Acting Assistant Attorney General for National Security, announced that JIANG YAN, 34, of Shenzhen, China, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately 12 months of imprisonment, time already served, for attempting to purchase and export to China without a required license certain sophisticated integrated circuits used in military satellites and missiles, and for conspiring to sell counterfeits of those same integrated circuits to a purchaser in the United States.
According to court documents and statements made in court, YAN, Xianfeng Zuo, and Daofu Zhang each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”). In the summer of 2015, Zuo asked YAN to locate and purchase several advanced ICs made by Xilinx Corp., which owing to their radiation tolerance for uses in space, have military applications in missiles and surveillance satellites. YAN then asked a U.S. individual to locate the Xilinx ICs and sell them to YAN. The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but YAN still wished to make the purchase. When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, YAN proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military.
In November 2015, Zhang shipped from China, to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label. After further discussions between YAN and the U.S. individual, YAN, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase.
On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs. Federal agents arrested all three at the meeting location.
YAN has been detained since his arrest. On March 7, 2016, he pleaded guilty to one count each of conspiracy to traffic in counterfeit goods, and attempted unlicensed export of export-controlled items.
As part of his sentence, YAN was ordered to forfeit $63,000 in cash seized incident to his arrest.
YAN will be transferred to the custody of the Department of Homeland Security and deported to China.
Zhang and Zuo also pleaded guilty. They were each sentenced to 15 months of imprisonment on July 8, 2016, and November 4, 2016, respectively.
This matter was investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Henry Kopel and National Security Division’s Counterintelligence and Export Control Section Trial Attorneys Casey Arrowood and Thea Kendler.
Chiropractor Indicted for Falsifying Medical Examination Records for Commercial DriversRead the Press Release
ATLANTA – Dr. Anthony Lefteris, 71, of Atlanta, was indicted today by a federal grand jury, on charges that he prepared false documents and entered false information into the records of the U.S. Department of Transportation so that commercial truck drivers could obtain their licenses. Lefteris will be arraigned at a later date.
“It is critical that commercial vehicle drivers are physically fit to handle the rigors of driving commercial vehicles, such as tractor trailer trucks,” said U. S. Attorney John Horn. “When a medical examiner fails to perform the duties entrusted to them or falsifies information, our roads and highways are less safe, putting all drivers at risk.”
“Today’s indictment of Dr. Anthony Lefteris demonstrates the commitment of the Department of Transportation Office of Inspector General to pursuing fraudulent activities by medical professionals in the motor carrier industry who are willing to compromise the safety of the traveling public for personal gain,” said Marlies Gonzalez, regional Special Agent-in-Charge for the USDOT OIG. “Working with our departmental, law enforcement and prosecutorial partners, we will continue to pursue and detect fraudulent schemes and bring to justice those seeking to compromise the integrity of DOT’s safety programs.”
According to United States Attorney Horn, the indictment, and other information presented in court: The U.S. Department of Transportation requires that individuals seeking to obtain or renew a state issued commercial driver’s license (CDL) must submit to a medical examination performed by a medical examiner and be medically certified as physically qualified to drive a commercial motor vehicle. These medical examinations ensure that drivers do not suffer from a medical condition that would otherwise impact their ability to drive a commercial vehicle safely. Commercial drivers present the U.S. DOT Medical Certificate to their State Driver’s Licensing Agency to document their physical fitness to obtain a CDL.
Lefteris, a U.S. DOT Medical Examiner, allegedly failed to perform certain procedures during medical examinations that aid in determining a driver's physical fitness to drive a commercial vehicle, including vision examinations, hearing examinations, and urinalyses. Despite his failure to perform all required procedures, Lefteris allegedly falsified Medical Examination Forms, documenting test results for procedures he never performed. As part of the scheme, he also issued U.S. DOT Medical Examiner's Certificates to drivers even though he did not did not conduct a complete medical examination. Lefteris subsequently transmitted his results to the U.S. DOT and certified that he performed the medical examinations in accordance with federal regulations.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Department of Transportation.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Central City Woman Sentenced to 14 Months in Federal Prison for Defrauding Her GrandfatherRead the Press Release
A Central City Woman who stole her grandfather’s identity to obtain credit cards in his name and make over $27,000 in purchases was sentenced today to 14 months in federal prison.
Jessica Lynn Roloson, 41, received the prison term after an August 11, 2016 guilty plea to one count of Wire Fraud. In a plea agreement, Roloson admitted that, from October 2015 through January 2016, knowing her grandfather’s social security number and date of birth, and living in his former home, Roloson falsely assumed her grandfather’s identity and applied to various credit card companies for accounts under his name, social security number, and former address. The credit card companies issued Roloson credit cards in her grandfather’s name. Roloson used the credit cards on the Internet to fraudulently purchase goods for her own benefit and for the benefit of others. She also made purchases in local stores.
For example, on or about October 29, 2015, Roloson used her grandfather’s name and Social Security number without his permission on an application for a credit card. Then, on or about November 5, 2015, using one of the cards, and using the name of “JLynn Roloson,” defendant caused American Express to wire $205.95 to Victoria’s Secret in Cedar Rapids, Iowa. Defendant did so to obtain property for her personal use, including but not limited to “Pink Yoga Pants,” a “Pink Knit Top,” and a “Bombshell Push Up Brasierre.” As a part of her plea agreement, Roloson agreed to abandon a number of other items that she purchased through her scheme, including a dog kennel, two Dallas Cowboys Zip Up Jackets, two 16 GB iPad mini tablet computers, eyeglasses, a white-and-grey Siberian Husky puppy, a Black Frigidaire refrigerator with side-by-side freezer, a black smooth surface Frigidaire stove, four black office chairs with wheels, a black Frigidaire microware, a black Frigidaire dishwasher, a kitchen sink, an L-shaped desk, a backyard grill, two HP laptop computers with accessories, miscellaneous kitchen utensils, plates, and platters, a pink “selfie stick”, two Bissell cleaners, four Goodyear all-season tires, and a black wire dog kennel.
Evidence at sentencing established that defendant’s grandfather is over 90 years old. He is a WWII veteran, having served under General George S. Patton’s Third Army in the European Theatre. At the time defendant perpetrated her scheme, her grandfather required the use of wheelchair and resided in the Iowa Veteran’s Home in Marshalltown, Iowa. Defendant’s actions adversely affected her grandfather’s credit rating and caused emotional stress upon his elderly wife.
Roloson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. During the sentencing, Judge Reade found that Roloson’s scheme had required significant planning and highlighted the fact that Roloson had yet to pay any restitution. Roloson was sentenced to 14 months’ imprisonment. A special assessment of $100 was imposed, and she was ordered to make over $27,000 in restitution to various credit card companies and merchants. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The prosecution of Roloson is part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.
Roloson was released on the bond previously set and is to surrender to the United States Marshal on January 9, 2017, at 10:00 a.m.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-43-LRR.
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Capitol Heights Felon Exiled to over 10 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Terrance Deangelo Hamlin, age 27, of Capitol Heights, Maryland, today to 123 months in prison, followed by five years of supervised release for possession of a firearm by a convicted felon, possession with intent to distribute marijuana and crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime. A federal jury convicted Hamlin of those charges on April 26, 2016, after a four-day trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to the evidence presented at trial, on June 9, 2015, officers were patrolling an area in Capitol Heights due to a number of recent shooting and homicides in the area. The officers noticed a strong odor of marijuana coming from an open window of an apartment. When they knocked on the apartment door, a female, who was the lease holder for the apartment, opened the door and told the officers they could come inside. Hamlin was in the living room and officers saw two bags of marijuana, two digital scales and multiple baggies on the sofa and floor. The lease holder signed a written consent for the officers to search the apartment.
Trial testimony showed that the officers recovered: approximately 215 gram of marijuana; 22 small zip lock bags and 1 large zip lock back containing 10.76 grams of crack cocaine; an eye dropper and bottle with phencyclidine (PCP); approximately $474 in cash; a loaded .45 caliber handgun; a loaded 9mm handgun; and drug paraphernalia.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation, and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Joseph R. Baldwin and Deborah A. Johnston, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Bradenton Woman Sentenced to Ten Years for Witness Tampering and Obstruction of JusticeRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Delexsia Harris (24, Bradenton) to 10 years in federal prison for witness tampering and obstruction of justice. A federal jury found her guilty on September 22, 2016.
According to testimony presented during the four-day trial, Harris threatened and intimidated multiple persons who were scheduled as witnesses in the trial of United States v. Nathaniel Harris et al., which occurred this summer. Harris threatened and intimidated witnesses in person and on social media, threatening to hurt and murder individuals cooperating with law enforcement, and telling one victim that Ms. Harris’s family would kill her and her children. Testimony also demonstrated that Harris had helped a defendant in that case solicit a false alibi.
In addition, testimony and evidence showed that Harris had lied to law enforcement officers following the July 3, 2012, murder of Ceola Lazier. Prosecutors presented evidence that she had participated in the murder, with her brother and another man, and later had told police officers that the killers were two unknown men driving a white Mercedes Benz. Harris’s brother, Charlie Green, and the other man, Jerry W. Green, were convicted of the shooting death of Lazier following the trial of United States v. Nathaniel Harris et al.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Natalie Adams and Shauna Hale.
Boston Cab Dispatcher and Wife Sentenced for Marriage Fraud SchemeRead the Press Release
BOSTON – A Boston Cab dispatcher and his wife were sentenced today in U.S. District Court in Boston in connection with arranging a sham marriage for an Ethiopian relative so he could obtain legal status in the United States.
Girma Tilahun, 61, a dispatcher for EJT Management, Inc., which operates Boston Cab, and his wife, Wudnesh Wolde, 54, both of Cambridge, were sentenced by U.S. District Judge Denise J. Casper to two years of probation and ordered to perform 100 hours of community service. They were also ordered to pay $234,987 in unpaid federal income taxes, interest and penalties, and $62,340 to the U.S. Department of Housing and Urban Development (HUD) for Section 8 housing subsidies that they received but were not entitled to. In August 2016, both defendants pleaded guilty to one count of aiding and abetting marriage fraud.
Tilahun and Wolde are Ethiopian nationals who have been married since 1985 and are permanent resident aliens who have lived in the United States since 1999. In 2011, Tilahun recruited a former neighbor, who was a U.S. citizen, to enter into a sham marriage with a relative in Ethiopia and then to apply for the relative to obtain permanent resident status in the United States. The relative was an Ethiopian national who was born in 1977 and, as of 2011, had never lived in the United States and was not lawfully entitled to become a permanent resident alien of the United States. Tilahun informed Wolde of the arrangement and the plan to pay $25,000 to the U.S. citizen. Wolde agreed and assisted Tilahun in convincing the citizen to participate in the sham marriage arrangement.
The “marriage” of the U.S. citizen and Tilahun’s relative took place in Ethiopia in April 2011 and, on the basis of that sham marriage and a series of fraudulent submissions to the United States government, the relative was admitted to the United States in April 2012 and received permanent resident status. But, as Tilahun and Wolde knew, the relative and the citizen never intended to actually live as a married couple and never did live together. When the relative arrived in the United States in April 2012, he went to live with Tilahun and Wolde, not with his purported “wife.”
In addition, for approximately 15 years, Tilahun worked for EJT Management, Inc., which operated under the name Boston Cab and is the largest owner and operator of medallion taxi cabs in Boston. Tilahun was among those responsible for assigning cabs to drivers. Tilahun accepted “tips” from drivers who wished to promptly get a taxi for lease, amounting to several hundreds of thousands of dollars in income which Tilahun did not report on his tax returns. Tilahun received most of his wages from EJT off-the-books in cash, which he also did not report to the IRS. The tax loss totaled $234,987. In addition, Tilahun and Wolde lived in federally-subsidized housing in Cambridge and lied about their income in order to receive tens of thousands of dollars in HUD Section 8 housing subsidies to which they were not entitled. Among other things, Tilahun and Wolde certified that Tilahun’s income from EJT was the amount Tilahun was paid on-the-books but did not report the off-the-books wages. The subsidies for the period 2009 to 2013 amounted to $62,340. According to the terms of the plea agreement, Tilahun and Wolde are required to pay the IRS back taxes, interest and penalties, and to reimburse HUD for housing subsidies they had fraudulently received.
On Dec. 13, 2016, Edward Tutunjian, the owner and operator of Boston Cab, through his company EJT Management, Inc., was sentenced to 20 months of probation –18 months of which must be spent in a halfway house. Tutunjian and EJT also paid more than $2.3 million in restitution and Tutunjian was fined at least $28,999 up to a quarter of his income. Tutunjian pleaded guilty to several counts of tax evasion, employing illegal aliens and violating the Fair Labor Standards Act. EJT Management, Inc. pleaded guilty to aiding and abetting the theft of public money in connection with the HUD subsidies.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development; Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Division prosecuted the case.
Arizona Men Sentenced to Prison After Transporting Five Pounds of Heroin to Nampa, IdahoRead the Press Release
BOISE – Rodrigo Ramirez, 22, and Irwin Camacho, 19, both of Phoenix, Arizona, were sentenced to federal prison for possession with intent to distribute heroin, U.S. Attorney Wendy J. Olson announced. Ramirez was sentenced yesterday by Chief U.S. District Judge B. Lynn Winmill to serve 70 months imprisonment to be followed by five years of supervised release. Camacho was sentenced on November 30, 2016, to serve 33 months imprisonment, pay a $4,000 fine, and serve five years of supervised release. Both were ordered to forfeit $75,000 in cash proceeds.
Both Ramirez and Camacho pleaded guilty to possession with intent to distribute heroin. Ramirez pleaded guilty on October 3, 2016 and Camacho on September 14, 2016.
Ramirez admitted to flying to Boise, from Phoenix, on June 16, 2016, to meet with an undercover officer regarding the sale of heroin. Camacho, and a juvenile male, drove a vehicle from Phoenix to Nampa which contained five pounds of heroin in a hidden compartment. All three were arrested in Nampa after meeting with the undercover officer to conduct the sale. Ramirez had previously been convicted of possession of heroin for sale in Riverside, California.
These cases are the result of a joint investigation by the Nampa Police Department Narcotics Unit and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Arizona Man Sentenced to 10 Years for Trafficking Meth in WichitaRead the Press Release
WICHITA, KAN. - An Arizona man was sentenced Tuesday to 10 years in federal prison for trafficking methamphetamine in Wichita, U.S. Attorney Tom Beall said.
Samuel Below, 29, Phoenix, Ariz., pleaded guilty to one count of interstate travel in furtherance of drug trafficking and one count of carrying a firearm in furtherance of drug trafficking. He admitted that on Jan. 12, 2016, he traveled from Phoenix to Wichita with more than half a pound of methamphetamine he intended to distribute here. He also admitted that on Jan. 15, 2016, he carried a Sig Sauer 5.56 caliber pistol in furtherance of drug trafficking.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Alan Metzger for their work on the case.
Albuquerque Man Sentenced to Prison for Armed Robbery of Walmart StoreRead the Press Release
ALBUQUERQUE – Henry Lujan, 23, of Albuquerque, N.M., was sentenced today in federal court to 87 months in prison for violating the Hobbs Act by participating in the armed robbery of a Walmart store in Albuquerque in Oct. 2014. Henry Lujan will be on supervised release for three years after completing his prison sentence.
On Jan. 21, 2015, Henry Lujan and five co-defendants were charged with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Castillo and five other Albuquerque residents, Raymond Castillo, 27, Reyes Lujan, 27, Daniel Maestas, 36, Johnny Ramirez, 31, and Frank Gallegos, 31, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
The indictment was superseded in May 2015, by adding a new defendant, Reynaldo Marquez, 26, of Albuquerque, and two new counts. One of the new counts charged Castillo and Marquez with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County on Dec. 7, 2014. The other charged Marquez with discharging a firearm during that robbery.
On Aug. 3, 2016, Henry Lujan pled guilty to Count 2 of the superseding indictment charging him with aiding and abetting an interference with interstate commerce. In entering the guilty plea, Henry Lujan admitted that on Oct. 29, 2014, he and his co-defendants stole a safe filled with money and other valuables during the armed robbery of a Walmart.
Henry Lujan’s six co-defendants previously have entered guilty pleas. Reyes Lujan was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release, Gallegos was sentenced on Sept. 8, 2016, to 71 months in prison followed by three years of supervised release, Ramirez was sentenced on Oct. 6, 2016, to 71 months in prison followed by three years of supervised release, and Reynaldo Marquez was sentenced on Dec. 1, 2016, to 120 months in prison followed by five years of supervised release, and Raymond Castillo was sentenced on Dec. 8, 2016, to 216 months in prison followed by three years of supervised release. The remaining co-defendant is in custody pending a sentencing hearing.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
AMC Required to Divest Movie Theatres, Reduce NCM Ownership and Complete Screen Transfers in Order to Complete Acquisition of Carmike CinemasRead the Press Release
Proposed Settlement Preserves Movie Theatre Competition in 15 Local Markets and in Preshow Services and Theatre Advertising Markets
The Department of Justice announced today that it will require AMC Entertainment Holdings Inc. to divest theatres in 15 local markets, sell off most of its holdings and relinquish all of its governance rights in National Cinemedia LLC (NCM), and transfer 24 theatres with a total of 384 screens to the network of Screenvision LLC in order to complete its $1.2 billion acquisition of Carmike Cinemas Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department said that without the required divestitures and other relief, the merger would result in higher prices and lower quality theatre amenities for moviegoers and weakened competition in the markets for preshow services and theatre advertising, where Screenvision is NCM’s only meaningful rival.
