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Friday 14 October 2016
Pensacola Man Arrested on Federal Charges for Mailing Threats to Sheriff David MorganRead the Press Release
PENSACOLA, FLORIDA – Regis L. Walker, 30, of Pensacola, has been arrested on a charge of mailing threatening communications. The criminal complaint was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
According to the criminal complaint affidavit, Walker mailed a threatening letter on notebook paper to Sheriff Morgan at the Escambia County Sheriff’s Office. The affidavit further alleges that Walker claimed several people who had joined ISIS would simultaneously attack military bases, beaches, and schools at a nonspecific time and could not be stopped by law enforcement. Walker appeared to sign the note as “ISIS ALLAH.”
The punishment for the crime alleged is a maximum of five years in prison. Walker will remain in the custody of the U.S. Marshals at the Santa Rosa County Jail pending further judicial proceedings. Future court appearances will take place in the U.S. District Court in Pensacola on a date to be determined.
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Law Enforcement. Assistant United States Attorney David L. Goldberg is prosecuting the case.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Orlando Realtor Pleads Guilty to Bankruptcy FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Rafael Sanchez (69, Orlando) has pleaded guilty to bankruptcy fraud. He faces a maximum penalty of five years in federal prison. Sanchez has agreed to make full restitution to the Clerk of Court for the United States Bankruptcy Court for the Middle District of Florida. His sentencing hearing is scheduled for January 9, 2017.
According to the plea agreement, Sanchez, a licensed real estate broker, devised a short-sale scheme to defraud creditors holding lawfully recorded mortgage notes, as well as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Housing Administration (“FHA”), who had guaranteed the principal and interest payments on the mortgages. He targeted distressed homeowners facing foreclosure and promised to save their homes.
Sanchez successfully prevented creditors and guarantors from lawfully foreclosing on properties secured by mortgage notes by filing, or causing to be filed, fraudulent bankruptcies on behalf of the homeowners he targeted. The filing of these bogus bankruptcy petitions invoked the automatic stay provision of federal bankruptcy law, which brought an immediate halt to any foreclosure actions against the homeowners’ property.
As a result of the scheme, Sanchez enriched himself through ill-gotten real estate commissions from short sales of distressed homeowners’ properties during the automatic stay period.
This case was investigated by the Federal Bureau of Investigation, the Federal Housing Finance Agency - Office of Inspector General, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Office of the U.S. Trustee in Orlando. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney James Mandolfo.
Oklahoma Man Sentenced to 30 Months Imprisonment for Conspiracy to Defraud A Cary, NC CompanyRead the Press Release
RALEIGH –United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced BRENT ALLAN DILONARDO, 58, of Tulsa, Oklahoma, to 30 months imprisonment, 3 years supervised release, and $219,304 restitution. On July 11, 2016, DILONARDO pled guilty to Conspiracy to Commit Wire Fraud.
The Criminal Information alleged that DILONARDO and co-conspirator John Michael Wade had contracted with a company in China to supply tools to their company headquartered in Cary, NC. DILONARDO, Wade, and the Chinese company reached an agreement to inflate the invoices to DILONARDO’S company. After DILONARDO’S company paid the inflated invoices to the Chinese company, the Chinese company paid the inflated amounts to DILONARDO, who in turn split the proceeds with Wade. Wade incorporated a business to receive his share of the proceeds. Wade pled guilty in February, 2016 to the same offense and was sentenced on September 13, 2016 to twelve months and one-day imprisonment. DILONARDO received a higher sentence than Wade based in part on his leadership role in the conspiracy to defraud.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon handled the case on behalf of the Government.
Ohio Man Who Enticed a Colorado Minor Victim in an Attempt to Produce Child Pornography Convicted Following Two-Week Jury TrialRead the Press Release
DENVER – Rande Brian Isabella, age 59, of Hubbard, Ohio, was found guilty by a jury on October 7, 2016 before U.S. District Court Judge Christine M. Arguello of one count of coercion and enticement of a minor and one count of attempted production of child pornography, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. The jury, which deliberated for approximately three hours, acquitted the defendant on two similar counts.
According to the facts presented at trial, between September and December 2013, Isabella communicated via phone and online with a 14 year-old girl in Colorado. Through these communications, he misrepresented his age to her and repeatedly asked for pictures of her as their conversations became increasingly sexual in nature. Ultimately, he was able to persuade her to send him a naked photograph of herself. Isabella told the minor girl that he was her boyfriend and asked her to stay with him if he traveled to Colorado. He sent her a photograph of his own genitalia, encouraging her to respond in kind. She did send him more pictures of herself, some sexual in nature, before she lost her phone. The minor girl’s mother found her phone and discovered these conversations with Isabella. She sought the help of law enforcement, and HSI began investigating the defendant’s online activities.
During the course of the investigation, federal agents determined Isabella’s identity and address. A search warrant was then obtained and executed at his home in Ohio. Agents seized his phone and two of his computers. On his phone, they found the communications with the minor girl and photographs of her that he had saved. On his computer, a forensic analyst found that Isabella had Googled the minor girl shortly after they began communicating and that he had visited her Facebook profile, looking at her friends and photos. He also visited three different websites which showed that the minor girl had competed in 2012 in middle school track races. After viewing those websites, Isabella continued to communicate with the minor girl and saved to his phone the nude image she sent him.
“Producing child pornography victimizes children, it’s as simple as that,” said Acting U.S. Attorney Bob Troyer. “This defendant deservedly faces a minimum of 15 years, and up to life, thanks to the hard work of this elite investigation and prosecution team.”
“Sexual predators of children have a history of being able to charm their way into the trust of the children they prey upon,” said David A. Thompson, special agent in charge of HSI Denver. “However, in the age of the internet, these predators now present a danger to many more children. Parents need to be fully aware of how their children are using their electronic and social media; and all children should be continually reminded that strangers met via the internet may not be who they say they are. HSI has an active Operation Predator program to rescue child victims and criminally investigate their victimizers.”
Isabella faces not less than 10 years, and up to life in federal prison, as well as not more than a $250,000 fine for coercion and enticement of a minor. He also faces not less than 15 years, and up to 30 years in federal prison for attempted production of child pornography.
This case was investigated by HSI. The defendant was prosecuted by Assistant U.S. Attorneys Alecia Riewerts and Celeste Rangel.
Oblong, Illinois man indicted on attempted enticement and child pornography chargesRead the Press Release
Dustin E. Noblit, 28, of Oblong, IL, was indicted on October 4, 2016, on attempted enticement and child pornography charges in a three count Indictment returned by a Federal Grand Jury, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that on August 17-18, 2016, in Crawford County, Noblit used a facility and means of interstate commerce, that is a cell phone and the Internet, and knowingly attempted to persuade, induce, entice, and coerce an individual who had not attained the age of 18 years, to engage in sexual activity in violation of federal law.
Count 2 charges that on July 22-26, 2016, in Crawford County, Noblit knowingly received material, including digital images, that contained an image of child pornography that has been mailed, or shipped or transported in interstate commerce.
Count 3 charges that on August 18, 2016, in Crawford County, Noblit knowingly possessed material that contained an image of child pornography which had been mailed, or shipped or transported in interstate commerce.
With respect to Count 1, Noblit faces a penalty of 10 years to life imprisonment, up to a $250,000 fine, and up to 5 years’ supervised release following any term of imprisonment.
With respect to Count 2, Noblit faces 5-20 years’ imprisonment, up to a $250,000 fine, and up to lifetime supervised release following any term of imprisonment.
With respect to Count 3, Noblit faces up to 10 years’ imprisonment, up to a $250,000 fine, and up to lifetime supervised release following any term of imprisonment.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Oblong, Illinois Police Department, and the Crawford County Sheriff’s Department.
November 2016 ElectionsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Assistant United States Attorney (AUSA) Suntrease Williams-Maynard will lead the efforts of his Office in connection with the Justice’s Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Williams-Maynard has been appointed to serve as the District Election Officer (DEO) for the Southern District of Alabama, and in that capacity is responsible for overseeing the District’s handling of complaints in election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Kenyen R. Brown said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Kenyen R. Brown stated that AUSA/DEO Williams-Maynard will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (251) 441-5845.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (251) 438-3674.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253- 3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Kenyen R. Brown said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
New York Resident Sentenced in ATM Skimming SchemeRead the Press Release
PROVIDENCE, R.I. – Moises Morales Cano, 32, of Astoria, N.Y., was sentenced today to 24 months in federal prison for his participation in a conspiracy to manipulate ATMs in order to steal personal identifying information belonging to bank customers. The information was used to create fraudulent debit cards.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Cano to serve 5 years supervised release upon completion of his prison term and to pay restitution in the amount of $709,597.50. Cano pleaded guilty on May 3, 2016, to bank fraud and aggravated identity theft charges.
Cano’s sentence is announced by United States Attorney Peter F. Neronha; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Warwick Police Chief Colonel Stephen M. McCartney.
At the time of his guilty plea, Cano admitted to the court that between January 1 and April 4, 2015, he participated in a scheme to attach skimming devices on ATMs at banks in several communities in Rhode Island and Connecticut. Approximately 1,329 individuals had their debit cards compromised resulting in a loss of approximately $709,597.50.
An ATM skimming device is technology that directly attaches to an ATM in order to intercept unknowing customers’ debit card information from the magnetic strip on ATM cards. The stolen information and PINs are downloaded and re-encoded onto counterfeit debit cards. The counterfeit debit cards are used to make fraudulent transactions from the accounts of unknowing victims.
Cano has been detained in federal custody since his arrest on September 9, 2015.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Attorney’s Office, U.S. Secret Service and the Warwick Police Department, with the assistance of the Smithfield, East Providence, Cranston, and Johnston Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
New Jersey Doctor Charged with Health Care FraudRead the Press Release
PITTSBURGH - A New Jersey resident has been indicted by a federal grand jury in Pittsburgh on a charge of health care fraud, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Oct. 12, named Dr. Vincent J. Gamuzza, 30, of Hazelet, New Jersey as the sole defendant.
