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Wednesday 5 October 2016
Seventeen Individuals Indicted for Respective Roles in Human Trafficking Scheme that Exploited Hundreds of Thai Women for Commercial Sex in the United StatesRead the Press Release
Sex Trafficking Organization Engaged in Visa Fraud and Debt Scheme to Recruit Victims into the United States for Prostitution
An indictment unsealed late yesterday in St. Paul, Minnesota, charges 17 members of an international sex trafficking organization with transporting hundreds of women from Thailand and profiting from advertising them for commercial sex throughout the United States.
The charged defendants include 12 Thai nationals and five U.S. nationals. Eight of the 17 charged defendants were arrested yesterday at various locations in Minnesota, California, Illinois, Georgia and Hawaii. One charged defendant was previously arrested in Belgium and four defendants remains at large.
The announcement was made by Attorney General Loretta E. Lynch; U.S. Attorney Andrew M. Luger of the District of Minnesota; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Special Agent in Charge Alex Khu of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul Division and Special Agent in Charge Shea Jones of the Internal Revenue Service-Criminal Investigation (IRS-CI) St. Paul Field Office.
“Human trafficking is a degrading crime that undermines our nation’s most basic promises of liberty and security," said Attorney General Lynch. “This case demonstrates the Justice Department’s determination to hold traffickers accountable and to help the survivors of this appalling practice reclaim their freedom and dignity. As part of our nationally recognized Anti-Trafficking Coordination Team Initiative, the District of Minnesota is playing a crucial role in those vital efforts, and I want to commend all of the team members whose cooperation led to today’s action.”
“The 17 people charged in this indictment ran a highly sophisticated sex trafficking scheme,” said U.S. Attorney Luger. “They promised women in Thailand a chance at the American dream, but instead exploited them, coerced them and forced them to live a nightmare. In short, the victims lived like modern day sex slaves. Today’s indictment is our ninth sex trafficking case since 2014, but it is the first that targets an entire organization. We will continue to work closely with our federal and local law enforcement partners to target and dismantle these types of far-reaching organizations.”
“The Justice Department created the Anti-Trafficking Coordination Team (ACTeam) Initiative to bring together federal law enforcement agencies to enhance our impact in investigating and prosecuting human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “This case is an outstanding example of these efforts. We will continue to work tirelessly with them to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This week’s arrests reflect HSI’s global reach and ongoing efforts to dismantle criminal organizations that engage in human trafficking activities,” said Special Agent in Charge Khu. “HSI also remains firmly committed to rescuing victims and getting them help they desperately need to begin recovering from the depredations forced on them by these criminals.”
“From coast to coast, IRS Criminal Investigation is determined to team with our law enforcement partners to track down the individuals who facilitate and launder the proceeds of sex trafficking crimes,” said Special Agent in Charge Jones. “Those who seek to enrich themselves by exploiting the desperate circumstances of their victims will not be tolerated in our cities.”
According to the indictment, which was returned under seal on Sept. 28, 2016, since at least 2009, the criminal organization has recruited and transported hundreds of women, which the organization refers to as “flowers,” from Thailand to various locations across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington D.C., Las Vegas, Houston, Dallas and Austin, for purposes of exploiting them for prostitution. Once in the United States, victims were allegedly placed in houses of prostitution where they were forced to work long hours – often all day, every day. As alleged in the indictment, the women were not allowed to leave the prostitution houses unless accompanied by a member of the criminal organization.
According to allegations in the indictment, which identifies several of the women as victims of human trafficking, the organization often recruited women from impoverished backgrounds who spoke little English. Recruiters exploited these vulnerabilities during the recruitment process, promising the victims access to a better life in the United States in exchange for a debt of between $40,000 and $60,000, which the women were required to pay off through prostitution earnings. As alleged in the indictment, before transporting the women to the United States, the organization would typically arrange to have the women photographed for purposes of advertising them for sex on websites like backpage.com and eros.com. The organization also encouraged the women to have breast implants in Thailand to make them “more appealing” to potential sex buyers in the United States and added the cost to the victims’ debt.
The organization engaged in widespread visa fraud to facilitate the international transportation of the women into their commercial sex enterprise, the indictment alleges. Members of the criminal organization assisted in obtaining fraudulent visas and travel documents for the women, and members of the conspiracy used personal information on the women and their families, which they gathered in the course of obtaining the fraudulent documents, to threaten victims who became non-compliant or tried to flee.
The defendants include:
- Sumalee Intarathong, 55, who was a boss in the scheme is currently incarcerated in Liege, Belgium, is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering; conspiracy to use a communication facility to promote prostitution and conspiracy to commit visa fraud.
- Chabaprai Boonluea, 42, of Winder, Georgia, was a house boss in the operation and is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Watcharin Luamseejun, 46, was a house boss in the scheme and is charged with conspiracy to commit sex trafficking; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Pantilla Rodpholka, 31, of Mount Prospect, Illinois, was a house boss in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Noppawan Lerslurchachai, 35, of Lomita, California, was a facilitator in the scheme and is charged with conspiracy to commit sex trafficking; sex trafficking by use of force, fraud and coercion; conspiracy to commit forced labor; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Khanong Intharathong, 44, of Dunwoody, Georgia, was a facilitator in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Andrew Flanigan, 51, of Winder, was a facilitator in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Patcharaporn Saengkham, 41, of Los Angeles, was a facilitator in the scheme and is charged with conspiracy to commit visa fraud.
- Yadaporn Panngoen, 30, Los Angeles, was a facilitator in the scheme and is charged with conspiracy to commit visa fraud.
- Supapon Sonprasit, 31, of St. Paul, was a facilitator in the operation and is charged with conspiracy to commit visa fraud.
- Thi Vu, 48, of Atlanta, was a runner in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- Todd Vassey, 54, of Lahanina, Hawaii, was a runner in the scheme and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
- John Zbracki, 59, of Lakeville, Minnesota, was a runner in the operation and is charged with conspiracy to commit sex trafficking; conspiracy to commit transportation to engage in prostitution; transportation to engage in prostitution; conspiracy to engage in money laundering and conspiracy to use a communication facility to promote prostitution.
According to the indictment, Intarathong served as a boss before her arrest in Belgium earlier this year. As alleged in the indictment, each woman identified as a victim of human trafficking was “owned” by Intarathong or another boss until the victim could repay the debt.
According to the indictment, other members of the criminal organization served as “house bosses,” who owned one or more of the houses of prostitution where the “flowers” were exploited for commercial sex. House bosses were responsible for day-to-day operations, including advertising the “flowers” for commercial sex, maintaining the houses of prostitution, scheduling appointments with sex buyers and ensuring that a significant portion of the prostitution proceeds were routed back to the trafficker/boss to pay down the debt. The house boss kept the remainder of the prostitution proceeds, while the women were not permitted to retain any of their earnings, except for the occasional tip offered by a sex buyer.
As set forth in the indictment, other members of the criminal organization served as “facilitators,” who were primarily responsible for laundering the criminal proceeds of the organization and for directing the movement of victims within the United States, while other co-conspirators served as “runners.” The runners were typically men who were paid, in part, by receiving access to sex acts with the women. Runners accompanied the women anytime they were permitted to leave a house of prostitution to obtain personal items, travel as directed by the criminal organization or deposit money into accounts set up by the organization for repayment of the women’s debts. Runners were also sometimes asked to rent hotel rooms, apartments or other facilities for the organization.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case is the result of an investigation conducted by HSI; IRS-CI; Department of State’s Diplomatic Security Service; St. Paul Police Department; Anoka County, Minnesota, Sheriff’s Office; and Cook County, Minnesota, Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center.
Assistant U.S. Attorneys Melinda Williams and Laura Provinzino of the District of Minnesota are prosecuting the case with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Seventeen Indicted for Their Roles in Trafficking Hundreds of Thai Sex Slaves in the United StatesRead the Press Release
SAINT PAUL – An indictment unsealed late yesterday in Saint Paul, Minn., charges seventeen members of an international sex trafficking organization with transporting hundreds of female Thai sex slaves from Thailand and trafficking them throughout the United States.
The charged defendants include 12 Thai Nationals and five U.S. Nationals. Eleven of the seventeen charged defendants were arrested yesterday at various locations in Minnesota, California, Illinois, Georgia, and Hawaii. One charged defendant was previously arrested in Belgium. Four defendants remain at large.
The announcement was made by Attorney General Loretta E. Lynch; U.S. Attorney Andrew M. Luger of the District of Minnesota; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Special Agent in Charge Alex Khu of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) St. Paul Division and Special Agent in Charge Shea Jones of the Internal Revenue Service (IRS) Criminal Investigation Division’s St. Paul Field Office.
“Human trafficking is a degrading crime that undermines our nation's most basic promises of liberty and security,” said Attorney General Lynch. “This case demonstrates the Justice Department’s determination to hold traffickers accountable and to help the survivors of this appalling practice reclaim their freedom and dignity. As part of our nationally recognized Anti-Trafficking Coordination Team Initiative, the District of Minnesota is playing a crucial role in those vital efforts, and I want to commend all of the team members whose cooperation led to today’s action.”
“The 17 people charged in this indictment ran a highly sophisticated sex trafficking scheme,” said U.S. Attorney Luger. “They promised women in Thailand a chance at the American dream, but instead exploited them, coerced them and forced them to live a nightmare. In short, the victims lived like modern day sex slaves. Today’s indictment is our ninth sex trafficking case since 2014, but it is the first that targets an entire organization. We will continue to work closely with our federal and local law enforcement partners to target and dismantle these types of far-reaching organizations.”
“The Justice Department created the Anti-Trafficking Coordination Team (ACTeam) Initiative to bring together federal law enforcement agencies to enhance our impact in investigating and prosecuting human trafficking,” said Principal Deputy Assistant Attorney General Gupta. “This case is an outstanding example of these efforts. We will continue to work tirelessly with them to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This week’s arrests reflect HSI’s global reach and on-going efforts to dismantle criminal organizations that engage in human trafficking activities,” said Special Agent in Charge Alex Khu, of HSI St. Paul. “HSI also remains firmly committed to rescuing victims and getting them help they desperately need to begin recovering from the depredations forced on them by these criminals.”