“Moviegoers across the United States have benefitted from head-to-head competition between AMC and Carmike that has kept ticket prices in check and delivered a higher quality movie experience,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division. “Today’s settlement will ensure that movie theatre competition is preserved in 15 local markets where AMC and Carmike currently compete. In addition, by requiring AMC to reduce its equity stake in NCM, terminate its participation in NCM’s business, and transfer screens to Screenvision, the settlement will promote continued vigorous competition between the two leading cinema advertising networks – competition that the division fought to protect when it blocked the NCM-Screenvision merger.”
According to the department’s complaint, AMC and Carmike compete to attract moviegoers in local markets across the United States by providing affordable ticket prices and a superior viewing experience. Because AMC and Carmike are each other’s most significant competitor in 15 local markets across the country, the complaint alleges that the proposed acquisition would likely reduce price competition and the quality of the moviegoer’s experience in each of these local markets. Under the terms of the proposed settlement, AMC must divest AMC or Carmike movie theatres in all 15 local markets to buyers approved by the United States to eliminate the merger’s likely harm in these markets.
The department’s complaint further alleges that AMC’s acquisition of Carmike would lessen competition in the preshow services and cinema advertising markets, where NCM and Screenvision together serve over 80 percent of U.S. movie screens and compete to win exclusive contracts to provide preshow services to exhibitors. According to the department’s complaint, as a major owner of both NCM and Screenvision post-merger, AMC would have an incentive to reduce the head-to-head competition between NCM and Screenvision, resulting in less aggressive competition to gain exhibitors and advertisers at the expense of the other. In addition, the merger would eliminate Carmike – currently Screenvision’s largest and most important exhibitor – as a source of future Screenvision growth because all future AMC new builds and theatre acquisitions will affiliate with NCM under the terms of AMC’s NCM contract.
Under the terms of the proposed settlement, AMC must divest the majority of its equity interest in NCM such that it owns no more than 4.99 percent of the company, relinquish all of its NCM governance rights, and transfer 24 theatres comprising 384 screens to the Screenvision network. The department said that these measures will ensure that movie exhibitors and advertisers continue to enjoy the benefits of vigorous competition between NCM and Screenvision in the preshow services and theatre advertising markets. The Division filed suit to block the proposed merger of NCM and Screenvision in 2014 and NCM and Screenvision subsequently abandoned their transaction.
The proposed settlement also requires AMC to establish firewalls to ensure that it does not obtain NCM’s, Screenvision’s, or other movie exhibitors’ competitively sensitive information or become a conduit for the flow of such information between NCM and Screenvision.
AMC is a Delaware corporation with its headquarters in Leawood, Kansas. As of Sept. 30, 2016, AMC operated approximately 388 theatres with a total of 5,295 screens located in 33 states and the District of Columbia. Its U.S. box office revenues were approximately $1.9 billion in 2015.
Carmike is a Delaware corporation with its headquarters in Columbus, Georgia. As of Sept. 30, 2016, Carmike operated 271 movie theaters with a total of 2,917 screens located in 41 states. Its U.S. box office revenues were approximately $490 million in 2015.
As required by the Tunney Act, the proposed settlement and the department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Acting Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed consent decree upon finding that it serves the public interest.
AMC-Carmike Complaint
AMC-Carmike CIS
AMC-Carmike Explanation AMC-Carmike Hold Separate Stipulation and OrderAMC-Carmike PFJ
19 December 2016
Wyoming U.S. Attorney's Office Collects $1,802,203 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Cheyenne – U.S. Attorney Christopher A. "Kip" Crofts announced today that the District of Wyoming US Attorney’s Office collected $1,802,203 in criminal and civil actions in Fiscal Year 2016. Of this amount, $1,468,146 was collected in criminal actions and $334,057 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $89,056 in cases pursued jointly with these offices.
Attorney General Loretta Lynch announced on December 14th that the Justice Department collected $15.3 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016.
The more than $15 billion in collections in FY 2016 represents nearly five times the appropriated $3 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse," said Attorney General Lynch. "Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation."
"I am quite proud of the efforts of the Wyoming U.S. Attorney’s Office in collecting significant fines and forfeitures and for providing tremendous value to the American taxpayers," said U.S. Attorney Crofts.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $12 billion in payments made directly to the Justice Department and more than $3.3 billion in indirect payments made to other federal agencies, states and other designated recipients.
Williamsburg Woman Sentenced for $1.1 Million Ponzi SchemeRead the Press Release
NORFOLK, Va. – Patricia Means, 70, of Williamsburg, was sentenced today to 60 months in prison for orchestrating a Ponzi scheme through which she embezzled over $1.1 million from more than a dozen victims. Means was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,136,862.32 to the victims and the IRS.
Means pleaded guilty to wire fraud and money laundering on June 13. According to the statement of facts filed with the plea agreement, Means is a retired investment broker who worked in the industry for over 20 years. Sometime around February 2009, Means developed an investment scheme to raise funds for developing a purported product called “Savvy Bag,” a handbag organizer. Means went to substantial lengths to make the investment appear plausible, including having a seamstress make a prototype, setting up a website, applying for a patent, producing bound and printed copies of a brochure containing marketing and advertising information, and sales and profit projections. Most importantly, though, Means gained and manipulated the trust of her investors. Ultimately, between 2009 and 2015, Means embezzled over $1.1 million from investors of Savvy Bag, spending over $900,000 on housing, casino trips, vehicles and other personal items. Means solicited various individuals, some of whom were friends for a decade or more. The majority of the victims who invested their hard-earned savings were retirees or approaching retirement.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Henry C. Morgan Jr. Assistant U.S. Attorney Brian J. Samuels prosecuted 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. 4:16-cr-29.
Westville Man Sentenced to 97 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Vincent Jones, 46, of Westville, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for felon in possession of a firearm.
Jones was sentenced to 97 months imprisonment and 1 year supervised release.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the La Porte County Sheriff’s Department and Westville Police Department. This case was prosecuted by Assistant United States Attorneys Frank E. Schaffer, Luke N. Reilander and Molly E. Donnelly.
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Virginia Resident Sentenced to Five Years in Prison for Running Fraudulent “Savvy Bag” Investment SchemeRead the Press Release
A Richmond, Virginia resident, formerly of Williamsburg, Virginia, was sentenced today to 60 months in prison for defrauding investors of more than $1.1 million, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
“Patricia Means enticed her investors with false promises and then stole their funds to finance her lifestyle – evading taxes along the way,” said Principal Deputy Assistant Attorney General Ciraolo. “Her five-year prison sentence sends a clear message to would-be fraudsters – you will be caught and held accountable for your deceptions and fraudulent misrepresentations.”
According to documents filed with the court, Patricia M. Means, 70, was a licensed investment broker from 1983 until 2009 with firms in California and Arizona. Means moved to Virginia in 2006. In or about February 2009, Means developed a scheme to defraud investors by creating a product called “Savvy Bag,” a purported handbag organizer and solicited investments in the product. Sometime in 2010, Means began soliciting additional investments for what she claimed would be an initial public offering, but the shares were never offered to the public.
As part of the scheme, Means started a product website and filed a trademark application that was later abandoned. Means sent numerous emails to investors containing false explanations as to why the investments were not producing returns or being repaid. Means also caused several nominee bank accounts to be opened in the name of a relative in order to receive the investment funds, while Means maintained control over all of the funds in the accounts. Between 2009 and 2014, Means obtained over $1.1 million from victims of her investment fraud scheme and spent less than $3,000 to develop, produce or sell the Savvy Bag product. Over that same period, Means spent hundreds of thousands of dollars in investors’ money on trips to casinos, real estate and other personal items. Between 2010 and 2014, Means received taxable income of no less than $907,827.43, upon which no less than $201,065.49 in taxes were due and willfully evaded and defeated the income tax due and owing to the United States during each of these years.
“Internal Revenue Service Criminal Investigation (IRS-CI) is diligent in unraveling the fraudulent actions of those, such as Patricia Means, who scheme to defraud investors,” said Acting Special Agent in Charge Thomas Holloman of IRS-CI’s Washington, D.C. Field Office. “Today’s sentencing is a reminder that there are detrimental consequences for this type of criminal behavior.”
Means pleaded guilty on June 13 to one count of wire fraud and one count of money laundering to conceal. In addition to the term of imprisonment, Senior U.S. District Judge Henry Coke Morgan Jr. for the Eastern District of Virginia sentenced Means to three years of supervised release and ordered her to pay $1,136,862.32 in restitution, including $201,065.49 to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Boente commended special agents of IRS-CI, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Brian J. Samuels of the Eastern District of Virginia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Vermont U.S. Attorney’s Office Collects $1,751,875.78 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Burlington, VT- U.S. Attorney Eric Miller announced today that the United States Attorney’s Office for the District of Vermont collected $1,751,875.78 in criminal and civil actions in Fiscal Year 2016. Of this amount, $923,113.71 was collected in criminal actions and $828,762.07 was collected in civil actions.
Additionally, Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $161,470.55 in cases pursued jointly with these offices. Of this amount, $16,903.05 was collected in criminal actions and $144,567.50 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
U.S. Attorney Eric Miller added, “As we pursue justice on behalf of Vermonters, our office will continue to seek monetary remedies that impose appropriate punishment on wrongdoers, compensate victims, and protect publicly funded programs from fraud and abuse.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Vermont, working with partner agencies and divisions, collected $1,379,093 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Attorney for Western District of Oklahoma Involved in Collecting Nearly $33 Million in Fiscal Year 2016Read the Press Release
Oklahoma City, Oklahoma -- The United States Attorney’s Office for the Western District of Oklahoma was involved in collecting a total of $32,930,718.06 in civil and criminal cases and through asset forfeiture in Fiscal Year 2016, announced Mark A. Yancey, United States Attorney.
The Western District of Oklahoma collected $25,579,014.06 in criminal and civil actions handled by the district. Of this amount, $19,944,021.01 was collected in criminal actions and $5,634,993.05 was collected in civil actions. The U.S. Attorney’s Office also worked with partner agencies and divisions to collect an additional $7,351,704 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced today that the Justice Department collected more than $15.3 billion in civil and criminal actions in fiscal year (FY) 2016 ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
"Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse," said Attorney General Lynch. "Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation."
"My office was involved in recovering over $25.5 million in criminal and civil cases alone in fiscal year 2016 – slightly more than double the amount collected last year," said U.S. Attorney Yancey. "This total includes the recovery of tax dollars taken by fraud and restitution for victims of crime. As always, I am extremely proud of these tremendous results and of the exceptional work of the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit."
Significant Collection Cases in the Western District of Oklahoma
In December of 2015, property owned by Julie Ann Smith was forfeited and sold yielding $135,274 to be applied to her restitution debt. Smith was convicted by a jury of committing bank fraud, mail fraud, aggravated identity theft, forged securities, and filing a false tax return and was sentenced in March 2015 to serve 94 months in prison and pay $1,237,939 in restitution. Efforts to collection amounts remaining for restitution are on-going.
In May of 2016, Larry Sanford Waters, of Edmond, was sentenced to serve 12 months and a day for check forgery and signing a false federal income tax return. In addition, he was ordered to pay a $100,000 fine and $296,707 in restitution. He made a total payment of $396,707 at sentencing.
In June of 2016, Fedcare, LLC, and The Broadway Clinic of Tulsa, LLC, paid $2,500,000 to the United States to settle civil claims stemming from allegations that the clinics violated the False Claims Act by submitting false claims to the U.S. Department of Labor Office of Workers Compensation Programs (DOL-OWCP). Specifically, the government alleged that that the claims submitted to DOL-OWCP for medical services furnished to federal employees of fourteen federal agencies were false because they were either (1) billed at a higher rate than allowed or (2) not performed at all.
In June of 2016, property owned by Daniel Bowling was sold and $945,802.61 was applied to his restitution debt. Bowling was convicted by a jury of committing bank fraud in November of 2007 and was sentenced in August 2008 to serve eight months in prison and pay restitution.
In July of 2016, Bell Contracting, Inc., and Redlands Contracting, LLC paid $1,398,967.84 to settle civil claims stemming from allegations that the companies negligently caused a fire that damaged the Wichita Mountains Wildlife Refuge in Comanche County, Oklahoma.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Department of Agriculture, U.S. Department of Labor, Small Business Administration and Department of Education.
United States Attorney Ihlenfeld announces his resignationRead the Press Release
WHEELING, WV — United States Attorney William J. Ihlenfeld, II, announced today that he will resign his position on December 31 after having served the Northern District of West Virginia for more than six years.
“Serving as United States Attorney has been the most rewarding and exciting experience of my professional career,” said Ihlenfeld. “I feel blessed to have been a part of a talented team of crime fighters and community problem solvers, and I’m proud of all that we've accomplished."
During Ihlenfeld’s tenure, prosecutors in the U.S. Attorney's Office have successfully litigated many types of cases but none more than drug crimes. Federal prosecutions in the Northern District since 2010 have disrupted or dismantled drug trafficking organizations from places such as Baltimore, Philadelphia, Cleveland, Chicago and Detroit that were bringing controlled substances into West Virginia. Doctors, pharmacists and other medical professionals involved in the improper prescribing or dispensing of painkillers have been charged and convicted, and lengthy prison sentences have been obtained against heroin dealers whose actions caused the death of another.
In order to escalate the response to West Virginia’s drug epidemic, Ihlenfeld secured federal funding from the Office of National Drug Control Policy to provide drug task forces with additional financial and intelligence resources. His office formed a partnership with the West Virginia Attorney General's Office to prosecute drug crimes, a first-of-its-kind arrangement in the state that has produced numerous convictions. Ihlenfeld represented the Department of Justice in the federal government's effort to reduce the availability of illicit drugs in the country, served on the U.S. Attorney General's Controlled Substance/Asset Forfeiture subcommittee, and as the Vice-Chairman of the Appalachia HIDTA Executive Board.
In addition to taking aggressive enforcement actions, Ihlenfeld pursued innovative approaches to address the drug crisis, including the creation of the United States Attorney's Addiction Action Plan. He served as a member of the advisory board for the "Martinsburg Initiative", a new project that utilizes a trauma-informed approach to help prevent drug use, and his office helped to bring drug prevention programming to tens of thousands of young people.Ihlenfeld placed special emphasis on the investigation and prosecution of white collar crimes during his time in office. He formed a public corruption unit within the U.S. Attorney's Office and established a hotline for citizens to report this type of crime. The unit has been productive, having recently uncovered improper political activity, bid-rigging, and pay-to-play schemes within the West Virginia Division of Highways. These investigations led to convictions of former DOH employees and to sweeping changes to policies within the state Department of Transportation.
A financial crimes investigative initiative and a healthcare fraud working group were also formed in recent years and now each proactively investigate those categories of cases. This proactive approach has led to an increase in the prosecution of white collar crimes within the Northern District, including a case against HSBC - one of the world’s largest banks - for its failure to identify money laundering transactions related to Mexican drug trafficking as well as its hiding of transfers made for clients in foreign countries subject to U.S. sanctions. As a result of the investigation, HSBC paid $1.9 billion in fines and penalties and was ordered to make substantial reforms to its operating procedures.
Matters involving the embezzlement of large sums of money from Bethany College, Center Valley Federal Credit Union, and Mountaineer Racetrack were among other notable white collar matters that were successfully prosecuted in recent years, along with cases against bank executives and government officials for financial fraud.
Civil rights investigations were front and center over the past six years, including cases brought against the former Jefferson County Sheriff and a former Hancock County Sheriff’s Deputy for use of excessive force, both of which resulted in convictions.
An increased focus was placed upon federal domestic violence cases by Ihlenfeld, which led to numerous convictions for interstate domestic violence, stalking, and illegal gun possession by domestic violence offenders.
More recently, cyber investigations have been prioritized at the U.S. Attorney’s Office. A cyber unit has been created in order to respond to what will be a serious threat going forward.
Many civil cases have been resolved favorably since 2010, including large settlements with healthcare providers and educational institutions that committed fraud against the United States. Nearly $50 million has been recovered by the U.S. Attorney’s Office financial litigation unit over the past six years on behalf of victims. Investigations against pharmaceutical manufacturers that filled suspicious orders for prescription painkillers have also been successfully undertaken by the office.
Ten new Assistant U.S. Attorneys have been hired during Ihlenfeld’s tenure, a group that now makes up nearly half of the prosecutors on staff.Ihlenfeld, who was confirmed by the United States Senate on August 5, 2010, plans to return to the private practice of law in 2017.
U.S. Attorney’s Office collects more than $13.5 million in civil, criminal, asset forfeiture actions in FY2016Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $13,511,583.51 through civil, criminal and asset forfeiture actions in fiscal year 2016.
The District collected $8,839,501.29 in criminal actions and $3,757,876.02 in civil actions. Working with various other offices and components of the Department of Justice, the Western District of Louisiana collected an additional $1,973.20. The U.S. Attorney’s Office also worked with its partner agencies and divisions to collect $912,233 in asset forfeiture actions in FY2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
Included in the FY2016 criminal collections for the U.S. Attorney’s Office, Western District of Louisiana, is $4,030,739.79 collected from Pelican Refining Co., LLC. Pelican previously pleaded guilty to violations of the Clean Air Act and obstruction of justice.
Of the total amount collected by the District in FY2016, $733,140.33 was through garnishment proceedings commenced by the district’s Financial Litigation Unit (FLU). The significant increase collected through garnishment proceedings is due in part to the garnishment of various financial interests of debtors including retirement accounts, life insurance policies, wages and other financial accounts as well as the aggressive collection activity handled by the FLU. The largest recovery resulting from a garnishment proceeding in FY2016 occurred in United States v. Herbert Fouke, which was $69,259.98.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from Affirmative Civil Enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“It takes long hours and dedication from our attorneys and support staff to collect these funds,” stated U.S. Attorney Stephanie A. Finley. “The numbers do not always reflect the work that goes into these collections, but it is a team effort. I am thankful for those in my office who for another year brought in a substantial amount in collections on behalf of the taxpayers, which made this milestone possible.”