According to the indictment, Gamuzza, a doctor of optometry, operated multiple vision centers in Pennsylvania, including Western Pennsylvania and in New Jersey. Dr. Gamuzza submitted claims to Highmark, Inc. for medical services that were not rendered.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Department of Health and Human Services – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Moreno Valley Woman Indicted by Federal Grand Jury on Charges Alleging She Helped Her Husband Flee to MexicoRead the Press Release
Update:
RIVERSIDE, California – A federal grand jury has indicted a Moreno Valley woman on charges related to assistance she provided to her husband, who fled to Mexico while pending sentencing in a federal immigration case.
Elba Soto, 36, was named in a two-count indictment returned by a grand jury on Wednesday. The indictment charges Soto with being an accessory after the fact and with making false statements to the United States Marshals Service.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Soto is scheduled to be arraigned on the indictment in United States District Court on October 19. Until that time, Soto will remain in custody without bond.
If she is convicted of both counts in the indictment, Soto will face a statutory maximum sentence of 15 years in federal prison.
Original Release:
Inland Empire Woman Arrested on Federal Charges of Helping Her Husband Flee United States While He Was Pending Sentencing
RIVERSIDE, California – A Moreno Valley woman was arrested this morning (September 14) on federal charges after she allegedly helped her husband flee the United States after he had pleaded guilty in a federal criminal case.
Elba Soto, 36, was arrested without incident this morning by the U.S. Marshals Service. Soto made her initial appearance this afternoon in United States District Court in Riverside, where she was ordered detained (held without bond). An arraignment in the case was scheduled for October 19.
Soto was arrested pursuant to a criminal complaint that charges her with being an accessory after the fact for allegedly driving her husband to Mexico so he could avoid being sentenced after pleading guilty to illegal reentry after deportation.
Soto’s husband, Jose Guadalupe Vega-Zuniga, pleaded guilty on August 3 and remains scheduled to be sentenced on October 17. Vega-Zuniga admitted that he was in the United States without authorization after being deported to his native Mexico on four occasions between 2000 and 2008. When he pleaded guilty before United States District Judge Michael W. Fitzgerald in Los Angeles, Vega-Zuniga admitted that he previously had been convicted of drug trafficking and assault with a deadly weapon in state court, as well as being found guilty in 2000 of a felony offense of illegally being in the United States. At the time of his guilty plea, Vega-Zuniga was free on a $100,000 unsecured bond and was subject to electronic location monitoring.
According to the criminal complaint filed against Soto, Vega-Zuniga removed his location monitoring bracelet about four days after pleading guilty. On August 8, a person resembling Soto went to the court’s Pretrial Services Office and returned the electronic monitoring bracelet, explaining that Vega-Zuniga had removed the device and she did not know his whereabouts.
An investigation by the U.S. Marshals Service revealed that Soto’s vehicle entered Mexico through the Otay Mesa port of entry on August 18. Photographs taken during the crossing show Soto in the driver’s seat of the vehicle, with Vega-Zuniga in the passenger seat.
“The evidence in this case indicates the defendant knowingly transported her husband to Mexico while he was pending sentencing in the latest of his criminal cases,” said United States Attorney Eileen M. Decker. “If these allegations are proven, the defendant knowingly assisted a convicted felon avoid justice. As a result, the defendant now faces her own criminal case and a significant prison term.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If she is found guilty of being an accessory after the fact by helping Vega-Zuniga flee the United States, Soto would face half of the maximum prison sentence that Vega-Zuniga faces as a result of his guilty plea. Vega-Zuniga faces a statutory maximum sentence of 20 years in prison, so therefore Soto would face a sentence of up to 10 years in prison.
The case against Soto is being prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Man Who Defrauded Contributors to Sandy Hook-Related Charity is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT TERRY BRUCE, 35, of Overland Park, Kan., formerly of Nashville, Tenn., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation, the first six months of which BRUCE must spend in home confinement, for defrauding contributors to an organization he established after the December 2012 school shootings in Newtown.
According to court documents and statements made in court, in the aftermath of the December 14, 2012, Sandy Hook Elementary School shootings in Newtown, BRUCE founded the 26.4.26 Foundation. The 26.4.26 Foundation solicited charitable donations for a variety of purposes, including “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.”
In early 2013, BRUCE solicited and received contributions to 26.4.26 in connection with a charity athletic event in Gilford, N.H., called the Schools 4 Schools run. BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through an online PayPal account by representing to potential donors that the purpose of the event was “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.” BRUCE further represented to potential donors that “all proceeds will go to the 26.4.26 Foundation.”
Also in early 2013, BRUCE solicited contributions to 26.4.26 in connection with a charity athletic event in Tennessee called CrossFit Cares. As he had in the New Hampshire event, BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through PayPal by representing to potential donors that “all proceeds will go to the 26.4.26 Foundation” and that the “mission of 26.4.26 is to provide funding for the families of victims, memorials for teacher heroes and to increase safety in schools across the country.”
Instead of using all of the donated funds to support his purported mission, BRUCE used $28,657.31 of donated funds to enrich himself and to support his personal training business. Judge Thompson ordered BRUCE to pay restitution in that amount to the Sandy Hook Special Revenue Fund, which is administered by the Newtown Board of Selectmen.
BRUCE was arrested on February 13, 2015. On May 12, 2016, he pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan Wines.
MEDIA ADVISORY-- U.S. Attorney Damon P. Martinez to Participate in Saturday’s Domestic Violence Awareness RunRead the Press Release
ALBUQUERQUE – On Sept. 30, 2016, the President of the United States proclaimed October 2016 as National Domestic Violence Awareness Month, and called on “all Americans to speak out against domestic violence and support local efforts to support victims of these crimes in finding the help and healing they need.” U.S. Attorney Damon P. Martinez is responding to the President’s appeal by sponsoring and participating in a series of trainings and events aimed at raising awareness about domestic violence, helping survivors seek justice and enjoy full and healthy lives, and holding accountable those who engage in this criminal conduct.
In support of National Domestic Violence Awareness Month, U.S. Attorney Martinez will participate in tomorrow’s (Oct. 15, 2016) 5K Community Run sponsored by the Coalition to Stop Violence Against Native Women (the Coalition). Immediately before the run begins, the U.S. Attorney will join Deleana OtherBull, Executive Director of the Coalition, in making brief welcoming remarks.
The U.S. Attorney is participating in the Community Run to draw awareness to the fact that Native American women experience violence, including domestic violence, dating violence, sexual assault, stalking and murder, at rates dramatically higher than other women in this country. Four out of five Native women are affected by violence, with 55% of their experiences being domestic violence. Through this event, the Coalition is drawing awareness to the impact of domestic violence on our Native women and children and honors their resilience, strength and spirit.
The U.S. Attorney’s Office is committed to improving the safety of women in our tribal communities by working with tribal governments and organizations like the Coalition to decrease the number of Native American women who fall victim to violence and to strengthen the capacity of tribal governments to respond to violent crimes and support victims.
EVENT DETAILS AND SCHEDULE
DATE:
Saturday, Oct. 15, 2016
LOCATION:
Tingley Beach & Paseo Del Bosque Trail
SCHEDULE:
7:00-8:30 am – Registration
9:00 am – Opening and Traditional Welcoming
9:15 am – Start of 5K Run or Walk
10:00 am – Start of 1K Kiddo Run
OPEN PRESS
Luzerne County Woman Sentenced to 57 Months’ Imprisonment for Drug Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gina Paglianite, age 48, of Luzerne County, Pennsylvania, has been sentenced to 57 months’ imprisonment for selling cocaine, crack cocaine, and heroin.
According to United States Attorney Bruce D. Brandler, Paglianite had previously pleaded guilty before United States District Court Judge Robert D. Mariani to conspiracy to distribute cocaine and cocaine base (crack) in Luzerne County between 2011 and July 9, 2013. She also pleaded guilty to a separate count charging that she distributed heroin in Scranton, Pennsylvania, on November 21, 2014.
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.
In addition to the 57-month imprisonment sentence, Judge Mariani also ordered Paglianite to serve a three-year term of supervised release following service of her prison sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office. The case was prosecuted by Assistant United States Attorney John Gurganus.
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Loves Park Man Pleads Guilty to Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man pleaded guilty today before U.S. District Judge Philip G. Reinhard to producing child pornography.
ZACHARY RODRIGUEZ, 26, of Loves Park, admitted in his written plea agreement that on Nov. 6, 2014, he persuaded and enticed a minor female victim to engage in sexually explicit conduct for the purposes of having her use a cell phone to take photographs of the sexually explicit conduct, and then having her text the images to Rodriguez by cell phone from Iowa to Loves Park. According to the plea agreement, the female victim was 14 years of age at the time the pictures were produced and transmitted.
Rodriguez further admitted that between Aug. 9, 2014, and Jan. 20, 2015, he similarly persuaded four other minor female victims, who were between the ages of 14-17, to do the same. The minor victims resided in Ohio, Arizona, Connecticut, and Wisconsin. Each time, Rodriguez persuaded the victims to text the photographs to him in Illinois.
Rodriguez faces a statutory mandatory minimum sentence of 15 years in prison, a maximum sentence of 30 years, and a term of supervised release of at least five years up to life. The offense carries a maximum fine of $250,000.
Sentencing for Rodriguez is set for May 8, 2017, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Loves Park Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea AgreementLedyard Man Pleads Guilty to Distributing Crack, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAMIEN BRYANT, 41, of Ledyard, pleaded guilty today in Bridgeport federal court to one count of possession with intent to distribute cocaine base (“crack”) and cocaine. BRYANT also admitted that he violated the conditions of his supervised release that followed a previous federal conviction by committing the drug offense and associating with convicted felons while on release.
On March 5, 2010, BRYANT was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 42 months of imprisonment for distributing crack cocaine and violating the conditions of his supervised release from a previous federal conviction in the District of Rhode Island. He is currently serving a 10-year-term of federal supervised release.
According to court documents and statements made in court, in February 2016, the Stonington Police Department received information that BRYANT was distributing crack cocaine. On March 9, 2016, members of the Regional Community Enhancement Task Force and the Ledyard Police Department executed a state search and seizure warrant at BRYANT’s residence and seized crack cocaine, cocaine, marijuana, narcotics paraphernalia and more than $14,000 in cash. BRYANT was arrested at that time.
BRYANT is scheduled to be sentenced by Judge Underhill on January 7, 2016, at which time he faces a maximum term of imprisonment of 20 years for the narcotics offense, and an additional term of imprisonment of up to five years for violating his supervised release.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Regional Community Enhancement Task Force, and the Ledyard, Stonington and Groton Town Police Departments. The case is being prosecuted by Assistant U.S. Attorney John H. Durham with the assistance of Law Student Intern Joseph Falvey.