“As this operation clearly shows, human trafficking—in this case the trafficking of vulnerable Thai women for sex—knows no boundaries,” said Sgt. Sean Johnson, an investigator with the Saint Paul Police Department Human Trafficking Unit. “We’re proud to be part of a community in which agencies work together to send a clear message to anyone who would traffic or purchase women for sex: Your actions will not be tolerated here, and we will hold you accountable for your actions.”
“From coast to coast, IRS Criminal Investigation is determined to team with our law enforcement partners to track down the individuals who facilitate and launder the proceeds of sex trafficking crimes,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office. “Those who seek to enrich themselves by exploiting the desperate circumstances of their victims will not be tolerated in our cities.”
According to the indictment, which was returned under seal on September 28, 2016, since at least 2009, the criminal organization has trafficked at least hundreds of women, which the organization refers to as “flowers,” from Bangkok, Thailand, to various cities across the United States, including Minneapolis, Los Angeles, Chicago, Atlanta, Phoenix, Washington, D.C., Las Vegas, Houston, Dallas, and Austin, among others. Once in the United States, victims are placed in houses of prostitution where they are forced to work long hours – often all day, every day – having sex with strangers. The victims are not allowed to leave the prostitution houses unless accompanied by a member of the criminal organization.
According to the indictment, victims are often from impoverished backgrounds and speak little English. Recruiters exploit these vulnerabilities during the recruitment process. Victims are promised access to a better life in the United States, in exchange for an exorbitant “bondage debt” of between $40,000 and $60,000. Before being transported to the United States, the organization would typically arrange to have professional-quality escort-style photographs taken of the victims, which would ultimately be sent to traffickers in the United States and used to advertise the victims for sex on websites like backpage.com and eros.com. The organization also encouraged victims to have breast implants in Thailand to make the victims “more appealing” to potential sex buyers in the United States. The cost of the cosmetic surgery was added to the victims’ bondage debt.
According to the indictment, the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
According to the indictment, SUMALEE INTARATHONG, a/k/a
“Joy,” served as a boss/trafficker before her arrest in Belgium on August 5, 2016. Each trafficked victim was “owned” by INTARATHONG or another boss/trafficker, until the victim could repay the bondage debt. The trafficker arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.According to the indictment, other members of the criminal organization served as “house bosses,” who owned one or more of the houses of prostitution to which the flowers were trafficked. House bosses were responsible for day-to-day operations of the houses of prostitution they controlled, which included advertising the “flowers” for commercial sex, maintaining the houses of prostitution, scheduling sex buyers, and ensuring that a significant portion of the money earned by the victims was routed back to the trafficker/boss to pay down the bondage debt. The house boss kept the remainder of the money earned by the victim. The victim was not allowed to keep any money, except for the occasional tip offered by a sex buyer.
According to the indictment, other members of the criminal organization serve as “facilitators.” These individuals were primarily responsible for laundering the criminal proceeds of the organization and for directing the movement of victims within the United States.
According to the indictment, others among the co-conspirators served as “runners.” The runners were typically men who were paid, in part, in sex with the victims. Runners accompanied the victims anytime they were permitted to leave a house of prostitution. Victims were allowed to obtain personal items, to travel at the direction of the criminal organization, or to deposit money into bank accounts set-up by the organization for the victims to repay their bondage debt. Runners were also sometimes asked to rent hotel rooms, apartments or other facilities for the organization.
This case is the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office and Cook County Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2).
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda Williams and Laura Provinzino are prosecuting the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit.
Defendant Information:
Boss/Trafficker
SUMALEE INTARATHONG, a/k/a “Joy,” 55
Liege, Belgium (Incarcerated)
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
- Conspiracy to commit visa fraud, 1 count
House Bosses
CHABAPRAI BOONLUEA, 42
Winder, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
WATCHARIN LUAMSEEJUN, 46
Unknown
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PANTILLA RODPHOLKA, 31
Mount Prospect, Ill.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
Facilitators
NOPPAWAN LERSLURCHACHAI, 35
Lomita, Calif.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Sex trafficking by use of force, fraud, and coercion, 1 count
- Conspiracy to commit forced labor, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
KHANONG INTHARATHONG, 44
Dunwoody, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
ANDREW FLANIGAN, 51
Winder, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
PATCHARAPORN SAENGKHAM, 41
Los Angeles, Calif.
Charges:
- Conspiracy to commit visa fraud, 1 count
SUPAPON SONPRASIT, 31
St. Paul, Minn.
Charges:
- Conspiracy to commit visa fraud, 1 count
Runners
THI VU, 48
Atlanta, Ga.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
TODD VASSEY, 54
Lahanina, Hawaii
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
JOHN ZBRACKI, 59
Lakeville, Minn.
Charges:
- Conspiracy to commit sex trafficking, 1 count
- Conspiracy to commit transportation to engage in prostitution, 1 count
- Transportation to engage in prostitution, 1 count
- Conspiracy to engage in money laundering, 1 count
- Conspiracy to use a communication facility to promote prostitution, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sentencings for October 3 - October 5, 2016Read the Press Release
Jesse Wade Penfield, 27, of Newcastle, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 5, 2016, for possession with intent to distribute methamphetamine. Penfield was arrested in Newcastle, Wyoming. He received 41 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Charles Michael Carsten, 28, of Pittsburg, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 4, 2016, for being a felon in possession of a firearm. Carsten was arrested in Wellington, Colorado. He received 24 months of imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Dakota Stanley, 24, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 3, 2016, for uttering counterfeit currency. Stanley was arrested in Casper, Wyoming. He received 18 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution will be determined at a later date. This case was investigated by the U.S. Secret Service.
Second former lab manager pleads guilty to tampering with water samplesRead the Press Release
BECKLEY, W.Va. – A former lab manager from Raleigh County who falsified data pleaded guilty today to a violation of the Clean Water Act, announced United States Attorney Carol Casto. John Brewer, 62, of Beaver, is the second former employee of Appalachian Laboratories to be prosecuted for a federal crime involving the Clean Water Act.
Appalachian Laboratories performed water sampling and analysis for coal mining operations to ensure that the discharges of pollutants into public waterways were within the limits of permits issued by the West Virginia Department of Environmental Protection. From at least 2008 through the summer of 2013, law enforcement found evidence of irregularities in the sampling. Brewer admitted that he knew and approved of employees falsifying the date that water samples were taken, as well as falsifying dates himself. Brewer further admitted that Appalachian Laboratories employees would falsify the date a sample was taken in order to avoid collecting samples that they believed to be in violation of permit limits. Instead, the employees would wait until they believed the water was within permit limits and then take a sample. They then backdated the samples to make it appear as though the samples had been collected in the previous month as required. Brewer additionally admitted that he caused this falsified data to be submitted in a report to the West Virginia Department of Environmental Protection.
Brewer faces up to two years in federal prison and a fine of $250,000 when he is sentenced on January 18, 2017. John Shelton, another former lab manager at Appalachian Laboratories, previously pleaded guilty to conspiring to violate the Clean Water Act. Shelton was sentenced in February 2015 to a year and nine months in federal prison.
The investigation was conducted jointly by the FBI and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorney Eric Bacaj and Special Assistant United States Attorney Perry McDaniel are in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Roswell Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Brandy Lynn Matthewson, 38, of Roswell, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Matthewson and her co-defendant Gilbert Nick Montes, 36, also of Roswell were arrested on May 24, 2016, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute in March 2016, in Chaves County, N.M. According to the complaint, in March 2016, Matthewson was distributing methamphetamine on behalf of Montes, following Montes’ arrest on other methamphetamine trafficking charges.
During yesterday’s proceedings, Matthewson pled guilty to a felony information charging her with conspiracy to possess methamphetamine with intent to distribute, and admitted that she participated in a conspiracy to distribute methamphetamine in Chaves County between Nov. 2015 and March 2016, in Chaves County. At sentencing, Matthewson faces a statutory maximum penalty of 20 years in prison. A sentencing hearing has yet to be scheduled.
Montes was previously arrested in a separate case in Nov. 2015, and was indicted on March 8, 2016, on methamphetamine trafficking offenses. On Sept. 16, 2016, he pled guilty to that indictment and admitted receiving four pounds of methamphetamine, which he intended to distribute to others. At sentencing, which has yet to be scheduled, Montes faces a statutory minimum penalty of ten years and a maximum of life in federal prison.
While in custody on the aforementioned case, Montes was charged, together with Mathewson, with methamphetamine charges in this case. Montes has entered a not guilty plea to the charges in this case and remains in custody pending trial. Charges in criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Roswell office of the FBI and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Raytown Man Sentenced to 15 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who formerly worked at a karate studio in Lee’s Summit, Mo., was sentenced in federal court today for distributing and receiving child pornography over the Internet.
Jered Scott Faulkner, 37, of Raytown, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole.
On May 25, 2016, Faulkner pleaded guilty to one count of distributing child pornography over the Internet and one count of receiving child pornography over the Internet.
An FBI Child Exploitation Task Force officer identified Faulkner’s computer as sharing videos of child pornography during an investigation into a peer-to-peer file-sharing network in September and October 2014. The undercover agent, on multiple occasions, downloaded numerous video files from Faulkner’s computer that contained child pornography. According to court documents, a recurring theme in the images was the graphic depiction of the rape and sodomy of pubescent and prepubescent girls, some as young as babies, by adult men. Some of the files also depicted child bondage.
According to court documents, the same officer was conducting a separate investigation and located a second and distinct IP address sharing images and videos of child pornography between November 2014 and December 2014. Though not known to the officer at that time, this IP address was also later determined to be Faulkner’s.
Law enforcement officers executed a search warrant at Faulkner’s residence on Jan. 15, 2015. Officers seized Faulkner’s laptop computer and hard drive. A forensic analysis confirmed the presence of at least 300 videos and 2,552 images of child pornography.
Also discovered by the forensic analyst were two images of an approximately 7-year-old female that had been taken by a cell phone in July 2014 and downloaded onto Faulkner’s computer. Investigators learned that the child victim was a prior student at a local martial arts studio where Faulkner was employed at the time of the investigation.