U.S. Attorney's Office collected $62.3 million in fiscal year 2016Read the Press Release
U.S. Attorney Carole S. Rendon announced that the Northern District of Ohio collected more than $62.3 million in fiscal year 2016 from criminal and civil actions.
Approximately $55.2 million was collected in criminal actions and about $7.1 million in civil actions.
The office’s total overall budget for this fiscal year was approximately $14 million.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Loretta Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“In addition to locking up violent criminals, strengthening our region’s cyber defense, pushing back on Ohio’s opioid epidemic and other myriad responsibilities, the men and women of the U.S. Attorney’s Office have brought in more than four times our annual budget,” Rendon said. “For more than a decade our office has collected more than we cost the taxpayers.”
The money is used to compensate crime victims, is distributed to state and local law enforcement partners who participate in investigations and is returned to the general treasury.
Among the significant collections this year:
U.S. v. Harold Persaud: Dr. Persaud was convicted in 2015 of one count of health care fraud, 13 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity. He was ordered to pay $5.4 million in restitution to the Medicare program and private insurers. Persaud has paid all of this money to the court pending the outcome of his appeal.
U.S. v. Peter Luchansky: Peter Luchansky was convicted in 2015 of defrauding a North Canton company of nearly $2.5 million. The USAO has collected $2.4 million of the total debt which has been returned to the victim company.
U.S. v. John Michael Lonergan: Dr. Lonergan was convicted in 2004 of health care fraud and ordered to pay $339,000 in restitution. Lonergan left Ohio after losing his medical license and had paid very little on his debt after his conviction. Thanks to enforced collection efforts by the U.S. Attorney’s Office, Lonergan appeared in U.S. District Court and paid $306,842 via a cashier’s check to resolve in full his long-outstanding restitution obligation.
U.S. v. Stephen Varkony: Stephen Varkony was convicted of a conspiracy to commit mail and wire fraud and ordered to pay $344,551 to the Ohio Department of Taxation. The U.S. Attorney’s Office has collected $186,000 of this restitution obligation.
The Justice Department collected approximately $15.3 billion in civil and criminal actions across the country in the 2016 fiscal year.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A complete breakdown of collections in the Northern District of Ohio over past decade is as follows:
2015: $40.7 million
2014: $356.7 million
2013: $23.9 million
2012: $79.7 million
2011: $48.6 million
2010: $42 million
2009: $17.7 million
2008: $36.7 million
2007: $63.5 million
2006: $80 million
2005: $51.4 million
2004: $22.3 million
Two York County Residents Indicted for Threatening to Injure Police OfficersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chad Stoner, age 28, and Emily Winand, age 27, both of Conewago Township, York County, Pennsylvania, were indicted on December 7, 2016, by a federal grand jury, for transmitting an interstate communication containing a threat to injure police officers and officials of Conewago Township. The indictment also charges that Stoner was a felon in possession of a firearm.
The indictment was unsealed December 16, 2016, following Winand’s initial appearance before United States Magistrate Judge Susan E. Schwab in Harrisburg, on December 9, 2016. Stoner is currently in York County Prison on state charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on or about August 10, 2016, defendants Stoner and Winand agreed that Winand would use her Youtube account to post a video on which defendant Stoner communicated a threat to injure police officers. The indictment also alleges that on July 8, 2016, Stoner, who had been convicted of an offense punishable by imprisonment for a term exceeding one year, possessed three firearms.
The investigation was conducted by the Harrisburg Resident Office of the Federal Bureau of Investigation, Joint Terrorism Task Force, the Northern York County Regional Police Department, and the West York Borough Police Department. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
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.
Stoner faces a maximum penalty under federal law of 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Winand faces a maximum penalty under federal law of 10 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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Two Indicted on Conspiracy to Commit Money Laundering; Charges Allege They Laundered Money for Mexican Drug Trafficking OrganizationsRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment last week charging two Salt Lake City women with conspiracy to commit money laundering. The charges allege they conspired to launder drug proceeds for Mexican drug trafficking organizations from Utah to Mexico. The indictment, returned Wednesday, was unsealed Friday afternoon.
Charged in the indictment are Rosa Rodiguez, age 41, and her sister, Yadira Rodriquez, age 35, both of Salt Lake City. According to a complaint filed in the case, Rosa Rodriguez owns and operates two money services businesses in Utah. These businesses provide money transfer services from Utah to Mexico and other areas. One business, Happy Travel, is located in West Valley City. Rosa Rodriguez is the primary operator of this location, the complaint alleges. The second business, Happy Travel 2, is located in Salt Lake City. Yadira Rodriguez is the primary operator of this location.
The two were arrested last week. A detention hearing for Rosa Rodriguez is scheduled for Dec. 22, 2016, at 2:15 p.m. in Magistrate Judge Evelyn J. Furse’s courtroom. Yadira Rodriguez has been released on conditions.
According to the indictment, those who own and operate money services businesses are subject to various laws and regulations that govern, among other things, record keeping, filing reports on certain transactions, and ensuring anti-money laundering compliance.
Charges allege that the Rodriguez sisters used their money service businesses to send money transfers for the drug trafficking organizations and took steps to conceal and disguise the source and ownership of the illegal proceeds. The charges allege they split up money transfer amounts to avoid having to produce or provide identification information for money transfers in an attempt to conceal and disguise the source and ownership of the illegal proceeds. The charges also allege the pair concealed the traffickers’ identity by falsifying sender information on the money transfers. Investigators believe that by structuring transactions and sending money under fictitious names, the defendants laundered an estimated $1 million for Mexican drug trafficking organizations.
The case is being investigated by the DEA Metro Narcotics Task Force, IRS-Criminal Investigation and the U.S. Marshals Service.
Two Harrisburg Men Guilty of Possessing Child PornograhyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 13, 2016, Timothy Rissmiller, age 44, and on December 15, 2016, John L. Gilbert, III, age 36, both of Harrisburg, Pennsylvania, pleaded guilty this week to possession of child pornography before Chief United States Magistrate Judge Martin C. Carlson.
According to United States Attorney Bruce D. Brandler, Gilbert and Rissmiller were apprehended by the Harrisburg Bureau of Police after the pair printed photographs containing child pornography at a Harrisburg drugstore. The men were identified when they called a clerk over to help them with the photo printing when it malfunctioned. Police who responded seized the pornographic images of prepubescent children and the surveillance video showing Gilbert and Rissmiller in the store. Officers also searched the halfway house the men were living in as part of their federal supervised release for a prior child exploitation offense involving child pornography. During this search, officers located additional images of child pornography and graphic stories about engaging in sexual activity with children.
The case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. Assistant United States Attorney Meredith A. Taylor is prosecuting the case.
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."
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.
A violation of possession of child pornography in this case carries an enhanced penalty requiring a mandatory minimum of 10 years’ imprisonment and a statutory maximum penalty of 20 years’ 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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Two Essex County, New Jersey, Men Admit Roles in Prison Tax ScamRead the Press Release
NEWARK, N.J. – Two East Orange, New Jersey, men today admitted their roles in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.
Reginald Eaford, 46, and Winfred Moses, 48, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS.
According to the documents filed in this case and statements made in court:
From 2013 through Aug. 5, 2014, Eaford, Moses, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.
Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.
Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.
The conspiracy charge carries a maximum potential sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for March 28, 2017.
U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Eaford: Assistant Federal Public Defender Lisa Mack Esq., Newark, New Jersey
Moses: Leigh-Anne Mulrey Esq., Morristown, New Jersey
Topeka Woman Pleads Guilty to Sex Trafficking of MinorRead the Press Release
TOPEKA, KAN. - A Topeka woman pleaded guilty Monday to the sex trafficking of a minor, U.S. Attorney Tom Beall said.
Michaela Hekekia, 36, Topeka, Kan., pleaded guilty to one count of conspiracy. In her plea, she admitted training a minor female to work as a prostitute and transporting the girl from Kansas to a motel in Joplin, Mo., to work as a prostitute.
Hekekia admitted conspiring with co-defendants to run a Topeka-based prostitution business that operated in Kansas, Missouri and Nebraska. At times, as many as 20 females were working as prostitutes for the organization. The leader of the organization rented houses where some of the prostitutes were allowed to live. The organization used Web sites, social media and cell phones to advertise sexual services and to keep track of prostitutes.
Hekekia admitted she started working for the organization as a prostitute and gradually took on other duties including recruiting and training sex workers and managing advertising for sex services.
Sentencing is set for March 20. The government has agreed to recommend a sentence not to exceed 70 months in federal prison.
Co-defendant Frank Boswell, 42, Topeka, Kan., is set for trial March 7. Co-defendants Rachel Flenniken, 34, Topeka, Kan., and Sean P. Hall, 47, Topeka, Kan., are awaiting sentencing. Shannon Nelson, 23, Topeka, Kan., is set for sentencing Jan. 23.
Beall commended the FBI, the Topeka Police Department, Homeland Security Investigations and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tobyhanna Resident Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Victor Tello, age 25, of Tobyhanna, Pennsylvania, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to distribution and possession with intent to distribute heroin.
According to United States Attorney Bruce D. Brandler, Tello admitted to distributing heroin in November-December 2013, in Monroe County, Pennsylvania. Tello admitted to selling between 40 grams and 60 grams of heroin, which is equivalent to between 1,300 and 2,200 retail bags of heroin.
Judge Mannion ordered a pre-sentence report to be completed. Sentencing will be scheduled after the pre-sentence report is completed.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Monroe County District Attorney’s Office, and the Pocono Mountain Regional Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1 million 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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Third Fresno Resident Sentenced for Manufacturing and Selling Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Veronica Rosales-Capitaine, 49, of Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 14 months in prison for conspiracy to produce, transfer, possess, and sell false identification documents, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 2016, Rosales-Capitaine conspired with others to manufacture fraudulent identification documents, including social security cards and alien registration receipt cards, for customers who placed orders and paid as much as $150 for a set of the fraudulent documents. In March 2010, Rosales-Capitaine was convicted of the same offense and sentenced to six months in prison, admitting that between January 2009 and October 2009, she conspired with others to manufacture fraudulent identification documents.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Rosales-Capitaine and five co-defendants were arrested for the scheme. On December 5, 2016, co-defendant Francisco Javier Hidalgo-Flores was sentenced to 15 months in prison. Charges are pending against the remaining co-defendants.
Thibodaux Resident Charged with Theft of Social Security Disability BenefitsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLINT A. SCHWAB, age 42, of Thibodaux, was charged today in a Bill of Information with Theft of Government Funds.
According to documents filed in federal court, CLINT A. SCHWAB began receiving social security disability benefits in 1998. In or around 2008, SCHWAB returned to work but did not inform the Social Security Administration as required by law. In January 2016, SCHWAB was interviewed by the Social Security Administration and falsely informed the agency that he had never worked as a disabled claimant. However, SCHWAB failed to inform the administration that he was working while receiving monthly disability payments. SCHWAB collected social security disability payments he was not entitled to receive from 2008 until early 2016.
The maximum penalty for theft of government funds is ten years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Social Security Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Tampa Resident Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Quentin Cephus (30, Tampa) today pleaded guilty to forcibly assaulting and inflicting bodily injury on a federal employee, while that employee was carrying out his official duties. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to court documents, on February 9, 2016, Cephus approached a U.S. Bureau of Prisons (BOP) official who was conducting an audit at the Hillsborough County Residential Reentry Center. Cephus, who was a resident at the reentry center, punched the official in the face with a closed fist and inflicted bodily injury on him. Moments later, he spat in the official’s face.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Mandy Riedel.
Sussex County, New Jersey, Man Sentenced to 210 Months in Prison for Kidnapping and Murder-For-Hire PlotRead the Press Release
NEWARK, N.J. – A Newton, New Jersey, man was sentenced today to 210 months in prison for planning the kidnapping and murder of a woman he met online, U.S. Attorney Paul J. Fishman announced.
Christopher Thieme, 36, of Sussex County, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of attempted kidnapping and one count of murder-for-hire. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Thieme admitted that from December 2015 through Jan. 4, 2016, he sought assistance from an associate to kidnap and ultimately murder a woman whom Thieme had previously met through an online dating service. Thieme’s associate alerted law enforcement to Thieme’s plans and cooperated with the investigation into Thieme’s plot.
In early January, at the direction of law enforcement, Thieme’s associate introduced Thieme to an undercover FBI agent posing as a hitman. Thieme explained to the undercover FBI agent that, once the victim was kidnapped, Thieme would empty the victim’s bank accounts and fraudulently sell off her home, the proceeds of which Thieme planned to use to pay for the kidnapping and murder.
In addition to the prison term, Judge Wigenton sentenced Thieme to three years of supervised release and ordered him to pay restitution of $1,034.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked members of the Passaic County Prosecutor’s Office, the New Jersey State Police, the Newton Police Department, the Paramus Police Department, the Paterson Police Department, the Roxbury Police Department, and the Wayne Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
South Charleston man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Mark Bays, 53, entered his guilty plea to maintaining a residence for the purpose of distributing methamphetamine.
Bays admitted that from late 2013 through at least March 2014, that he, along with codefendant Joseph Cooper and other individuals, received methamphetamine from California, which they stored and distributed from Bays’ residence in Charleston. During that time period, Bays allowed Cooper to live in the residence part-time while they worked together to distribute methamphetamine.
Bays faces up to five years in federal prison when he is sentenced on March 21, 2017.
Cooper previously pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when he is sentenced on January 19, 2017. Benjamin Childers, another individual implicated in this investigation, previously pleaded guilty to conspiracy to distribute methamphetamine and faces at least 10 years and up to life in prison when he is sentenced on January 4, 2017. Also as a result of this investigation, four other codefendants pleaded guilty to conspiracy to distribute methamphetamine. Morgan Light, Mark Cobb, Harold Lee Parsons, and Shayne Shamblen each face up to 20 years in prison when they are sentenced in February 2017.
The investigation of these cases was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations. Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Small Business Owner Sentenced to Prison for Bankruptcy FraudRead the Press Release
Assistant U.S. Attorneys Joseph J.M. Orabona (619)546-7951 or Michael Heyman (619) 546-9615
NEWS RELEASE SUMMARY – December 19, 2016
SAN DIEGO – Phillip E. Southwood, Jr., a 50-year-old former owner of Southwood Industries, Inc., a holding company for Jefferson Liquor in Poway, was sentenced in federal court today to 12 months and one day in prison for multiple bankruptcy-related crimes. Southwood was also ordered to pay $119,000 in restitution.
Following a referral from the U.S. Trustee’s Office and a lengthy investigation by the Federal Bureau of Investigation, Southwood was indicted on six counts of fraud involving his personal Chapter 7 bankruptcy, including bankruptcy fraud, making false oaths in bankruptcy, and making false statements under penalty of perjury in bankruptcy. After a two-week jury trial before U.S. District Judge M. James Lorenz in January 2016, the jury deliberated for several hours and found Southwood guilty on all 6 counts.
According to the evidence proven at trial and court documents, Southwood devised a scheme to defraud his creditors by voluntarily filing a false and fraudulent bankruptcy petition. From at least December 2007 and continuing up to and including March 5, 2009, Southwood caused a number of acts to be undertaken in furtherance of his fraudulent scheme.
He drafted and executed a fraudulent Fictitious Business Name Statement for Southwood Industries, whereby he admittedly forged his father’s signature. Thereafter, Southwood caused his parents to open a bank account for the purpose of receiving and concealing proceeds from the sale of a liquor store. Southwood was not named on this account.
Then, Southwood caused to be deposited approximately $171,000 in cash from that sale into the account he directed his parents to open. Once the funds were deposited into this account, Southwood directed his parents to use the funds to pay for Southwood’s personal expenses and to give him cash at his request. When he filed his bankruptcy on March 5, 2008, Southwood concealed the proceeds from the sale of the liquor store and the bank account opened by his parents at Southwood’s direction which was used to receive and disburse these funds.
During the bankruptcy process, Southwood testified falsely about his schedules and financial affairs, including the funds he received from the sale of the liquor store. Southwood made false statements about the amount of cash he had on hand on the date he filed his bankruptcy. Southwood also made false statements about the timing and amount of preferential payments he made to certain creditors, family members, and insiders prior to filing his bankruptcy.
“The bankruptcy system is intended to provide eligible individuals an opportunity to obtain a fresh financial start. Unfortunately, in this case, the defendant used the bankruptcy system as a means to defraud his creditors by concealing a substantial amount of money that could have been used to pay off most of his debts,” said U.S. Attorney Laura Duffy. “Individuals who are contemplating bankruptcy are reminded that if they intentionally abuse the bankruptcy process, they will be investigated and prosecuted for their crimes.”
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” said Tiffany Carroll, Acting U.S. Trustee for Southern California, Hawaii, and Guam (Region 15). “I am grateful to U.S. Attorney Laura Duffy and our law enforcement partners for their commitment to combating bankruptcy-related crimes, as demonstrated by today’s sentencing.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 15 is headquartered in San Diego, with an additional office in Honolulu.
DEFENDANT Criminal Case No. 13CR0785-L
Phillip E. Southwood, Jr. Age: 50 Poway, California
SUMMARY OF CHARGES:
Count 1 – Bankruptcy Fraud (Title 18, United States Code, Section 157(1))
Maximum Penalties: 5 years in prison and $250,000 fine
Counts 2-3 – False Oath and Account in Bankruptcy (Title 18, United States Code, Section 152(2))
Maximum Penalties: 5 years in prison and $250,000 fine
Counts 4-6 – False Statement in Bankruptcy (Title 18, United States Code, Section 152(3))
Maximum Penalties: 5 years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Saratoga County Man Sentenced to 30 Years for Plot to Kill MuslimsRead the Press Release
ALBANY, NEW YORK – Glendon Scott Crawford, age 52, of Galway, New York, was sentenced today to 30 years in prison for plotting to kill Muslims with a weapon of mass destruction.
