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22 November 2016
Duke Energy to Plead Guilty to Clean Water Act Crime and Pay $1M Fine for 2014 Oil SpillRead the Press Release
CINCINNATI – Representatives of Duke Energy Beckjord LLC agreed to plead guilty today in federal court to negligent discharge of oil, in violation of the Clean Water Act. The filed plea agreement includes a $1 million fine in addition to restitution.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, John K. Gauthier, Acting Special Agent in Charge, U.S. Environmental Protection Agency (EPA) criminal enforcement program, Craig W. Butler, Director, Ohio EPA, Ohio Attorney General Mike DeWine, Ohio Bureau of Criminal Investigation and Captain Michael B. Zamperini, Commander, Sector Ohio Valley, U.S. Coast Guard announced the plea and sentence to take place in U.S. District Court today.
According to court documents, on August 18, 2014, Duke Energy caused a spill of approximately 9,000 gallons of diesel fuel from its Walter C. Beckjord generating station facility in New Richmond, Ohio to the Ohio River. The oil sheen on the Ohio River from the discharge extended for approximately 15 miles.
A Duke Energy operator transferring fuel from three 705,000-gallon capacity tanks ran the forwarding pump too long and over-filled the two 30,000-gallon capacity above-ground fuel tanks. Diesel fuel spilled from the tank overfill vents into a concrete secondary containment area. A valve on the secondary containment area had been improperly left open by other Duke employees, causing the spilled diesel fuel to escape the containment area and enter directly into the Ohio River.
The Ohio River is a source of drinking water for residents of both Kentucky and Ohio. As a result of the spill, the Northern Kentucky, Greater Cincinnati and Louisville water supply intakes were closed on August 19, 2014. Water intakes were reopened the next day, after water samples did not detect the diesel fuel in the drinking water.
Significant resources were expended by at least 35 government and private sector agencies in the emergency response and clean-up related to the discharge. Duke Energy’s prompt clean-up efforts resulted in the recovery of only a small portion of the discharged oil. To date, Duke Energy has reimbursed more than $1.2 million to those entities for costs incurred in connection with the spill. Further, Duke Energy has deconstructed the bulk fuel oil storage tanks involved in the spill and no longer stores bulk fuel oil at the Beckjord facility.
As part of the plea agreement, Duke Energy has agreed to also pay $100,000 to the Foundation for Ohio River Education, a non-profit organization dedicated to preserving the cultural, ecological and economic value of the Ohio River through community education. Duke Energy will also issue a written public apology in an advertisement published in the Cincinnati Enquirer.
“We will continue to take environmental violations seriously to ensure the safest living conditions for the residents of our District,” U.S. Attorney Glassman said.
“This case underscores the need for companies to have proper measures in place to prevent and respond to fuel spills so they don't impact our water resources," said John K. Gauthier, Acting Special Agent in Charge of EPA's criminal enforcement program in Ohio. "Had Duke Beckjord, LLC taken measures to ensure that valves were closed to contain fuel spills, this incident would not have occurred. Their lack of these measures resulted in a large fuel spill to the Ohio River which required substantial environmental response efforts.”
“This unfortunate incident risked the drinking water for hundreds of thousands of people. Simply following required procedures would have prevented this incident,” Ohio EPA Director Craig W. Butler said. “Today’s announcement should be a call to action for everyone along the river to be diligent about protecting this vital resource – the Ohio River.”
“This contribution will not only help get over 4,000 students on the Ohio River conducting water monitoring through our River REACH floating classroom program, but will also provide teachers hands-on training and materials that can be used in the classroom and at local streams,” said Heather Mayfield, Director of Foundation for Ohio River Education. “We are so glad that FORE can be a silver lining in this agreement and look forward to supporting Duke’s commitment to STEM education and water quality through our award-winning program.”
U.S. Attorney Glassman commended the cooperative investigation by the U.S. EPA, Ohio EPA, Ohio Attorney General’s Bureau of Criminal Investigation Environmental Enforcement Unit and the U.S. Coast Guard, as well as Assistant United States Attorney Kyle J. Healey who is representing the United States in this case.
Convicted Felon Pleads Guilty to 3rd Firearm OffenseRead the Press Release
PROVIDENCE, R.I. – Christopher Rene, 26, of Providence, pleaded guilty in federal court in Providence today with being a felon in possession of a firearm. Rene was arrested by Providence Police on February 4, 2016. It was the third time Rene had been arrested on firearm charges.
Rene’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the FBI in New England.
According to court records, at the time of his arrest in February Rene was on federal supervised release and state probation. In August 2009, Rene was convicted in state court on drug trafficking and firearm charges. He was sentenced to 7 years in prison, 6 months to serve and 78 months of probation. In a separate matter, in March 2011, Rene was convicted in federal court of being a felon in possession of a firearm. He was sentenced to 46 months in prison, to be followed by 3 years of supervised release.
On February 10, 2015, while on federal supervised release and state probation, Rene was among 35 individuals arrested during a series of investigations into violent crimes in Providence as part of the Rhode Island Urban Violent Crime Initiative. Based on information gathered by law enforcement, Rene was arrested for violating the terms of his federal supervised release. He was sentenced to six months in federal prison and an additional 30 months of federal supervised release.
According to state court documents, in February 2016, during an investigation into drug trafficking in Providence, Providence Police seized 41 bags of crack cocaine and .40 caliber handgun from vehicles accessed by Rene. Rene was detained shortly after he exited one vehicle and placed the handgun in the second vehicle.
Rene is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on February 15, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Providence Police Department with the assistance of the FBI’s Safe Streets Task Force.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island Department of Attorney General for their assistance in this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Colorado U.S. Attorney's Office Launches Web Page for Victims of FusionPharmRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer announced that his office has launched a website for victims of the FusionPharm fraud. The website, www.justice.gov/usao-co/fusionpharm-us-v-sears-and-dittman, is for anyone interested in the prosecution of FusionPharm, specifically, defendants, William Sears, age 50 of Thornton, Colorado, and Scott Dittman, age 47, now of Boyertown, Pennsylvania, and formerly of Elizabeth, Colorado. Both were charged by Information on September 16, 2016, and were charged with Conspiracy to Defraud the U.S. as part of a scheme to defraud the U.S. Securities Exchange Commission. Sears has pled guilty to the crimes and is scheduled to be sentenced on April 25, 2017. Dittman has filed a notice of disposition, and a change of plea hearing, originally set for early November and now reset due to change in defense counsel is pending.
FusionPharm’s principal business was the development, manufacture and sale of steel shipping containers retrofitted and refurbished for use as hydroponic growing pods, branded as “PharmPods,” for indoor plant cultivation, primarily cannabis. As set forth in court documents, the United States has alleged that, beginning as early as in or about March 25, 2011 and continuing at least through in or about May 15, 2014, the defendants knowingly and willfully conspired to commit securities fraud and wire fraud through FusionPharm, Inc. Specifically, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.
The United States has further alleged that Sears and Dittman would falsely represent to FusionPharm’s transfer agent and to broker-dealers that neither Sears nor companies related to him was an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM.
CleanSlate Addiction Treatment Centers Settle Allegations of Unlicensed Prescribing and Improper BillingRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $750,000 civil settlement yesterday with CleanSlate Centers, Inc. and Total Wellness Centers, LLC d/b/a CleanSlate, to resolve allegations that the two companies, which together operate opioid addiction treatment centers in Massachusetts and other states, improperly prescribed buprenorphine (Suboxone®) for opioid addiction treatment and improperly billed Medicare.
CleanSlate operates 17 clinics, offering treatment to individuals addicted to opioids, including heroin and prescription painkillers, through medication and counseling. The medication, buprenorphine, is a Schedule III controlled substance that also can be used to treat pain.