Faulkner also admitted that his mother, whom law enforcement officers had initially contacted, alerted him about the investigation before officers arrived at his residence to execute the search warrant. When officers arrived, Faulkner was in the process of reformatting his laptop computer. Despite the attempt to reformat the computer, however, the forensic examiner was able to successfully recover the contents of the computer.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Prior Sex Offender from Ohio Sentenced to 15 Years for Federal Child Pornography Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Michael Glover, 37, of Canton, Ohio, was sentenced today to 180 months in prison followed by a lifetime of supervised release for his conviction on federal child pornography charges in federal court in Albuquerque, N.M. Glover will also be required to register as a sex offender after he completes his prison sentence.
Glover was arrested in April 2015, in Ohio on an indictment alleging child pornography charges that was filed in Albuquerque. Thereafter, Glover was transported to the U.S. District Court for the District of New Mexico in Albuquerque to face the charges against him.
The six-count indictment charged Glover, a former Albuquerque resident, with three counts of distribution of visual depictions of minors engaged in sexually explicit conduct and three counts of possession of visual depictions of minors engaged in sexually explicit conduct. The three distribution counts alleged that Glover distributed child pornography in Bernalillo County, N.M., on May 27, 2013, Aug. 11, 2013, and Aug. 12, 2013. The three possession counts alleged that Glover possessed child pornography in Bernalillo County during three periods in 2013. The indictment included forfeiture provisions seeking forfeiture of Glover’s laptop computer and computer media.
On March 28, 2016, Glover entered guilty pleas to Counts 4 through 6 of the indictment charging him with distribution and possession of child pornography. In entering his guilty plea, Glover admitted to possessing child pornography between May 23, 2013 and Aug. 19, 2013, on three devices (a computer, a Kindle and a flash drive).
This case was investigated by the Albuquerque office of Homeland Security Investigations, the New Mexico Office of the Attorney General, the Bernalillo County Sheriff’s Office and the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Shammara H. Henderson prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Glover, who has a prior sexual assault conviction and a conviction for violating the Sexual Offender Registration and Notification Act, was also being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Police and Prosecutors Join Students for a Day of LearningRead the Press Release
BLAST (Building Lasting Relationships Between Police and Community) Program Brings Law Enforcement and Youth Together
TALLAHASSEE, FLORIDA – In recognition of National Community Policing Week (October 2-8, 2016), the United States Attorney’s Office for the Northern District of Florida, together with the Florida Department of Juvenile Justice and Twin Oaks Juvenile Development, Inc., will present a BLAST Program event on Friday to 40 youth from the Juvenile Unit for Special Treatment, located in Wilma, Florida.
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
Event: BLAST Program
Location: Veterans Memorial Civic Center
10405 NW Theo Jacobs Way
Bristol, FL 32321
Date: Friday, October 7, 2016
Press: A media availability will take place at 1:45 p.m. The youth discussion sessions are closed to the media and the public, and videography and photography of students is not permitted.The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers:
• Crime and Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
• Domestic Violence: Students will participate in a scenario in which police respond to an injured victim. Discussion topics will include de-escalation in a stressful environment, rights of witnesses and suspects, and the benefits of providing information to
the police.
• Traffic Stop Simulation: Students will take turns playing the roles of civilians and officers in a traffic stop scenario in which some participants are compliant and some are argumentative. Discussion topics include vehicle searches based on probable
cause and the dangers faced by officers during a traffic stop.
• Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.Participating agencies include:
• United States Attorney’s Office, Northern District of Florida
• Federal Bureau of Investigation
• Liberty County Sheriff’s Office
• Bureau of Alcohol, Tobacco, Firearms and Explosives
• Calhoun County Sheriff’s Office
• Drug Enforcement AdministrationThe United States Attorney’s Office is expanding the BLAST program across the district, building on a successful event in Pensacola last month.
About National Community Policing Week:
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
In support of community policing efforts around the country, the United States Department of Justice will lead nearly 400 events, and President Obama will designate the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens.
• 21st Century Policing Task Force report
• Attorney General’s Community Policing Op-EdThe 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]Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Convicted of Tax EvasionRead the Press Release
Underreported More Than $1.5 Million in Gross Receipts
A federal jury sitting in St. Louis, Missouri, found the local owner of a tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
“While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws.”
According to the evidence at trial, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East St. Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.
“Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. “We all pay when others swindle the government.”
In 2013, a Kansas City, Kansas federal court permanently barred A&S from further operating or preparing federal tax returns. Tsehaye was also permanently enjoined from engaging in certain abusive practices as well as preparing tax returns for any person other than himself beyond a 50 mile radius from his permanent residence.
Sentencing is scheduled for Jan. 4, 2017. Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Convicted of Tax EvasionRead the Press Release
WASHINGTON – A federal jury sitting in St. Louis, Missouri, found the local owner of tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
"While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes," said Principal Deputy Assistant Attorney General Ciraolo. "No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws."
According to the evidence at trial, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East Saint Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS). These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.
"Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public," said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. "We all pay when others swindle the government."
In 2013, a Kansas City, Kansas, federal court permanently enjoined Tsehaye and A&S from further operating a tax preparation business or preparing federal tax returns.
Sentencing is scheduled for January 4, 2017. Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Orleans County Sentenced for Distributing MethyloneRead 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 Allen M. Young, 40, of Barker, NY, who was convicted of possession with intent to distribute methylone, was sentenced to 200 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between October 21, 2011, and December 13, 2012, the defendant conspired with Peter Viera to obtain methylone from China, which Young then distributed. On December 13, 2012, while members of the Orleans County Major Felony Crime Task Force were attempting to execute a search warrant on Young and his car, he fled at a high rate of speed before crashing the car in Ridgeway, NY. Young fled the scene on foot. Nine rounds of .50 caliber ammunition were found in the car. As he fled, the defendant discarded a backpack near the scene of the crash which contained 1.8 pounds of methylone and just over one pound of marijuana.
Young was subsequently arrested in Erie, Pennsylvania on February 14, 2013. On April 5, 2013, officers executed a search warrant at his residence and seized seven firearms belonging to the defendant.
Peter Viera was also convicted and sentenced to 70 months in prison.
The sentencing is the result of an investigation on the part of the Orleans County Major Felony Crime Task Force, under the direction of District Attorney Joseph V. Cardone and Sheriff Randall Bower, and the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.Oregon Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
HELENA – Joseph Lee Eldabaa, 46, of Albany Oregon was sentenced today to 120 months in prison and 60 months’ supervised release for possession with intent to distribute methamphetamine. U.S. District Court Judge Charles C. Lovell issued the sentence.
Eldabaa was charged by superseding information on June 6, 2016 and pleaded guilty to the single count on June 15, 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 Eldabaa and various co-defendants transported between three and twelve pounds of methamphetamine from Arizona to Montana with the intent that it be distributed in the Helena area.
Eldabaa was arrested on February 20, 2015 in Helena. Following his arrest, law enforcement officers obtained a search warrant for the truck he was driving at the time of the arrest. Officers found approximately three ounces of methamphetamine in the truck. Eldabaa told law enforcement that he had also brought eight ounces of methamphetamine into Montana on a prior trip.
The court concurred with the government’s argument that Eldabaa’s sentence should be enhanced because Eldabaa had weapons with him in the truck. In addition to the Methamphetamine, law enforcement found a loaded .40 caliber handgun with nine rounds in the magazine, brass knuckles, a small folding knife, and marijuana and cash.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, and the Missouri River Drug Task Force.
Oak Lawn Real Estate Executive Arrested for Trying to Hire a Hit Man to Murder Attorney Who Filed Cases Against HimRead the Press Release
CHICAGO — An Oak Lawn real estate executive was charged today with trying to hire a hit man to murder an attorney who was involved in litigation against him.
LYLE ANASTOS, 35, of Oak Lawn, was arrested yesterday afternoon. He is charged with using interstate commerce in the commission of murder for hire, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Anastos was ordered to remain in federal custody after an initial appearance today before U.S. Magistrate Judge Jeffrey T. Gilbert. Judge Gilbert scheduled a detention hearing for Oct. 7, 2016, at 2:00 p.m.
According to the complaint, Anastos sought the murder of an attorney who represented the husband of Anastos’ maternal grandmother in cases filed against Anastos. In June the attorney helped secure legal judgments of more than $900,000 for the grandmother’s husband against Anastos and his real estate company, Skyline 1, Inc., as well as against the company’s secretary and a related entity, S12 LLC, where Anastos served as manager. In a secretly recorded conversation last week, Anastos is heard talking to an acquaintance and agreeing to pay up to $10,000 to a hit man to murder the attorney, the complaint states. Anastos is heard on the recording referring to the attorney as “the catalyst to get out of the picture,” according to the complaint.
The complaint and arrest were 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. Substantial assistance was provided by the Cook County Sheriff’s Office.
According to the complaint, the acquaintance last month informed the FBI that Anastos had requested assistance in locating an individual to murder the attorney. At the direction of law enforcement, the acquaintance subsequently engaged in multiple recorded conversations with Anastos.
In a conversation yesterday, Anastos guaranteed to convey title to a $5,000 dump trailer to the hit man as collateral, with the understanding that Anastos would pay cash to the hit man after the murder and then get back the trailer, the complaint states. Anastos is heard confirming the murder for hire, and he requested to see photographs after it was carried out, according to the complaint. Law enforcement arrested Anastos after this conversation, the complaint states.
No one was injured as part of the alleged scheme.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the complaint carries a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Stephen Chahn Lee.
ComplaintNorth Carolina Man Sentenced to Prison in Fraudulent U.S. Treasury Check SchemeRead the Press Release
A Smithfield, North Carolina man was sentenced today to 20 months in prison for conspiring to defraud the government and commit theft of public money, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court and court proceedings, Oscar Barahona Fiallos owned and operated a tax preparation business in Smithfield under the names El Caracol Inc. and Oscar’s Income Tax Service. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, minus a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents. Fiallos agreed that the intended loss to the IRS was more than $2.8 million.
Fiallos pleaded guilty on Feb. 18 to one count of a conspiring to defraud the United States and commit theft of public money. In addition to his prison sentence, Fiallos was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $2.8 million.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nitro man sentenced to 12 years in federal prison for enticement of a minorRead the Press Release
CHARLESTON, W.Va. – A Nitro man was sentenced today to 12 years in federal prison for a sex crime involving a minor, announced United States Attorney Carol Casto. Mark Anthony Levitt, 38, previously pleaded guilty to using an app on his cell phone to entice a minor to engage in sexual activity. After Levitt is released from prison, he will be on federal supervised release for 25 years and will be required to register as a sex offender.