The announcement was made by United States Attorney Richard S. Hartunian of the Northern District of New York; Acting Assistant Attorney General for National Security Mary B. McCord; and Special Agent in Charge Andrew W. Vale of the Albany Division of the Federal Bureau of Investigation.
On August 21, 2015, following a week-long trial, a jury voted to convict Crawford on all charges of a 3-count indictment: attempting to produce and use a radiological dispersal device, conspiracy to use a weapon of mass destruction, and distributing information relating to weapons of mass destruction. He is the first person in the United States to be found guilty of attempting to acquire and use a radiological dispersal device, in violation of the “dirty bomb” statute passed by Congress in 2004. Senior United States District Judge Gary L. Sharpe imposed today’s sentence, which also included lifetime, post-imprisonment supervised release.
United States Attorney Richard S. Hartunian stated: “This case shows both the dangers we face from extremist views, and our resolve to stop those who plan to act on those views. Crawford planned to kill Muslims on account of their religion and other people whose political and social beliefs he disagreed with, including government officials. Our Albany FBI Joint Terrorism Task Force prevented Crawford and his co-conspirator Eric Feight from carrying out their diabolical plan. Counter-terrorism is our highest priority, and we will continue to identify and hold accountable all those who seek to commit acts of terrorism within our borders.”
"Glendon Scott Crawford is an extremist who planned to use a radiological dispersal device to target unsuspecting Muslim Americans with lethal doses of radiation,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is counterterrorism, and we will continue to pursue justice against anyone who seeks to perpetrate attacks against Americans on our soil. I want to thank the many agents, analysts, and prosecutors who worked on this case and are responsible for this result.”
FBI Special Agent in Charge Andrew W. Vale said: “Today’s sentencing is as much a victory for the community as it is for law enforcement. It is a powerful reminder of the strength and solidarity of our communities. When confronted with Crawford’s deadly intentions, concerned citizens came forward and alerted law enforcement of Crawford’s plans. While we enjoy today’s success, it is important that we continue in the diligent effort to identify and disrupt those who would go beyond hateful rhetoric to commit violent, criminal acts.”
The evidence presented at trial showed that in April 2012, Crawford approached local Jewish organizations seeking financial support for his plan to acquire a device to be used against people he described as being “enemies of Israel.” Crawford, a self-professed member of the Ku Klux Klan, drove from the Albany area to North Carolina to directly solicit funding for his plan from senior members of the Ku Klux Klan. Crawford was an industrial mechanic working in Schenectady, New York. His goal was to acquire and modify an industrial-grade x-ray radiation device and use it to cause death or injury by exposing people to lethal doses of ionizing radiation.
Crawford, with help from co-conspirator Eric J. Feight, took steps to design, acquire parts for, build, and test a remote-control unit that would activate a radiation dispersal device from a distance. Evidence presented at trial showed that Crawford sought and eventually received a radiation dispersal device from people he believed were businessmen affiliated with the Ku Klux Klan, but were, actually, FBI Special Agents acting in an undercover capacity. Before providing the device to Crawford, FBI Agents had rendered it safe.
Feight, acting at Crawford’s direction, built and delivered a remote-control unit. Crawford wanted the lethal radiation device to be used against Muslim Americans, and he scouted mosques in Albany and Schenectady, and an Islamic community center and school in Schenectady, as possible target locations. Other targets considered by Crawford included the White House and the New York Governor’s Mansion in Albany.
Feight pled guilty to providing material support to terrorists. Judge Sharpe sentenced him to a 97-month term of imprisonment, to be followed by 3 years of supervised release.
The case was investigated by the Albany FBI Joint Terrorism Task Force, which includes FBI Special Agents as well as members of the New York State Police, the U.S. Department of Homeland Security, the Albany Police Department, the Troy Police Department, and the New York City Police Department.
The case was prosecuted by Assistant United States Attorneys Stephen C. Green and Richard D. Belliss of the Northern District of New York, who represented the United States during trial, and U.S. Department of Justice Senior Trial Attorney Joseph Kaster, with support from the National Security Division and Criminal Division at the U.S. Department of Justice in Washington, D.C.
Salamanca Woman Sentenced on Heroin Chargeand Her Co-Defendant Pleads Guilty to Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Amber Crouse, of Salamanca, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, was sentenced to time served (17 months) by U.S. District Judge Elizabeth A, Wolford.
In addition, Crouse’s co-defendant, Carlos Laboy, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, also before Judge Wolford. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the prosecution of the case, stated that between February 2013 and February 2015, Crouse and Laboy participated in a heroin conspiracy. The two defendants sold heroin to confidential sources including one individual who claimed that Crouse and Laboy sold heroin to the individual every day for one year.
On February 5, 2015, a search warrant was executed at a residence on Gorton Street in Buffalo. Crouse and Laboy were both present. Officers recovered numerous baggies that contained heroin residue and three cellular telephones. One of the cellular telephones was a number that the confidential sources would contact to set up drug transactions.
The sentencing and plea are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Carlos Laboy will be sentenced on March 14, 2017, at 2:00 p.m. before Judge Wolford.
Rochester Man Sentenced for Cocaine TraffickingRead 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 Shawnta Brown, of Rochester, NY, who was convicted conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine, and possession of firearms in furtherance of a drug trafficking crime, was sentenced to 152 months in prison by U.S. District Court Judge Elizabeth A. Wolford. The defendant was also ordered to forfeit any interest in $303,355.00 in drug trafficking proceeds, and 12 shotguns, 8 rifles, and 472 rounds of ammunition.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that between 2006 and March 2012, Brown, along with his brother Kenya Brown, obtained kilogram quantities of cocaine and manufactured crack cocaine. The two then broke down, packaged and distributed smaller quantities of cocaine and crack cocaine for resale. Shawnta and Kenya Brown also operated drug houses where they directed and supervised lower-level members of the conspiracy who sold cocaine and crack cocaine to others.
The brothers were arrested March 9, 2012, when officers raided 2294 Clifford Avenue, 138 Strong Street, 29 Aberdeen Street and other locations in Rochester utilized by the brothers in their drug trafficking operation. At these locations, officers seized more than five kilograms of cocaine, a quantity of crack cocaine, firearms with ammunition, paraphernalia for the packaging, processing and weighing of narcotics, and receipts for gold and silver bars. A few days later, officers raided a residence in the Town of Red Creek in Cayuga County and seized more firearms, dozens of rounds of ammunition, $303,355.00 in U.S. currency, and over $23,000 in gold and silver bars and coins.
Also arrested during the investigation was Eric Contreras, the California kilogram supplier. Contreras was convicted and sentenced to 188 months in prison. Kenya Brown was also convicted and is scheduled to be sentenced December 28, 2016.
Today’s sentencing is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Chief Michael Ciminelli and Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in- Charge James J. Hunt. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict and the United States Marshal Service, under the direction of United States Marshal Charles Salina.
Rochester Drug Dealer Sentenced for His Role in Two MurdersRead 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 James Kendrick, who was convicted by a federal jury of the murders of Francisco Santos and Ryan cooper, conspiracy to possess with intent to distribute and to distribute large quantities of illegal narcotics, and possession of a firearm in furtherance of the drug conspiracy, was sentenced to life in prison plus 30 years by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that Kendrick and his brother Pablo "Paul" Plaza, spearheaded a long term, violent narcotics trafficking ring in the City of Rochester between 1993 through and including March 2011. To protect the conspiracy and its members from other drug dealers and those deemed to be disloyal workers, Kendrick, Plaza and others in the conspiracy resorted to violence including beatings and murder.
Specifically, Francisco Santos, a/k/a “Cisco,” was murdered in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. Santos was a worker for Plaza and Kendrick and was murdered because the defendants believed he betrayed the organization by stealing drugs, cash and guns. Kendrick and Plaza initially retaliated by conducting a drive-by shooting at the residence of Santos’ father, step-mother and sisters, who were four and six years old at the time. James Kendrick was also found guilty of murdering Ryan Cooper in the spring of 1999. Cooper’s remains have never been found. Like Santos, Cooper (who was a cousin of Kendrick’s and Plaza’s) was murdered because Kendrick and Plaza believed he was going to cooperate with the police in the investigation of Kendrick’s and Plaza’s drug conspiracy and in the murder of Santos.
During the trial, the Government presented evidence of additional acts of violence including the murder of Jose Troche on January 14, 2010. The Government’s proof established that Kendrick and Plaza planned and executed the murder of Troche because they feared that Troche, also a member of the conspiracy, was planning to cooperate in the prosecution of the defendants. In connection with the Troche murder, Kendrick and Plaza decided that Kendrick, in an effort to fabricate an alibi, would go to a local supermarket and be seen on camera at the time of Troche’s murder.
In addition, the Government presented evidence that in July 2009, Plaza directed co-conspirators Damion Colabatistto, Angelo Ocasio and others to murder a rival drug dealer who injured Plaza in a fight. Colabatistto and Ocasio went to 137 Cameron Street looking for the rival drug dealer. When they arrived at the house, the two men shot and killed Meosha Harmon when she came to the upstairs window of the residence, erroneously believing her to be the rival drug dealer. Colabatistto and Ocasio were tried in separate trials and both were convicted for their roles in the conspiracy and murder of Harmon and are awaiting sentencing.
Nine other defendants involved in the drug conspiracy were charged and convicted of various drug and firearms offenses and of other violent crimes. Plaza’s younger brother, also named Pablo, was previously convicted of participating in the murder of Francisco Santos.
The sentencing of James Kendrick is the result of a joint investigation consisting of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli.
President Obama Grants Commutations and PardonsRead the Press Release
Today, President Obama granted commutation of sentence to 153 individuals and pardons to 78 individuals:
The President granted commutations of sentence to the following 153 individuals:
- Kendrick Tyshawn Akins – Coppell, TX
Offense: Conspiracy to manufacture, distribute, or possess with intent to manufacture or distribute cocaine, cocaine base, and marijuana; Eastern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (April 30, 2012)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Dale Wayne Aldridge – Unionville, MO
Offense: Conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (January 28, 2011)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Demetri D. Alexander – Kansas City, KS
Offense: Conspiracy to manufacture cocaine base "crack" and to possess with intent to distribute cocaine base "crack"; possession of firearms in furtherance of a drug trafficking crime; District of Kansas
Sentence: 180 months' imprisonment; five years' supervised release (July 24, 2007)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Billy Mel Alford – Terrell, TX
Offense: Importation of a quantity of marijuana (three counts); possession with intent to distribute a quantity of marijuana (three counts); Western District of Texas
Sentence: 480 months' imprisonment; five years' supervised release; $200,000 fine (July 22, 1997); amended to 480 months' imprisonment; five years' supervised release; $150,000 fine (July 27, 1998)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment, and unpaid balance of $150,000 fine remitted at the time of his release.
- Antonio Jose Alonzo – Pelican Rapids, MN
Offense: Conspiracy to possess with intent to distribute and distribute controlled substances; District of North Dakota
Sentence: Life imprisonment; 10 years' supervised release (January 7, 2005)
Commutation Grant: Prison sentence commuted to 292 months' imprisonment.
- Maurice Anderson – Fort Worth, TX
Offense: Possession with intent to distribute more than 500 grams of a mixture or substance containing cocaine; Northern District of Texas
Sentence: 360 months' imprisonment; five years' supervised release (October 20, 2006)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Orasama Andrews – Jackson, GA
Offense: 1. Distribution of more than five grams of cocaine base; distribution of
more than 50 grams of cocaine base; Middle District of Georgia
2. Supervised release violation (Distribution of cocaine base); Middle District of Georgia
Sentence: 1. Life imprisonment (December 17, 2009)
2. 24 months' imprisonment (consecutive); 10 years' supervised release (December 17, 2009)
Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Darrell Atkins – Detroit, MI
Offense: Conspiracy to possess with intent to deliver cocaine and crack cocaine; distribution of crack cocaine (three counts); Eastern District of Michigan
Sentence: 360 months' imprisonment; five years' supervised release; $10,000 fine (July 23, 1996)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Hilario Avila – Whittier, CA
Offense: 1. Conspiracy to possess with intent to distribute methamphetamine;
Central District of California
2. Supervised release violation (Possession with intent to distribute methamphetamine)
Sentence: 1. 240 months' imprisonment; 10 years' supervised release (March 6,
2006)
2. 33 months’ imprisonment (concurrent) (May 9, 2005)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Handy Bailey, Jr. – Orlando, FL
Offense: Possession with intent to distribute cocaine base (two counts); Middle District of Florida
Sentence: 360 months' imprisonment; eight years' supervised release (April 24, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Darryl Jerome Baker – Seffner, FL
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (May 22, 2003)
Commutation Grant: Prison sentence commuted to 360 months' imprisonment.
- Johnny Ray Basham – Tulsa, OK
Offense: Possession with intent to distribute methamphetamine; possession of a firearm during drug trafficking crime; possession of a firearm after former conviction of a felony; Northern District of Oklahoma
Sentence: 324 months' imprisonment; five years' supervised release; $1,000 fine (January 11, 2001)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Rodney Bates – Milan, TN
Offense: Possession with intent to distribute 24.1 grams of cocaine base; Western District of Tennessee
Sentence: 188 months' imprisonment; four years' supervised release (August 10, 2006)
Commutation Grant: Prison sentence commuted to expire on July 31, 2017.
- Roger Jerome Baylor – Montross, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; distribution of cocaine base; Eastern District of Virginia
Sentence: 360 months' imprisonment; 10 years' supervised release (March 23, 2007); amended to 292 months' imprisonment (December 13, 2010); amended to 240 months' imprisonment (February 14, 2013)
Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment.
- Lee Henry Berry – Bay City, MI
Offense: Possess with intent to distribute less than five grams of cocaine base; possess with intent to distribute five grams or more of cocaine base; possess with intent to distribute less than 500 grams of cocaine; felon in possession of one or more firearms; Eastern District of Michigan
Sentence: 360 months' imprisonment; six years' supervised release (December 20, 2007)
Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.
- Peter Christian Boulette – Hattiesburg, MS
Offense: 1. Possession with intent to distribute 50 grams or more of
methamphetamine; possession with intent to distribute a mixture and substance containing methamphetamine (two counts); possession of a firearm in furtherance of a drug trafficking crime (two counts); felon in possession of a firearm; Northern District of Alabama
2. Possession of a firearm by a convicted person; possession of an unregistered firearm; Eastern District of Arkansas
Sentence: 1. 600 months' imprisonment; 10 years' supervised release (March 13,
2007)
2. 87 months’ imprisonment (concurrent); three years’ supervised release (March 3, 2008)
Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
- Gregory R. Boyd – Oakley, CA
Offense: Possession with intent to distribute methamphetamine; possession of a firearm in relation to a drug trafficking offense; felon in possession of a firearm; District of Montana
Sentence: 420 months' imprisonment; eight years' supervised release (July 18, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Willie Brazile – Pensacola, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (two counts); Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (September 10, 1996)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Jason C. Brown – Chicago, IL
Offense: Possession of more than 50 grams of cocaine base "crack" with intent to distribute; Central District of Illinois
Sentence: 324 months' imprisonment; 10 years' supervised release (February 11, 2004)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Jermaine Brown – Hampton, VA
Offense: Conspiracy to possess with intent to distribute and distribute cocaine, cocaine base, and marijuana; possession with intent to distribute cocaine; possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime (two counts); distribution of cocaine base; Eastern District of Virginia
Sentence: 548 months' imprisonment; five years' supervised release (July 8, 2011); amended to 511 months' imprisonment (June 13, 2016)
Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment.
- Reuben Bullock – Rochester, NY
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of New York
Sentence: 210 months' imprisonment; six years' supervised release; $1,000 fine (October 30, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Amilcar Butler – Nashville, TN
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; attempt to possess with intent to distribute five kilograms or more of cocaine; Middle District of Tennessee
Sentence: Life imprisonment; 10 years' supervised release (July 26, 2004)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Arthur Lee Butler, Jr. – Greenville, NC
Offense: Conspiracy to possess with intent to distribute 50 grams or more of crack cocaine; District of South Carolina
Sentence: 120 months' imprisonment; five years' supervised release (November 18, 2009)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Jonathan Rodrico Carter – Anniston, AL
Offense: Possession with the intent to distribute a mixture and substance containing cocaine base; Northern District of Alabama
Sentence: Life imprisonment; 10 years' supervised release (January 19, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Maurice Davon Cawthon – Milton, FL
Offense: Possession with intent to distribute five grams or more of a mixture and substance containing cocaine base; possession of a shotgun in relation to a drug trafficking offense; possession of a firearm by a convicted felon; possession of an unregistered firearm with an overall length of less than 26 inches, including a barrel of less than 18 inches; Northern District of Florida
Sentence: 240 months' imprisonment; eight years' supervised release; $600 fine (December 17, 2004)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Emilio Chase – Baltimore, MD
Offense: Distribution of cocaine within 1,000 feet of a school; Northern District of West Virginia
Sentence: 210 months' imprisonment; six years' supervised release; $1,100 fine (June 22, 2005)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Calvin Lavan Clark – Garner, NC
Offense: Possession with intent to distribute more than 50 grams of cocaine base (crack) and a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; Eastern District of North Carolina
Sentence: 354 months' imprisonment; five years' supervised release (September 17, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Leonard A. Clement – Cooleemee, NC
Offense: Conspiracy to possess with intent to distribute a quantity of cocaine and cocaine base and possessing with intent to distribute marijuana; Western District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (November 6, 2006)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Troy V. Cleveland – Forestville, MD
Offense: Conspiracy to possess with intent to distribute 50 grams or more of "crack," use of persons under 18 years to distribute, and distribute "crack" to persons under 18 years of age; distribute 50 grams or more of "crack"; Eastern District of Virginia
Sentence: 360 months' imprisonment; five years' supervised release (March 18, 1994)
Commutation Grant: Prison sentence commuted to a term of 328 months' imprisonment.