Largo Felon Sentenced for Possessing Loaded FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Michael Kelly (29, Largo) to 5 years and 10 months in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition.
Kelly was indicted on March 9, 2016, and convicted on June 29, 2016, after a jury trial. According to court documents, on October 15, 2015, FBI agents executed a search warrant at Kelly’s home and recovered a semi-automatic pistol from his bedroom. The firearm was loaded and contained nine rounds of 9mm ammunition. Agents also recovered three boxes of ammunition, containing a total of 150 rounds, from the top of his dresser. Kelly has multiple prior felony convictions, including possession of a sawed-off shotgun and aggravated assault, and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Pinellas County Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Simon A. Gaugush.
Lafayette man sentenced to 60 months in prison for receiving child pornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Thursday to 60 months in prison for receiving child pornography and storing it on a thumb drive.
James Michael Hinson, 67, of Lafayette, was sentenced by U.S. District Judge Patricia Minaldi on one count of receiving child pornography. He was also sentenced to five years of supervised release and must register as a sex offender. According to the June 2, 2016 guilty plea, electronic files containing child pornography were detected in May of 2015 as being transferred to an account associated with the defendant. Hinson was later arrested, and a thumb drive containing 383 images and 65 videos of child pornography was found.
Homeland Security Investigations and the Louisiana Attorney General’s Cyber Crime Unit conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Klamath Falls Man Sentenced for Threatening Vietnamese Neighbors and Interfering with their Right to Live in HomeRead the Press Release
MEDFORD, Ore. – On Friday, October 14, 2016, U.S. Magistrate Judge Mark D. Clarke sentenced John Blayne Vangastel, 37, of Klamath Falls, to five years of probation following his guilty plea to one count of using force or threat of force to intimidate and interfere with the housing rights of his neighbors because of their Vietnamese descent.
According to court documents, on the evening of December 30, 2015, Vangastel, who had been living next door to the victims for approximately three months, entered the family’s property without permission. Vangastel then forcibly blocked the family’s front gate so they could not park their vehicles on the property after returning home from work. When one of the family members told Vangastel to let go of the gate and leave the property, Vangastel told the victim he would have to “push [him] off the property.” Vangastel then raised his hand in a balled fist as though he was going to physically assault one of the female family members. He further admitted to instigating a fight with the entire family, threatening to hit them, and making racially-charged comments.
The December 2015 incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for twenty years without incident. As a result of Vangastel’s conduct and out of fear of continued abuse, the family moved from their home.
“The United States Attorney’s Office is committed to protecting the civil rights and freedoms of all Oregonians,” said Billy J. Williams, United States Attorney for the District of Oregon. “Criminal threats of violence that target people and communities because of their national origin threaten the core values that define a fair and just society. We will continue to partner with the Justice Department’s Civil Rights Division to aggressively and effectively prosecute hate crimes throughout the state.”
“Everyone in this country has the right to peacefully occupy their homes without fear of violence or intimidation on account of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Harassing and threatening force against innocent individuals because of where they or their relatives were born is an affront to the fundamental values of this nation, and the Civil Rights Division will continue to prosecute individuals who commit violence motivated by such bias.”
This case was investigated by the Medford Resident Agency of the FBI’s Portland Division in cooperation with the Oregon State Police and Klamath County District Attorney’s Office. The case was prosecuted by William E. Fitzgerald, Assistant United States Attorney for the District of Oregon, and Special Litigation Counsel Fara Gold of the Justice Department Civil Rights Division’s Criminal Section.
Kensington Man Sentenced to 17 Years in Federal Prison for Producing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Steven Edward Baker, age 41, of Kensington, Maryland, today to 17 years in federal prison, followed by lifetime supervised release, for producing child pornography. Judge Grimm also ordered that upon his release from prison, Baker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on July 8, 2015, FBI agents interviewed Baker at his business, Action Signs, located in Vienna, Virginia. Baker admitted that he had child pornography on both his work and home computers, and that he had been downloading child pornography for approximately 10 years. He estimated that his child pornography collection was approximately one terabyte in size.
Further investigation of digital media items obtained from Action Signs and Baker’s residence revealed 45 images and seven videos of a girl under the age of 12, all constituting child pornography, and produced by Baker. Baker produced the images and videos, including pictures taken at a park and what appears to be Baker’s home, from January 2008 to July 2013, using two cameras. The images included close ups of the victim, including numerous close-ups of the victim’s genitalia, and showing Baker touching areas in and around her genitalia.
Additionally, over 50,000 images and 1,000 videos of child pornography were found on the digital media which were not produced by Baker, but were downloaded from the internet. These images and videos depict real, prepubescent children engaged in sexually explicit conduct.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.
Johnston Resident Admits to Trafficking Oxycodone and MarijuanaRead the Press Release
PROVIDENCE, R.I. – Juan G. Catala, 41, of Johnston, pleaded guilty in federal court in Providence today to trafficking oxycodone and marijuana, announced United States Attorney Peter F. Neronha and Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration Office of Criminal Investigations (FDA OCI).
Appearing before U.S. District Court Judge John J. McConnell, Jr., Catala pleaded guilty to four counts of distributing oxycodone and one count of possession of marijuana with the intent to distribute.
According to court documents and information presented to the court, between January 2016 and March 2016, an individual assisting law enforcement in the investigation of Catala’s drug trafficking activities made at least four purchases of oxycodone tablets from Catala. Each of the transactions, ranging between 39 and 87 oxycodone tablets, were electronically monitored by law enforcement.
On July 6, 2016, FDA Task Force agents executed a court authorized search of Catala’s Johnston residence and seized 65 pounds of marijuana, in excess of $13,000 in cash, and several empty prescription bottles which previously contained oxycodone tablets. Agents seized an additional $1,500 in cash from Catala’s vehicle.
Catala is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on January 5, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The matter was investigated by the FDA Task Force, with the assistance of the Middletown and Johnston Police Departments. The FDA Task Force is comprised of agents and officers from the FDA, DEA, Homeland Security Investigations, U.S. Postal Inspection Service, Rhode Island State Police, Rhode Island National Guard, and the East Providence and North Providence Police Departments.
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Jacksonville Man Sentenced to 15 Years in Federal Prison for Using Facebook to Solicit Child Pornography from A Minor ChildRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Chad Jason Lansford (31, Jacksonville) to 15 years in federal prison for sending notices over the Internet soliciting images of child pornography from a 9 year old child. He was also ordered to serve a 10 year term of supervised release and to register as a sex offender upon his release from prison. Lansford pleaded guilty on July 6, 2016. He has been in custody since his arrest on March 12, 2015.
According to court documents, in January 2015, law enforcement officers responded to a complaint from the mother of a 9 year old girl who had found several sexually explicit images on her daughter’s Facebook account. The mother identified two of the images as depicting her daughter. A review of the child’s iPod revealed online conversations through Facebook between the child and Lansford, including a message Lansford had sent to the child on January 2, 2015, that included images of his genitalia. During Lansford and the child’s online conversation that day, the child told Lansford that she was 9 years old. Despite this knowledge, Lansford repeatedly requested that she take and send to him pornographic pictures of herself. Eventually, the child complied with Lansford’s demands and sent him pornographic pictures of herself.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.justice.gov/psc.
Israeli Executive Extradited and Arraigned on Fraud Charges Involving the Foreign Military Financing ProgramRead the Press Release
An Israeli national was extradited from Bulgaria and arraigned on charges arising from his participation in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced today.
According to the allegations contained in a five-count indictment filed in the United States District Court for the District of Connecticut in Hartford, Yuval Marshak, a former owner and executive of an Israel-based defense contractor, carried out three separate schemes between 2009 and 2013 to defraud the Foreign Military Financing program (FMF) and used a company in the United States to launder some of the proceeds of his fraud.
Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not, according to the indictment. Marshak further caused false certifications to be made to the United States Department of Defense (DOD) stating that no commissions were being paid and no non-United States content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DOD’s rules and regulations. Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments.
“By falsifying bid documents and receiving undisclosed side payments through a company in the United States, Marshak’s actions threatened the integrity of the FMF program, through which the United States government provides billions of dollars each year in foreign aid to countries around the world,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division. “Marshak’s extradition marks another step forward in our efforts to coordinate investigations with foreign authorities and is further evidence that the Antitrust Division will continue to vigorously pursue individuals and companies that compromise essential government programs regardless of where they reside.”
“This alleged fraud scheme targeting the FMF program erodes public confidence in the United States government to properly execute our fiduciary responsibilities for spending United States tax dollars in an efficient and prudent manner,” said Special Agent in Charge Craig W. Rupert of the U.S. Department of Defense’s Defense Criminal Investigative Service (DCIS). “DCIS and its federal and international partners will continue to pursue and investigate similar fraud allegations in order to shield the American taxpayers' investment in defense.”
“This indictment shows that the Department of Justice will work tirelessly to bring those like Mr. Marshak who are alleged to have defrauded our country's foreign aid programs to justice – even those who reside abroad,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut.
The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services. The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of United States origin to qualify for FMF funding. These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts. American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DOD.
Marshak is charged with two counts of wire fraud, one count of mail fraud, one count of major fraud against the United States and one count of international money laundering. The wire and mail fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine. The major fraud against the United States count carries a maximum penalty of 10 years in prison and a $1 million fine, while the international money laundering charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
As a result of the investigation, earlier this year the Antitrust Division entered into a non-prosecution agreement with Octal Corp., a New Jersey-based defense contractor that received one of the FMF contracts at issue. Octal acknowledged that its employees concealed the agreement to pay, and the payment of, the commission on the FMF contract the company received and falsely denied the commission in a written certification to the DOD. Under the terms of this agreement, Octal agreed to cooperate in the division’s investigation and to pay a monetary penalty of $100,000 and $360,000 in restitution to the DOD.
The Antitrust Division also entered into a non-prosecution agreement with Hale Products Inc., a Florida-based company that received another FMF contract referenced in the indictment. Hale acknowledged that, in connection with this FMF contract, its employees concealed the agreement to pay, and the payment of, the commission and falsely denied the commission in a written certification to the DOD. Hale agreed to cooperate in the division’s investigation and to pay a monetary penalty of $50,000 and $10,200 in restitution to the DOD.