Levitt admitted that from June 2015 through July 2015, he used his cell phone to send sexually explicit messages to persuade and induce a 14-year-old minor to engage in criminal sexual activity.
“This sentence sends a clear message that those who exploit and abuse minors face serious consequences,” stated United States Attorney Carol Casto. “The U.S. Attorney’s Office will continue making it a top priority to hold sexual predators accountable by working with our local, state, and federal law enforcement partners. We are willing to dedicate whatever resources are necessary to make sure these cases are prosecuted.”
The Nitro Police Department, the Kanawha County Sheriff’s Office, and the FBI conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This prosecution was brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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New Orleans Man Sentenced for Possession of Stolen MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN WAYNE THOMAS, age 36, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for possession of stolen mail, in violation of 18 U.S.C. § 1708.
U.S. District Judge Ivan L.R. Lemelle sentenced THOMAS to 37 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to the Bill of Information, THOMAS was found in possession of mail matter that he had taken from a mail receptacle on or about May 23, 2015.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and Louisiana State Police in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
New Bedford Gym Owner Pleads Guilty to Heroin TraffickingRead the Press Release
BOSTON – The owner of a New Bedford gym pleaded guilty today in U.S. District Court in Boston in connection with a wide-ranging conspiracy that distributed heroin throughout Bristol County, Mass. and Providence, RI.
Sharik Mendes, 39, of New Bedford, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin. Mendes had been previously charged by criminal complaint in June 2016 with Tyson Depina and Eric Desousa, both of whom have pleaded not guilty and who have been indicted by a federal grand jury. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for January 11, 2017.
In 2015 and 2016, Mendes, the owner and operator of the HEART gym in New Bedford, was receiving large quantities of heroin from two suppliers based in Rhode Island. Mendes then distributed the heroin to lower-level distributors in the New Bedford area. In total, Mendes agreed to accept responsibility for conspiring to distribute between 600 and 700 grams of heroin.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. 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.
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.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric S. Rosen of Ortiz’s Narcotics and Money Laundering Unit.
National Center for Disaster Fraud Press ConferenceRead the Press Release
BATON ROUGE, LA – The National Center for Disaster Fraud (“NCDF”) will hold a press conference on Friday, October 7, 2016, at 10:30 a.m. at Johnston Hall, Louisiana State University, regarding the efforts of the NCDF to combat fraud related to the recent record flooding that took place in the area in August 2016. The NCDF – which is a partnership among federal, state, and local law enforcement agencies - was established by the U.S. Department of Justice following Hurricane Katrina and is led by United States Attorney Walt Green who serves as its Executive Director. The NCDF provides a nationwide call center for members of the public to report all types of disaster fraud, as well as a team of law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. Confirmed attendees include:
- Walt Green, U.S. Attorney and NCDF Executive Director of the NCDF
- Jeff Landry, Louisiana Attorney General
- Jeff Sallet, Special Agent-in-Charge of the Federal Bureau of Investigation
- Hillar Moore, District Attorney of the 19th Judicial District
- Representatives from numerous federal, state, and local law enforcement agencies
Methamphetamine Conspirator SentencedRead the Press Release
ROANOKE, VIRGINIA – A Cana, Virginia woman, who conspired with others to distribute methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Lindsay Elease Berrier, 23, of Cana, Virginia, who previously pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine, was sentenced today to 84 months in federal prison. Two co-conspirators, Rebel Akers and Sharon Gallimore have been convicted and are awaiting sentencing.
“Methamphetamine continues to devastate communities across Virginia and destroy lives,” United States Attorney Fishwick said today. “We will continue to work with law enforcement at all levels to dismantle distribution conspiracies, both large and small, to make our communities safer.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Carroll County Sheriff’s Office and the Surry County, North Carolina Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Member of Heroin Conspiracy SentencedRead the Press Release
ROANOKE, VIRGINIA – A man who conspired with others to distribute heroin was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Jesse Ray Little, who previously pled guilty to one count of conspiring to distribute 100 grams or more of heroin, was sentenced today in District Court to 108 months in federal prison.
“The United States Attorney’s Office will continue to work with our partners in law enforcement to combat the growing threat of heroin abuse,” United States Attorney Fishwick said today. “While vigorous enforcement of our drug laws is key in fighting the heroin epidemic, we must also work with prevention and treatment specialists to help those addicted to this deadly drug get the help they need to lead productive lives.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Bedford County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Maryland Man Charged with Removal of Classified Materials and Theft of Government PropertyRead the Press Release
A criminal complaint has been filed charging Harold Thomas Martin III, 51, of Glen Burnie, Maryland, with theft of government property and unauthorized removal and retention of classified materials by a government employee or contractor.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement today.
According to the affidavit filed in support of the criminal complaint, Martin was a contractor with the federal government and had a top secret national security clearance. Martin was arrested late on Aug. 27, 2016. The complaint was filed on Aug. 29, 2016 and unsealed today.
On Aug. 27, 2016, search warrants were executed at Martin’s residence in Glen Burnie, Maryland, including two storage sheds, as well as upon his vehicle and person. During execution of the warrants, investigators located hard-copy documents and digital information stored on various devices and removable digital media. A large percentage of the materials recovered from Martin’s residence and vehicle bore markings indicating that they were property of the U.S. government and contained highly classified information, including Top Secret and Sensitive Compartmented Information (SCI). In addition, investigators located property of the U.S. government with an aggregate value in excess of $1,000, which Martin allegedly stole.
The complaint alleges that among the classified documents found in the search were six classified documents obtained from sensitive intelligence and produced by a government agency in 2014. These documents were produced through sensitive government sources, methods and capabilities, which are critical to a wide variety of national security issues. The disclosure of the documents would reveal those sensitive sources, methods and capabilities.
The documents have been reviewed by a person designated as an original classification authority, and in each instance, the authority has determined that the documents are currently and properly classified as Top Secret, meaning that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the U.S.
If convicted, Martin faces a maximum sentence of one year in prison for the unauthorized removal and retention of classified materials and ten years in prison for theft of government property. An initial appearance was held for Martin in U.S. District Court in Baltimore on Aug. 29, 2016. Martin remains detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Assistant Attorney General Carlin and U.S. Attorney Rosenstein commended the FBI for its work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein and Mr. Carlin thanked Assistant U.S. Attorneys Zachary A. Myers and Harvey E. Eisenberg, and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, who are prosecuting the case.
Marion Man Sentenced on Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Marion, Virginia man, who conspired with others to distribute methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on Federal drug trafficking charges, United States Attorney John P. Fishwick announced today.
Jason Dee Howell, 36, of Marion, who previously pled guilty to one count of conspiring to distribute more than 500 grams of a mixture containing methamphetamine, was sentenced today to 138 months in federal prison.
“Methamphetamine is one of the most addicting and destructive substances we in law enforcement encounter,” United States Attorney Fishwick said today. “We must continue to use all resources available to stop the flow of this drug into Virginia.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Convicted of Racially Motivated Hate Crime Sentenced to Maximum Term of ImprisonmentRead the Press Release
A man who repeatedly stomped on and kicked the head of an African American man in a racially targeted attack was sentenced today to 10 years in federal prison.
Randy Metcalf, 40, from Dubuque, Iowa, received the maximum allowable prison term after a March 30, 2016, jury verdict finding him guilty of committing a federal hate crime.
The evidence at trial showed that on January 12, 2015, Metcalf, while in a bar in Dubuque, had been using racial slurs in reference to an African American man who was also in the bar. Metcalf also displayed a swastika tattoo to other people while bragging about having burned crosses. Later in the night, Metcalf assaulted the African American man by repeatedly stomping on and kicking his head as the victim lay barley conscious on the floor of the bar. Metcalf assaulted the victim and was then pushed away from him by another person in the bar, but then returned to kick and stomp the victim in the head again.
Metcalf was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $1874.56 in restitution to the victim. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
United States Attorney Kevin W. Techau stated after sentencing, “The Department of Justice is committed to protecting the rights and freedoms of all people. Hate crimes represent an attack not just on the individual victim but also on the entire community. The federal hate crime of which Randy Metcalf was found guilty is as reprehensible as it was violent. We will continue to use every tool at our disposal to vindicate the rights of victims of violent hate crimes. “This vicious attack threatened the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While no sentence, including this one, can undo the harm inflicted, it does send an unequivocal message that the Justice Department will vigorously prosecute hate crimes.”
The case was investigated by the Dubuque Police Department and the Federal Bureau of Investigation. The case was jointly prosecuted by Assistant United States Attorney Anthony Morfitt and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1032.
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Maine Resident Pleads Guilty to Participating in A Multi-State Heroin Trafficking Conspiracy Based in StroudsburgRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 22-year-old Maine resident pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine.
According to United States Attorney Bruce D. Brandler, the defendant, Ricquell Lindo, who used the street name “Snaxx,” admitted to conspiring with others to sell heroin between 2010 and 2015. Lindo admitted responsibility for distributing between 100 grams and 700 grams of heroin during the conspiracy, which is approximately equivalent to between 3,300 and 21,000 retail bags of heroin.
Lindo was indicted along with six other people by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County.
The indictment alleges that Lindo and his co-defendants participated in a street gang known as the Black P-Stones, obtained heroin from suppliers in New York, and distributed the heroin in Stroudsburg and locations in the state of Maine. According to the indictment, couriers were used to transport heroin to Maine, where Lindo and others distributed it to customers.
Lindo faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison. Judge Mannion will schedule sentencing after completion of a pre-sentence investigation and report.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Long Time Manager of Hoquiam Wood Shavings Business Convicted of Mail Fraud, Tax Evasion, Money Laundering and Interstate Transportation of Stolen PropertyRead the Press Release
The long-time manager of a Hoquiam wood shavings business was convicted today in U.S. District Court in Tacoma of thirteen federal felonies following a six-day jury trial, announced U.S. Attorney Annette L. Hayes. WILLIS D. “BILL” LONN, JR., 68, of Aberdeen was convicted of nine counts of mail fraud, two counts of income tax evasion, one count of money laundering conspiracy and one count of interstate transportation of stolen property. The jury deliberated about two hours before returning the guilty verdicts. U.S. District Judge Benjamin H. Settle scheduled sentencing for January 9, 2017.