- Keith O. Cobb – Waco, TX
Offense: Conspiracy to possess with intent to distribute and to distribute cocaine; conspiracy to violate 18 U.S.C. § 1956 (a)(1)(B)(i) -- money laundering; Western District of Texas
Sentence: 400 months' imprisonment; five years' supervised release (April 7, 1995)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $10,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Gregory Anthony Collins – Greenville, IL
Offense: Engaging in a continuing criminal enterprise; employing a person under 18 in drug trafficking; money laundering; Southern District of Illinois
Sentence: Life imprisonment (April 10, 1992)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Jeremy Conner – Tarrant, AL
Offense: Possession with intent to distribute 50 grams or more of cocaine base; possession of firearm in furtherance of a drug trafficking crime; felon in possession of a firearm; Northern District of Alabama
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (December 10, 2008); amended to 240 months' imprisonment (October 26, 2011)
Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Adrian Lyndell Cook – Murfreesboro, NC
Offense: 1. Possess with intent to distribute cocaine base; Eastern District of
Virginia
2. Supervised release violation (possession with intent to distribute cocaine base); Eastern District of Virginia
Sentence: 1. 240 months' imprisonment; 10 years’ supervised release (October 6, 2008); amended to 168 months’ imprisonment (October 24, 2013)
2. 60 months' imprisonment (concurrent) (August 5, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Richard David Courville – Alpine, TX
Offense: Conspiracy to manufacture 50 grams or more of methamphetamine; manufacture of methamphetamine (two counts); Northern District of Alabama
Sentence: 262 months' imprisonment; 10 years' supervised release; $4,000 fine; $6,146 restitution (April 23, 2002)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Theartis Daniels – Punta Gorda, FL
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; possession of a firearm in furtherance of a drug trafficking crime; Middle District of Florida
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (June 1, 2006)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Michael Leroy Darity – Arden, NC
Offense: Conspiracy to unlawfully manufacture and distribute cocaine base; Western District of North Carolina
Sentence: 384 months' imprisonment; five years' supervised release (January 29, 1998); amended to 308 months' imprisonment (January 18, 2016)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Larry Lamont Davie – Oak Grove, KY
Offense: Conspiracy to possess with intent to distribute 50 grams or more of a mixture or substance containing cocaine base; aiding and abetting possession with intent to distribute 50 grams or more of a mixture or substance containing cocaine base; possession of a firearm in the furtherance of a drug trafficking crime; Western District of Kentucky
Sentence: 180 months' imprisonment; five years' supervised release (January 8, 2007)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Travis Davis – Galesburg, IL
Offense: Possession of more than 50 grams of cocaine base (crack); Central District of Illinois
Sentence: Life imprisonment; 10 years' supervised release (August 31, 2007); amended to 280 months' imprisonment (March 13, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Milton DeJesus-Bones – Philadelphia, PA
Offense: Conspiracy to possess with intent to distribute cocaine; attempt to possess with intent to distribute cocaine; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (January 30, 2001)
Commutation Grant: Prison sentence commuted to 360 months' imprisonment.
- Terrance Terell Dendy – Seneca, SC
Offense: Possession with intent to distribute crack cocaine; felon in possession of a firearm; possession of a firearm in connection with a felony; District of South Carolina
Sentence: 180 months' imprisonment; five years' supervised release (May 25, 2010)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Marcus Louis Diaz – Amarillo, TX
Offense: Conspiracy to distribute more than 500 grams of a mixture of methamphetamine; Western District of Texas
Sentence: 262 months' imprisonment; five years' supervised release (February 21, 2001)
Commutation Grant: Prison sentence commuted to December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Anthony Timothy Dodd – Davenport, IA
Offense: Conspiracy to distribute crack cocaine; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (May 25, 2006)
Commutation Grant: Prison sentence commuted to 240 months' imprisonment.
- Curtis Drayton – Prattville, AL
Offense: Engaging in a continuing criminal enterprise; distribution of cocaine base (four counts); possession with intent to distribute cocaine and aiding and abetting; Middle District of Alabama
Sentence: Life imprisonment; five years' supervised release (May 22, 1995)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Enoch Edison – Baltimore, MD
Offense: Possession with intent to distribute cocaine base, cocaine, and marijuana; District of Maryland
Sentence: 240 months' imprisonment; five years' supervised release (December 7, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- George Ralph Ellis – Birmingham, AL
Offense: Possession with intent to distribute a mixture and substance containing marijuana; carrying a firearm during and in relation to a drug trafficking crime; possession with intent to distribute fifty (50) grams or more of a mixture and substance containing cocaine base; Northern District of Alabama
Sentence: 180 months' imprisonment; five years' supervised release (July 18, 2005)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Korell Ellis – Fairmont, NC
Offense: Possession with the intent to distribute cocaine base; use or carry a firearm during and in relation to a drug trafficking crime; Eastern District of North Carolina
Sentence: 295 months' imprisonment; five years' supervised release; $14,330 fine (March 12, 2002); amended to 248 months' imprisonment (October 7, 2015)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $14,330 fine remitted.
- Samuel Stevens Farmer – Madison, FL
Offense: Conspiracy to distribute more than 50 grams of cocaine base; possession with intent to distribute more than five grams of cocaine base (four counts); Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (June 15, 2001)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Travis Nathaniel France – Marion, VA
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of Virginia
Sentence: 262 months' imprisonment; 10 years' supervised release; $450 fine (December 8, 2009)
Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Tammie Twyone Francis – Lee’s Summit, MO
Offense: Possession with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute cocaine; Western District of Missouri
Sentence: Life imprisonment; 10 years' supervised release (June 28, 1996)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Marcus Emile Franklin – Chester, SC
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of crack cocaine; District of South Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (April 21, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Paul Free – Coronado, CA
Offense: Conspiracy to possess with intent to distribute and distribution of marijuana; Eastern District of Michigan
Sentence: Life imprisonment (June 14, 1995)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Cecil Ray Frye, Jr. – Saraland, AL
Offense: Conspiracy to manufacture methamphetamine; possession of a firearm during a drug trafficking felony (two counts); Southern District of Alabama
Sentence: 548 months' imprisonment; five years' supervised release; $9,546 restitution (December 4, 2003); amended to 300 months' imprisonment (September 11, 2007)
Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Angel Garcia-Bercovich – Phoenix, AZ
Offense: Conspiracy to possess with intent to distribute 100 or more kilograms of marijuana; possession with intent to distribute 100 or more kilograms of marijuana; Northern District of Florida
Sentence: 360 months' imprisonment; eight years' supervised release (April 7, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Anthony DeWayne Gillis – Supply, VA
Offense: Conspiracy to possess with intent to distribute and to distribute cocaine base; possession with intent to distribute cocaine base; false statements (three counts); possession of a firearm in furtherance of drug trafficking (six counts); possession of a sawed-off shotgun; Eastern District of Virginia
Sentence: 1,748 months' imprisonment; five years' supervised release (October 14, 2005); amended to 1,711 months' imprisonment (November 2, 2010); amended to 1,681 months' imprisonment (December 28, 2015)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Aaron Glasscock – Lebanon, KY
Offense: Conspiracy to possess with intent to distribute and to distribute cocaine; Northern District of Florida
Sentence: 360 months' imprisonment; five years' supervised release (February 17, 2000); amended to 292 months' imprisonment (November 1, 2015)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Alpidio Gonzalez – McAllen, TX
Offense: 1. Violation of the Federal Controlled Substance Act; Eastern District of
Louisiana
2. Supervised release violation (Conspiracy to possess with intent to distribute 100 kilograms or more of marijuana)
Sentence: 1. 360 months' imprisonment; eight years' supervised release (March 12,
2008)
2. 37 months’ imprisonment (concurrent) (May 16, 2008)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Franklin Goodwin, Jr. – Leavenworth, KS
Offense: Conspiracy to possess with intent to distribute cocaine base or possess with intent to distribute or distribute cocaine; use of a communication facility to facilitate the offense of possession with intent to distribute cocaine and cocaine base; District of Kansas
Sentence: Life imprisonment; one year's supervised release (October 28, 2009)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Gary Lee Gordon – Laurel, MT
Offense: Possession with intent to distribute methamphetamine; District of Montana
Sentence: 290 months' imprisonment; 10 years' supervised release (January 25, 2008); amended to 220 months' imprisonment (October 1, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2017.
- Willie Goudeau – Dallas, TX
Offense: Conspiracy to distribute or possess with intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana; Eastern District of Texas
Sentence: 292 months' imprisonment; five years' supervised release; $25,000 fine (September 20, 2006); amended to 235 months' imprisonment (October 27, 2015)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $25,000 fine remitted.
- Robert James Graves – Nathalie, VA
Offense: Continuing criminal enterprise; Western District of Virginia
Sentence: Life imprisonment; five years' supervised release (June 8, 2000)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Jeffrey Gray – Alexandria, VA
Offense: Conspiracy to distribute more than 500 grams of cocaine; attempt to possess with intent to distribute more than 500 grams of cocaine; possession of a firearm during a drug trafficking crime; money laundering; felon in possession of a firearm; District of Delaware
Sentence: 480 months' imprisonment; lifetime supervised release (December 22, 2008); amended to 384 months' imprisonment (December 22, 2015)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- John Gronski – Gillette, WY
Offense: Conspiracy to possess with intent to distribute and to distribute methamphetamine; District of Wyoming
Sentence: 360 months' imprisonment; five years' supervised release; $4,000 fine (May 14, 2001)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Joseph Lee Gulledge, Jr. – Chattanooga, TN
Offense: Possession with intent to distribute fifty grams or more of a mixture and substance containing a detectable amount of cocaine base; Eastern District of Tennessee
Sentence: 120 months' imprisonment; five years' supervised release (April 6, 2009)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Gregory J. Hall – Alachua, FL
Offense: Conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base; distribution of more than 5 grams of cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (June 21, 2007)
Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.
- Cullen Reed Harris – Shreveport, LA
Offense: Conspiracy to manufacture more than 1,000 grams of methamphetamine; manufacture of more than 1,000 grams of methamphetamine; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release; $50,000 fine (March 27, 1992)
Commutation Grant: Prison sentence commuted to a term of 420 months' imprisonment.
- Demetrius Carvon Harris – Saint Paul, MN
Offense: Conspiracy to distribute cocaine; possession of a firearm during a drug trafficking crime; District of Minnesota
Sentence: 180 months' imprisonment; five years' supervised release (August 6, 2007)
Commutation Grant: Prison sentence commuted to expire on June 17, 2017.
- Gerald Anthony Harris – Killeen, TX
Offense: Conspiracy to possess with intent to distribute "crack" cocaine; Western District of Texas
Sentence: Life imprisonment; five years' supervised release; $3,000 fine (June 18, 1997)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $3,000 fine remitted.
- Charles B. Harrison – Lecanto, FL
Offense: Conspiracy to distribute 50 grams or more of methamphetamine; Middle District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (March 30, 2011)
Commutation Grant: Prison sentence commuted to a term of 144 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Malcolm Hartzog – Prentiss, MS
Offense: Conspiracy to possess with intent to distribute a controlled substance; possession with intent to distribute a controlled substance; Southern District of Mississippi
Sentence: Life imprisonment; 10 years' supervised release (March 3, 2005)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Chalmers Lavette Hendricks – Charlotte, NC
Offense: Conspiracy to violate narcotic laws (cocaine); possession/distribution cocaine (crack); possession of a firearm by convicted felon during drug trafficking crime; possession of firearm/ammunition by convicted felon (two counts); Western District of North Carolina
Sentence: Life plus 300 months' imprisonment; 10 years' supervised release (October 26, 1995); amended to life plus 60 months’ imprisonment (March 6, 1998)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Larry Darvell Henricks – Billings, MT
Offense: Conspiracy to possess with intent to distribute cocaine, marijuana, and methamphetamine (two counts); possession with intent to distribute marijuana; possession with intent to distribute (four counts); using a firearm in relation to a drug trafficking offense (two counts); District of Montana
Sentence: 420 months' imprisonment; five years' supervised release (October 13, 1995)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Larry Dwayne Hill – Granite Shoals, TX
Offense: Aiding and abetting to conspire to possess with intent to distribute more than 500 grams of methamphetamine; aiding and abetting the possession with intent to distribute more than 50 grams of methamphetamine; felon in possession of a firearm (two counts); Western District of Texas
Sentence: 262 months' imprisonment; five years' supervised release (February 2, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- James David Hinkle – New Market, VA
Offense: Distribution of methamphetamine (two counts); use or possess a firearm in relation to a drug trafficking crime (two counts); Western District of Virginia
Sentence: 375 months' imprisonment; five years' supervised release (September 13, 2004)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Clifton Ladell Holmes – Flint, MI
Offense: Distribution of 50 grams or more of cocaine base; Eastern District of Michigan
Sentence: 240 months' imprisonment; 10 years' supervised release (August 29, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Michael Dwayne Holmes – Plano, TX
Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base (four counts); use of a communication facility to commit a controlled substance offense; distribution of a controlled substance within 1,000 feet of a school; establishment of a place for the manufacture and distribution of a controlled substance (two counts); Eastern District of Texas
Sentence: Life imprisonment; eight years' supervised release; $5,000 fine (October 2, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Daryl Lain Hook – Muldrow, OK
Offense: Manufacture methamphetamine; possess with intent to distribute methamphetamine; Eastern District of Oklahoma
Sentence: 292 months' imprisonment; five years' supervised release (April 2, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Cheryl Howard – Sarasota, FL
Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (two counts); Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (April 21, 1995)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Jack Howton – Central City, KY
Offense: Conspiracy to knowingly and intentionally possess with intent to distribute 50 grams or more of pure methamphetamine; attempted to knowingly possess with intent to distribute 50 grams or more of pure methamphetamine; knowingly and intentionally possess with intent to distribute and distributed a mixture of methamphetamine; felon in possession of a firearm; attempted intimidation to influence testimony of witness (two counts); Western District of Kentucky
Sentence: Life imprisonment; six years' supervised release (February 13, 2006)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Terry Conlenzo Huffman – Calvert, TX
Offense: Possession with intent to distribute at least 50 grams of "crack" cocaine; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release; $3,000 fine (September 12, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of $3,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- George Edward Ingram, Jr. – Midland, TX
Offense: Conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base "crack"; Western District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (June 16, 2011)
Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment.
- Derrick Isom – Providence, RI
Offense: Conspiracy to distribute and to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; District of Rhode Island
Sentence: 300 months' imprisonment; 10 years' supervised release (February 15, 2008)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Corey Jacobs – Bronx, NY
Offense: Conspiracy to distribute and possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; aid and abet the possession with intent to distribute cocaine base (two counts); distribution of cocaine base (13 counts); interstate travel in aid of narcotics trafficking (two counts); possession with intent to distribute cocaine base; distribution of cocaine; Eastern District of Virginia
Sentence: Life imprisonment; five years' supervised release (May 22, 2000)
Commutation Grant: Prison sentence commuted to a term of 264 months' imprisonment.