Marshak is being prosecuted by the Antitrust Division’s New York Office and the Defense Criminal Investigative Service, with assistance from the United States Attorney’s Office for the District of Connecticut and Israel’s Ministry of Defense. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.html.
Hope Woman Sentenced to Seven Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Brittany Frierson, age 31 of Hope, Arkansas, was sentenced today to 84 months in federal prison followed by (3) three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to the Plea Agreement, on June 26, 2014, agents with the Arkansas South Central Drug Task Force applied for, received, and executed a search warrant at a residence in Hope. The warrant was based on the fact that on two occasions, law enforcement had arranged for a controlled purchase of methamphetamine from Brittany Frierson, a resident of that house. Investigators seized digital scales and a total of 9.41 grams of a substance containing methamphetamine. Frierson provided a statement during a post Miranda interview admitting that the methamphetamine belonged to her and stated that she had sold approximately $1,000 of methamphetamine on a weekly basis for the past three years. The suspected substance was sent to the Arkansas State Crime Lab where it was tested and determined to be 8.86 grams of actual methamphetamine. Frierson was indicted by a federal grand jury on February 25, 2015 and pleaded guilty to the charge on March 31, 2016.
“Methamphetamine continues to ruin countless lives and families every day. Frierson’s sentencing today is a reflection of our unwavering commitment to taking this drug off the streets of Arkansas,” stated SAC Diane Upchurch with the Federal Bureau of Investigation in Little Rock. “We will continue to work with the Arkansas South Central Drug Task Force and the United States Attorney’s Office in the Western District to arrest and prosecute the individuals responsible for distributing dangerous drugs to our communities. I'm grateful for the hard work of the Agents, Task Force Officers, Analysts and other personnel who contributed to this success."
The investigation was led by the Arkansas South Central Drug Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Jonathan Ross prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Helena Housing Authority Director Arrested, Charged with Theft of Government FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today the arrest of Lionell S. Moss, the executive director of the Helena Housing Authority (HHA), for his role in a scheme to steal government funds. Moss, 58, of Helena–West Helena, is charged in a federal indictment with theft of government funds and theft concerning programs receiving federal funds.
As the executive director for the HHA, Moss was responsible for properly managing the day-to-day operations of the housing authority without waste, fraud or mismanagement. As alleged in the indictment, from October 2011 through January 2015, while serving as executive director, Moss submitted materially false and fraudulent reimbursement requests for sick leave and annual leave, and made personal expenditures using the HHA credit cards. In total, Moss received approximately $57,907.40 from the scheme.
Late Friday afternoon, Moss appeared before United States Magistrate Judge Joe J. Volpe and was released on bond pending trial. If convicted, Moss faces a maximum penalty of 10 years in prison and a fine of $250,000.
This investigation is being conducted by the Housing and Urban Development— Office of Inspector General and the U.S. Marshals Service. Assistant U.S. Attorneys Edward Walker and Cameron McCree are prosecuting the case for the government.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harrisburg Man Sentenced for Illegal Gun PossessionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shaun L. Graves, age 33, a resident of Harrisburg, Pennsylvania, was sentenced on October 13 by Senior United States District Court Judge William W. Caldwell in Harrisburg, to 100 months in federal prison for being a felon in possession of a firearm.
According to United States Attorney Bruce D. Brandler, Graves was arrested by Harrisburg police officers on October 16, 2014 and found to be in possession of a loaded Bersa .380 caliber semi-automatic pistol bearing an obliterated serial number in his boot. As a convicted felon, he was prohibited for possessing firearms.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco, and Firearms Enforcement and prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Harrisburg Man Sentenced for Distribution of OxycodoneRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Keith Hillard, age 49, a resident of Harrisburg, was sentenced on October 12, 2016 by United States District Court Judge Sylvia H. Rambo, to 33 months’ imprisonment for charges involving the unlawful distribution of prescription drugs.
According to United States Attorney Bruce D. Brandler, Hillard pled guilty to unlawful distribution of 100 tablets of Oxycodone, a Schedule II controlled substance, on August 21, 2015.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Dauphin County Drug Task Force, and the Harrisburg Police Department. Assistant United States Attorney William A. Behe prosecuted the case.
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Guilty Verdict Against Essex County, New Jersey, Man for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was convicted today by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.
Lucas Sumler, 42, was convicted of possessing a firearm despite his previous conviction in U.S. District Court in New Jersey. Sumler was convicted today following a two-day trial before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case and the evidence at trial, on March 25, 2016, Sumler, was found in possession of a .357 magnum revolver along with six rounds of ammunition.
The charge of which Sumler was convicted carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 1, 2017.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, along with the Newark Police Division, the Essex County Prosecutor’s Office and the Essex County Sheriff's Office, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Jonathan W. Romankow and Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Fourteen Indicted in Large-Scale Heroin Trafficking RingRead the Press Release
Boston – Fourteen individuals were indicted yesterday in U.S. District Court in Springfield in connection with a large-scale heroin trafficking organization that was supplied by sources in the Dominican Republic and New York.
Thirteen men and one woman from Springfield, Mass. and Bronx, NY were indicted on conspiracy to distribute and possess with intent to distribute heroin. On Sept. 22, 2016, all of the following individuals, with the exception of Carlos Sierra (aka Rivera) who remains a fugitive at large, were arrested and charged in a criminal complaint with conspiring to distribute heroin:
- Alberto Marte, 31, of Springfield;
- Marcos Pena, 29, of Springfield;
- Julian Declet, 32, of Springfield;
- Jiovanni Rodriguez, 29, of Springfield;
- Jose Miguel Ramos, 36, of Springfield;
- Pablo Rosario, 32, of Bronx, NY;
- Carlos Sierra (aka Rivera), 40, of Springfield (fugitive);
- Mirelvy Vasquez, 26, of Springfield;
- Diolfi Antonio Marte Vasquez, 25, of Springfield;
- Anthony Patino, 31, of Springfield;
- Juan Perez, 29, of Springfield;
- Eduardo Ferndandez, 38, of Hazelton, Penn.;
- Anyuly Tavarez, 30, of Springfield; and
- William Brantley, 45, of Springfield.
“The devastating impact of the heroin epidemic is evident by the lives it cuts short and the families it touches.,” said United States Attorney Carmen M. Ortiz. “By combining federal, state and local resources, we can stem the flow of heroin into Massachusetts’ and stop the deadly and damaging impact it has on our communities.”
“Here in western Massachusetts, local, state, and federal law enforcement agencies are successfully working together to combat the opioid crisis,” said Hampden County District Attorney Anthony D. Gulluni. “This investigation shows that we will hold accountable those who seek to profit from addiction by selling and trafficking drugs on our streets and in our neighborhoods. I thank United States Attorney Carmen Ortiz and our federal partners for bringing these indictments forward.”
“DEA is addressing the threat of heroin and fentanyl, both internationally and domestically. We prioritize our resources by identifying, targeting and destroying these extremely violent and very organized cartels,” said Special Agent in Charge Michael J. Ferguson. “DEA and its law enforcement partners have effectively dismantled the command and control elements as well as the distribution network in New England and the Dominican Republic that are responsible for putting this poison on the streets of Springfield and Chicopee as well as throughout New England.”
According to court documents, Alberto Marte, the head of a drug trafficking organization, had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. The organization then packaged the heroin and distributed it using a variety of stamps, including “Donald Trump” and “Hollywood.” The Hollywood brand of heroin has been associated with a number of overdose deaths in western New England that occurred in late 2015 and early 2016. During the course of the investigation, more than five kilos of heroin was seized by federal agents.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. Heroin is highly addictive, and users can quickly develop a tolerance, prompting them to seek higher potencies and greater quantities of the narcotic. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
“The indictments handed down in this investigation charge a violent criminal group allegedly responsible for flooding western Massachusetts with a highly-addictive and often lethal form of heroin,” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston. “Working alongside our law enforcement partners, HSI will continue to use its unique authorities to ensure this poison and those who peddle it are removed from our communities.”
“The Springfield Police Department continues to work with its local, state and federal partners to address criminality and quality of life issues for the residents of Springfield,” said Commissioner John Barbieri. “We are fortunate to have the invaluable assistance of our partners in this collaborative effort.”
“I would like to offer my gratitude to the DEA, and all agencies involved in this operation,” said Chicopee Police Chief William Jebb. “Once again, this shows that by working as a cohesive unit, sharing information, and sharing together, major operations such as this come to a successful conclusion. This eight month-long investigation resulted in the arrest of 13 individuals, over three kilos of heroin, eight firearms and thousands of dollars. Our city has unfortunately seen too many overdoses, and deaths, from heroin. Because of the efforts of all involved, this dangerous drug was kept off of our streets, and resulted in many lives saved.”
The charge of conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin provides for a minimum mandatory sentence of 10 years and up to life in prison, a lifetime of supervised release and a fine of $350,000. The charge of conspiracy to distribute and possess with the intent to distribute a quantity of heroin provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $55,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz; District Attorney Gulluni; DEA SAC Ferguson; HSI SAC Etre; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Barbieri; Chicopee Police Chief Jebb; Holyoke Police Chief James Neiswanger; and West Springfield Police Chief Ronald Campurciani, made the announcement today. Assistant U.S. Attorney Neil Desroches of Ortiz’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former State Department Employee Sentenced to Prison in $2 Million Government Contract ConspiracyRead the Press Release
ALEXANDRIA, Va. – Kenneth Apple, 65, of Beaverton, Oregon, was sentenced today to 50 months in prison for his role in awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq. The court also ordered Apple to serve three years of supervised release, pay approximately $1.9 million in restitution, and forfeit $551,838.73.
According to the court documents and evidence presented at trial, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts. The conspirators further provided false information to, and concealed material details from the U.S. government.
According to the court documents and evidence presented at trial, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents. When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-363.
Former Non-Profit Health Clinics CEO Sentenced to 18 Years for Funneling Millions in Grant Money to Private CompaniesRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former chief executive of two non-profit health clinics for the poor and homeless to 18 years in prison for funneling millions in federal grant money to private companies he formed to contract with the clinics. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson announced the sentence.