According to records filed in the case and testimony at trial, LONN was a long time manager for Long Beach Shavings Company (LBS). The company was owned by LONN’s uncle and cousins and was based in California. The company had one plant in Hoquiam, Washington where it processed wood shavings for use on farms, at horse shows or in pet stores. LONN had worked at the Hoquiam plant for about a decade when he launched a scheme in the 2000s to steal and sell the wood shavings products for his own enrichment. LONN did this by selling the shavings directly to customers in Washington and Oregon without turning the proceeds over to the company. Later in the scheme, LONN arranged to get wood chips for free from a Montesano lumber mill, but he informed the parent company that an entity named M & R Lumber needed to be paid for the wood shavings. LONN posed as M & R Lumber and created phony invoices to bill LBS for the shavings. LONN then kept the money. Between the two schemes LONN obtained more than $1.3 million from LBS. He was terminated by the company in 2011 when the full scope of the scheme came to light.
Testimony at trial revealed that LONN never paid income taxes on the ill-gotten gain in tax years 2009 and 2010. Had LONN reported the income his tax bill for those years would have increased by more than $80,000.
The case was investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI).
The case was prosecuted by Assistant United States Attorneys Brian D. Werner and Nicholas Manheim.
Law Enforcement Officers and Federal Prosecutors Participate in "Coffee with Cop" EventRead the Press Release
TALLAHASSEE, FLORIDA – In recognition of National Community Policing Week (October 2-8, 2016) and the first national Coffee with a Cop Day, representatives of the United States Attorney’s Office for the Northern District of Florida, together with law enforcement officers across the district, will share a cup of coffee and conversations with members of their communities on Thursday, October 6, and Friday, October 7, 2016.
Community members will have a chance to discuss issues of concern with police and federal prosecutors in a familiar restaurant setting during the morning commute. This event is also an excellent opportunity to meet law enforcement officers and prosecutors who work and live in the community they serve.
PENSACOLA AREA
Date and Time: Thursday, October 6, 2016, 7:00 a.m.-9:00 a.m.
Location: Starbucks at 346 Gulf Breeze Parkway, Gulf Breeze, FL
Participating Agencies:
- United States Attorney’s Office
United States Attorney Christopher P. Canova will participate in this event.
- Gulf Breeze Police Department
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Date and Time: October 7, 2016, 7:00 a.m. – 9:00 a.m.
Location: Oscar’s Restaurant at 2805 W. Cervantes St, Pensacola, FL
Participating Agencies:
- Pensacola Police Department
- United States Attorney’s Office
TALLAHASSEE AREA
Date and Time: Friday, October 7, 2016, 7:00 a.m. – 9:00 a.m.
Locations:
- Red Eye Coffee at 1122-7 Thomasville Rd., Tallahassee, FL
- Red Eye Coffee at 1184 Capital Circle, NE, Tallahassee, FL
Participating Agencies:
- United States Attorney’s Office, Northern District of Florida
- Leon County Sheriff’s Office
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
PANAMA CITY AREA
Location:
- McDonald’s at 3608 U.S. Highway 98, Panama City Beach, FL
Date and Time: Thursday, October 6, 2016, 7:00 a.m.-9:00 a.m.
Participating Agencies:
- United States Attorney’s Office
- Panama City Police Department
- Homeland Security Investigations
GAINESVILLE AREA
Date and Time: Thursday, October 6, 2016, 7:00 a.m.-9:00 a.m.
Location:
- McDonald’s at 1030 E University Avenue, Gainesville, FL
Participating Agencies:
- Alachua County Sheriff’s Office
- United States Attorney’s Office
- Gainesville Police Department
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Date and Time: Friday, October 7, 2016, 7:00 a.m.-9:00 a.m.
Location:
- McDonald’s at 3826 SW Archer Rd, Gainesville, FL 32608
Participating Agencies:
- Alachua County Sheriff’s Office
- United States Attorney’s Office
- Gainesville Police Department
- Internal Revenue Service
Date and Time: Friday, October 7, 2016, 7:00 a.m.-9:00 a.m.
Location:
- McDonald’s at 16018 NW US Hwy 441 in Alachua, FL
Participating Agencies:
- Alachua Police Department
- High Springs Police Department
- Alachua County Sheriff’s Office
- United States Attorney’s Office
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
About the "Coffee with a Cop" initiative:
The United States Department of Justice, Office of Community Oriented Policing Services (COPS Office) has partnered with the Hawthorne (California) Police Department to conduct the
first national Coffee with a Cop Day on October 7, 2016. Coffee with a Cop is an innovative program started by the Hawthorne Police Department in 2011 to strengthen the relationship between law enforcement and the community. Today, more than 2,000 law enforcement agencies and the communities they serve have participated in this program, both throughout the United States and abroad.
For more information about the Coffee with a Cop program, please visit http://coffeewithacop.com/. For more information about the United States Department of Justice Community Oriented Policing Services (COPS Office), visit http://www.cops.usdoj.gov/about.
About National Community Policing Week:
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
In support of community policing efforts around the country, the United States Department of Justice will lead nearly 400 events, and President Obama will designate the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens.
- 21st Century Policing Task Force report
- Attorney General’s Community Policing Op-Ed
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]Las Cruces Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Arnulfo Vasquez, 35, of Las Cruces, N.M., pled guilty today in federal court to a cocaine trafficking charge.
Vasquez was arrested in Jan. 2011, on a criminal complaint charging him with possession of cocaine with intent to distribute in Doña Ana County, N.M. According to the complaint, on Jan. 20, 2011, law enforcement agents seized approximately 96.6 grams of cocaine and drug paraphernalia from Vasquez and his residence during the execution of a search warrant. Vasquez was subsequently indicted on the same charge on April 20, 2011.
During today’s proceedings, Vasquez pled guilty to the indictment and admitted that on Jan. 20, 2011, law enforcement agents seized a total of 73.1 grams of cocaine from his residence and vehicle which he intended to distribute to others.
At sentencing, Vasquez faces a statutory maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Lam Research Corp. and KLA-Tencor Corp. Abandon Merger PlansRead the Press Release
Lam Research Corp. and KLA-Tencor Corp. abandoned their plans to merge after the Department of Justice informed the companies that it had serious concerns that the proposed transaction would harm competition.
"Innovation in the semiconductor industry is critically important to the American economy, and the proposed transaction presented concerns about the ability of the merged firm to foreclose competitors' development of leading edge fabrication tools and process technology on a timely basis,” said Acting Assistant Attorney General Renata Hesse of the Justice Department's Antitrust Division.
The proposed merger of Lam Research and KLA-Tencor would have combined a leading supplier of semiconductor fabrication equipment with a leading supplier of metrology and inspection equipment. Metrology and inspection technologies are growing increasingly important to the successful development of semiconductor fabrication equipment and process technology. KLA-Tencor's leading position in several metrology and inspection markets could have created the potential for Lam Research to foreclose its competitors by reducing their timely access to key KLA-Tencor equipment and related services.
During the investigation, the division cooperated with the Korean Fair Trade Commission, the Japanese Fair Trade Commission and China's Ministry of Commerce.
Lam Research, based in Fremont, California, is a leading provider of etch, deposition and clean tools and process technology used in the fabrication of semiconductors with approximately $6 billion in 2015 revenue.
KLA-Tencor, based in Milpitas, California, is the leading provider of semiconductor fabrication metrology and inspection equipment with approximately $3 billion in 2015 revenue.
KC Man Sentenced to 15 Years for Jasper County Meth Conspiracy, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Jasper County, Mo., and for illegally possessing a firearm.
Dustin S. Parrish, 30, of Kansas City, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and 10 months in federal prison without parole.
On March 16, 2016, Parrish pleaded guilty to participating in a conspiracy to distribute methamphetamine in Jasper County from May 1 to Oct. 1, 2015, and to possessing a firearm in furtherance of a drug-trafficking crime.
On Oct. 1, 2015, Joplin police officers stopped Parrish, who was driving a white Chevrolet Cruz, at 32nd Street and Rangeline in Joplin. Parrish did not immediately stop his vehicle, but continued driving slowly west on 32nd Street. An officer saw Parrish lean down in the seat. After Parrish stopped his vehicle, the officer approached and noticed that Parrish was leaning forward in his seat, sweating, breathing heavily, and appeared nervous. The officer ran his driver’s license, and it showed that Parrish’s driver’s license was revoked.
After Parrish got out of the vehicle, the officer located a Taurus .40-caliber semi-automatic pistol on the driver’s side floorboard. A service canine indicated on a black nylon bag on the front passenger side floorboard. The officer searched the bag and found six clear plastic bags containing a total of 66 grams of methamphetamine as well as drug paraphernalia.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Joplin, Mo., Police Department.
Justice Department and Equal Employment Opportunity Commission Release Advancing Diversity in Law Enforcement ReportRead the Press Release
The Justice Department and the Equal Employment Opportunity Commission (EEOC) released a comprehensive report today that examines barriers and promising practices – in recruitment, hiring and retention – for advancing diversity in law enforcement. The report, developed with support from the Center for Policing Equity, aims to provide law enforcement agencies, especially small and mid-size agencies, with a resource to enhance the diversity of their workforce by highlighting specific strategies and efforts in place in police departments around the country.
The department and EEOC engaged with dozens of law enforcement leaders, officials and officers; researchers; civil rights advocates and other experts to produce the report. The report, which builds on the recommendations of the President’s Task Force on 21st Century Policing, notes that while greater workforce diversity alone cannot ensure fair and effective policing, a significant – and growing – body of evidence suggests that diversity can make policing more effective, more safe and more just. For example, among other benefits, increasing diversity can improve relations with the communities agencies serve, address language barriers to serve all residents, make agencies more open to reform and potentially reduce racial bias.
“This report is a resource for law enforcement agencies as they work to ensure that their ranks reflect the communities they serve – not simply by identifying the traditional barriers to a diverse work force, but also by highlighting real-world examples of law enforcement agencies that have effectively implemented smart policies in this area,” said Deputy Attorney General Sally Q. Yates. “We hope that law enforcement agencies will find this report useful in their ongoing efforts to strengthen trust with the broader community.”