- Steven P. James – St. Louis, MO
Offense: Knowingly and intentionally distribute a mixture or substance containing a detectable amount of cocaine base (crack); Knowingly and intentionally combine, conspire, confederate, and agree to distribute a mixture or substance containing a detectable amount of cocaine base (crack); Eastern District of Missouri
Sentence: 262 months' imprisonment; six years' supervised release (June 13, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Mario Burtram Janssen – Sedalia, MO
Offense: Conspiracy to distribute and possess with attempt to distribute 500 grams or more of methamphetamine mixture; failure to appear; Northern District of Iowa
Sentence: 222 months' imprisonment; five years' supervised release (March 1, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Harold Dean Jones – Flint, MI
Offense: Conspiracy to distribute controlled substances; felon in possession of a firearm (two counts); distribution of heroin; possession with intent to distribute heroin; Eastern District of Michigan
Sentence: Life imprisonment; 10 years' supervised release (May 10, 1995)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Tyrelle Deyon Jones – Yorktown, VA
Offense: Conspiracy to possess with intent to distribute and to distribute cocaine base; distribution of cocaine base (four counts); Eastern District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (January 5, 2004)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Robert Joyner – West Columbia, SC
Offense: Possession with intent to distribute 50 grams or more of cocaine base; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (November 1, 2006)
Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
- Ray Thomas Kelly, II – Hayward, CA
Offense: 1. Conspiracy to possess with intent to distribute and to distribute five
kilograms or more of a mixture or substance containing a detectable amount of cocaine; Southern District of Indiana
2. Conspiracy to possess with intent to distribute and to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine; Western District of Pennsylvania
Sentence: 1. 70 months' imprisonment; three years’ supervised release (September 9,
2005)
2. 240 months' imprisonment (concurrent); 10 years' supervised release; $1,000 fine (April 17, 2008)
Commutation Grant: Prison sentence commuted to a term of 191 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Stanley Knox – Blue Mountain, MS
Offense: Continuing criminal enterprise; distribution and possession with intent to distribute cocaine base; use of a communication facility to facilitate distribution of cocaine base (seven counts); attempted possession with intent to distribute cocaine; possession with intent to distribute and distribution of cocaine base (two counts); distribution of cocaine base within 1,000 feet of a high school (two counts); use of a communication facility to facilitate the attempted distribution of cocaine base (two counts); Northern District of Mississippi
Sentence: Life imprisonment; eight years' supervised release; $2,000 fine (April 12, 1996)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Dana William Lasich – Sioux Falls, SD
Offense: Conspiracy, possession with the intent to distribute a controlled substance; District of South Dakota
Sentence: 240 months' imprisonment; 10 years' supervised release; $2,000 fine (March 12, 2001)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Nathaniel Law – Washington, DC
Offense: Narcotics conspiracy; maintaining a residence for the purpose of manufacturing, distributing, and using a controlled substance; distribution of five grams or more of cocaine base (five counts); distribution of cocaine base within 1,000 feet of a school; possession with intent to distribute five grams or more cocaine base; distribution of cocaine; District of Columbia
Sentence: Life imprisonment; 12 years' supervised release (April 19, 2005)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Walter Byron Lewis – Jacksonville, FL
Offense: Conspiracy to distribute five or more kilograms of cocaine; Middle District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (February 23, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Gerardo Leyva – Dallas, TX
Offense: Conspiracy to possess with intent to distribute and distribution of a controlled substance; money laundering; Northern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (October 20, 2006)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Kevin B. Lockhart – Mattapan, MA
Offense: Conspiracy to distribute and possession with intent to distribute cocaine; possession with intent to distribute cocaine, aiding and abetting; District of Rhode Island
Sentence: 360 months' imprisonment; eight years' supervised release (October 8, 1998)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Donald Steven Looney – Wichita Falls, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to deliver a controlled substance and aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting (two counts); Northern District of Texas
Sentence: 548 months' imprisonment; five years' supervised release (May 19, 2006); amended to 511 months' imprisonment (June 2, 2016)
Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Mary Beth Looney – Wichita Falls, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to deliver a controlled substance and aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting (two counts); Northern District of Texas
Sentence: 548 months' imprisonment; five years' supervised release (May 19, 2006); amended to 511 months' imprisonment (June 2, 2016)
Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Clinton Stanley Matthews – Norfolk, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine, cocaine base and heroin; distribute a mixture or substance containing cocaine base; possess with intent to distribute cocaine (five counts); possess with intent to distribute heroin; Eastern District of Virginia
Sentence: Life imprisonment; five years' supervised release (November 30, 1993)Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Dennis Scott McCullough – Norfolk, VA
Offense: Conspiracy to distribute 50 grams or more of cocaine base; Eastern District of Virginia
Sentence: 262 months' imprisonment; five years' supervised release (April 27, 2007)
Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Demond Trevino McFadden – Kingstree, SC
Offense: Conspiracy to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base; (District of South Carolina)
Sentence: 240 months' imprisonment; 10 years' supervised release (February 14, 2011); amended to 120 months’ imprisonment (January 21, 2016)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Ralph McIver – Crescent, GA
Offense: Conspiracy to possess with intent to distribute cocaine; distribution of cocaine (three counts); attempt to possess with intent to distribute cocaine; Southern District of Georgia
Sentence: 300 months' imprisonment; 10 years' supervised release (March 3, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Schearean Jean Means – Birmingham, AL
Offense: Conspiracy to possess with intent to distribute a controlled substance; possession with intent to distribute cocaine, crack cocaine, and marijuana; use of a communication facility to commit, cause or facilitate commission of drug felony (five counts); Northern District of Alabama
Sentence: Life imprisonment; 10 years' supervised release; $5,000 fine (May 29, 1996)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Benjamin Meneses, III – Anchorage, AK
Offense: Distribution of a controlled substance; District of Alaska
Sentence: 240 months' imprisonment; 10 years' supervised release (April 17, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Daniel L. Morgan – Opa Locka, FL
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; attempt to possess with intent to distribute five kilograms or more of cocaine; conspiracy to use and carry firearms in relation to a drug trafficking crime; using and carrying a firearm in relation to a drug trafficking crime; felon in possession of a firearm; Southern District of Florida
Sentence: Life imprisonment; five years' supervised release (February 7, 2002)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Kareem Myers – Philadelphia, PA
Offense: Distribution of five or more grams of cocaine base (two counts); Eastern District of Pennsylvania
Sentence: 262 months' imprisonment; eight years' supervised release; $1,200 fine (March 16, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of $1,200 remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Shelia Rochelle Neal – Winston-Salem, NC
Offense: Conspiracy to distribute cocaine base and cocaine hydrochloride; Middle District of North Carolina
Sentence: 120 months' imprisonment; five years' supervised release (June 4, 2010)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Jamael Aaron Nettles – Mobile, AL
Offense: Possession with intent to distribute crack cocaine; possession with intent to distribute cocaine; simple possession of marijuana; Southern District of Alabama
Sentence: 365 months' imprisonment; four years' supervised release (August 15, 2006); amended to 293 months' imprisonment (June 4, 2008); amended to 235 months' imprisonment (January 30, 2012); amended to 188 months' imprisonment (July 9, 2015)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Kari Nicole Parks – Bristol, TN
Offense: Conspiracy to distribute five kilograms or more of cocaine and oxycontin; Western District of Virginia
Sentence: 240 months' imprisonment; 10 years' supervised release (September 9, 2010)
Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Charles Anthony Perry – Lawton, OK
Offense: Conspiracy to possess with intent to distribute cocaine base; maintaining a place for the distribution of a controlled substance; distribution of cocaine base; Western District of Oklahoma
Sentence: Life imprisonment; five years' supervised release (June 23, 2000)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Lamont Pollard – St. Louis, MO
Offense: Possession with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute in excess of five grams of cocaine base, carrying a firearm in furtherance of a drug trafficking crime; Eastern District of Missouri
Sentence: 180 months' imprisonment; five years' supervised release (August 11, 2006)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Lawrence Maurice Powe – Mobile, AL
Offense: Conspiracy to possess with intent to distribute schedule II (cocaine) controlled substance; Possess with intent to distribute schedule II (cocaine) controlled substance; use of firearm in a drug trafficking felony (two counts); Southern District of Alabama
Sentence: 480 months' imprisonment; five years' supervised release: $100,000 fine; $900,000 forfeiture obligation (July 28, 1992)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of $900,000 forfeiture obligation remitted, conditioned upon enrollment in residential drug treatment.
- Chad Christopher Pyne – Panama City Beach, FL
Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute more than 50 grams of methamphetamine and more than 500 grams of a mixture and substance containing methamphetamine; possession of a firearm by a convicted felon; Northern District of Florida
Sentence: 200 months' imprisonment; five years' supervised release (August 19, 2004); amended to 262 months' imprisonment (January 5, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Timothy Orlando Rainey – Nashville, TN
Offense: Conspiracy to distribute and possess with intent to distribute cocaine and marijuana (two counts); Southern District of Alabama
Sentence: 300 months' imprisonment; five years' supervised release (June 21, 1995)
Commutation Grant: Prison sentence commuted to a term of 235 months' imprisonment.
- Terrance Range – Chicago, IL
Offense: Conspiracy to distribute 50 grams or more of cocaine base after having been previously convicted of a felony drug offense; possession with intent to distribute five grams or more of cocaine base after having been previously convicted of a felony drug offense; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (June 13, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Aaron Duane Rees – Pleasantville, IA
Offense: Conspiracy to manufacture methamphetamine; use of a minor to manufacture methamphetamine; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (November 29, 2005)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Fabian Roberson – Cincinnati, OH
Offense: Possession with intent to distribute in excess of 50 grams of cocaine base; possession of a firearm during and in relation to a drug trafficking crime; Southern District of Ohio
Sentence: 180 months' imprisonment; five years' supervised release; $1,000 fine (April 3, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Sean Anthony Robinson – Richmond, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; possession of a firearm by a convicted felon (three counts); Eastern District of Virginia
Sentence: 420 months' imprisonment; 10 years' supervised release (December 21, 2006); amended to 360 months’ imprisonment (November 23, 2015)
Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Delanjun L. Rogers – Panama City, FL
Offense: Distribution and possession with intent to distribute more than five grams of a mixture and substance containing cocaine base; Northern District of Florida
Sentence: 262 months' imprisonment; eight years' supervised release (September 7, 2005)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Anthony Dewon Rose – Coffeyville, KS
Offense: Possession with intent to distribute five grams or more of cocaine base, aka “crack”; possession with intent to distribute a mixture and substance containing a detectable amount of MDMA, aka "ecstasy" ; Northern District of Oklahoma
Sentence: 188 months' imprisonment; five years' supervised release; $1,000 fine (August 26, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $1,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Shawn Sadler – Charleston, SC
Offense: Conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine; District of South Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (July 17, 2008)
Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment.
- Lawrence Samuels, Jr. – Tulsa, OK
Offense: Possession with intent to distribute a controlled substance; Northern District of Oklahoma
Sentence: 210 months' imprisonment; five years' supervised release; $5,000 fine (October 3, 2005)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $5,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Angel Santana – Chicago, IL
Offense: Conspiracy to possess with intent to distribute more than five kilograms of cocaine; Middle District of Florida
Sentence: Life imprisonment (February 24, 1993)
Commutation Grant: Prison sentence commuted to expire on December 19, 2017.
- William Keith Schanck – Vista, CA
Offense: Conspiracy to possess with intent to distribute methamphetamine; possession of ephedrine; possession of hydriotic acid; maintaining a place for the purpose of manufacturing methamphetamine; Middle District of Florida
Sentence: Life imprisonment (January 30, 1995)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Todd Alan Scofield – Flandreau, SD
Offense: Conspiracy to possess a controlled substance; possession of a firearm by a prohibited person; distribution of a controlled substance (two counts); District of South Dakota
Sentence: 240 months' imprisonment; 10 years' supervised release (December 6, 2004)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Terence Devon Scott – Lynchburg, VA
Offense: Distribution of 50 grams or more of cocaine base; possession of a firearm in furtherance of a drug trafficking crime; Western District of Virginia
Sentence: 180 months' imprisonment; five years' supervised release (February 26, 2008)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Derrick Lamont Smith – Brooklyn, NY
Offense: Conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin; District of South Carolina
Sentence: 240 months' imprisonment; 10 years' supervised release (May 31, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Stacia Smith – Dolton, IL
Offense: Narcotics conspiracy; use of a telephone in drug conspiracy (two counts); using/carrying a firearm in relation to a drug offense; Northern District of Illinois
Sentence: 252 months' imprisonment; 10 years' supervised release (October 26, 2005)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Melissa Ann Sosa – Midland, TX
Offense: Conspiracy to distribute and to possess with intent to distribute over five kilograms of cocaine; Western District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (August 5, 2010)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Steven Blair Speal – Oklahoma City, OK
Offense: Conspiracy to distribute a controlled substance; possession with intent to distribute methamphetamine; possession with intent to distribute marijuana; possession of a firearm during a drug trafficking crime; possession of a firearm by a prohibited person (two counts); District of Kansas
Sentence: Life plus 60 months' imprisonment; five years' supervised release; $5,000 fine (October 30, 1997)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Terry Earl Stewart – Midland, TX
Offense: Conspiracy to possess with intent to distribute more than 50 grams of crack cocaine; aiding and abetting in the possession with intent to distribute crack cocaine (two counts); Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (March 28, 2003)
Commutation Grant: Prison sentence commuted to a term of 327 months' imprisonment.
- Kenneth Stover, Jr. – Cleveland, OH
Offense: Conspiracy to distribute and possess with intent to distribute cocaine; possess with intent to distribute cocaine; conspiracy to distribute and possess with intent to distribute marijuana; unlawful use of a communication facility (two counts); felon in possession of ammunition; use of a firearm in the commission of a drug trafficking crime; Northern District of Ohio
Sentence: Life imprisonment (August 27, 2003)
Commutation Grant: Prison sentence commuted to expire on December 19, 2017.
- Michael Stradford – Newark, NJ
Offense: Distribution and possession with intent to distribute more than 5 grams of cocaine base; District of New Jersey
Sentence: 188 months' imprisonment; four years' supervised release; $1,000 fine (July 16, 2008)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Jerry Strahan – Granite City, IL
Offense: Conspiracy to distribute heroin and cocaine base; distribution of cocaine base; Southern District of Illinois
Sentence: Life imprisonment; 10 years' supervised release; $1,000 fine (February 23, 2007)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Kenneth Demon Terry – Ballwin, MO
Offense: 1. Possession with intent to distribute cocaine base; Eastern District of
Missouri
2. Willful failure to surrender for service of sentence; Eastern District of Missouri
Sentence: 1. 188 months' imprisonment; four years’ supervised release (November 3,
2006)
2. 15 months' imprisonment (consecutive); two years' supervised release (September 24, 2007)
Commutation Grant: Prison sentence commuted to expire on March 19, 2018.
- Don Thomas, Jr. – Essex, MD
Offense: Conspiracy to distribute and possess with intent to distribute narcotics (five kilograms or more of cocaine); possessing a firearm in furtherance of a drug trafficking crime; District of Maryland
Sentence: 300 months' imprisonment; 10 years' supervised release (May 19, 2006)
Commutation Grant: Prison sentence commuted a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Tracy Maurice Thomas – Weldon, NC
Offense: Possession with intent to distribute a quantity of cocaine base (crack); using and carrying a firearm during and in relation to a drug trafficking crime (two counts); possession with intent to distribute more than five grams of cocaine base (crack); Eastern District of North Carolina
Sentence: 437 months' imprisonment; five years' supervised release (July 13, 2009); amended to 420 months’ imprisonment (December 17, 2014)
Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Jerry Lee Thompson – Brownwood, TX
Offense: Possession with intent to distribute less than five grams of cocaine base within 1,000 feet of a playground and aiding and abetting; Northern District of Texas
Sentence: 312 months' imprisonment; 12 years' supervised release (August 30, 2001)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Raphael Marice Tinsley – Panama City, FL
Offense: Possession with intent to distribute more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (June 13, 2007)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Tyrone Trader – Chester, PA
Offense: Conspiracy to distribute cocaine; distribution of cocaine (four counts); distribution of cocaine within 1,000 feet of a school (three counts); Eastern District of Pennsylvania
Sentence: Life imprisonment; 10 years' supervised release; $1,000 fine (September 29, 2008)
Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment, and unpaid balance of $1,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Mark David Turner – Opelika, AL
Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to distribute five grams or more of methamphetamine; possession of pseudoephedrine (precursor chemical) knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture five grams or more of methamphetamine (two counts); using and carrying a firearm during a drug trafficking offense (two counts); possession with intent to distribute methamphetamine; manufacture and possess with intent to distribute five grams or more of methamphetamine (two counts); Middle District of Alabama
Sentence: 481 months' imprisonment; five years' supervised release (November 12, 2002)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Vincent Lee Twiggs, II – Cape Girardeau, MO
Offense: Possession of five grams or more of a substance containing cocaine base with intent to distribute; Eastern District of Missouri
Sentence: 188 months' imprisonment; four years' supervised release (March 27, 2009)
Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment, conditioned upon enrollment in residential drug treatment.
- Darnell L. Walker – Detroit, MI
Offense: Conspiracy, possession with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine and cocaine base; possession of firearm by convicted felon (two counts); Northern District of Ohio
Sentence: Life imprisonment (December 26, 1995)
Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.
- Lafayette Maurice Washington – Panama City, FL
Offense: Conspiracy to distribute and possess with intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of cocaine and more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (May 18, 2006)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Jeffrey Scott Welch – Glendale, AZ
Offense: Distribution of methamphetamine (two counts); possession with intent to distribute methamphetamine; using and carrying a firearm during and in relation to a drug trafficking crime (two counts); unlawful possession of a firearm; District of Arizona
Sentence: 420 months' imprisonment; five years' supervised release; $5,000 fine (December 10, 1992)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of the $5,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.
- Gary Dean White – Gastonia, NC
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; Western District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (June 22, 2007)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
- Albert Wilborn – Michigan City, IN
Offense: Possession with intent to distribute cocaine base; Northern District of Indiana
Sentence: 204 months' imprisonment; four years' supervised release (May 1, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Billy Dee Williams – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute cocaine base; using/carrying firearm in furtherance of a drug trafficking crime; and aiding and abetting; Western District of North Carolina
Sentence: Life plus 60 months’ imprisonment; 10 years' supervised release (July 11, 2006)
Commutation Grant: Prison sentence commuted to a term of 228 months' imprisonment.
- Derwayne A. Williams – Independence, MO
Offense: Conspiracy to distribute cocaine base 50 grams or more (two counts); Western District of Missouri
Sentence: 240 months' imprisonment; 10 years' supervised release (October 6, 2009)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Jaycee Williams, Jr. – Panama City, FL
Offense: Possession with intent to distribute more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (December 13, 2006)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Kevin Wise – Washington, DC
Offense: Unlawful distribution of five grams or more of cocaine base; District of Columbia
Sentence: 262 months' imprisonment; four years' supervised release (May 11, 2001)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Jason Allen Woody – Huttonsville, WV
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Southern District of West Virginia
Sentence: 312 months' imprisonment; five years' supervised release; $2,000 fine (October 10, 2006)
Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.
- Harold Dwight Wooten – Clarkton, NC
Offense: Conspiracy: Possession with intent to distribute and distribute cocaine base (crack); Middle District of North Carolina
Sentence: 298 months' imprisonment; five years' supervised release (September 1, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Delmar Anton Zeigler – Oklahoma City, OK
Offense: Possession of cocaine base with intent to distribute and aiding and abetting; possession of cocaine base with intent to distribute; Western District of Oklahoma
Sentence: Life imprisonment; 10 years' supervised release (August 25, 1998)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
- Michael Antwan Zone – Melbourne, FL
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (August 23, 2007)
Commutation Grant: Prison sentence commuted to expire on April 18, 2017.