U.S. District Judge Barbara Jacobs Rothstein sentenced JONATHAN WADE DUNNING, 53, of Hoover, for conspiracy, bank fraud, wire fraud and money laundering. The judge ordered Dunning to pay $13.5 million in restitution to the U.S. Department of Health and Human Services, the Health Resources and Services Administration, the Birmingham Financial Federal Credit Union and the non-profit health clinics Birmingham Health Care and Central Alabama Comprehensive Health.
Dunning orchestrated and led a criminal enterprise for his personal benefit that involved an extensive conspiracy and scheme to defraud HHS, HRSA, the non-profit clinics BHC and CACH, the credit union and others, out of more than $16 million over the course of seven years, the government said in its sentencing memorandum.
A federal jury in June convicted Dunning on 98 of 112 charged counts related to his involvement with BHC, CACH, BFFCU, and a group of for-profit businesses known as the “Synergy Entities.” Over the years, BHC and CACH received millions of dollars in federal grant funds through HRSA to further their missions of providing healthcare services to underserved populations.
“Jonathan Dunning formed Synergy Entities so he could bleed money away from non-profit clinics meant to provide medical care to the neediest of people and make himself rich by diverting millions of dollars into his personal accounts and businesses,” Vance said. “Motivated by greed, Mr. Dunning had no regard for the harm he caused others. He earned today’s prison sentence.”
“Heartless and appalling are just a few words to describe Jonathan Dunning’s actions,” Hyman-Pillot said. “The impact of his scheme extends beyond monetary loss. Citizens in need of medical attention were deprived of care due to his callous behavior. The judgment against Dunning is the consequence of his greed.”
“Stealing money away from programs that provided health care to poor and homeless people in order to live lavishly is an abominable crime,” Stanton said. “The FBI and its law enforcement partners are committed to joining forces and putting in the hours, and years if necessary, to stop this kind of crime.”
“This is one of the most outrageous fraud cases I have seen,” Jackson said. “Dunning embezzled millions of dollars in federal grant money that diverted desperately needed resources from those who need it most. Today’s sentencing sends a hard message to criminals like Dunning that they will be prosecuted to the fullest extent of the law, to include hard prison time and millions of dollars payable to U.S. taxpayers.”
Dunning was the chief executive officer of BHC and CACH for a period of time and left those jobs to run his for-profit businesses. Even after leaving his post as CEO, however, Dunning continued to exercise control over BHC and CACH. Between October 2008 and October 2011, Dunning served as president, board chairman and loan officer of the Birmingham credit union. From those various positions, he led the conspiracy that defrauded BHC, CACH, their funding agencies, and others.
“The need for medical care and clinical services for the homeless, indigent, and uninsured is well-known in this and other communities,” the government said in its sentencing memorandum. “Through the Synergy Entities, the defendant siphoned more than $16 million in money and property from two nonprofit health centers and the federal agency that funded them. He caused CACH to close its doors, drove BHC to the brink of bankruptcy, cost employees of CACH and BHC their jobs, precipitated the collapse of a credit union, and caused additional harm to others in the process. BHC and CACH had an essential mission of providing health care desperately needed by the communities they served. The defendant thwarted that mission and diverted the money and property to his personal benefit for one simple reason: greed.”
FBI, IRS-CID, and HHS-OIG investigated the case, which Assistant U.S. Attorneys Melissa K. Atwood, Tamarra Matthews-Johnson and John B. Ward prosecuted.
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Former NCIS Supervisory Special Agent Sentenced to 12 Years in Prison for Taking Bribes from Foreign Defense Contractor in Massive Fraud and Corruption ScandalRead the Press Release
Assistant U. S. Attorneys Mark W. Pletcher (619) 546-9714 or Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – October 14, 2016
SAN DIEGO – Former Naval Criminal Investigative Service supervisory special agent John Beliveau II was sentenced in federal court today to 12 years in prison for disclosing sensitive law enforcement reports to a foreign defense contractor who was the target of a criminal fraud investigation in exchange for cash, luxury travel and the services of prostitutes.
Beliveau, 47, of York, Pennsylvania, was sentenced by U.S. District Judge Janis L. Sammartino, who also ordered Beliveau to pay $20 million in restitution to the Navy. Beliveau pleaded guilty on December 17, of 2013 to conspiracy to commit bribery and bribery. Beliveau was immediately taken into custody at his own request.
According to admissions made in his plea agreement, Beliveau helped former Glenn Defense Marine Asia (GDMA) CEO Leonard Glenn Francis perpetrate a massive fraud scheme on the U.S. Navy by providing information that allowed Francis to evade and thwart criminal investigations into misconduct by GDMA.
During the sentencing hearing, Judge Sammartino said Beliveau’s position of trust as a law enforcement agent, plus the immeasurable impact of his betrayal on NCIS and the Navy, warranted a strong sentence. “A great deal of harm occurred as a result of your conduct,” she told the defendant.
“John Beliveau’s reprehensible decision to provide sensitive information to the targets of ongoing fraud investigations in exchange for bribes tragically tarnished his badge and the reputation of NCIS,” said Andrew Traver, director of the Naval Criminal Investigative Service (NCIS). “It is impossible to quantify the extent or duration of the harm done by Beliveau, but holding him accountable will further signal that NCIS is committed to rebuilding the trust he damaged.”
“John Beliveau’s deceit was a devastating blow to the U.S. Navy and ultimately the nation that he was sworn to protect,” said U.S. Attorney Laura Duffy. “While this disgraced agent serves what may be the longest prison sentence ever handed down to a federal agent in a corruption case, his colleagues are left to rebuild the trust and credibility that he singlehandedly destroyed.”
“Beliveau tarnished his NCIS badge and sold sensitive law enforcement information for envelopes of cash, luxury travel and tawdry entertainment,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “His actions risked an important criminal investigation and the safety of witnesses who agreed to cooperate with law enforcement under the belief that their identities would be protected. Today’s sentence reflects the gravity of those crimes [if multiple counts] and makes clear that we will not tolerate law enforcement corruption.”
“Today’s sentencing sends a resounding message that justice will be served regardless of rank or position." Said Dermot O’Reilly, director of the Department of Defense’s Defense Criminal Investigative Service. “The conduct of former NCIS Supervisory Special Agent Beliveau is reprehensible. The foundation of our criminal justice system relies on the public's trust in the law enforcement community. Whenever a law enforcement member breaches that trust, it leaves an indelible stain on those who serve to enforce our nation’s laws. The Defense Criminal Investigative Service and its law enforcement partners will relentlessly pursue any individual who places at risk the safety and security of our armed forces personnel.”
“We are proud to be part of the team that has been investigating the criminal allegations in the Glenn Defense Marine Asia case. It is especially troubling that someone in his role is on the wrong side of the investigation,” said Anita Bales, Director, Defense Contract Audit Agency.
According to his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to Francis and GDMA. Over the course of years, he helped Francis avoid multiple criminal investigations by providing copies of these reports. These reports not only tipped off Francis that he was the target of a criminal investigation, but provided sensitive law enforcement information about the ongoing investigation, including the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
Beliveau regularly demanded money and prostitutes from Francis. “I will always be your friend, but you will get nothing else…until I get what you promise,” he said in an email to Francis in April 2012. “You give whores more money than you give me…I can be your best friend or your worst enemy. I am not an amateur.”
Beliveau admitted that he attempted to cover up his involvement by asking Francis to delete incriminating emails and deactivate an email account, and warned Francis about indictments and a warrant on his email account.
Beliveau also admitted that he counseled Francis on how to perpetuate his fraud scheme and evade detection. In July 2011, Beliveau advised Francis to respond to the pending NCIS investigation into GDMA’s submission of a fraudulent claim to the U.S. Navy for dockage and wharfage fees for certain U.S. Navy ship visits to Thailand.
In return for providing him with information, Francis provided Beliveau with envelopes containing cash, luxury travel from Virginia to Singapore, the Philippines and Thailand. On many occasions, beginning in 2008 and continuing through 2012, while Beliveau was posted in Singapore, Francis provided him with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Beliveau, 11 of those are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug, Naval Criminal Investigative Service Supervisory Special Agent John Beliveau and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Gilbeau, Sanchez and Simpkins also await sentencing. Brooks and Pitts were charged in May 2016 and their cases are pending.
Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy. Francis and Aruffo have pleaded guilty and await sentencing; Peterson’s and Raja’s cases are pending.
DCIS, NCIS and the Defense Contract Audit Agency are investigating. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT
Case Number: 13cr3781
John Bertrand Beliveau II 44 Woodbridge, Virginia
SUMMARY OF CHARGES
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Maximum of 5 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater
Bribery in violation of 18 U.S.C. § 201
Maximum of 15 years in prison; a maximum fine of $250,000, twice the gross gain or loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security Investigations
Defense Contract Audit Agency
Former NCIS Supervisory Special Agent Sentenced to 12 Years in Prison for Taking Bribes from Defense Contractor in Massive Fraud and Corruption ScandalRead the Press Release
A former Naval Criminal Investigative Service (NCIS) supervisory special agent was sentenced in federal court today to 144 months in prison for disclosing sensitive law enforcement reports to a defense contractor who was the target of a criminal fraud investigation in exchange for cash, luxury travel and the services of prostitutes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Andrew Traver of the Naval Criminal Investigative Service (NCIS), Director Dermot O’Reilly of the Department of Defense’s (DoD) Defense Criminal Investigative Service (DCIS) and Director Anita Bales of the Defense Contract Audit Agency made the announcement.
John Bertrand Beliveau II, 47, of York, Pennsylvania, was sentenced by U.S. District Judge Janis L. Sammartino of the Southern District of California, who also ordered Beliveau to pay $20 million in restitution to the Navy. According to admissions made as part of his plea agreement, Beliveau helped former Glenn Defense Marine Asia (GDMA) CEO Leonard Francis perpetrate a massive fraud scheme on the U.S. Navy by providing information that allowed Francis to avoid, stall and thwart criminal investigations into misconduct by GDMA.
“Beliveau tarnished his NCIS badge and sold sensitive law enforcement information for envelopes of cash, luxury travel and tawdry entertainment,” said Assistant Attorney General Caldwell. “His actions risked an important criminal investigation and the safety of witnesses who agreed to cooperate with law enforcement under the belief that their identities would be protected. Today’s sentence reflects the gravity of those crimes and makes clear that we will not tolerate law enforcement corruption.”