“Ensuring that law enforcement agencies represent the diversity of the communities they serve can help restore trust and improve policing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Building on innovative and creative strategies implemented by law enforcement around the country, our report highlights how agencies are bridging divides and creating lasting results. We hope agencies utilize this resource as they strive to strengthen their diversity and we look forward to engaging with law enforcement on this critical topic over the coming months.”
“When law enforcement agencies remove barriers to equal opportunity, the agencies and the diverse communities that they serve both stand to benefit,” said EEOC Chair Jenny R. Yang. “Departments from around the country have been working to build a robust and diverse talent pipeline to strengthen their workforce. This report raises up some of the most promising recruitment and retention practices of these departments.”
The promising practices highlighted in this report vary considerably. The report demonstrates, however, that successful diversity-building efforts by law enforcement agencies share several common themes, including:
- ensuring that the agency’s organizational culture is guided by community policing, procedural justice and cultural inclusivity;
- engaging stakeholders – both from within and outside the law enforcement agency – to help create a workforce that reflects the diversity of the community; and
- being willing to re-evaluate employment criteria, standards and benchmarks to ensure that they are tailored to the skills needed to perform job functions and consequently attract, select and retain the most qualified and desirable sworn officers.
The full report is available online here.
From October to December, the department and the EEOC will continue engaging with law enforcement by partnering with U.S. Attorneys around the country to host “Diversity Dialogues” in Madison, Wisconsin; Savannah, Georgia; and San Francisco. These sessions will facilitate working-group discussions with local law enforcement agencies about how to address the barriers and implement the promising practices outlined in the report. Members of law enforcement who would like to learn more about the Advancing Diversity in Law Enforcement initiative or the Diversity Dialogues, should email [email protected].
Junedale Man Sentenced to 10 Years’ Imprisonment for Committing Four Armed Bank Robberies and the Armed Robbery of A StoreRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Judge James M. Munley sentenced David Weaver, age 42, of Junedale, Carbon County, Pennsylvania, to 121 months’ imprisonment for the armed robberies of four banks and the armed robbery of a store.
According to United States Attorney Bruce D. Brandler, on May 4, 2016, Weaver pleaded guilty to the following armed robberies:
- Jim Thorpe National Bank, Penn Forest Township, Pennsylvania, on September 17, 2013;
- National Penn Bank, Drums, Pennsylvania, on August 8, 2014;
- Jim Thorpe Neighborhood Bank, Penn Forest Township, Pennsylvania, on November 18, 2014;
- ESSA Bank and Trust, Brodheadsville, Pennsylvania, on December 26, 2014;
- Dollar General, Nesquehoning, Pennsylvania, on November 16, 2014.
During each of the robberies, Weaver brandished a firearm to intimidate the employees. A codefendant, Crystal Serfass, pleaded guilty to helping plan the robberies and acting as a driver for each of the crimes. She is scheduled to be sentenced on October 7, 2016.
Judge Munley ordered that Weaver make full restitution of $22,046 which represented the amount of money taken during the robberies.
The case was investigated by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
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Iowa Man Convicted of Racially-Motivated Hate Crime Sentenced to 10 Years in PrisonRead the Press Release
Randy Metcalf, 40, of Dubuque, Iowa, was sentenced today to 10 years in prison for stomping on and kicking the head of an African-American man in a racially targeted attack.
The evidence at trial showed that on Jan. 12, 2015, Metcalf assaulted an African-American male at the Northside Bar in Dubuque. After getting into an argument over a jukebox with the victim’s female friends, Metcalf directed racial slurs at the victim and his friends, told other patrons that he hated black people, bragged to the bar’s owner about being involved in cross-burnings and flashed his swastika tattoo. Later that night, after hours of taunting, Metcalf attacked the victim’s female friend. When the victim intervened to protect her, Metcalf’s friends knocked him out. As the victim lay barely conscious on the floor of the bar, Metcalf walked over to him and repeatedly kicked and stomped on his head.
“This vicious attack threatened the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While no sentence, including this one, can undo the harm inflicted, it does send an unequivocal message that the Justice Department will vigorously prosecute hate crimes.”
“The Department of Justice is committed to protecting the rights and freedoms of all people,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “Hate crimes represent an attack not just on the individual victim but also on the entire community. The federal hate crime of which Randy Metcalf was found guilty is as reprehensible as it was violent. We will continue to use every tool at our disposal to vindicate the rights of victims of violent hate crimes.”
In addition to sentencing Metcalf to the statutory maximum 10-year sentence, Chief U.S. District Judge Linda R. Reade of the Northern District of Iowa also ordered him to pay $1,874.56 in restitution. Metcalf is being held in the custody of the U.S. Marshals Service until he can be transported to a federal prison.
The case was investigated by the Dubuque Police Department and the FBI. The case was jointly prosecuted by Assistant U.S. Attorney Anthony Morfitt of the Northern District of Iowa and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
Illinois Attorney General Madigan & U.S. Attorney Lewis Meet with Kankakee County State's Attorney's Office to Ensure Fair, Open and Legal Election in Kankakee CountyRead the Press Release
Chicago – Attorney General Lisa Madigan, U.S. Attorney James A. Lewis for the Central District of Illinois and officials with the Illinois State Board of Elections today met with Kankakee County State’s Attorney Jamie Boyd and an official from the Kankakee County Clerk’s office to ensure a fair, open and legal election this fall that allows all residents to vote equally without obstacles or intimidation by law enforcement officials or offers in exchange for votes, all of which are prohibited by law.
“We are committed to ensuring that we hold a fair, open and legal election and that all voters’ rights are protected,” Madigan said.
“The voting process is central to our democratic system,” Lewis said. “We came to Kankakee County today and had a good discussion with the State’s Attorney and other officials intended to ensure that each and every person can vote fairly and properly.”
They discussed complaints, including allegations of some minority voters being subject to unnecessary requirements and misinformation about their ability to cast their vote, law enforcement officials intimidating voters and questioning people who drove them to vote, and offers in exchange for casting ballots.
Voters and county election officials are reminded that current law allows for voters to register to vote and cast their ballot at the same time during both the early voting process and on General Election Day following a Tuesday ruling by the U.S. Court of Appeals for the 7th Circuit.
Attorney General Madigan also reminded voters of some of their basic voting rights during the early voting process:
- Voters have the right to register to vote and cast their vote at the same time.
- If your registration is active and current, you do not need to show identification to cast your vote. If your registration is not active, there are circumstances in which you are required to show identification in order to vote.
- If your voter registration is in “inactive” status and your address has changed, in order to vote the same day you may be asked to show identification of your current address.
- If your voter registration is “canceled,” you will need to re-register and must show two forms of identification. The most common forms of identification include a driver’s license or a utility bill, one of which must show your current address.
- If a voter makes a mistake or “spoils” a paper ballot and the voter has not cast the ballot, the voter has the right to receive a replacement ballot (10 ILCS 5/17-11).
- If a voter cannot read, has trouble understanding English, or has a disability, that voter has the right to request assistance from anyone other than his or her employer, an agent of his or her employer, or an officer or agent of his or her union (10 ILCS 5/17-14).
- No one is allowed to try to influence a voter within 100 feet of the polling place (10 ILCS 5/17-29).
IMPD recognized by the Department of Justice for their work with officer wellness and safetyRead the Press Release
IMPD invited to the Hall of Justice for its efforts to support community policing week
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that the Indianapolis Metropolitan Police Department will once again be recognized by Attorney General Loretta Lynch in the Hall of Justice for their work with officer wellness and safety.
“I am proud to call Chief Riggs and the entire IMPD a partner in our work to help keep this community safe,” said Minkler. “IMPD continues to be on the cutting edge of innovation and leadership in the law enforcement field. They deserve the continued recognition and I am happy to be a part of it.”
Attorney General Lynch has designated October 2-8, 2016, as the inaugural National Community Policing Week. During that week, the Department will hold its very first Community Policing Awards Ceremony—recognizing outstanding innovators and public servants who embody the spirit of community policing. The ceremony will take place in the Great Hall of Main Justice at 2:00 pm on Thursday, October 6, 2016. U.S. Attorney Minkler and IMPD Sgt. Aaron Snyder will attend the ceremony. For additional information regarding the Attorney General’s Community Policing Awards, please visit https://www.justice.gov/ag/community-policing-award
U.S. Attorney Minkler hosted Attorney General Lynch during her twelve-city Community Policing Tour in April of this year. The tour showcased the innovative work IMPD is doing in the field of officer wellness and safety as part of successful community policing. The President’s Task Force on 21st Century Policing is organized around six pillars:
Building trust and legitimacy Community policing and crime reduction
Training and education Technology and social media
Officer wellness and safety Policy and oversight
While visiting Indianapolis, Attorney General Lynch met with Mayor Hogsett, Chief Riggs and officers who have benefited from the IMPD Wellness and Safety programs along with counselors and community members who support the program. Many of the officers brought their spouses who described the significant changes they observed in the officers as a result of the job, particularly the impact on the officers’ families. AG Lynch also hosted a roundtable discussion at the IMPD East District roll call and discussed a number of topics including career longevity, stress on the job, procedural justice and officer recruitment.
The IMPD has taken an innovative approach to officer safety and wellness which serves as a national model for other jurisdictions aiming at improving its programs and policies focused on this important issue. The leadership at IMPD recognizes that taking care of its officers and encouraging them to take care of themselves from recruitment to retirement makes for a more professional police department.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NATANAEL MORALES-TRINIDAD, a/k/a SAMAEL MORALES, a/k/a NATANAEL K. MORALES, a/k/A NATHANIEL MORALES, age 46, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry.
U.S. District Judge Susie Morgan sentenced MORALES-TRINIDAD to twelve months imprisonment followed by two years of supervised release, and a $100 special assessment.
According to the Bill of Information, on or about May 1, 2016, MORALES-TRINIDAD was found in the United States after having been officially deported and removed on or about May 8, 2013.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Hazleton Man Pleads Guilty to Pill Distribution ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton man pleaded guilty on October 4, 2016 before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to conspiring with others to distribute and possess with intent to distribute Tramadol, Ambien, Xanex, and other Schedule IV drugs.
According to United States Attorney Bruce D. Brandler, the defendant, Azim Hosein, age 45, admitted to regularly receiving parcels of Schedule IV pills at his residence in Hazleton, and providing them to a co-conspirator who distributed them to customers. The illegal conduct occurred between November 2014 and January 29, 2016. The drugs were obtained from suppliers in India.