The President granted pardons to the following 78 individuals:
- Ryan Michael Ashbrook – DeWitt, MI
Offense: Possession with intent to distribute approximately 56 pounds of marijuana (Southern District of Texas)
Sentence: Three years' probation, conditioned upon six months' home confinement and performance of 200 hours of community service (September 8, 2000)
- Robert Spencer Baines – South Thomaston, ME
Offense: Conspiracy to possess, possession with intent to distribute over 1,000 pounds of marijuana (District of Maine)
Sentence: Six years' imprisonment (July 31, 1986)
- Roy Darrell Benson – Albuquerque, NM
Offense: Bank fraud (District of Oregon)
Sentence: 18 months' imprisonment; three years' supervised release; $50,000 restitution (January 30, 1995)
- Theresa Marie Bishop, aka Teresa Clark – Pittsburgh, PA
Offense: Knowingly disposing of a firearm to a person convicted of a crime punishable by a term of imprisonment exceeding one year (three counts); falsification of firearms purchase forms (two counts) (Western District of Pennsylvania)
Sentence: Three years' probation, conditioned upon one year of home detention (December 8, 2006)
- Tavia Dion Blume – Snohomish, WA
Offense: Possession of methamphetamine with intent to distribute; use of a firearm in relation to a drug trafficking offense (District of Montana)
Sentence: 42 months' imprisonment; three years' supervised release (May 21, 1999) (as amended July 12, 1999)
- Bob Edward Bone – St. Louis, MO
Offense: Conspiracy to manufacture in excess of 500 grams of methamphetamine (Eastern District of Missouri)
Sentence: One year and one day of imprisonment; two years' supervised release (May 2, 2006)
- Philip Stephen Brown, aka Phil Brown – Rock Springs, WY
Offense: Conspiracy to possess with intent to distribute and distribution of methamphetamine (District of Wyoming)
Sentence: Five months' imprisonment; three years' supervised release, including five months' home confinement (May 11, 2000)
- Jesse Daniel Burgher, aka Jessie Burgher – Montgomery, AL
Offense: Possession with intent to distribute at least 100 kilograms of marijuana (Southern District of Florida)
Sentence: 60 months' imprisonment; four years' supervised release (September 8, 1989)
- Caryn Lynn Camp, fka Caryn Lynn Camp-Kenworthy – Taichung, Taiwan R.O.C.
Offense: Wire fraud (10 counts); mail fraud (two counts); conspiracy to steal trade secrets; conspiracy to transport stolen goods; interstate transportation of stolen goods (District of Maine)
Sentence: Three years' probation; $7,500 restitution (December 7, 1999)
- Randy Dale Cantu – Niwot, CO
Offense: Conspiracy; falsely making and forging endorsement on government bonds (Southern District of Georgia)
Sentence: Five years' probation; $169.80 restitution (February 8, 1978)
- James Randolph Carter – Wagoner, OK
Offense: Possession of methamphetamine with intent to distribute (Northern District of Oklahoma)
Sentence: 60 months' imprisonment; five years' supervised release (May 30, 1991) (as amended May 15, 1997)
- Dolly Ann Chamberlain, fka Dolly Ann Taylor – Herald, CA
Offense: Conversion of government money (Eastern District of California)
Sentence: 36 months' probation, including 180 days of home confinement; $3,000 fine; $82,673.06 restitution (September 23, 2002)
- Tietti Onette Chandler, fka Tietti Chandler-Shelton – Columbus, MS
Offense: Embezzlement of mail matter by a postal employee (Northern District of Mississippi)
Sentence: Three years' probation, conditioned upon the performance of 150 hours of community service (April 1, 1999)
- Larry Wayne Childress, Jr. – Williamsville, MO
Offense: Conspiracy to possess with intent to distribute methamphetamine (two counts) (Eastern District of Arkansas)
Sentence: One day of imprisonment; four years' supervised release, including 12 months' home detention (March 6, 1997) (as amended November 13, 1997)
- Kristi Lynn Coe, aka Kristi Lynn Coe-Hagan, fka Kristi Hinshaw – Haw River, NC
Offense: Mail fraud (mistakenly listed in the judgment as mail theft) (Middle District of North Carolina)
Sentence: Five years' probation, conditioned upon four months’ home confinement; $17,785.72 restitution (October 11, 2001)
- Melissa Rae Conley, fka Melissa Faith – Midland, TX
Offense: Aiding and abetting distribution of a detectable amount of methamphetamine (Western District of Texas)
Sentence: 18 months' imprisonment; three years' supervised release (January 24, 2007)
- Christopher John Darville – Missouri City, TX
Offense: Making false statements to a federally insured financial institution (Middle District of Louisiana)
Sentence: One day of imprisonment; three years' supervised release conditioned on three months' home detention; $2,000 fine (November 27, 2001)
- Amanda Kucharski DeBlauw, fka Amanda Richmond – Newmarket, NH
Offense: Distribution of heroin (District of New Hampshire)
Sentence: Five months' imprisonment; three years' supervised release, conditioned upon 11 months’ home detention (November 29, 1999)
- Lehi Victoria Dickey, aka Lahi Dickey, fka Lehi Dickey Bryant – Oakland, CA
Offense: Bank embezzlement (Northern District of California)
Sentence: Three years' probation; $1,000 fine (September 13, 1985)
- Ronald Lee Eyler – Williamsport, MD
Offense: Conspiracy to distribute and possession with intent to distribute in excess of one kilogram of a mixture or substance containing a detectable amount of cocaine (District of Maryland)
Sentence: Two years' imprisonment (March 9, 1992)
- Michael Anthony Facchiano, Jr. – Venetia, PA
Offense: Mail fraud (two counts) (Western District of Pennsylvania)
Sentence: Six months' imprisonment; five years' probation; $2,000 fine (February 22, 1985)
- Theresa Renee Gardley, fka Theresa Renee Naper, fka Theresa Renee Thornton – Hillside, IL
Offense: Unlawful use of an unauthorized access device (Southern District of Texas)
Sentence: Three years’ imprisonment, suspended; five years' probation, conditioned upon 200 hours of community service; $6,411 restitution (December 9, 1988)
- Karim Riad Georgy – Tampa, FL
Offense: Acquiring and possessing controlled substances by fraud, deception, or subterfuge (Middle District of Florida)
Sentence: Three years' probation; $1,500 fine; $1,000 restitution (November 6, 2001) (as amended January 28, 2002)
- Donald Lee Gilbert – Phoenix, AZ
Offense: Interstate transportation of a stolen motor vehicle (District of Maine)
Sentence: Two years' probation (October 19, 1964)
- Pamela Ann Golemba – Enfield, CT
Offense: Conspiracy to export cocaine (District of Connecticut)
Sentence: Three years' probation, including six months' house arrest; $2,500 fine (December 15, 1989)
- Richard Allen Graham – Callahan, FL
Offense: Destruction of mail matter by a postal employee (Middle District of Florida)
Sentence: One year of probation, including 25 hours of community service (December 19, 2008)
- Bobby Joseph Guidry, aka Bob Guidry – Youngsville, CA
Offense: Conspiracy to import marijuana; conspiracy to possess with intent to distribute marijuana (Southern District of Mississippi)
Sentence: Three years' imprisonment; five years' probation; $1,000 fine (March 4, 1988)
- Edward John Hartman – Westampton Township, NJ
Offense: Conspiracy (submitting false and fraudulent documents to FHA and VA) (District of New Jersey)
Sentence: Four months' imprisonment; three years' probation; $3,000 fine; unspecified restitution (July 11, 1986)
- William Bernie Heckle, Jr., aka Billy Heckle – Orangeburg, SC
Offense: Falsifying medical prescriptions and illegally dispensing controlled substances (Schedule II through Schedule V); dispensing prescription medication without a legitimate written order from a prescribing physician (District of South Carolina)
Sentence: 18 months' imprisonment; three years' supervised release (December 4, 1996)
- Juleen Nicole Henry – Duluth, GA
Offense: Conspiracy to distribute marijuana (Eastern District of Michigan)
Sentence: Time served (115 days’ imprisonment); two years' supervised release (April 23, 2001)
- James Ralph Hoeckelman – Irwin, PA
Offense: Conspiracy to distribute and possess with intent to distribute marijuana (Western District of Pennsylvania)
Sentence: 30 months' imprisonment; three years' supervised release (April 10, 1992) (as amended April 18, 1997)
- Ralph Allen Hoekstra, aka Ralph Alan Hoekstra – Huntington Beach, CA
Offense: Importing wildlife contrary to law (Central District of California)
Sentence: One year of probation; $5,000 fine (January 19, 2005)
- Samuel Wesley Howze, aka Sala Udin – Pittsburgh, PA
Offense: Unlawfully transporting firearms; possession of untaxpaid distilled spirits (Western District of Kentucky)
Sentence: Five years' imprisonment (November 20, 1970)
- Herman Lamont Jackson – Maple Heights, OH
Offense: Possession with intent to distribute cocaine base and cocaine (two counts) (Northern District of Ohio)
Sentence: 63 months' imprisonment; three years' supervised release; $2,000 fine (March 29, 1999)
- Mark Edward Johnson – Hanscom Air Force Base, MA
Offense: Conspiracy to import more than 100 kilograms of marijuana (Western District of Texas)
Sentence: 24 months' imprisonment; three years' supervised release, conditioned upon 200 hours of community service (April 6, 2004)
- Cathy Mae Jones, fka Cathy Mae Bennett – Alamogordo, NM
Offense: Conspiracy (District of New Mexico)
Sentence: Time served (nine days' imprisonment); five years' supervised release; $1,423.50 restitution (September 14, 2006)
- Fabius Romero Jones – Oakland, CA
Offense: Theft from interstate shipment (Northern District of California)
Sentence: One year of probation; $100 fine (August 24, 1977)
- Ricky Eugene Jones – Alamogordo, NM
Offense: Conspiracy to manufacture 5 grams or more of methamphetamine; attempt to manufacture 5 grams or more of methamphetamine; maintaining a place for manufacture of methamphetamine; possession with intent to distribute less than 5 grams of methamphetamine (District of New Mexico)
Sentence: Time served (42 days' imprisonment); five years' supervised release; $1,423.50 restitution (September 14, 2006)
- James Harold Keaton – Bassett, VA
Offense: Possession of a stolen firearm (Western District of Virginia)
Sentence: 30 months' probation, conditioned upon 50 hours of community service (November 9, 2007)
- Dean Robert Kondo – Daly City, CA
Offense: Possession of counterfeit currency (Northern District of California)
Sentence: 12 months and one day of imprisonment; three years' supervised release (July 19, 2000)
- Mary Ann Krauser, fka Mary Ann Iron Shield – Fort Yates, ND
Offense: Involuntary manslaughter (District of North Dakota)
Sentence: Three years' imprisonment, suspended; five years' probation (June 1, 1982)
- Emmanuel Gabriel Leeper – Plano, TX
Offense: Possession with intent to distribute marijuana (Eastern District of Missouri)
Sentence: 151 months' imprisonment; five years' supervised release (April 9, 1993)
- Keith Alan Little – Odessa, TX
Offense: Interception of electronic communications (Western District of Texas)
Sentence: Five years' probation, including four months in a halfway house; $10,000 fine (June 14, 1990)
- Victoria Hunter Lowe – Tucson, AZ
Offense: Conspiracy to possess with intent to distribute methamphetamine (Western District of Texas)
Sentence: 46 months' imprisonment; three years' supervised release (July 18, 2006)
- Dawn Mascari, fka Dawn Steponavich – North Branford, CT
Offense: Aiding and abetting in illegal gambling operation (District of Connecticut)
Sentence: Three years’ probation, conditioned upon two months' home confinement; $2,000 fine (April 23, 2002)
- James Willie McGrady, Jr. – Fayetteville, NC
Offense: Distribution of cocaine and aiding and abetting; distribution of cocaine in excess of 500 grams and aiding and abetting; possession of a firearm in the commission of a drug trafficking crime (Eastern District of North Carolina)
Sentence: 37 months' imprisonment; four years' supervised release; $5,000 fine; $1,000 restitution (April 11, 1989) (as amended May 3, 1990)
- John Frederick McNeely, Jr. – Santa Ana, CA
Offense: Receiving counterfeit government obligations (Central District of California)
Sentence: Three years' probation (July 27, 1970)
- Kenneth Shannon Meadows, aka Kenny Shannon Meadows – Celina, TN
Offense: Manufacture, assemble, modify, sell and distribute electronic devices for the unauthorized decryption of direct-to-home satellite television services (Western District of Kentucky)
Sentence: Three years' probation, conditioned upon six months' home confinement; $36,424 restitution (August 25, 2003)
- Roger Delos Melius – Faulkton, SD
Offense: Conspiracy to submit false statements (District of South Dakota)
Sentence: Three years' probation; $87,712.91 restitution (October 11, 2007) (as amended December 17, 2007)
- Samuel Nyamongo Mongare – Arlington, TX
Offense: Possession of false identification documents with intent to defraud the United States (Western District of Texas)
Sentence: Four months' imprisonment; three years' supervised release (March 27, 2001)
- Steven Odell Moon – Burleson, TX
Offense: Conspiracy to distribute and possess phenylacetic acid (Northern District of Texas)
Sentence: 60 months' imprisonment; three years' supervised release (January 24, 1991)
- George Bernard Moran – Federal Way, WA
Offense: Conspiracy to import a substantial amount of marijuana into the United States; conspiracy to possess with intent to distribute an amount of marijuana over 1,000 pounds; subscribing to a false United States Income Tax Return (District of Maine)
Sentence: Eight years' imprisonment (May 11, 1984)
- Thomas Whitfield Morris, Jr. – Pawleys Island, SC
Offense: Conspiracy to import cocaine into the United States (District of South Carolina)
Sentence: Five years' probation, conditioned upon 300 hours of community service (August 26, 1992)
- Christopher Muratore – Tampa, FL
Offense: Devising a scheme to defraud the United States of money and property and devising a scheme to deprive the United States Bankruptcy Court and the citizens of the United States of honest services (Middle District of Florida)
Sentence: 36 months' probation, including six months' home detention; $107,850 restitution (September 25, 2001)
- Serena Denise Nunn – Atlanta, GA
Offense: Aiding and abetting in the attempt to possess with intent to distribute cocaine; possession with intent to distribute cocaine base; conspiracy to possess with intent to distribute cocaine (District of Minnesota)
Sentence: 188 months' imprisonment; five years' supervised release (sentence commuted) (April 11, 1990)
- Francis Joseph O'Hara, Sr. – Camden, ME
Offense: Conspiracy to restrain, suppress and eliminate competition by rigging bids; conspiracy with others to knowingly and willfully make and use false documents containing false statements in matters within the jurisdiction of the Defense Personnel Support Command (District of Maine)
Sentence: Six months' imprisonment; two years' supervised release; $200,000 fine; $950,000 restitution (September 13, 1991)
- James Allen Palmatier – Highland, NY
Offense: Possession with intent to distribute cocaine (mistakenly listed in the judgment as possession of cocaine) (Northern District of Alabama)
Sentence: 97 months' imprisonment; four years' supervised release, conditioned upon 300 hours of community service (September 21, 1989)
- Allen Wayne Parker – Fort Smith, AR
Offense: Officer of U.S. stealing property of another (Western District of Arkansas)
Sentence: Three years' probation, conditioned upon an undetermined term of home confinement and five weekends of intermittent confinement; $1,000 fine (May 1, 1991)
- Robert Allen Petty – Mineola, TX
Offense: Distribution of methamphetamine (Western District of Oklahoma)
Sentence: 33 months' imprisonment; three years' supervised release (April 4, 1994)
- Benjamin Ramos – Jamaica, NY
Offense: Conspiracy to transport and sell stolen goods (two counts) (Southern District of New York)
Sentence: Four years' probation; $5,000 restitution (September 21, 2000)
- Erica Renee Ramos, fka Erica Renee DeVore, fka Erica Renee Ramirez – Port St. Lucie, FL
Offense: Use of a communication facility to facilitate a drug felony (Middle District of Florida)
Sentence: Two years' probation (February 20, 2003)
- Doretha Doreen Rhone – Philadelphia, PA
Offense: Theft (District of Columbia)
Sentence: Three years' probation; $3,060 restitution (March 14, 1989)
- Adam Philip Ricciardiello – Naples, FL
Offense: Conspiracy to distribute marijuana (District of Vermont)
Sentence: Time served; three months’ residence in a community confinement center; four years' supervised release, conditioned upon 200 hours of community service; $5,000 fine (July 1, 2002) (as amended July 3, 2002 and January 28, 2003)
- Ramon Escalera Sanchez – Cheney, WA
Offense: Possession of less than 500 grams of cocaine with intent to distribute (Eastern District of Washington)
Sentence: 27 months' imprisonment; three years' supervised release (September 19, 2003)
- Bryan Scot Sandquist – Gig Harbor, WA
Offense: Felon in possession of a firearm (District of Oregon)
Sentence: 40 months' imprisonment; three years' supervised release (November 4, 2002)
- Heidi Kay Schmidt, fka Heidi Kay Watt – Denton, NE
Offense: Conspiracy to distribute controlled substance (District of Nebraska)
Sentence: 30 months' imprisonment; five years' supervised release, conditioned upon 250 hours of community service (June 30, 2005) (as amended April 12, 2006)
- Allen Thompson Sherwood – Ooltewah, TN
Offense: Conduct unbecoming an officer (shoplifting) (United States Air Force general court-martial convened at Barksdale Air Force Base, Louisiana)
Sentence: Dismissal from service; four months’ confinement; forfeiture of $500 pay per month for four months; $5,000 fine (January 24, 1990)
- Kaseen Lathell Simmons, aka Ceno Smith – Detroit, MI
Offense: Possession with intent to distribute less than 50 kilograms of marijuana (District of New Mexico)
Sentence: 21 months' imprisonment; two years' supervised release (May 17, 1999)
- Brenda Lorene Sinclair, fka Brenda Lorene Pontius – Boise, ID
Offense: Receiving, possessing, concealing and disposing of stolen money (District of Oregon)
Sentence: Ten years’ imprisonment; five years' probation; $1,986 restitution (October 27, 1986)
- Michael Slavinsky – Irvine, CA
Offense: Misdemeanor illegal supplementation of salary by an employee of the United States (District of Columbia)
Sentence: Three years' probation, conditioned upon performance of 50 hours of community service; $10,000 restitution (January 7, 1998)
- Richard Earl Smout – Blackfoot, ID
Offense: Possession of stolen mail (District of Utah)
Sentence: Time served (77 days' imprisonment) and two years' supervised release (November 20, 2001)
- Robin Shelley Soodeen – Upper Marlboro, MD
Offense: Bank embezzlement (District of Columbia)
Sentence: Eight months' halfway house confinement; five years' supervised release; $49,000 restitution (October 2, 2001)
- Pamela Joy Stokes – Southfield, MI
Offense: False Statement (Eastern District of Michigan)
Sentence: Two years' probation, conditioned upon 120 days’ home confinement (May 3, 2006)
- Joseph Eugene Swies – Frederic, WI
Offense: Forgery of postal money orders (Western District of Wisconsin)
Sentence: Three years’ probation; $1,259.71 restitution (July 27, 1984)
- Shari Dee Trompke – Grand Island, NE
Offense: Conspiracy to distribute methamphetamine (District of Nebraska)
Sentence: 36 months' imprisonment; five years' supervised release (April 17, 1997)
- Jessica Ann Tyson, fka Jessica Ann Martin – Grand Rapids, MI
Offense: Conspiracy to commit bank fraud (Western District of Michigan)
Sentence: Two years' probation; $1,200 restitution (December 2, 1997)
- Robert Steven Warden – Monroe, WA
Offense: Simple possession of approximately two grams of heroin (Central District of California)
Sentence: One year of probation (December 4, 1972)
- Vera Mae Yurisich – Cashmere, WA
Offense: Perjury (Eastern District of Washington)
Sentence: Three months' imprisonment; three years' supervised release (April 30, 2007)
- Kendrick Tyshawn Akins – Coppell, TX
Platinum Partners’ Founder and Chief Investment Officer Among Five Indicted in A $1 Billion Investment FraudRead the Press Release
BROOKLYN, N.Y. – An eight-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging seven defendants, all of whom are or were formerly affiliated with Platinum Partners L.P. (Platinum), a purportedly $1.7 billion hedge fund based in New York, New York. The indicted individuals are: Mark Nordlicht, the founder and Chief Investment Officer of Platinum; David Levy, the co-Chief Investment Officer of Platinum; Uri Landesman, the former Managing Partner and President of Platinum; Joseph SanFilippo, the Chief Financial Officer of Platinum’s signature hedge fund; Joseph Mann, a member of Platinum’s Investor Relations and Finance Departments; Daniel Small, a former Managing Director and co-Portfolio Manager of Platinum; and Jeffrey Shulse, the former Chief Executive Officer and Chief Financial Officer of Black Elk Energy Offshore Operations, LLC (Black Elk).[1]
Nordlicht, Levy, Landesman, SanFilippo and Mann are charged with securities fraud, investment adviser fraud, securities fraud conspiracy, investment adviser fraud conspiracy and wire fraud conspiracy for defrauding investors through, among other things, the overvaluation of their largest assets, the concealment of severe cash flow problems at Platinum’s signature fund, and the preferential payment of redemptions. Nordlicht, Levy, Small and Shulse are charged with securities fraud, securities fraud conspiracy and wire fraud conspiracy for defrauding Black Elk’s independent bondholders through a fraudulent offering document and diverting more than $95 million in proceeds to Platinum by falsely representing in the offering document that Platinum controlled approximately $18 million of the bonds when, in fact, Platinum controlled more than $98 million of the bonds.