“John Beliveau’s deceit was a devastating blow to the U.S. Navy and ultimately the nation that he was sworn to protect,” said U.S. Attorney Duffy. “While this disgraced agent serves what may be the longest prison sentence ever handed down to a federal agent in a corruption case, his colleagues are left to rebuild the trust and credibility that he singlehandedly destroyed.”
“John Beliveau’s reprehensible decision to provide sensitive information to the targets of ongoing fraud investigations in exchange for bribes tragically tarnished his badge and the reputation of NCIS,” said Director Traver. “It is impossible to quantify the extent or duration of the harm done by Beliveau, but holding him accountable will further signal that NCIS is committed to rebuilding the trust he damaged.”
“Today’s sentencing sends a resounding message that justice will be served regardless of rank or position." said Director O’Reilly. “The conduct of former NCIS Supervisory Special Agent Beliveau is reprehensible. The foundation of our criminal justice system relies on the public’s trust in the law enforcement community. Whenever a law enforcement member breaches that trust, it leaves an indelible stain on those who serve to enforce our nation’s laws. The Defense Criminal Investigative Service and its law enforcement partners will relentlessly pursue any individual who places at risk the safety and security of our armed forces personnel.”
“We are proud to be part of the team that has been investigating the criminal allegations in the Glenn Defense Marine Asia case,” said Director Bales. “It is especially troubling that someone in his role is on the wrong side of the investigation.”
According to his plea agreement, Beliveau acknowledged that he regularly searched confidential NCIS databases for reports of investigations related to Francis and GDMA. Over the course of years, he helped Francis avoid multiple criminal investigations by providing copies of these reports. These reports not only tipped off Francis that he was the target of a criminal investigation, but provided sensitive law enforcement information about the ongoing investigation, including the identities of the subjects of the investigations; information about witnesses, including identifying information about cooperating witnesses and their testimony; the particular aspects of GDMA’s billings that were of concern to the investigations; the fact that the investigations had obtained numerous email accounts and the identities of those accounts; the reports to prosecutors and their interactions with the investigations; and planned future investigative activities.
Beliveau admitted that he attempted to cover up his involvement by asking Francis to delete incriminating emails and deactivate an email account, and warned Francis about indictments and a warrant on his email account.
Beliveau also admitted that he counseled Francis on how to perpetuate his fraud scheme and evade detection. In July 2011, Beliveau advised Francis to respond to the pending NCIS investigation into GDMA’s submission of a fraudulent claim to the U.S. Navy for dockage and wharfage fees for certain U.S. Navy ship visits to Thailand.
In return for providing him with information, Francis provided Beliveau with envelopes containing cash, luxury travel from Virginia to Singapore, the Philippines and Thailand. On many occasions, beginning in 2008 and continuing through 2012, while Beliveau was posted in Singapore, Francis provided him with prostitutes, lavish dinners, entertainment and alcohol at high-end nightclubs. The tab for each of these outings routinely ran into the thousands of dollars.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Beliveau, 11 of those are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Gilbeau, Sanchez and Simpkins also await sentencing. Brooks and Pitts were charged in May 2016 and their cases are pending.
Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy. Francis and Aruffo have pleaded guilty and await sentencing; Peterson’s and Raja’s cases are pending.
DCIS, NCIS and the Defense Contract Audit Agency are investigating. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Former Flat Rock , N.C. Jewelry Store Owner Senteced to More Than Three Years on Mail Fraud ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced yesterday Dina R. Garfinkel, a.k.a. Dina Drake, Dina Lebovitch, and Ruth Lebovitch, to 41 months in prison on mail fraud charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Garfinkel, 69, of New York City, was also ordered to serve three years under court supervision after she is released from prison and to pay $400,000 as restitution to her victims.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to filed documents and statements made in court, Garfinkel was the owner and operator of Nikki B. Designs, LLC, a jewelry store located in Flat Rock, N.C. From about 2012 through April 2013, Garfinkel defrauded 12 wholesale companies of at least $400,000 in merchandise she had ordered on consignment, commonly referred to in the jewelry industry as “on memo.” Court records show that using an alias, Garfinkel would contact wholesalers located throughout the United States and order diamonds and/or jewelry on memo. According to court records, in most instances in order to establish trust and rapport with the victim companies, Garfinkel made quick payments for the initial orders she received. This caused the wholesalers to send Garfinkel additional merchandise, for which she either did not pay, partially paid, or paid using worthless checks. According to statements made in court, Garfinkel has three previous convictions for carrying out the same scheme in New York and in Florida.
Garfinkel pleaded guilty to mail fraud in April 2016. She is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was led by HSI. Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville prosecuted the case.
Former Coach USA Inc. Executive Pleads Guilty to Attempting to Obstruct JusticeRead the Press Release
A former executive of Coach USA Inc. was criminally charged with obstructing justice and pleaded guilty today for concealing and attempting to destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of the litigation, the Department of Justice announced.
Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc., admitted to directing his subordinates to conceal and destroy documentary materials relevant to the investigation and providing false and misleading statements to Coach’s investigators, and the Antitrust Division, according to court documents filed in this case in the U.S. District Court for the Southern District of New York. Additionally, according to court documents, Groen admitted to denying the existence of backup practices and procedures during a deposition taken as part of the litigation.
“Simply put, executives who obstruct Antitrust Division investigations will be vigorously prosecuted,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “It is critical that the division has access to all relevant information to evaluate the potential harm to consumers of the conduct we investigate, and Groen’s actions in this case denied the division that access.”
“With today’s guilty plea, Mr. Groen took responsibility for concealing and destroying documents in a civil antitrust investigation and then lying about it,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office. “The FBI continues to work together with our partners to protect the integrity of our judicial system and ensure that those who make false and misleading statements under oath are held accountable criminally.”
The civil litigation, which was filed in the United States District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach USA Inc.’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. On November 17, 2015, the district court entered a Final Judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division's lawsuit.
Groen Information
This investigation into obstruction of justice is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.Federal jury finds Lafayette man guilty of possessing a firearm after felony convictionRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found a Lafayette man guilty Thursday of possessing a handgun after being convicted of a felony.
Damion Hamilton, 32, of Lafayette, was found guilty of one count of possession of a firearm by a convicted felon. United States District Judge Donald E. Walter presided over the trial, which started Tuesday and ended Thursday with the jury returning the guilty verdict after deliberating for approximately three hours. Evidence admitted at trial revealed that a traffic stop was conducted on a vehicle Hamilton was driving on January 19, 2016. A search of the vehicle was conducted, and a gun safe was found on the vehicle’s back seat. The safe was later opened, and a FNS-40 .40 caliber pistol and ammunition were found. In addition to DNA evidence, the pistol’s loaded magazine also had Hamilton’s fingerprints on it.
Hamilton faces up to 10 years in prison, three years of supervised release, forfeiture of the weapon seized and a $250,000 fine. Sentencing will be set at a later date.
“Those prohibited from carrying firearms because of a prior felony will be prosecuted to the fullest extent of the law,” Finley stated. “In this case, it took the work of federal and local law enforcement to bring this defendant to justice. These collaborations further our work to keep firearms out of the hands of criminals and protect our community.”
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and Lafayette Police Department investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Kelly P. Uebinger are prosecuting the case.
Fairfield Doctor Pleads Guilty to Illegally Prescribing OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BELLOFIORE, M.D., 56, of Trumbull, pleaded guilty yesterday in Hartford federal court to one count of issuing unlawful prescriptions for oxycodone.
“Medical practitioners play a critical role in battling the epidemic of opioid abuse that we are experiencing,” said U.S. Attorney Daly. “The strict rules associated with prescribing controlled substances are in place for a reason: to help ensure that these highly-addictive narcotics aren’t abused or illegally diverted. Those who knowingly prescribe opiates in violation of federal law will be prosecuted.”
According to court documents and statements made in court, BELLOFIORE is a physician with an office in Fairfield. Two of BELLOFIORE’s longtime patients were a married couple who lived in Connecticut until approximately 2011, when they relocated to Florida.
BELLOFIORE knew that, prior to moving to Florida, the couple had unlawfully obtained forged prescriptions for opioid medications from BELLOFIORE’s former medical assistant and, as a result, he should have been aware of the possibility that the couple was abusing or diverting their medications.
After moving to Florida, the couple traveled to Connecticut approximately twice per year, during which visits they scheduled medical appointments with BELLOFIORE. At the conclusion of each appointment, BELLOFIORE provided the couple with approximately six months of predated prescriptions, including prescriptions for Oxycodone, to last until their next appointment.
At times, the couple was unable to travel to Connecticut to see BELLOFIORE and obtain their prescriptions in person, in which case BELLOFIORE left the predated prescriptions for a friend or relative of the couple to pick up from BELLOFIORE’s office. It was BELLOFIORE’s understanding that the friend or relative would fill the prescriptions each month at a pharmacy in Connecticut and mail the medications to the couple in Florida.
In approximately February 2016, BELLOFIORE provided a stack of prescriptions to a friend of the married couple. The prescriptions, which were improperly dated to make it appear that they were issued at monthly intervals after February 2016, authorized the couple to receive thousands of pills of oxycodone and Percocet, a medication containing oxycodone. BELLOFIORE also failed to include on the prescriptions the couple’s address in Florida, which might have alerted a pharmacist filling the prescriptions in Connecticut to the possibility that the medications were being abused or diverted.
The couple subsequently diverted a significant amount of their medications for profit by arranging through a middleman for street-level resale of the pills in and around Waterbury.
The Controlled Substances Act prohibits physicians from dispensing any Schedule II controlled substance, including oxycodone, without a valid written prescription. The prescription must be “dated as of, and signed on, the day when issued” and “bear the full name and address of the patient.” A practitioner also may not issue multiple prescriptions at any single time authorizing a patient to receive more than a 90-day supply of a Schedule II controlled substance.
BELLOFIORE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 11, 2016, at which time he faces a maximum term of imprisonment of one year and a fine of up to $100,000.
BELLOFIORE was released pending sentencing. As a condition of his release, he is prohibited from writing prescriptions for controlled substances.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Eleven Defendants Charged with Bank Fraud for Maxing Out Fraudulently Obtained Credit CardsRead the Press Release
CHICAGO — Eleven people fraudulently obtained multiple credit cards and quickly maxed out the credit limits, with no intention of ever paying back the balance, according to an indictment unsealed in federal court in Chicago.