Until recently, only a physician could prescribe buprenorphine for addiction treatment. Congress modified the law in July 2016, allowing nurse practitioners and physician assistants to prescribe buprenorphine for addiction treatment, provided they meet certain training and state-law licensing requirements. In Massachusetts, those requirements have not yet been established.
United States Attorney Carmen M. Ortiz said, “Buprenorphine is an important drug used in the treatment of substance abuse, and until recently, only physicians were allowed to prescribe it. We will continue to closely monitor clinics that use buprenorphine for addiction treatment to ensure that they comply with strict prescribing requirements.”
“The DEA is committed to enforcing the Controlled Substances Act (CSA) by ensuring that all registrants abide by DEA’s prescribing regulations,” said Special Agent in Charge of the Drug Enforcement Administration Michael J. Ferguson. “Ensuring safe prescribing and dispensing of opioid medications and addiction treatment medications is a critical part of our ongoing efforts to protect patient safety and prevent drug diversion. In response to the ongoing opioid epidemic, DEA is committed to working with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
“We are committed to investigating healthcare providers engaged in improper billing and prescribing,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). “Working closely with the DEA, the Office of Inspector General will continue the fight against the deadly and destructive opiate epidemic to protect public safety as well as the federal health care programs intended to care for vulnerable Americans.”
The settlement resolves two sets of allegations. First, the government alleged that, from March 2012 to February 2014, CleanSlate clinics routinely contacted pharmacies representing that physicians had prescribed buprenorphine for patients when, in fact, only midlevel practitioners had seen the patients. Days later, after patients had already picked up their medication from the pharmacies, part-time physicians employed by CleanSlate for as little as six hours per month accessed the patients’ electronic medical records. After reviewing the patient visit information, the part-time physicians signed the prescriptions, backdating them to the visit dates. These actions violated the Controlled Substances Act and regulations issued by the DEA.
Second, the government alleged that, from June 2010 to April 2016, CleanSlate repeatedly billed Medicare for patient visits using physicians’ identification numbers when, in fact, the patients saw midlevel practitioners and no physicians were on clinic premises to supervise those practitioners. Had CleanSlate properly billed under the midlevel practitioners’ identification numbers, Medicare would have paid less. These actions violated HHS’s rules for billing Medicare and violated the False Claims Act.
Upon learning of the prescribing and billing violations, CleanSlate cooperated fully with the federal investigation. It has appointed a new management team and has begun the process of hiring at least one full-time physician at each of its clinics. In addition, CleanSlate has implemented a new system under which only doctors can prescribe buprenorphine, and they do so electronically, thereby ensuring that no prescription is issued until after a doctor has reviewed the patient visit information.
This matter was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. The addictive quality of opioids has contributed to a recent surge in the theft and misuse of prescription pain medications. As a result, federal, state, and local law enforcement and public health authorities are collaborating to support safe prescribing and dispensing of opioid medications.
U.S. Attorney Ortiz, DEA SAC Ferguson and HHS-OIG SAC Coyne made the announcement today. Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division handled the matter.
Charles County Sheriff’s Deputy Facing Federal Charge for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Charles County Sheriff’s Deputy Alexander C. Sullivan, age 37, of King George, Virginia, has been charged federally with possession of child pornography. The federal criminal complaint was filed on November 21, 2016 and Sullivan was arrested that evening. Sullivan is expected to have an initial appearance in U.S. District Court in Greenbelt at 3:00 p.m. today, before U.S. Magistrate Judge William Connelly.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Charles County Sheriff Troy Berry.
According to the affidavit filed in support of the criminal complaint, the National Center for Missing and Exploited Children (NCMEC) received four tips from a company that provides cloud security concerning suspected child pornography being uploaded to a specific telephone number in October and November 2016. An officer from the Charles County Sheriff’s Department conducted a search on the telephone number and determined that it belonged to Alexander Sullivan of Indian Head, Maryland. The officer recognized Sullivan’s name and telephone number as belonging to a fellow officer. Sullivan had resided in Indian Head prior to recently relocating to Virginia.
A state search warrant for Sullivan and his telephone was executed in Charles County on November 17, 2016. A preview of the materials on the phone allegedly revealed more than 200 images and five videos containing child pornography. The forensic investigation is ongoing.
If convicted, Sullivan faces a maximum sentence of 10 years in prison for possession of child pornography.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who are prosecuting the federal case.
Butler County Man Charged with Transporting Minors for SexRead the Press Release
PITTSBURGH -A Butler County resident has been indicted by a federal grand jury in Pittsburgh on charges of sexual misconduct and ordered detained, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on November 9 and unsealed yesterday, named James Mark Leroy, 54, of Renfrew, PA. According to the indictment presented to the court, Leroy, on two separate occasions, traveled out of state and transported minors with the intent to engage in illicit sexual conduct.
Following a detention hearing, Magistrate Judge Lisa Pupo Lenihan ordered that Leroy remain in the custody of the United States Marshals pending trial. According to evidence presented to the court, Leroy sexually exploited four minor children between 2009 and 2016 at his home and on interstate trips. Testimony presented by Detective John Hertzog of Butler County also detailed direct and indirect efforts by Leroy to obstruct the investigation.
Anyone with information that may help identify additional victims of James Mark Leroy is asked to contact the Federal Bureau of Investigation – Pittsburgh Division at 412-432-4000.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Soo C. Song and Heidi M. Grogan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Penn Township Police, and Butler County conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Depart of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Building Contractor Company Executive Convicted of Theft from Labor Union, Unlawful Labor Payments, Fraud and Money LaunderingRead the Press Release
The owner and CEO of a Greenbelt, Maryland, building contracting company was convicted today for stealing $1.7 million from Local 657 of the Laborers International Union of North America (LIUNA) and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Robin Blake of the Department of Labor Office of Inspector General Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor-Management Standards Washington, D.C., District Office made the announcement.
Gary Amoes Cooper, 58, of Upper Marlboro, Maryland, the owner and CEO of STS General Contracting, was convicted of conspiracy to commit theft from a labor organization, conspiracy to make unfair labor payments, wire fraud and money laundering following a jury trial before U.S. District Judge Amit P. Mehta of the District of Columbia. Sentencing has been scheduled for Feb. 27, 2017.
Evidence presented at trial demonstrated that Cooper and co-defendant Christopher Andrew Kwegan, the president of STS, conspired with Anthony Wendel Frederick Sr., the former business manager of Local 657 of LIUNA, to convert for personal use $1.7 million in funds stolen from Local 657. LIUNA is a labor organization that represents laborers in the construction industry, and LIUNA’s Local 657 represents construction laborers in Washington, D.C., and five adjacent counties.
According to trial evidence, from May 2013 to June 2014, Frederick directed $1.7 million in Local 657 funds to STS for an unauthorized construction project and other work without the knowledge or authorization of the Local 657 Executive Board or officials in LIUNA. Cooper and Kwegan then directed part of the stolen funds from STS accounts toward a $225,000 down payment and construction of a garage for a residential property acquired by Frederick, and gave Frederick’s wife 50 percent ownership in a different construction corporation owned by Cooper. In addition, according to trial evidence, Cooper and Kwegan depleted an STS bank account containing only stolen Local 657 funds by withdrawing more than $400,000 in cash, sending hundreds of thousands of dollars to third parties in Qatar and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel.
Frederick, 51, also of Upper Marlboro, and Kwegan, 58, of Randallstown, Maryland, previously pleaded guilty to the same offenses and await sentencing.