Hosein was charged in a criminal information filed by the United States Attorney’s Office in August 2016. The charge stemmed from an investigation by the Drug Enforcement Administration (DEA), U.S. Postal Inspectors, and Hazleton Police.
Judge Mehalchick ordered a presentence investigation to be completed. Senior U.S. District Court Judge Richard P. Conaboy will schedule sentencing after the pre-sentence investigation is completed. Hosein faces a potential maximum sentence of five years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenbrier County man sentenced to federal prison for oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man was sentenced today to a year and two months in prison for a federal drug crime, announced United States Attorney Carol Casto. Edgar Crislip, 48, of Ronceverte, previously pleaded guilty to distribution of oxycodone.
Crislip admitted that on November 30, 2015, he distributed oxycodone pills to a confidential informant in Ronceverte. He further admitted that he sold oxycodone pills on three other occasions.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Government Contractor Charged with Removal of Classified Materials and Theft of Government PropertyRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Harold Thomas Martin III, age 51, of Glen Burnie, Maryland, with theft of government property and unauthorized removal and retention of classified materials by a government employee or contractor. According to the affidavit filed in support of the criminal complaint, Martin was a contractor with the federal government and had a top secret national security clearance. Martin was arrested late on August 27, 2016. The complaint was filed on August 29, 2016, and unsealed today.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General for National Security John P. Carlin; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit, on August 27, 2016, search warrants were executed at Martin’s residence in Glen Burnie, including two storage sheds, as well as upon his vehicle and person. During execution of the warrants, investigators located hard copy documents and digital information stored on various devices and removable digital media. A large percentage of the materials recovered from Martin’s residence and vehicle bore markings indicating that they were property of the United States and contained highly classified information of the United States, including Top Secret and Sensitive Compartmented Information (SCI). In addition, investigators located property of the United States with an aggregate value in excess of $1,000, which Martin allegedly stole.
The complaint alleges that among the classified documents found in the search were six classified documents obtained from sensitive intelligence and produced by a government agency in 2014. These documents were produced through sensitive government sources, methods, and capabilities, which are critical to a wide variety of national security issues. The disclosure of the documents would reveal those sensitive sources, methods, and capabilities.
The documents have been reviewed by a person designated as an original classification authority, and in each instance, the authority has determined that the documents are currently and properly classified as Top Secret, meaning that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States.
If convicted, Martin faces a maximum sentence of one year in prison for the unauthorized removal and retention of classified materials, and ten years in prison for theft of government property. An initial appearance was held for Martin in U.S. District Court in Baltimore on August 29, 2016. Martin remains detained. A criminal complaint is not a finding of guilt.
An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers, Harvey E. Eisenberg and Trial Attorney David Aaron of the Justice Department’s National Security Division, who are prosecuting the case.
FranklinWoman Sentenced to Probation for Social Security FraudRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Tonya Dailey, 44, of Franklin, New Hampshire, was sentenced to one year of probation. Dailey pleaded guilty to one count of Social Security Fraud on June 24, 2016.
According to the indictment, statements made in court, and other public records in the case, Dailey began receiving Social Security disability benefits in 1999. Dailey returned to self-employment in June 2010, earning sufficient income each month to render her ineligible to receive any disability benefits. Although she reported her receipt of nominal earnings as a bartender during a review with the Social Security Administration (SSA) in 2014, Dailey did not report her significant monthly income from self-employment to SSA. Upon questioning by investigators in May 2015, Dailey admitted that she concealed her work activity from SSA because she knew her earnings would have disqualified her from receiving Supplemental Security Income disability benefits. Applicants for Supplemental Security Income benefits must have limited income and resources in order to qualify for assistance. As a result of her concealment, Dailey received $30,230.78 in disability benefits that she would not have received if she had properly disclosed her self-employment income.
Dailey was sentenced by United States District Court Judge Steven J. McAuliffe.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Four Californians Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GEOFFREY RICKETTS, age 48; his wife, MARLA RICKETTS, age 38; SAMUEL KIM, age 41, all of Porter Ranch, California, and his cousin, SUNYUP KIM, age 40, of Granada Hills, California pled guilty to conspiracy to commit health care fraud.
GEOFFREY RICKETTS, MARLA RICKETTS, SAMUEL KIM, and SUNYUP KIM were indicted on June 11, 2015, for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested. The defendants operated Care Concepts, LLC, which was based in Metairie and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. According to court documents, the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. From 2007 through 2015, the defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Each defendant faces a maximum term of ten years’ imprisonment, a fine of $250,000, and a term of three years supervised release. In addition, GEOFFREY RICKETTS owes restitution in the amount of $1,338,210; MARLA RICKETTS in the amount of $39,880; SAMUEL KIM in the amount of $988,593 and SUNYUP KIM in the amount of $93,927. U.S. District Judge Eldon E. Fallon set sentencing for January 5, 2017.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services for investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Jordan Ginsberg, and DOJ Trial Attorney William Kanellis are in charge of the prosecution.
Former Suffolk University Employee Sentenced for Stealing over $40,000 in Student Loans by Changing GradesRead the Press Release
BOSTON – A Suffolk University employee was sentenced today in U.S. District Court in Boston in connection with fraudulently obtaining over $40,000 in federal student loan funds by falsifying her own records to make it appear that she was a Suffolk University graduate student when in fact she was not.
Ashley Ciampa, 28, of Medford, was sentenced today for student loan fraud. U.S. District Court Judge F. Dennis Saylor, IV sentenced Ciampa to two years of probation including six months of home detention with electronic monitoring and restitution in the amount of $47,453. Ciampa pleaded guilty in June 2016.
In 2009, Ciampa began working in the Registrar’s Office at Suffolk University. In 2013, she enrolled in Suffolk’s MBA program free of charge as an employee. In a first-semester business ethics class, Ciampa failed to attend class or complete the required coursework, but instead used her computer access in the Registrar’s Office to assign herself an “A” for the course. In subsequent semesters, she repeatedly assigned herself passing grades for classes she never attended. By maintaining the appearance that she was a graduate student, she was able to borrow $47,453 in federal student loans beginning in 2014, which she spent for vacations and other personal expenses.
United States Attorney Carmen M. Ortiz and Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Former Philadelphia Doctor Sentenced to 30 Years for Running Pill Mill and Distributing Oxycodone Resulting in Patient DeathRead the Press Release
PHILADELPHIA – Today, a federal judge sentenced William J. O’Brien III, a former doctor of osteopathic medicine, to 30 years in prison for illegal distribution of controlled substances resulting in death and additional charges arising from O’Brien’s operation of a pill mill. United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve five years of supervised release upon release from prison; pay restitution of $342,504 to the bankruptcy trustee in connection with his conviction for conspiracy to commit bankruptcy fraud; and pay a special assessment of $12,300. The court also entered a judgment of forfeiture.
“We are pleased with the substantial sentence imposed on the defendant in this case,” said United States Attorney Zane David Memeger. “Those doctors who distribute dangerous prescription drugs for no legitimate medical purpose need to be held fully accountable when their irresponsible conduct leads to death and addiction among patients.”
On July 14, 2015, a grand jury in Philadelphia charged O’Brien and nine codefendants in a 139-count Second Superseding Indictment (‘the indictment”) with conspiring to distribute controlled substances and other crimes. O’Brien was also charged with 121 separate counts of distribution of controlled substances, and distribution resulting in death. In addition to O’Brien, the defendants charged in the indictment included members and associates of the Pagans Motorcycle Club (“Pagans”), an outlaw gang known for violence and drug dealing. O’Brien and his paramour Elizabeth Hibbs were charged with conspiracy to engage in money laundering, conspiracy to commit bankruptcy fraud, and making false statements under oath in bankruptcy proceedings.
On June 28, 2016, after a six-week trial, a jury found O’Brien guilty of all charges in the indictment except for four distribution counts. All codefendants in the case have pleaded guilty and are awaiting sentencing.
The evidence at trial showed that O’Brien worked together with Pagans and their associates to operate a “pill mill” out of O’Brien’s medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates resold the pills on the street. The trial evidence showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by O’Brien in furtherance of the conspiracy. O’Brien generated for himself an estimated $2 million in cash proceeds from the drug trafficking conspiracy.
In connection with his operation of the pill mill, and as proven at trial, O’Brien intentionally distributed, for no legitimate medical purpose, oxycodone, methadone, and cyclobenzaprine, a muscle relaxer, to Joseph Ennis, 38, of Bucks County. Mr. Ennis had initially sought treatment from O’Brien following a car accident. On December 17, 2013, O’Brien prescribed oxycodone and methadone without a legitimate medical purpose, which combined with the cyclobenzaprine, led to Mr. Ennis’ death. Mr. Ennis died five days later on December 22, 2013 from the combination of these substances. At sentencing, Mrs. Bridget Shaw, Mr. Ennis’ sister, asked the Court to consider “the countless victims [O’Brien] fooled who are not here to represent themselves. The patients he turned into addicts for his profit and their families who are now left swimming in hospital bills or worse, wondering how this hell came to be . . . Rather than save lives, according to the oath he took, he chose to ruin them.”
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.
Former NASA Employee Pleads Guilty to Making False Statements Concerning His Interactions with ContractorsRead the Press Release
Greenbelt, Maryland –Nathaniel Wright, age 55, of Silver Spring, Maryland, pleaded guilty today to making false statements in connection with an investigation into his interactions with contractors.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Inspector General Paul K. Martin, NASA Office of Inspector General.
According to the plea agreement, Wright worked as a NASA employee at Goddard Space Flight Center. In late 2009 and early 2010, while still employed full-time at NASA, Wright also worked as a contract employee for a friend’s small business that performed work for several government agencies. Wright assisted the small business in the preparation and submission of bids to other government agencies.
According to admissions made in connection with his plea agreement, from 2009 through 2012, Wright’s official duties at NASA included significant responsibilities with respect to three contracts, including an $800 million contract, a $450 million contract and a $1.2 billion contract.
Wright admitted that, while working in his official capacity with NASA, he provided his resume to one of the contractors and said that he was looking for a position with their company. Wright suggested that he would wait to consider the contractor’s proposals until a position had been considered. Wright also admitted that he pressed a contractor to use his friend’s business to perform work on a specific task order, even though that businesses had no experience in the area.