The defendants applied for the credit cards online, using false employment and income information to secure approval and bolster the credit limits, according to the indictment. Upon receipt of the cards, the defendants purchased goods and services, and quickly reached the maximum credit limits to obtain as much money as possible from the financial institutions who issued the cards, the indictment states. Some of the defendants later filed for bankruptcy in order to discharge the debts they had charged to the credit cards. The scam began in April 2010 and continued until at least October 2015, according to the indictment.
The indictment states that several of the defendants also created phony corporations and linked mobile payment accounts to them. Fictitious purchases were then made through the bogus corporations, creating charges that were reimbursed by the credit card issuers, the indictment states.
Charged with one count of bank fraud are GABRIEL CWYNAR, 37, of Chicago; IZABELA KAPUSCIAK, also known as “Izabela Cwynar,” 39, of Chicago; JAROSLAW WYSOCKI, 48, of Schaumburg; BARTOSZ POZNIAK, 42, of Mount Prospect; JOLANTA WYSOCKA, 50, of Schaumburg; MONIKA SZCZUREK, 36, of Lombard; MARCIN CYCHOWSKI; 41, of Addison; DANIEL NOGA, also known as “Daniel Terlecki,” 41, or Des Plaines; FRANCISZEK BYSTRON, 37, of Park Ridge; ARTHUR RADOLINSKI, 32, of Lisle; and ELZBIETA BUCZEK, 37, of Bensenville.
The eleven-count indictment was returned Sept. 29, 2016, and ordered unsealed yesterday. It seeks forfeiture of at least $1.3 million.
The defendants pleaded not guilty during arraignments yesterday before U.S. Magistrate Judge Young B. Kim. A status hearing is scheduled for Dec. 1, 2016, before U.S. District Judge James B. Zagel.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of bank fraud is punishable by up to 30 years in prison and a $1 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Timothy J. Chapman and Kavitha Babu.
IndictmentEast St. Louis Man Sentenced for Heroin OffensesRead the Press Release
On Friday, October 14, 2016, Urechan D. Brown, age 39, of East St. Louis, IL., received a sentence of 60 months’ imprisonment (5 years) in federal prison for Conspiracy to Distribute Heroin in Excess of 100 grams (just under 4 oz.). Brown was also sentenced to concurrent 60 month sentences for Distribution of Heroin, and Possession with Intent to Distribute Heroin. When released from prison, Brown will have to serve a term of 4 years on supervised release, as well.
Brown pled guilty to the three federal charges on June 3, 2016. At his change of plea hearing, Brown admitted that he and co-defendant Kelvin B. Hughes had distributed over 100 grams of heroin in East St. Louis between June 2014 and August 2015. On September 8, 2016, Brown’s nephew and co-defendant Kelvin Hughes was also sentenced to 60 months’ imprisonment.
Brown has been continuously confined in federal custody since his arrest in August 2015.
The investigation which resulted in Brown’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA); the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois (MEGSI); and by the Clinton County, IL Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Pleads Guilty to Charges in Shooting and Assault in Downtown WashingtonRead the Press Release
WASHINGTON – Ryan Matthews, 28, of Washington, D.C., pled guilty today to charges stemming from an incident in which he shot one person and assaulted two others last month in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Matthews pled guilty in the Superior Court of the District of Columbia to one count of assault with intent to kill, one count of possession of a firearm during a crime of violence, and two counts of assault. The Honorable Michael Ryan scheduled sentencing for Dec. 16, 2016.
According to the government’s evidence, on Sept. 10, 2016, at about 3:15 a.m., Matthews approached a complete stranger in the 1300 block of Connecticut Avenue NW and punched him in the abdomen; the victim fell to the ground. Two of the victim’s friends, who were standing nearby, confronted Matthews and asked why he had punched their friend. At this point, Matthews said words to the effect of, “Do you want a piece, too?” and swung at one of the men with his fist, striking him in the neck. A man who was nearby approached Matthews to ask about what happened and Matthews declared words to the effect of, “I guess you want to fight, too.”
Matthews then beckoned the man to approach him, and the man told Matthews to come to him instead. At this point, Matthews drew a semi-automatic pistol, walked toward the man, and shot him once at close range in the right side of the chest. Other individuals, who were nearby at the time of the shooting, pursued Matthews and flagged down police officers. Matthews, meanwhile, discarded his shirt as he ran away and threw his gun into a dumpster in an alley off 18th Street NW. Police apprehended him and recovered the weapon. The shooting victim was taken to a hospital and is continuing to recover from his injuries.
In announcing the plea, U.S. Attorney Phillips commended the work of those who responded to the crime and investigated the case from the Metropolitan Police Department’s Second District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Michael J. Romano, who investigated and prosecuted the matter.
Disbarred Attorney Indicted in Mortgage Modification SchemeRead the Press Release
SANTA ANA, California – A disbarred California attorney was arrested this morning on federal charges of running a mortgage modification scheme that defrauded more than 75 distressed homeowners in Orange County by inducing them to pay more than $1.4 million for services he never provided.
Moses S. Hall, 60, a resident of Blackwood, New Jersey, who formerly had a law practice in Fullerton, was arrested without incident this morning at his residence after being indicted this week on fraud and tax offenses.
According to the 16-count indictment returned Wednesday by a federal grand jury, Hall operated his mortgage modification scheme from 2008 until 2012 through his law offices, as well as businesses called “Salva Casas” and “Loan Modifications of America.” The indictment alleges that Hall told distressed homeowners to stop making their mortgage payments, and instead direct their monthly mortgage payments to him, purportedly so he could use that money to negotiate with the banks. Instead, as detailed in the indictment, Hall used the victims’ money for himself.
The indictment alleges that Hall concealed from victims that he was using their money to pay for personal expenses and that he was a previously convicted felon who had served years in state prison in New Jersey prior to being admitted as an attorney in California.
Over the course of the fraudulent scheme, more than 75 victims were cheated out of more than $1 million, and some subsequently lost their homes. One married couple entrusted Hall with $400,000 to help them modify their mortgages. According to the indictment, Hall spent that $400,000 on personal expenses in only six months. That couple subsequently lost their home to foreclosure.
As further alleged in the indictment, Hall withdrew more than $1 million in cash from the bank accounts into which the victims’ payments had been deposited. Hall allegedly wrote checks to himself and his daughter, and used $25,000 cash to purchase a Mercedes Benz.
“This defendant allegedly used his position as a licensed attorney to persuade victims that he could help them with their financial problems,” said United States Attorney Eileen M. Decker. “Instead of working for his clients, the defendant simply pocketed their money to fund an extravagant lifestyle. He has lost his license to practice law, and now he faces a significant prison term for the alleged crimes.”
Hall is also charged with interfering with the administration of the tax laws. Hall allegedly failed to file tax returns for the years 2008 through 2012, thereby failing to report more than $1 million in income. Hall was further charged with failing to report more than $400,000 in income for 2009 by failing to file a federal tax return for that year. Moreover, the indictment alleges that when Hall was interviewed in December 2015, he lied to IRS Special Agents about his use of that money.
“As set forth in today’s indictment, Mr. Hall allegedly preyed on struggling and trusting homeowners, literally stealing the American Dream out from under them,” said Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “IRS CI, along with our federal law enforcement partners, remains committed to investigating and prosecuting those who commit mortgage fraud and line their pockets with profits from these schemes.”
“Schemes like this have heartbreaking consequences for the victims and we need to make it clear in no uncertain terms that this kind of criminal activity will not be tolerated,” said David Prince, acting special agent in charge for HSI Los Angeles. “HSI will continue to work closely with its federal, state, and local law enforcement partners to aggressively target those who, motivated by greed, engage in activities that harm consumers and undermine the integrity of our financial system.”
According to the California State Bar, Hall was disbarred in 2012 for “misconduct in three loan modification matters.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Hall is expected to make his initial court appearance this afternoon in United States District Court for the District of New Jersey.
If convicted of the 16 charges in the Indictment – one count of mail fraud, 13 counts of wire fraud, and the two tax charges – Hall would face a statutory maximum penalty of 284 years in federal prison.
This investigation was conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Secret Service. The State Bar of California, Office of Chief Trial Counsel, provided assistance during the investigation.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting the case.
Dead Man Inc. Member Sentenced to 15 Years in Federal Prison for Retaliating Against a Federal WitnessRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony E. Alascio, age 31, formerly of Baltimore, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for retaliating against a witness who had testified in a federal criminal trial involving Dead Man Inc. (DMI).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.
“We have zero tolerance for any efforts to intimidate or retaliate against witnesses,” said U.S. Attorney Rod J. Rosenstein.
On November 26, 2013, Alascio was an inmate at the Chesapeake Detention Facility (CDF) in Baltimore, awaiting trial in federal court on charges stemming from a December 28, 2012 armed robbery of a pharmacy in case number ELH-13-0153 (Robbery Case).
According to his plea agreement, Alascio was a member of Dead Man, Incorporated (DMI), a criminal gang founded in Maryland prisons in the 1990s. On November 26, 2013, during a series of recorded telephone call made from CDF, Alascio informed several individuals that he would soon be going into secure detention because of something he was about to do.
Later that day, Alascio assaulted another inmate at CDF using a sock filled with batteries and dominoes that had been taped together. The victim was seriously injured, including serious bleeding, lacerations that required stitches, and bruising. The victim was admitted to a nearby hospital for treatment and discharged two days later.
During the assault, Alascio called the victim a “snitch.” The assault was captured on video and the weapon was later found in Alascio’s cell. In a letter written in detention later that evening, Alascio admitted to beating the victim. Alascio referred to the victim as a “RAT” and stated that the victim “told on my peoples so he got what he deserved.”
Several weeks before the assault, the victim testified in the federal trial of Jose Morales. Evidence introduced at the Morales trial established that Morales paid DMI to murder Robert Long. Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at that trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long. Morales was sentenced to life in prison on December 9, 2013. The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
On December 23, 2013, Alascio pled guilty to robbery in the Robbery Case and was sentenced on March 28, 2014 to 135 months in federal prison. J udge Titus ordered that today’s sentence will be served consecutive to the sentence in the Robbery Case.