The FBI and the Department of Labor investigated the case. Trial Attorneys Vincent Falvo and David Karpel of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Damian Rivera-Melendez, 27, of Buffalo, NY, who was convicted of attempt to possess cocaine with intent to distribute cocaine, was sentenced to 26 months in prison by Chief U.S. District Court Chief Judge Frank P. Geraci.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that on April 29, 2015, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed and revealed an amount of cocaine concealed in the package. During a controlled delivery of the package to the residence in Buffalo, Rivera-Melendez directed another person to sign for the package. When Drug Enforcement Administration agents attempted to arrest the defendant, Rivera-Melendez attempted to flee from law enforcement by escaping down a stairwell in the residence. Law enforcement ultimately arrested the defendant and recovered the opened package.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Bossier City woman sentenced to 12 months in prison for stealing more than $90,000 in VA benefitsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman was sentenced to 12 months in prison for fraudulently taking more than $90,000 in federal benefits that were payable to her deceased mother.
Gloria Lynn Perry, 67, of Bossier City, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of theft of government property. She was also sentenced to three years of supervised release and ordered to pay $ 88,915.15 restitution. According to the July 24, 2015 guilty plea, Perry stole $90,000 of her mother’s Veteran’s Affairs Dependency and Indemnity Compensation benefits from April 1, 2008 until July 1, 2014. Her mother died in 2008 and was no longer entitled to the benefits. In addition, Perry filed for Chapter 13 bankruptcy in 2014, but she did not report the existence of the bank account where her mother’s benefits were deposited nor the income she received as a result.
The Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Bay State Man Sentenced to 70 Months in Prison for Illegally Possessing Self-Built Guns in New HampshireRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that today Raymond L. Blackmer, III, 52, was sentenced to a term of 70 months in federal prison. Blackmer, formerly of Easthampton, Massachusetts, previously had pleaded guilty to the federal crime of Illegal Possession of a Firearm by a Convicted Felon.
According to statements made in connection with Blackmer’s earlier guilty plea, the Easthampton (Massachusetts) Police Department learned on November 6, 2015, that Blackmer intended to travel from Massachusetts to New Hampshire with one or more firearms. Information further indicated that Blackmer had assembled the firearms in his workshop in Easthampton, Massachusetts from component parts that he had purchased on the Internet.
Later that day, surveillance officers watched Blackmer leave his home with the suspected firearms and then drive across the Massachusetts border into Winchester, New Hampshire. Upon crossing the border, Blackmer was stopped by other law enforcement officers who executed a federal search warrant on Blackmer’s car.
Inside the trunk of Blackmer’s car were two AR-15 style rifles, rifle sites and a loaded magazine. During a later search of a premises in Massachusetts that Blackmer used as a workshop, Easthampton police found nine firearms in various states of assembly, at least five of which were sufficiently complete to qualify as firearms under federal law. In connection with his plea, Blackmer admitted that, at the time of the traffic stop and the execution of the warrants, he previously had been convicted of felonies on at least five prior occasions. It is unlawful for a convicted felon to possess firearms.
United States District Judge Steven J. McAuliffe imposed the sentence against Blackmer. In addition to the prison term, Judge McAuliffe imposed a criminal fine of $1000 and ordered Blackmer to serve three years of supervised release after his release from prison. While on supervised release, Blackmer will be required to abide by certain restrictions on his activities and other conditions set by the Court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in both Manchester, New Hampshire and in Springfield, Massachusetts, as well as the Easthampton, Massachusetts Police Department and the New Hampshire State Police. The Office of the District Attorney for the Northwest District of the Commonwealth of Massachusetts provided important support. The case was prosecuted by Assistant United States Attorney Bill Morse.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a national initiative by the U.S. Department of Justice to reduce gun crime in America.
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Arlington Heights Man Sentenced to Five Years in Federal Prison for Receiving Sexually Explicit Images of a Child He Met OnlineRead the Press Release
CHICAGO — An Arlington Heights man was sentenced today to five years in federal prison for receiving sexually explicit images of a ten-year-old girl with whom he communicated online.
In several online conversations in 2014, DANIEL SANTIAGO attempted to persuade the girl to engage in sexually explicit conduct. Santiago eventually received an image over the internet that depicted the child’s private area. He then uploaded the image to an online file-sharing application that allowed others to view the image.
Santiago, 25, pleaded guilty in August to one count of knowingly receiving child pornography. U.S. District Judge Robert W. Gettleman imposed the sentence in federal court in Chicago.
“The evidence shows that Santiago actively sought out child pornography,” Special Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum. “The images that are the subject of the charges in this case concern a ten-year-old girl whom Santiago exploited.”
According to his written plea agreement, Santiago used the file-sharing application to store, access and share other images of child pornography. He amassed a collection of approximately 2,210 pictures and 25 videos, the plea agreement states. Santiago admitted that his collection included images of prepubescent minors, as well as sadistic and masochistic conduct, according to the plea agreement.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The CETF is part of a nationwide effort known as the Innocence Lost National Initiative targeting the commercial sexual exploitation of children in the United States. In Chicago, the CETF is composed of FBI special agents and investigators from the Chicago Police Department, the Cook County Sheriff’s Office, and the Cook County State’s Attorney’s Office.
The government is represented by Mr. Jodrey.
Arkansas Resident Sentenced to Serve over 24 Years in Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – Marco Bobo, 39, of Forrest City, Ark., was sentenced on Nov. 21, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 292 months in federal prison. Upon his release from prison, he will be supervised by the U.S. Probation Office for five years. There is no parole in the federal system.
Bobo pleaded guilty in August 2016 to a conspiracy to distribute 280 grams or more of crack cocaine. He was the leader of a drug trafficking organization involving seven co-defendants, which obtained powder cocaine in Forrest City, Ark., and transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Bobo admitted to being conservatively responsible for distributing between 2.8 and 8.4 kilograms (6 to 18.5 pounds) of crack cocaine. In addition to receiving cash, he also received firearms in exchange for crack cocaine, some of which he kept and some he distributed to known drug traffickers.
Bobo faced a minimum mandatory sentence of at least 20 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. J. Gregory Bowman, Assistant U.S. Attorney represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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21 November 2016
Virginia Man Pleads Guilty to Robbery and Firearms Charges in Connection with Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Virginia man pleaded guilty today before United States District Court Judge Malachy E. Mannion in Scranton, to federal robbery and firearms charges filed in connection with the armed robbery of the Econo Lodge located on Kane Street in Scranton, which occurred on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Kwa’shon Roane, age 24, of Gloucester, Virginia, admitted to the charges of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. Roane, along with Rodney Whiting, age 23, of Scranton, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, also of Newport News, Virginia, were indicted by a grand jury in March 2016 for the armed robbery of the Econo Lodge.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Rodney Whiting, Tracy Whiting and Kelvin Robinson previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence and are awaiting sentencing.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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.
Roane faces a mandatory penalty of at least seven years in prison for the charge of brandishing a firearm in furtherance of a crime of violence, which must be served in addition to the sentence he receives for the charge of interference with commerce by robbery.
The maximum penalty under federal law for the offenses is up to life in prison, a term of supervised release following imprisonment and a fine. According to 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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Virginia Beach Man Pleads Guilty to Attempting to Entice a MinorRead the Press Release
NORFOLK, Va. – John Francis Aragon, 50, of Virginia Beach, pleaded guilty today to charges of coercion and enticement of a minor to engage in sexual activity.