Wright further admitted that he pressed additional contractors on a separate contract to direct work to his friend’s business. At a meeting in October 2012, Wright also instructed a contractor to include his friend’s business in a task order proposal and suggested that they include a document to justify the business’s involvement, even though the business had no expertise in the type of work called for under the contract.
NASA’s Office of Inspector General (OIG) opened an investigation into Wright’s conduct. As part of the investigation, on Oct. 23, 2012, three NASA OIG agents interviewed Wright. According to his plea agreement, Wright made a number of false statements during the interview regarding the circumstances surrounding his provision of his resume to the contractor and his pressuring of contractors to use his friend’s company. Wright admitted that he knew that these statements were false when he made them.
Wright faces a maximum penalty of five years in prison for making false statements. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 25, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein thanked NASA OIG for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Thomas M. Sullivan, Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section (PIN), who are prosecuting the case. Chief Kevin Driscoll of the Criminal Division’s Asset Forfeiture Money Laundering Section Policy Unit previously handled the case for the Public Integrity Section.
Former NASA Employee Pleads Guilty to Making False Statements Concerning His Interactions with ContractorsRead the Press Release
A former NASA employee pleaded guilty today to making false statements in connection with an investigation into his interactions with contractors, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and NASA Inspector General Paul K. Martin.
Nathaniel Wright, 55, pleaded guilty before U.S. District Judge Theodore D. Chuang of the District of Maryland. He is scheduled to be sentenced on Jan. 25, 2017.
According to the plea agreement, Wright worked as a NASA employee at Goddard Space Flight Center. In late 2009 and early 2010, while still employed full-time at NASA, Wright also worked as a contract employee for a friend’s small business that performed work for several government agencies. Wright assisted the small business in the preparation and submission of bids to other government agencies.
According to admissions made in connection with his plea agreement, from 2009 through 2012, Wright’s official duties at NASA included significant responsibilities with respect to three contracts, including an $800 million contract, a $450 million contract and a $1.2 billion contract.
Wright admitted that, while working in his official capacity with NASA, he provided his resume to one of the contractors and said that he was looking for a position with their company. Wright suggested that he would wait to consider the contractor’s proposals until a position had been considered. Wright also admitted that he pressed a contractor to use his friend’s business to perform work on a specific task order, even though that businesses had no experience in the area.
Wright further admitted that he pressed additional contractors on a separate contract to direct work to his friend’s business. At a meeting in October 2012, Wright also instructed a contractor to include his friend’s business in a task order proposal and suggested that they include a document to justify the business’s involvement, even though the business had no expertise in the type of work called for under the contract.
NASA’s Office of Inspector General (OIG) opened an investigation into Wright’s conduct. As part of the investigation, on Oct. 23, 2012, three NASA OIG agents interviewed Wright. According to his admissions, Wright made a number of false statements during the interview regarding the circumstances surrounding his provision of his resume to the contractor and his pressuring of contractors to use his friend’s company. Wright admitted that he knew that these statements were false when he made them.
NASA OIG investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland are prosecuting the case. Chief Kevin Driscoll of the Criminal Division’s Asset Forfeiture Money Laundering Section Policy Unit previously handled the case for the Public Integrity Section.
Former Mendon Ballroom Owner Pleads Guilty to False Tax ReturnsRead the Press Release
BOSTON – The former owner of the Myriad Ballroom in Mendon, Mass., pleaded guilty today in U.S. District Court in Worcester to tax fraud charges.
Jon “Eddie” Rouleau, 63, pleaded guilty to Information charging him with one count of intentionally aiding in the preparation of a false tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for January 12, 2017.
Rouleau owned and operated the Myriad Ballroom for decades until he sold the business and property in 2014. Federal agents initiated an investigation in 2013 when Rouleau advertised that the Ballroom was for sale. Rouleau told the agents, who posed as potential buyers, that the annual gross receipts and profits of the Ballroom were significantly greater than reported on the Ballroom’s tax returns, including the gross receipts and profit reported in 2012.
The charging statute provides for a sentence of no greater than three years in prison to be followed by one year of supervised release and a fine of up to $100,000 plus the costs of prosecution. 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 and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of U.S. Attorney Ortiz’s Worcester Branch Office.
Former Financial Advisor Sentenced to 41 Months in Federal Prison for Stealing More Than $1.2 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT N. TRICARICO, 60, formerly of Darien, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 41 months of imprisonment, followed by three years of supervised release, for stealing for than $1.2 million from an elderly client.
Until April 2015, TRICARICO was a registered securities broker with the Financial Industry Regulatory Authority. He was formerly employed or associated with various financial firms, including RNT Wealth Management, Northstar Wealth Partners, LPL Financial, and Wells Fargo Advisors Financial Network.
According to court documents and statements made in court, from January 2010 to June 2013, TRICARICO acted as a financial advisor for an elderly and infirm victim who had substantial assets. TRICARICO misappropriated more than $1.1 million from the victim by writing numerous checks to himself or for his benefit without the victim’s authorization. TRICARICO also liquidated a coin collection belonging to the victim, and he misappropriated checks made payable to the victim. TRICARICO used the stolen funds to make personal expenditures.
TRICARICO also defrauded two additional victims of $20,000 by falsely representing to them that he would use their investments for a business venture and guaranteed a rate of return. In fact, TRICARICO used the victims’ funds for his own personal use.
Judge Shea ordered TRICARICO to pay restitution in the amount of $1,220,763.90.
On June 16, 2016, TRICARICO pleaded guilty to one count of wire fraud.
At the conclusion of today’s sentencing, TRICARICO, who had been released on bond, was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the Greenwich Police Department and Connecticut Department of Banking. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Former Bondsman Pleads Guilty to FraudRead the Press Release
Jackson, Miss – Lance Scott, 46, of Brandon, pled guilty on October 4, 2016, before Senior U.S. District Judge David Bramlette, to an Indictment charging him with mail fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway. Scott is a former bondsman licensed with the Mississippi Department of Insurance who worked in the Hinds, Rankin, and Madison Counties.
During the plea hearing, Scott admitted that he solicited premium payments from individuals that bonded out of jail on fraudulent bonds he created from October 2014 through May 2015. Scott took the money in exchange for submitting fraudulent bonds in Hinds County to have individuals released from jail. These bonds were never secured by American Surety Company, the surety insurer, because Scott failed to notify or send any portion of the premiums to American Surety. Scott submitted approximately $1,085,000 in fraudulent bonds in Hinds County during the scheme.
Scott will be sentenced by Senior United States District Judge David Bramlette on January 10, 2017 at 10:30 am. He faces a maximum penalty of 20 years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Mississippi Insurance Commissioner’s Office. The case is being prosecuted by Assistant United States Attorney Mary Helen Wall.
Former Bank Officer Sentenced for EmbezzlementRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Michael Johnson (56, Odessa) to 18 months in federal prison for embezzlement and misapplication of funds. As part of his sentence, the Court also entered a money judgment in the amount of $152,783, the proceeds of the charged criminal conduct. Johnson was adjudicated guilty on July 8, 2016.
According to the plea agreement and court proceedings, Johnson was employed as a Senior Vice President/Special Assets Officer at American Momentum Bank, an FDIC insured institution that was a member bank of the Federal Home Loan Bank of Dallas. In this capacity, he was responsible for marketing and selling bank-owned properties to investors in order to remove these troubled assets from American Momentum Bank’s balance sheet. Johnson signed the closing documents, including the HUD-1 Settlement Statement, on behalf of American Momentum Bank.
Beginning around June 2012, and continuing through November 2014, Johnson devised a scheme to misapply and embezzle funds provided by American Momentum Bank. After the sale of bank-owned property had been approved by American Momentum Bank, Johnson set up closings with real estate settlement agents. Johnson then contacted the settlement agents and ordered additions and/or changes to the disbursement side of the HUD-1. After closing, funds from American Momentum were misapplied by directing checks to be written or the wiring of funds to bank accounts that were controlled by Johnson’s family members.
This case was investigated by the Unites States Secret Service, the Tampa Police Department, and the Federal Housing Finance Agency – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Flowood Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss – Jonathan Hilliam McDougal, age 34, of Flowood, Mississippi, was sentenced by U.S. District Judge Henry T. Wingate to 28 months in federal prison followed by 3 years of supervised release for possession with intent to distribute cocaine base, commonly referred to as "crack", announced U. S. Attorney Gregory K. Davis and DEA Special Agent in Charge Stephen G. Azzam. McDougal was also ordered to pay a $1500.00 fine.
McDougal was charged as a result of a narcotics investigation dubbed "Operation Jackson Crackdown". He was stopped by the Mississippi Highway Patrol and the Leake County Sheriff’s Department at a safety checkpoint. A search of the vehicle revealed a quantity of crack cocaine concealed in the compartment above the center console.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Leake County Sheriff’s Department and Mississippi Highway Patrol. It was prosecuted by Assistant United States Attorney Erin O. Chalk.
Felon Responsible for Three State Police Chase Sentenced to 71 Months Imprisonment on Firearm ChargeRead the Press Release
Contact Person: Jamie Scoen (864) 282-2100
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Mark Anthony Stone, age 32, of Rabun, Georgia was sentenced today in federal court in Anderson, South Carolina, for one count of Felon in Possession of a Firearm, a violation of 18 U.S.C. § 922(g). United States District Judge Timothy M. Cain of Anderson sentenced Stone to seventy-one months imprisonment, three years of supervised release, and a one-hundred dollar special assessment.
Evidence presented at the change of plea hearing established that on June 29, 2015, Macon County, Georgia law enforcement officers attempted to pull Stone over for speeding. Stone fled from police, beginning a chase through Georgia, North Carolina, and South Carolina, jeopardizing the lives of members of law enforcement and the public. Stone was eventually arrested in Oconee County, South Carolina, where he fled from officers on foot. Inside Stone’s vehicle, officers found a loaded .22 caliber rifle with a round in the chamber. Due to Stone’s prior convictions, including burglaries and aggravated assault, Stone was prohibited from carrying firearms at the time of his arrest.The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Macon County, Georgia Sheriff’s Office; the Rabun County, Georgia Sheriff’s Office; Highland, North Carolina Police Department; and the Oconee County Sheriff’s Office. Assistant United States Attorney Jamie Schoen of the Greenville office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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