Earlier this year a federal grand jury indicted Troy Allen Lucas a/k/a “Troy Madron,” age 47, of Baltimore, Maryland on charges arising from the murder-for-hire of Robert Long. Lucas, an alleged DMI gang member, is scheduled to go to trial in September 2017.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police, ATF and Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Coram Man Sentenced for Illegal Gun Dealing and ManufactureRead the Press Release
MISSOULA – John Stewart Davis, 71, of Coram, Montana was sentenced yesterday to 48 months in prison and three years’ supervised release for dealing in firearms without a license and making and transferring a machinegun. Chief District Court Judge Dana L. Christensen issued the sentence.
Davis was charged by indictment and pleaded guilty to three counts on June 20, 2016. In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Davis dealt in firearms without a license and that he made and transferred a machinegun that was not registered. He also sold firearms to out of state residents. Davis had been dealing firearms without a license for 25 years, although only the years 2013-2015 were listed in the indictment.
Undercover law enforcement officers purchased weapons from Mr. Davis on multiple occasions at gun shows and at Davis’ shop in northwest Montana. Some of these purchases were regular firearms, some were machineguns, and some sales were to out of state residents. Davis told agents that he made a machinegun and showed them how it worked. Further, the agents observed that a room in his shop had a workbench, tools, and machines for gunsmithing, and that firearms and firearms parts were on the work bench. Davis also obliterated the serial numbers from some of the firearms so they could not be traced back to him. Many of these sales occurred without paperwork.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Montana Division of Criminal Investigation, and the Royal Canadian Mounted Police.
Colorado's U.S. Attorney's Office Honors Community PolicingRead the Press Release
DENVER – In honor of National Community Policing Week, and in a show of support for the Community Policing concept, members of Colorado’s U.S. Attorney’s Office, led by Acting U.S. Attorney Bob Troyer, organized and participated in events throughout the state during the past two weeks.
The Colorado U.S. Attorney’s Office was host to Deputy Attorney General Sally Yates, who came to Denver to participate in the Denver Justice Forum. The Forum was an opportunity for many different community leaders to voice their concerns about policing practices. It also provided law enforcement with a chance to address misconceptions. The work of the Forum participants continues as the group will meet again to develop specific strategies to build relationships between community representatives and law enforcement.
Another Community Policing project initiated by the U.S. Attorney’s Office was the “Protecting Houses of Worship” or the PHOW program. This program provides training to security-minded individuals who are responsible for protecting their places of worship, whether it be a church, mosque, synagogue or other faith-based facility. To date, the U.S. Attorney’s Office has hosted nearly a dozen PHOW trainings across much of Colorado.
In addition, multiple representatives from the Colorado U.S. Attorney’s Office, both staff and attorneys, have participated in a number of community based programs in Denver and Aurora, including GRID (Gang Reduction Initiative Denver) and GREAT (Gang Resistance Education and Training). U.S. Attorney’s Office employees have also been teaching community policing related lessons at Gilpin Elementary in Northeast Denver as part of the Project LEAD Program (Legal Education And Decision Making). Project LEAD is program that teaches students about law and the criminal justice system as well as how to make good decisions and stay away from situations that could result in bad decisions. At the end of the program students will then participate in a mock-trial. Finally, representatives from the office attended five “Coffee with a Cop” events this week in locations throughout Metro Denver.
The Department of Justice recently announced awarding a number of grants, including a grant to hire Community Policing Officers. In Colorado the Pueblo Police Department was awarded $875,000 for the COPS Hiring Program. The Department has also dedicated grant money to improve responses to violence, including officer shootings.
“Engaging the community and developing lasting, meaningful relationships with law enforcement is critical to the residents of Denver, as well as to all Coloradoans,” said Acting U.S. Attorney Bob Troyer. “The Justice Forum was an excellent leap toward the goal of restoring trust, removing barriers, and establishing a lasting long-term positive relationship between the police and the community.”
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Loretta E. Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Cleburne, Texas, Man Sentenced to Six Months in Federal Prison for Aiming a Laser Pointer at HelicopterRead the Press Release
DALLAS — Austin Lawrence Siferd, 24, of Cleburne, Texas, was sentenced last week by U.S. District Judge David C. Godbey to six months in federal prison, announced John Parker, U.S. Attorney for the Northern District of Texas.
Siferd pleaded guilty earlier this year to an indictment charging one count of aiming a laser pointer at an aircraft.
According to documents filed in the case, in July 2015, Siferd knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Siferd aimed the laser at the helicopter while the helicopter was flying overhead. DPS was responding to reports that several commercial airlines had been hit with a laser in the same area that evening.
The FBI, Texas DPS and Johnson County Sheriff’s Office investigated. Assistant U.S. Attorney Mark Penley prosecuted.
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Buffalo Man Sentenced for Production, Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Paul F. Archambault, Jr., 29, of Buffalo, NY, who was convicted following a jury trial of production, receipt and possession of child pornography, was sentenced to 30 years in prison by U.S. District Judge Richard J. Arcara. The 30 year sentence will be served consecutive to a seven year sentence the defendant received in the Northern District of New York for failing to register as a sex offender and a violation of supervised release.
Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, Jr., who handled the prosecution of the case, stated that in August 2012, the defendant contacted a minor victim via MeetMe.com, a social networking website. Archambault later enticed that minor victim to engage in sexually explicit conduct for the purpose of producing visual depictions. The defendant was also found guilty of two counts of receipt of child pornography for images he obtained from the minor victim via email, and one count of possessing child pornography on a SD card, located within one of the defendant’s two cellular phones.
Archambault was previously convicted of possessing child pornography in the Northern District of New York in 2009.
The sentencing is the result of an investigation on the part of Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the United States Marshals Service, under the direction of Charles Salina.
Buffalo Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jose Cisneros, 31, of Blasdell, NY, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in August 2015, the Blasdell Police Department alerted the FBI about a 13 year old female (victim 1) engaging in sexually explicit conversations using the Kik application and text messages with an individual later identified as Cisneros. During their communications, the defendant and victim 1 exchanged graphic photos.
During an interview with the FBI, the mother of Cisneros’s two children told agents that she found a phone belonging to the defendant which contained a sexual text conversation. The woman confronted Cisneros which resulted in an argument that led to police responding to the residence.
The plea is the culmination of an investigation by Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen.
Sentencing is scheduled for February 10, 2016 at 1:30 p.m. before Judge Arcara.
Baltimore Man Pleads Guilty to Damaging Property of a Reproductive Health Services FacilityRead the Press Release
Travis Reynolds, 21, of Baltimore, pleaded guilty today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.
The charge stems from incidents that occurred late in the evening on Feb. 24, 2016, and early in the morning on Feb. 25, 2016, when Reynolds and another man decided to vandalize a Baltimore area women’s health care clinic. Reynolds spray-painted the words “Baby Killer,” “Kill Baby Here” and other graphic messages across the building where the clinic is located.
During his guilty plea before U.S. Magistrate Judge Beth Gesner of the District of Maryland, Reynolds admitted that he vandalized the clinic because it offered abortion services. At the time of his arrest, Reynolds admitted to police that he defaced the clinic’s doors, walls and windows because he thought that it would deter women from using the clinic.
“The Justice Department will continue to aggressively enforce the FACE Act, which makes it a crime to intentionally damage a clinic because it offers reproductive health services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While people have a First Amendment right to peacefully express their views, they do not have a right to vandalize clinics in the hopes of deterring women from receiving lawful services that those facilities provide.”
The case was investigated by the FBI and the Baltimore County Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.
Reynolds Plea AgreementAlabama Man Sentenced to Prison for His Role in Stealing Identities from His EmployerRead the Press Release
A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company. The warehouse contained employees’ Forms W-4. Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander. Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns.
Fearson pleaded guilty to one count of aggravated identity theft in July. Following his prison term, Fearson will serve six months of supervised release. In March, Alexander was sentenced to 111 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Sentenced to Prison for His Role in Stealing Identities from His EmployerRead the Press Release
WASHINGTON - A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company. The warehouse contained employees’ Forms W-4. Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander. Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns.
Fearson pleaded guilty to one count of aggravated identity theft in July. Following his prison term, Fearson will serve six months of supervised release. In March, Alexander was sentenced to 111 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Accountant Pleads Guilty to Stealing $3.5 Million from EmployerRead the Press Release
BOSTON – A former accountant for an investment advising company pleaded guilty today in U.S. District Court in Boston in connection with a fraud scheme in which he stole more than $3.5 million from his employer.
Gary Tiffany II, 32, pleaded guilty to two counts of wire fraud and one count of monetary transactions in property derived from specified unlawful activity. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Jan. 16, 2017.
Tiffany was responsible for maintaining his employer’s checkbook and making electronic payments on the company’s account to vendors and for office expenses and reimbursements. He was also responsible for downloading monthly bank statements and emailing them to his supervisor to be used to reconcile his employer’s accounts. From about April 2011 through November 2015, Tiffany made wire transfers totaling more than $3 million from his employer’s accounts to his personal accounts, and he forged signatures on about 46 checks payable to himself totaling about $456,000. Tiffany concealed his scheme by making false entries in his employer’s electronic accounting system and altering bank statements he obtained online before forwarding them to his supervisor. Tiffany obtained a total of about $3,557,304 from his employer’s accounts, nearly all of which he used for his own benefit.
The wire fraud statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and restitution. The monetary transactions statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.
Thursday 13 October 2016
Williamson man sentenced to federal prison for escaping halfway houseRead the Press Release
CHARLESTON, W.Va. – A Williamson man was sentenced to a year in prison for escape, announced United States Attorney Carol Casto. Damien Bagut, 37, previously pleaded guilty to escaping from a halfway house where he was serving a sentence for distribution of cocaine.
Bagut admitted that he was transferred to Dismas Charities in St. Albans to complete the remainder of his sentence in a residential halfway house. On November 28, 2015, Bagut left the halfway house with permission to attend his work shift. He failed to report to his job, however, and did not return to the halfway house. He was apprehended by law enforcement in Williamson on January 14, 2016, and he was incarcerated for the remainder of his sentence.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Gabriele Wohl is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This is the third case this year for escaping from a halfway house prosecuted by the United States Attorney’s Office. The permissions granted to residents of halfway houses are designed to make transitions from federal prison back into society successful. These cases are part of an effort by the U.S. Attorney’s Office to deter those serving the remainder of their prison sentences in halfway houses from unlawfully abandoning this transition period before their sentences are complete.
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