According to the statement of facts filed with the plea agreement and other court documents, in May 2016, Aragon posted an ad on Craigslist seeking “fetish sex with young girl.” A detective with the Virginia Beach Police Department, in an undercover capacity, responded to the ad pretending to be a 14-year-old girl. The two chatted over a period of time, and the conversations became sexually explicit. Eventually, a special agent with Homeland Security Investigations took over the alleged 14-year-old’s role. On three occasions, Aragon left money under a rock at a local park in exchange for a pair of the girl’s underwear. Aragon also expressed his desire to meet the girl in person in order to engage in sexual activity and on August 16, Aragon showed up at the park in Virginia Beach to meet the girl and was then arrested.
Aragon was indicted by a federal grand jury on September 21, and faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on Feb. 24, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-129.
U.S. Attorney Ferrer Attends Bilateral Summit with Attorney General of Colombia to Discuss Transnational CrimeRead the Press Release
Today, U.S. Attorney Wifredo A. Ferrer, U.S. Deputy Assistant Attorney General Kenneth A. Blanco, U.S. Ambassador to Colombia Kevin Whitaker, Attorney General of Colombia Nestor Humberto Martinez Neira and Colombia National Police Director General Jorge Hernandez Nieto Rojas met in Cartagena, Colombia for a summit to combat organized transnational crime.
During the meeting, the delegations from the United States and Colombia agreed to strengthen bilateral cooperation in dismantling the financial structures of the criminal organizations, the fight against drug trafficking and the use of asset forfeiture against organized crime.
Colombia and the United States seek to exchange the understandings, visions and interests with respect to the objectives of both countries in order to combat transnational organized crime. In addition, in order to strengthen the commitment of both nations, the parties reached an agreement concerning the sharing of assets confiscated in connection with criminal conduct. The agreement aims to allow Colombia and the United States to share assets - including money and goods of any kind - that have been confiscated by the respective authorities of the parties, and are subject to forfeiture in either of the two jurisdictions. The main purpose of this agreement is to collectively impact the financial structures of the criminal organizations. The recoveries will be used to cover the costs of the investigations and the prosecution of offenses by the respective authorities.
Leaders of the international law enforcement community attended the summit, including representatives from the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement (ICE) and Internal Revenue Service (IRS). The Colombian government was also represented by the Assistant Attorney General María Paulina Riveros Dueñas, the National Director of the Prosecutor’s Office, the Ministry of Defense, the Ministry of Finance and Public Credit, the National Police and the Financial Analysis and Information Unit.
U.S. Attorney Announces Arrest of William Mateo for November 18 Gunpoint Robbery of A Bank in Central Nyack, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney, the Assistant Director-in-charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Robert Mahon, the Acting Chief of the Clarkstown Police Department (“CPD”), announced the arrest of WILLIAM MATEO on charges of bank robbery and a firearms offense. MATEO was arrested yesterday in Elmsford, New York, and will be presented later today in the Southern District of New York in White Plains before United States Magistrate Judge Judith C. McCarthy.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, William Mateo entered a bank in Central Nyack with a mask and a gun, robbed the bank of over $6,000, and then fired a shot toward one of the bank tellers. Thanks to the investigative work of the FBI and Clarkstown Police, just three days after the bank robbery, Mateo is under arrest facing federal criminal charges.”
FBI Assistant Director-in-Charge William F. Sweeney said: “The FBI Westchester County Safe Streets Task Force worked tirelessly to find the suspect accused in this bank robbery because of the threat he posed to the community. Bank tellers complied and gave him the money he demanded, but before leaving, he fired a round in the direction of the tellers. His alleged disregard for the harm he could have cause the people and workers show why it was extremely important to find and arrest him.”
CPD Acting Police Chief Captain Robert Mahon said: “I’m so proud of the entire Clarkstown Police Department for bringing this suspect to justice without any injuries to the public or our officers. Our detectives and the FBI agents assigned to this case worked tirelessly over the past weekend to identify, surveil and apprehend William Mateo for this alleged violent crime. This arrest exemplifies the highest level of dedication and professionalism shown by both the Clarkstown Police Department and the Federal Bureau of Investigation.”
According to the allegations contained in the Complaint[1] charging MATEO, and other documents in the public record:
On November 18, 2016, MATEO committed a gunpoint robbery of the Key Bank in Central Nyack, New York. At the time of the robbery, he was wearing a mask and gloves, and carrying a semi-automatic handgun. After entering the bank, MATEO approached two bank tellers, who handed him cash. Before exiting, he fired a round in the direction of one of the tellers. The bullet hit a wooden partition between two tellers, and no one was injured. MATEO then exited the bank and fled in a car. MATEO’s vehicle was captured on the bank’s surveillance cameras and observed by a witness. In a search of MATEO’s residence, law enforcement recovered a mask, a box of gloves matching those worn during the robbery, and a safe containing, among other items, shell casings, live ammunition, and more than $2,000. After arresting MATEO at a hotel in Elmsford, New York, law enforcement recovered from his hotel room a semi-automatic handgun, a glove, and a firearm magazine. MATEO subsequently gave a post-arrest statement admitting that he had committed the bank robbery and that he had discharged a firearm during the crime. In total, MATEO obtained approximately $6,400.
* * *
MATEO, 24, of Valley Cottage, New York, is charged with one count of bank robbery, which carries a maximum sentence of 25 years in prison, and one count of use of a firearm during and in relation to a crime of violence, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the Clarkstown Police Department and the FBI’s Westchester County Safe Streets Task Force, which is comprised of agents and task force officers from the FBI, the U.S. Probation Office, the Westchester County Police Department, the Westchester County District Attorney’s Office, the New York City Police Department, the City of Yonkers Police Department, the Peekskill Police Department, and the Mount Vernon Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant United States Attorneys Christopher J. Clore and Gillian Grossman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two men plead guilty to federal heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Bobby James Mitchell, 35, of Huntington, entered his guilty plea to distribution of heroin. In a separate prosecution, Antoine Garfield Rushin, 44, of Detroit, entered his guilty plea to aiding and abetting the possession with intent to distribute heroin.
On March 16, 2016, members of the Drug Enforcement Administration Task Force conducted a controlled purchase of heroin from Mitchell. Mitchell and a confidential informant working with law enforcement met at 1039 Rear Jefferson Avenue in Huntington to complete the drug deal. The confidential informant provided Mitchell with $500 in exchange for approximately 6.1 grams of heroin. Mitchell faces up to 20 years in federal prison when he is sentenced on February 21, 2017.
In a separate prosecution, law enforcement executed a search warrant on June 29, 2015, at 1751 Buffington Avenue in Huntington. Just prior to execution of the warrant, officers observed Rushin enter the residence. During the search, Rushin and other individuals in the residence were arrested and officers seized approximately 65 grams of heroin and digital scales. Rushin admitted that he frequently provided heroin to individuals staying at the residence for those individuals to distribute. Rushin faces up to 20 years in federal prison when he is sentenced on February 21, 2017.
The Drug Enforcement Administration Task Force conducted the investigation of Mitchell. Assistant United States Attorney Gregory McVey is handling the Mitchell prosecution. The investigation of Rushin was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution of Rushin. Chief United States District Judge Robert C. Chambers presided over the plea hearings.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two St. Thomas Men Arrested for Possessing Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
St. Thomas, USVI – Acio Richards, 26, and N’kel Morton, 22, both of St. Thomas, Virgin Islands, made their initial appearance in court on November 17, 2016, before U.S. Magistrate Judge Ruth Miller on separate criminal complaints charging each with possession of a firearm in furtherance of drug trafficking, United States Attorney Ronald W. Sharpe announced.
After a detention hearing in front of Judge Miller on Friday, November 18, 2016, Morton was remanded into the custody of the U.S. Marshals Service pending further proceedings, while Richards was released to a third-party custodian on a $10,000 unsecured bond, and was placed on home detention with electronic monitoring.