Nordlicht, Levy, Landesman, SanFilippo, Mann, Small and Shulse will be arraigned later today before United States Magistrate Judge Lois Bloom at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York. Shulse’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 515 Rusk Avenue, Houston, Texas.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
“As alleged, Nordlicht and his cohorts engaged in one of the largest and most brazen investment frauds perpetrated on the investing public, earning Platinum more than $100 million in fees during the charged conspiracy. Platinum Partners purported to be a standard bearer in the hedge fund industry, reporting annual average returns of more than 17 percent since inception in 2003. In reality, their returns were the result of the overvaluation of their largest assets, which eventually led to Nordlicht and his co-conspirators operating Platinum like a Ponzi scheme, where they used loans and new investor funds to pay off existing investors,” stated United States Attorney Capers. “The charges and arrests announced today reflect our steadfast commitment to holding accountable hedge funds on Wall Street who rip off investors for personal gain.” Mr. Capers thanked the Securities and Exchange Commission, New York Regional Office (SEC) for their significant cooperation and assistance during the investigation.
“This case shows how several members of this firm allegedly manipulated and lied to investors about the health of the investments they were making, and then plotted ways to cover up their actions. The FBI and our law enforcement partners do all we can to stop these schemes and to keep fraudsters from stealing from investors, but we can’t do it alone. We need people to call us when they see things that don’t add up, or don’t make sense,” stated FBI Assistant Director-in-Charge Sweeney.
“These Platinum Partners employees devised a scheme to lure investors to funds they managed knowing the funds were insolvent and would not return the high yields they claimed. Postal Inspectors will never tolerate unfairness in the market and will vigorously pursue and bring to justice anyone who breaks the law, ensuring there is an honest and secure trading environment for investors,” stated USPIS Inspector-in-Charge Bartlett.
* * *
As detailed in the indictment, between 2011 and 2016, Nordlicht and Levy, together with their co-conspirators, orchestrated two separate schemes: (i) a scheme to defraud investors and prospective investors in funds managed by Platinum; and (ii) a scheme to defraud third-party holders of Black Elk’s bonds.
The Fraudulent Investment Scheme
Platinum was a hedge fund founded in 2003 and based in New York, New York. Since September 2011, Platinum was registered with the SEC as an investment adviser. Platinum managed several hedge funds, but the vast majority of its assets were invested through Platinum Partners Value Arbitrage Fund, L.P. (PPVA) and Platinum Partners Credit Opportunities Master Fund, L.P. (PPCO). Platinum charged its investors a two percent management fee and a 20 percent incentive or performance fees. In March 2016, Platinum reported to regulators, including the SEC, that it had $1.7 billion in assets under management (AUM), including approximately $1.1 billion in gross asset value in PPVA and more than $590 million in PPCO.
Between November 2012 and December 2016, Nordlicht, Levy, Landesman, SanFilippo and Mann, together with others, participated in a scheme to defraud investors and prospective investors in Platinum through lies and omissions relating to, among other things: (i) the performance of some of PPVA’s highly illiquid and privately-held assets; (ii) PPVA’s accessibility to cash or assets that could easily be converted into cash; (iii) the purpose of loans raised through investors and the use of those loan proceeds; and (iv) PPVA’s preferential redemption, or investor payment, process. Specifically, Platinum fraudulently overvalued some of PPVA’s highly illiquid and privately-held assets in order to, among other things, boost performance numbers, attract new investors, retain existing investors and extract high management and incentive fees. From 2012 through 2016, Platinum extracted more than $100 million in fees based, in large part, on their overvalued assets. Platinum’s overvaluation of some of their assets precipitated a severe cash crunch, which Platinum initially attempted to mitigate through high-interest loans between its various hedge funds and related entities. When the inter-fund loans proved insufficient to resolve PPVA’s cash crunch, Platinum began selectively paying some investors ahead of others, contrary to the terms of its governing documents.
As early as 2012, Nordlicht and his co-conspirators knew that PPVA was in trouble, but concealed that reality from investors and prospective investors. For example, on November 6, 2012, upon learning that PPVA’s investors had sought $27 million in redemptions, Nordlicht exchanged emails with Landesman that stated, in part: “If we don’t exceed [the $27 million in redemptions] in [subscriptions] . . . we are probably going to have to put black elk in side pocket . . . It’s just very daunting. It seems like we make some progress and then [redemptions] are relentless almost. It’s tough to get ahead in [subscriptions] if u have to replace 150-200 a year.”
By 2014, the defendants were relying almost exclusively on new investments and inter-fund loans to pay redemptions to PPVA’s investors. For example, on April 29, 2014, when faced with requests from investors who had not yet received their redemptions, Nordlicht sent an email to SanFilippo that stated, in part: “Start paying down [redemptions] as [you] can. Between [a new investor] and [a one-off loan] (additional 10 million), [should] have decent short term infusion. Hopefully some [M]ay 1 [new investments] show up as well. Have a few more outflows to discuss but this is obviously the priority.” Nordlicht and his co-defendants concealed PPVA’s cash crunch and selective redemption payments from investors. For example, in an investor call on January 14, 2015, Nordlicht stated, in part: “If we look historically, we’ve been very very fortunate . . . we’re running about a billion four between all our different entities . . . I think we’ve returned about double that in cash to investors, so that is really an indication of . . . being very very liquid and nimble . . . in terms of 2015 for PPVA, we are targeting much higher returns than normal.”
Nordlicht’s and Landesman’s knowledge of Platinum’s dire situation was perhaps best illustrated by an email exchange on December 13, 2015. When Nordlicht forwarded an email to Landesman where he had informed a co-conspirator that his wife was convincing him to get on a flight to Israel if he was unable to get a loan from his partners to save the fund, Landesman responded: “You should get on the flight if there is no bridge [loan], probably even if there is . . . We need to go through the mehalech of how we are going to share this with clients and employees, going to be very rough, big shame . . . it was nice seeing you, hopefully the girls will reacclimate [sic] quickly.” Notwithstanding the above email exchange, on February 7, 2016, Landesman sent an email to an investor that stated, in part: “Fund is sound, I believe, new structure ideal. Mark [Nordlicht] is really energized. Hope to be beyond liquidity concerns forever by end of May, we welcome your further investment.”
PPVA was heavily invested in oil and gas companies that performed significantly below expectations and the valuations that Platinum attributed to them. These valuations were further undermined by the plummeting price of oil, which dropped from approximately $105 per barrel in December 2013, to approximately $60 per barrel in December 2014, to approximately $36 per barrel in December 2015.
Despite the severe problems that PPVA was facing beginning in at least 2012, Platinum reported that PPVA’s AUM increased from approximately $727 million at the end of 2012, to approximately $757 million at the end of 2013, to approximately $770 million at the end of 2014, to approximately $910 million at the end of 2015. Platinum collected two percent management fees off these amounts and 20 percent incentive fees off the profits.
The Fraudulent Black Elk Bond Scheme
From approximately November 2011 to December 2016, Nordlicht, Levy, Small and Shulse, together with their co-conspirators, orchestrated a fraudulent scheme to defraud third-party holders of Black Elk’s publicly-traded bonds (the bondholders) by diverting the proceeds from the sale of the vast majority of Black Elk’s most lucrative assets to Platinum even though the bondholders had priority over Platinum’s equity interests. As early as November 2011, Nordlicht, Levy and Small were plotting to deceive the bondholders. For example, when Nordlicht learned about the relevant covenants associated with the bonds, he sent an email to Levy, Small and another that stated: “Seem like there are bond[s] to be had out there and an additional 60 million is 24 down . . . We [would] have to figure it out . . . I’m sure we can get them in friendly hands if the covenants are going to be an obstacle.”
By late 2013, faced with the fact that Black Elk was effectively insolvent but knowing that Black Elk still possessed certain valuable assets, the defendants pursued opportunities to sell Black Elk’s assets while simultaneously pursuing a fraudulent strategy to divert the proceeds from any such asset sale to the preferred equity stockholders, which were controlled by Platinum, instead of the bondholders. To execute this scheme, in early 2014, the defendants caused Platinum to purchase Black Elk bonds on the open market to gain control of a majority of the $150 million of outstanding bonds. Platinum purchased and then transferred the bonds through a number of related entities in an effort to conceal Platinum’s ownership and control of the bonds.
By approximately April 2014, Platinum owned and controlled approximately $98 million of the $150 million of outstanding bonds. Between March 2014 and April 2014, Platinum and its related parties also purchased the vast majority of the outstanding preferred equity that was owned by third parties to obtain nearly 100 percent ownership of the preferred equity. By approximately May 2014, when alternative approaches failed, the defendants, together with others, determined that the only path to getting the preferred equity paid ahead of the bondholders was through a cash tender offer and consent solicitation process. On July 2, 2014, Small forwarded an email from a Platinum trader to Nordlicht and Levy that set forth the following summary of the $98,631,000 of the bonds controlled by Platinum: (i) PPCO: $32,917,000; (ii) PPVA: $18,321,000; (iii) PPLO: $17,046,000; (iv) BAM [a related entity]: $13,360,000; and (v) BBIL [a related entity]: $16,987,000. Nevertheless, in response to a query from an attorney, on July 9, 2014, Small sent an email that stated, in part: “$18,321,000 bonds are controlled by PPVA and should be disclosed and excluded from the calculation. I believe this implies that $65,840,000 are required to obtain a majority consent.”
On July 16, 2014, Black Elk announced that it had commenced a public offer for the bonds (the Consent Solicitation). The Consent Solicitation and accompanying press release provided, among other things, that: (i) Black Elk had commenced a cash tender offer to purchase the outstanding bonds at par value; (ii) Black Elk was soliciting bondholders’ consents to modify certain of the restrictive covenants governing the bonds; (iii) the bondholders that tendered their bonds would be considered to have validly delivered their consent to the proposed amendments; (iv) the bondholders could also consent to the proposed amendments without tendering their bonds; (v) the Consent Solicitation was being made in connection with the sale of assets and the net proceeds of the sale would be used by Black Elk to purchase the tendered bonds; and (vi) the offer would expire at 5:00 p.m. New York time on August 13, 2014.
Notably, the Consent Solicitation prohibited “any person directly or indirectly controlling or controlled by or under direct or indirect common control with [Black Elk]” from voting in the Consent Solicitation process. Thus, the approximately $98 million of bonds controlled by Platinum should have been excluded from the voting process. Nonetheless, the defendants caused Black Elk to disclose in the Consent Solicitation that: “[PPVA] and its affiliates, which own approximately 85% of our outstanding voting membership interests, own[ed] approximately $18,321,000 principal amount of the outstanding Notes. Otherwise, neither we, nor any person directly or indirectly controlled by or under direct or indirect common control with us, nor, to our knowledge, any person directly or indirectly controlling us, held any Notes.”
The defendants then caused Platinum’s related parties to consent to the proposed amendments but not tender their bonds. As of the offer’s expiration on August 13, 2014, bondholders that held $11,333,000 of the BE Bonds validly had tendered and were paid. To the surprise of the remaining bondholders, who were unaware of Platinum’s control of $98,631,000 or approximately 65 percent of the BE Bonds, the trustee revealed that the holders of $110,565,000 or approximately 73.71 percent of the bonds had validly consented to the Consent Solicitation, thereby allowing the preferred equity to get paid from the proceeds of Black Elk’s sale of assets.
On or about August 11, 2015, Black Elk’s creditors filed a petition to place the company into an involuntary Chapter 7 bankruptcy, which was converted on or about September 1, 2015 to a voluntary Chapter 11 bankruptcy. As of December 2016, a number of bondholders who did not tender their BE Bonds have yet to receive the principal amount of their holdings.
* * *
The criminal case has been assigned to Chief Judge Dora L. Irizarry of the United States District Court. If convicted, each of the defendants faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Winston Paes, Alicyn Cooley, Lauren Elbert and Sarah Evans are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division.
* * *
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 www.StopFraud.gov.
The Defendants:
MARK NORDLICHT
Age: 48
Residence: New Rochelle, New YorkDAVID LEVY
Age: 31
Residence: New York, New YorkURI LANDESMAN
Age: 55
Residence: New Rochelle, New YorkJOSEPH SANFILIPPO
Age: 38
Residence: Freehold, New JerseyJOSEPH MANN
Age: 24
Residence: Brooklyn, New YorkDANIEL SMALL
Age: 47
Residence: New York, New YorkJEFFREY SHULSE
Age: 44
Residence: Houston, TexasE.D.N.Y. Docket No. 16-CR-640 (DLI)
[1] The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
Pittsburgh Man Gets Prison Sentence for Stealing Packages Delivered to Shadyside ResidentsRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 12 months and one day in prison, three years supervised release and $2,350.27 in restitution on his conviction of theft of mail, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Tyrone Mobley, 49, of Pittsburgh, Pa.
According to the information presented to the court, Mobley stole packages delivered from the United States Postal Service to residents in Shadyside between October and November, 2015.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Postal Inspection Service and Department of Homeland Security for the investigation that led to the successful prosecution of Tyrone Mobley.
Pittsburgh Felon Sentenced to Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 15 months’ imprisonment on his conviction of being a felon in possession of a firearm, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Tyron Harrison, 23, of Pittsburgh, Pa.
According to information presented to the court, on or about May 7, 2012, Harrison was convicted in the Court of Common Pleas of Allegheny County of the offenses of receiving stolen property and firearms not to be carried without a license, which are both crimes punishable by imprisonment for terms exceeding one year. Following that conviction, on or about Jan. 21, 2016, Pittsburgh Police officers patrolling Zone 6 conducted a traffic stop of a car in which the defendant was a passenger. During the stop, officers recovered a loaded, .9 mm Ruger pistol from the defendant’s hoodie pocket.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Harrison.
Pennsylvania Man Charged with Assault by Striking, Beating, and WoundingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pennsylvania man has been indicted by a federal grand jury for Assault by Striking, Beating, and Wounding.
Marwan Sadekni, age 67, was indicted on November 9, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 14, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and a $25 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Sadekni, between January 23, 2015, and January 31, 2015, and again on February 25, 2015, unlawfully struck a coworker at the Indian Health Service Hospital in Rosebud, South Dakota.
The charges are merely accusations and Sadekni is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Todd County Sheriff’s Office. Assistant U.S. Attorney Carrie Sanderson is prosecuting the case.
Sadekni was released on bond. A trial date has not been set.