According to the complaints, on November 16, 2016, both Richards and Morton separately traded cocaine in exchange for a firearm with an undercover special agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Possession of a firearm in furtherance of a drug trafficking offense carries a mandatory minimum sentence of five years.
This case is being investigated by the ATF. It is being prosecuted by Assistant United States Attorney Meredith Edwards.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two Individuals Pled Guilty to Smuggling over $2.4 Million into the United States from the Dominican RepublicRead the Press Release
On November 14, 2016, two individuals pled guilty to smuggling over $2.4 million into the United States from the Dominican Republic.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, David P. D’Amato, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection, Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
Mildrey De La Caradid Gonzalez, 61, and Milka Yarlin Alfaro, 40, pled guilty before Chief U.S. District Judge K. Michael Moore, in Miami, Florida to charges of bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a). Alfaro and Gonzalez face a statutory maximum sentence of five years’ imprisonment. They are scheduled to be sentenced on February 2, 2017, before U.S. Chief District Judge K. Michael Moore.
According to court records, including a stipulated factual basis in support of Alfaro and Gonzalez’s guilty plea, on June 4, 2016, Alfaro, Gonzalez, and co-defendant Luis de Jesus Alonzo, Jr. (collectively, the “Defendants”), arrived at Miami International Airport in Miami, Florida from the Dominican Republic. The Defendants presented at least seven pieces of luggage for entry into the United States. Alonzo filled out the required United States Customs and Border Protection Form 6059B (the “Declaration Form”) as the “responsible family member” on behalf of the Defendants. Alonzo declared that he and his co-defendants were not carrying in excess of ten thousand dollars in United States currency and presented the Declaration Form to Passport Control officers.
However, at the time Alonzo presented the Declaration Form, Alfaro and Gonzalez knew that the Defendants had in excess of ten thousand dollars hidden within their luggage. During a subsequent search of the Defendants’ luggage, approximately $2,463,759.00 in United States currency was discovered concealed within the luggage in diapers, baby wipes, makeup pouches, and purses, among other things. Alfaro and Gonzalez both admitted to United States Customs and Border Patrol Officers that the luggage with the concealed currency was theirs, and that Alfaro and Gonzalez had packed the luggage together.
The Defendants misrepresented that they were not carrying in excess of ten thousand dollars in United States currency in order to evade a currency reporting requirement under Title 31, United States Code, Section 5316.
Alonzo pled guilty to bulk cash smuggling on September 15, 2016. He is scheduled to be sentenced on November 30, 2016, before U.S. Chief District Judge K. Michael Moore.
Mr. Ferrer commended the investigative efforts of ICE-HSI, ICE-OPR, DHS-OIG, USSS, CBP and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Toledo trio convicted at trial of forging will to steal $2.2 millionRead the Press Release
Three Toledo residents were convicted for forging a will to fraudulently gain control of an estate worth approximately $2.2 million, said U.S. Attorney Carole S. Rendon and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Susan M. Pioch, 60, Margaret L. McKnight, 42, and Kurt L. Mallory, 53 are convicted on all counts following a weeklong jury trial.
All three were convicted one count of conspiracy to commit bank fraud and mail fraud, 21 counts of bank fraud, seven counts of mail fraud and one count of aggravated identity theft. Pioch, McKnight and Mallory were convicted on additional counts of money laundering. McKnight was convicted on an additional count of structuring cash withdrawals, three tax counts and seven counts of causing a financial institution to fail to file a required report.
“This trio forged a will and stole a lifetime of savings and hard work,” Rendon said. “They will finally be held accountable for their actions. It’s particularly egregious that an attorney, who has sworn an oath to uphold our laws, was involved in these crimes.”
“The defendants engaged in a scheme to steal millions from a deceased man’s family, proving that money is the root of all evil,” Enstrom said. “It was imperative to make sure no corners were cut and no stone was left unturned. The IRS National Forensic Laboratory played a critical role in this investigation by examining the handwriting on numerous documents that ultimately proved that the will in question in this case was forged. Today’s convictions are a direct result of the excellent partnership of the IRS, U.S. Attorney’s Office and the Toledo Police Department.”
Martin E. Fewlas executed a will in 1993 devising his entire estate to his brother. If his brother did not survive Fewlas, the estate was to go to his nephew and then his great-nephew, identified in the indictment as JRM.
Fewlas owned the duplex located at 2557 Broadway Street in Toledo. He lived in the lower half and for approximately 10 years, McKnight and Mallory lived together in the upper half, according to court documents.
Fewlas died on Aug. 28, 2010, leaving an estate worth approximately $2.2 million. On Sept. 2, 2010, McKnight, Mallory and Pioch – an attorney who had previously done legal work for McKnight and Mallory forged a will in Fewlas’ name. The forged will was drafted by Pioch and named McKnight as the executor and sole devisee of Fewlas’ assets. Pioch filed the forged will with the Lucas County Probate Court on or around Sept. 2, 2010. McKnight identified herself as executor of the estate and Pioch identified herself as attorney for the executor in probate court documents, according to court documents.
By filing the forged will and concealing its fraudulent nature, Pioch, McKnight and Mallory succeeded in obtaining Probate Court authority to take possession of Fewlas’ assets. After obtaining those assets, they disbursed the assets to themselves for their own enrichment, according to court documents.
Pioch, McKnight and Mallory used those assets to purchase, among other things, a used car dealership, a 2000 Discovery motorhome for $55,036, a classic 1972 Chevrolet El Camino for $17,000, a 2010 Kia Soul SUV for $21,338, as well as property. They also withdrew more than $500,000 in cash for Fewlas’ estate proceeds, according to court documents.
JRM, Fewlas’ great nephew and the sole remaining devisee from the 1993 will, received nothing, according to court documents.
The case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Noah Hood following an investigation by the Internal Revenue Service – Criminal Investigations and the Toledo Police Department.
Timothy Ryan Sentenced to 157 Months’ ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Timothy Ryan, 32, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller for distribution, receipt, and possession of child pornography.
Ryan had been convicted by a jury on all counts on June 14, 2015, and today was sentenced to 157 months’ imprisonment and 5 years supervised release.
According to documents filed in this case, an undercover officer was able to download child pornography from a computer in Ryan’s home in February 2015, which led to a search of his home in May 2015, during which a computer containing child pornography was seized.
This case was investigated by the Federal Bureau of Investigation and the St. Joseph County Sheriff’s department. The case was handled by Assistant United States Attorney John M. Maciejczyk.
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Three Individuals Indicted on Hobbs Act Robbery and Related Gun ChargesRead the Press Release
St. Thomas, USVI – On November 17, 2016, a federal grand jury returned a 10-count indictment against Aracelis N. Ayala aka Gordita aka Fluff, 34, Turrel Thomas, 21, and Raheem Miller aka Caesar, 24, charging them with two Hobbs Act robberies, conspiracy, related gun charges, and territorial offenses, United States Attorney Ronald W. Sharpe announced.
On November 18, 2016, Ayala and Thomas made their initial appearances before U.S. Magistrate Judge Cannon on St. Croix, Virgin Islands, and Miller made his initial appearance before a U.S. Magistrate Judge in Philadelphia, Pennsylvania.
The 10-count indictment is the result of an investigation into Hobbs Act robberies of two jewelry stores on St. Thomas: Signature Jewelers on August 19, 2015, and 3G’s Jewelry and Repair on September 14, 2015. According to the Indictment, these individuals conspired to rob the stores and brandished weapons to threaten and intimidate store employees. The robbers used duct tape to bind and gag the victims and then fled the store with cash and merchandise.
If convicted, these individuals face up to 20 years on each of the Hobbs Act robbery and local robbery charges; mandatory 7- and 25-year consecutive sentences for each brandishing of a firearm charge; and a mandatory minimum of 15 years on each of the territorial firearms charge.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant U.S. Attorney Anthony Scarpelli, Criminal Chief Christian A. Fisanick, and Assistant U.S. Attorney Anna A. Vlasova.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Stone County, Arkansas, Chief Sheriff’s Deputy Sentenced to Prison for Instructing Inmates to Assault Another PrisonerRead the Press Release
The Justice Department announced today that Randel Branscum, 56, formerly the chief sheriff’s deputy and jail administrator for the Stone County Sheriff’s Office in Mountain View, Arkansas, was sentenced to 12 months and one day in prison for instructing a group of prisoners to beat another inmate and then arranging for the assault to occur.
As a part of his guilty plea, which occurred on March 2, 2016, Branscum admitted that while acting under his authority as jail administrator, he approached a group of inmates, who were detained together in cell 33 and told them to “handle” the victim. Branscum then moved the victim, who had been housed in a neighboring cell, into cell 33. When the victim realized he was about to be assaulted and attempted to leave the cell, Branscum forced the victim inside and then allowed the victim to be beaten as instructed. During the assault, the victim was repeatedly punched and his head was knocked into a windowsill, causing a head wound and other injuries.
“This corrections officer abused his power to order a violent assault against a prisoner,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We expect and entrust corrections officers with the responsibility to care for and protect inmates in their custody. When corrections officers fail to uphold that oath, their actions corrode our justice system’s fundamental values and create an environment that is more dangerous for inmates as well as officers.”
“This type of abuse of power and authority will never be tolerated by the citizens of Arkansas, or my office,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. “The public deserves to know that law enforcement and correctional officers are trustworthy and law-abiding citizens, held to high ethical standards. When an officer strays from that standard, as this officer did, they will be held accountable for their illegal actions.”
One of the inmates who carried out the beating, Matthew McConniel, was also sentenced today for the same offense as Branscum and received a term of probation. On May 26, 2016, another inmate who took part in the beating, James Beckham, was also sentenced to probation for the offense. All three defendants were sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas.
This case was investigated by the FBI. It was prosecuted by Special Litigation Counsel Gerard Hogan, Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Stone County, Arkansas, Chief Sheriff's Deputy Sentenced to Prison for Instructing Inmates to Assault Another PrisonerRead the Press Release
WASHINGTON – The Justice Department announced today that Randel Branscum, 56, formerly the chief sheriff’s deputy and jail administrator for the Stone County Sheriff’s Office in Mountain View, Arkansas, was sentenced to 12 months and one day in prison for instructing a group of prisoners to beat another inmate and then arranging for the assault to occur.
As a part of his guilty plea, which occurred on March 2, 2016, Branscum admitted that while acting under his authority as jail administrator, he approached a group of inmates, who were detained together in cell 33 and told them to "handle" the victim. Branscum then moved the victim, who had been housed in a neighboring cell, into cell 33. When the victim realized he was about to be assaulted and attempted to leave the cell, Branscum forced the victim inside and then allowed the victim to be beaten as instructed. During the assault, the victim was repeatedly punched and his head was knocked into a windowsill, causing a head wound and other injuries.
"This corrections officer abused his power to order a violent assault against a prisoner," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "We expect and entrust corrections officers with the responsibility to care for and protect inmates in their custody. When corrections officers fail to uphold that oath, their actions corrode our justice system’s fundamental values and create an environment that is more dangerous for inmates as well as officers."
"This type of abuse of power and authority will never be tolerated by the citizens of Arkansas, or my office," said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas. "The public deserves to know that law enforcement and correctional officers are trustworthy and law-abiding citizens, held to high ethical standards. When an officer strays from that standard, as this officer did, they will be held accountable for their illegal actions."
One of the inmates who carried out the beating, Matthew McConniel, was also sentenced today for the same offense as Branscum and received a term of probation. On May 26, 2016, another inmate who took part in the beating, James Beckham, was also sentenced to probation for the offense. All three defendants were sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas.
This case was investigated by the FBI. It was prosecuted by Special Litigation Counsel Gerard Hogan, Trial Attorneys Gabriel Davis and Samantha Trepel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Statement by Attorney General Loretta E. Lynch on the Recent Shootings of Law Enforcement OfficersRead the Press Release
Attorney General Loretta E. Lynch today released the following statement on the recent acts of violence and ambush style shooting of law enforcement officers:
“Over the last several days, the nation has witnessed a disturbing spate of violence against law enforcement officer across the country. Since Friday, Nov. 18, two law enforcement officers – U.S. Marshals Service Deputy Commander Patrick Carothers and San Antonio Police Department Detective Benjamin Marconi – were killed, and three others were wounded. These reprehensible acts cannot be tolerated and they again remind us of the significant hazards that public safety officers confront each and every day on our behalf.
“Unfortunately, recent statistics suggest that 2016 has been an especially dangerous year for police officers, with a significant increase in the number of officers killed in the line of duty since Jan. 1. As Attorney General, I regard this increase with the utmost seriousness and the Department of Justice is working closely with our partners in the field to improve officer safety and resilience. In the days ahead, the Department of Justice will continue to assist state and local law enforcement officers in any way that we can to reduce the frequency and deadliness of these tragic incidents.
“I ask all Americans to join me in expressing condolences to the family and loved ones of Deputy Commander Carothers and Detective Marconi and in praying for the swift recovery of the officers who were wounded. They – and all law enforcement officers – deserve our undying respect, gratitude, and support.”
Senior Officer of Italian Oil Tanker Sentenced to Eight Months in Prison for Concealing Discharge of Oily WasteRead the Press Release
NEWARK, N.J. – A senior engineering officer employed by an Italian shipping company was sentenced today to eight months in prison for deliberately concealing a vessel’s discharge of oily waste into the sea, U.S. Attorney Paul J. Fishman announced.
Girolamo Curatolo, 50, of Custonaci, Sicily, the chief engineer of an oil tanker, the M/T Cielo di Milano, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to violate the Act to Prevent Pollution from Ships. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The vessel, owned by D’Amico Shipping Italia S.p.A. and managed by D’Amico Societa di Navigazione S.p.A., visited ports in New Jersey multiple times, as well as ports in Maryland and Florida.
Curatolo admitted that the crew had intentionally bypassed required pollution prevention equipment by discharging oily waste from the engine room through its sewage system into the sea. He also admitted that he falsified the vessel’s Oil Record Book, a required log regularly inspected by the U.S. Coast Guard.
Curatolo admitted he made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015, instructing lower-level crew members to make false statements and destroying the vessel’s sounding log – which records the contents of storage tanks aboard the vessel, including those containing oily waste – by ripping the pages out and burning it in the vessel’s boiler after the Coast Guard had boarded the vessel.
In addition to the prison term, Judge Wigenton sentenced Curatolo to one year of supervised release and ordered him to pay a $5,000 fine.
Danilo Maimone, 31, of Furci Siculo, Sicily, the ship’s first assistant engineer, pleaded guilty to an information charging him with conspiring to obstruct justice. Maimone admitted concealing the discharge of oily waste as well as causing a false Oil Record Book to be presented to the Coast Guard during its inspection of the vessel. He also admitted making false statements and instructing lower-level crew members to do the same during the January 2015 inspection. Maimone is scheduled for sentencing on Jan. 18, 2017.
U.S. Attorney Fishman credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Kelly Graves of the U.S. Attorney’s Office General Crimes Unit in Newark, and Trial Attorneys Brandy Parker and John Cashman of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division.
Defense counsel:
Curatolo: Michael G. Chalos Esq. of New York
Maimone: Ronald A. Sarachan Esq. of Philadelphia
Salesman Sentenced in Scheme to Defraud Consumers Through Debt Relief FirmsRead the Press Release
A Newport Beach, California, man was sentenced today in connection with a fraudulent debt relief firm, the Justice Department and U.S. Postal Inspection Service announced. The defendant worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.
John Vartanian, 57, was sentenced to serve 27 months in prison, followed by three years of supervised release, and ordered to pay $1,208,086 in restitution. Vartanian admitted to selling the firm’s fraudulent debt relief services through telephone calls with consumers nationwide. The sentence was imposed Monday by U.S. District Court Judge Dale Fischer of the Central District of California in Los Angeles. The defendant previously pleaded guilty for his role in the scheme.
“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”
“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing this fraudulent credit repair salesman and his accomplices to justice.”
Vartanian pleaded guilty to one count of conspiracy to commit mail and wire fraud. Four other defendants also pleaded guilty and were sentenced last week in connection with the fraudulent scheme.
Vartanian and other members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies. Clients were told the companies would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
The scheme ran from February 2010 to September 2012 and, in 2011, changed names from Nelson Gamble to Jackson Hunter. Conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Participants in the scheme blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
In September 2012, the Federal Trade Commission (FTC) brought a civil case against the companies and its principal, Jeremy Nelson, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts. Mizer thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Roanoke Man Sentenced on Federal Firearm ChargeRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who was previously convicted of a crime and therefore prohibited by federal law from possessing a firearm, was sentenced today on a federal firearms charge, United States Attorney John P. Fishwick Jr. announced.
Jon Phillip Dumire, 23, of Roanoke, previously pled guilty in the United States District Court for the Western District of Virginia in Roanoke to one count of being a previously convicted felon illegally in possession of a firearm. Today in District Court, Dumire was sentenced to 72 months in federal prison and three years of supervised release thereafter.
According to evidence presented during a guilty plea hearing in District Court in August, in the early morning hours of December 27, 2014, while at a house party on Stewart Avenue, SE in Roanoke, and thereafter, Dumire was armed with two guns, a small silver. 25 caliber pistol with a white handle and a .380 caliber pistol. Dumire was seen holding these guns and wearing them on his hips throughout the events that morning at the party, after the party and inside and outside his residence.
The case was brought following an investigation by the Central Virginia Violent Crime Safe Streets Task Force [Roanoke Violent Crime Task Force], a joint state-federal task force formed in January 2016 led by the FBI that includes the Virginia State Police, Roanoke City Police and Roanoke County Police. While not an official member of the task force, the Bureau of Alcohol, Tobacco, Firearms and Explosives is routinely involved in the work of the task force and was crucial in the Dumire investigation. The case was prosecuted for the United States by United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Daniel Bubar.
Puerto Rico Man Pleads Guilty to Trafficking in FirearmsRead the Press Release
St. Thomas, USVI – On Friday, November 18, 2016, Raji Yusuf, 30, of Puerto Rico, pleaded guilty in District Court to trafficking in firearms, United States Attorney Ronald W. Sharpe announced. Sentencing is set for March 23, 2017.
According to the plea agreement, between October 15, 2015, and February 10, 2016, Yusuf facilitated the sale of an AK-47 assault rifle to an individual in St. Thomas. Yusuf is not a federally licensed firearms dealer and is not licensed under Virgin Islands law to possess any firearms.
Yusuf faces up to five years of imprisonment, three years of supervised release, and a $250,000 fine.
This case was a joint investigation by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Sigrid Tejo-Sprotte.
Psychiatrist sentenced to 18 months in prison for tax evasionRead the Press Release
A psychiatrist from Oregon, Ohio, was sentenced to serve 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Carole S. Rendon for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing. Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist. Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes. In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.
“Tax evasion is not a victimless crime,” Enstrom said. “We all pay when others swindle the government. Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished. The IRS and Department of Justice remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Philadelphia Man Sentenced for Unemployment Compensation FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jamal High, age 37, of Philadelphia, was sentenced today to 24 months of probation by United States Middle District Chief Judge Christopher C. Conner in Harrisburg, for knowingly making false statements in order to obtain unemployment compensation.
According to United States Attorney Bruce D. Brandler, High was employed by the United States Postal Service as a mail handler in the Philadelphia Main Office. From July 2012 through September 2014, High submitted forms to the Pennsylvania Department of Labor and Industry in order to receive unemployment compensation, even when fully employed by the United States Postal Service.
Chief Judge Conner also ordered High to pay $12,856 in restitution to the Pennsylvania Department of Labor and Industry.
The case was investigated by the Pennsylvania Department of Labor and Industry and the United States Postal Service, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Chelsea Schinnour.
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Owner of Stock Lending Firm Convicted by Jury in $100 Million Stock-Loan Fraud SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951or Assistant U.S. Attorney Michael G. Wheat (619) 546-8437
NEWS RELEASE SUMMARY – November 21, 2016
SAN DIEGO – Jeffrey Spanier, a 51-year-old former owner of Amerifund Capital Finance, LLC located in Boca Raton, Florida, was convicted by a federal jury today for his role in an elaborate stock-loan fraud scheme in which executives and shareholders of publicly traded corporations collectively lost over $100 million when the stock they pledged as collateral for loans was immediately sold in order to fund the loans.
After a two-week trial before U.S. District Judge Roger T. Benitez, the jury deliberated for several hours and found Spanier guilty on all 16 counts, which included conspiracy, mail fraud, wire fraud, and securities fraud.
During the trial, the government offered testimony from several executives, many of whom had faithfully paid off their loans over a period of years, completely unaware that their pledged stock had been sold. All testified of the frustration, emotional stress, and grief they experienced when they unsuccessfully attempted to recover their stock once the loan balance was paid, and ultimately realized they were the victims of a massive fraud. Victims came from the United States as well as Canada, Mexico, China, Hong Kong, and the Netherlands.
Following a lengthy investigation conducted by the Federal Bureau of Investigation (FBI), Spanier was indicted on March 9, 2012, along with Douglas McClain, Jr. and James Miceli. All were charged with multiple counts of conspiracy, mail fraud, wire fraud, securities fraud, and money laundering. On May 31, 2013, a federal jury returned guilty verdicts on all counts in the indictment against McClain. Miceli committed suicide shortly before that trial.
McClain, president of Argyll Equities, Inc., was sentenced in September 2013 to 15 years in prison and ordered to pay $81,731,879.98 in restitution. He is currently serving his sentence in a federal prison.
Following an appeal in the prior criminal case, Spanier was re-indicted on July 1, 2016 on charges of conspiracy, mail fraud, wire fraud, and securities fraud. According to the evidence presented at trial, Spanier and his company (Amerifund Capital Finance) conspired with McClain and Miceli to defraud clients by falsely representing that San Diego-based Argyll Equities, LLC was an institutional lender with significant cash to lend to corporate executives and other individuals. Spanier and the co-conspirators falsely represented to borrowers that their stock would not be sold unless there was a default on the loan, and concealed from borrowers the truth about the fees Spanier was getting from deals. In fact, much of the stock was immediately sold by the conspirators to fund the loans made to the clients, and Spanier earned millions of dollars in fees from these fraudulent loans.
The evidence also showed that Spanier, McClain, and others fraudulently induced the borrowers to make monthly interest payments on their loans by falsely representing that their collateral was safe and would be returned as long as they did not default. At the end of the loan terms, when borrowers paid off their loans, Spanier and McClain kept the money and provided false excuses about why they could not return their stock.
The evidence further showed that the unauthorized sales of stock held by insiders of publicly traded companies caused the stock price to fall which defrauded purchasers of these publicly traded securities who purchased stock through public stock exchanges.
The jury rejected defense claims that Spanier was merely a broker who was unaware of the fraud scheme.
“This was a massive fraud that cost victims tens of millions of dollars and many years of emotional distress,” said U.S. Attorney Laura Duffy. “Because of dedicated investigators and prosecutors, this verdict means the defendant will be held accountable for such a brazen and destructive scheme.”
“This case demonstrates the FBI’s continued commitment to aggressively pursue those who would defraud the public through deceit and false claims,” said FBI Special Agent in Charge Eric Birnbaum.
In addition, the jury today returned special verdicts forfeiting millions in cash and property, including Spanier’s residence in Delray Beach, Florida, because proceeds were traceable to Spanier’s fraud.
Spanier was ordered to return for sentencing on February 27, 2017.
DEFENDANT Criminal Case No. 16CR1545-BEN
Jeffrey R. Spanier Age: 51 Delray Beach, Florida.
SUMMARY OF CHARGES:
Count 1 – Conspiracy (Title 18, United States Code, Section 371)
Maximum Penalties: 5 years in prison and $250,000 fine
Counts 2-7 – Mail Fraud (Title 18, United States Code, Section 1341)
Maximum Penalties: 20 years in prison and $250,000 fine
Counts 8-13, 15 and 16 – Wire Fraud (Title 18, United States Code, Section 1343)
Maximum Penalties: 20 years in prison and $250,000 fine
Count 19 – Securities Fraud (Title 15, United States Code, Sections 78j(b) and 78ff)
Maximum Penalties: 20 years in prison and $250,000 fine
Criminal Forfeiture (real and personal property)
AGENCY
Federal Bureau of Investigation
Orange County Salesman Sentenced to Federal Prison in Scheme to Defraud Consumers through Debt Relief FirmsRead the Press Release
LOS ANGELES – A Newport Beach man was sentenced today in connection with a fraudulent debt relief firm, the Justice Department and U.S. Postal Inspection Service announced. The defendant worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.
John Vartanian, 57, was sentenced to serve 27 months in prison, followed by three years of supervised release, and ordered to pay $1,208,086 in restitution. Vartanian admitted to selling the firm’s fraudulent debt relief services through telephone calls with consumers nationwide. The sentence was imposed Monday by U.S. District Court Judge Dale Fischer of the Central District of California in Los Angeles. The defendant previously pleaded guilty for his role in the scheme.
“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”
“Mr. Vartanian preyed upon vulnerable consumers who were already in financial distress,” said U.S. Attorney Eileen M. Decker of the Central District of California. “This defendant provided his victims with false hopes and instead stole their money as part of an elaborate scheme.”
“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing this fraudulent credit repair salesman and his accomplices to justice.”
Vartanian pleaded guilty to one count of conspiracy to commit mail and wire fraud. Four other defendants also pleaded guilty and were sentenced last week in connection with the fraudulent scheme.
Vartanian and other members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies. Clients were told the companies would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
The scheme ran from February 2010 to September 2012 and, in 2011, changed names from Nelson Gamble to Jackson Hunter. Conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Participants in the scheme blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.
In September 2012, the Federal Trade Commission (FTC) brought a civil case against the companies and its principal, Jeremy Nelson, alleging that the defendants misrepresented debt relief services offered to consumers (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts. Mizer thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Ohio Psychiatrist Sentenced to Prison for Tax EvasionRead the Press Release
An Oregon, Ohio psychiatrist was sentenced today to serve 18 months in prison in the U.S. District Court for the Northern District of Ohio for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carole S. Rendon for the Northern District of Ohio.
According to court records, from as early as 2005, Sandra Vonderembse failed to pay taxes and filed and caused to be filed with the Internal Revenue Service (IRS) false and fraudulent tax returns that included false statements regarding her income and the amount of tax due and owing. Additionally, from 2009 through 2011, Vonderembse falsely claimed to have no taxable income and to owe no taxes, despite earning more than $240,000 each year while working as a psychiatrist. Vonderembse used nominee entities to conceal income from the IRS, and sent fake financial instruments to the IRS in purported payment of her taxes. In total, from 2005 through 2011, she attempted to evade more than $360,000 in income tax liabilities.
In addition to the prison term imposed, Vonderembse was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $565,128.63.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rendon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Northampton Man Guilty of Multiple Thefts at Delaware Water GapRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lewis Davenport, age 39, of Northampton County, Pennsylvania, pleaded guilty on November 18, 2016, to charges of conspiring to commit theft on federal land, and to aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Davenport and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Davenport admitted that he and his conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Bartonsville and in Easton, Pennsylvania.
The investigation was conducted by the National Park Service Rangers. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
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 combined penalties under federal law for Davenport’s charges are up to seven years of imprisonment, including a two-year consecutive mandatory term of imprisonment for the aggravated identity theft charge, 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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New York Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Mohamed Rafik Naji, 37, of Brooklyn, New York, with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Naji was arrested earlier today at his home in Brooklyn, New York, and his initial appearance is scheduled for this afternoon before U.S. Magistrate Judge Robert M. Levy at the U.S. Courthouse at 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge William F. Sweeney of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department.
“As alleged, the defendant attempted to join ISIL and support its terrorist objectives,” stated U.S. Attorney Capers. “We will continue to identify and prosecute individuals like Naji who seek to provide support to foreign terrorist organizations that endanger our citizens and partners around the world.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state, and local agencies from the region.
“As we alleged in our complaint today, Naji has shown continued support to ISIL, beginning in 2014 with social media posts and ultimately traveling to Yemen in March 2015 where he claimed his allegiance to ISIL stating, ‘I belong to Islamic state only.’ He continued to express support for ISIL and violent jihad upon his return in the U.S. months later. Terrorism threats, like Naji, are only mitigated through the joint efforts of law enforcement to protect our communities,” said Assistant Director in Charge Sweeney.
“As alleged, the defendant expressed a devotion to join ISIL through both conversation and social media, traveling to Yemen in an effort to join their ranks,” said Police Commissioner O’Neill. “Detectives and agents on the Joint Terrorism Task Force uncovered the alleged terrorist objectives of the defendant. I want to commend their work in continually protecting New York City, and our nation, from those who seek to harm us.”
As set forth in court documents, Naji is a 37-year-old legal permanent resident of the U.S. Beginning in December 2014, through social media posts, Naji expressed his support of ISIL by, among other posts, sharing a video of an ISIL leader advocating violence against civilian targets.
According to the complaint, in March 2015, Naji traveled from New York to Yemen in an effort to join ISIL’s ranks. While in Yemen, Naji persistently tried to travel to areas controlled by ISIL. In emails to an associate in the U.S., Naji explained that he was on his fifth try to reach ISIL-controlled territory. He also sent his associate media files with sounds of gunfire and claimed to have been almost killed by the “army.” Following these email exchanges, Naji instructed his associate to “erase all ur messages,” “even from your trash.”
While in Yemen, Naji engaged in online conversations with a confidential source. During those conversations, Naji instructed the confidential source that in order to join “dawlat islam,” (ISIL), he should travel to Hadramout, an area in southern Yemen. In one of the online conversations with the confidential source, Naji proclaimed his allegiance to ISIL stating, “I belong to Islamic state only,” according to the complaint.
Naji returned to the U.S. in September 2015. Since his return, he has continued to express his support for ISIL and violent jihad. Following the deadly attack in Nice, France in July 2016, Naji expressed support for a similar attack in Time Square.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Melody Wells and Ian Richardson of the National Security & Cybercrime Section of the U.S Attorney’s Office, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
New London Man Sentenced to 34 Months in Prison for Distributing Heroin Involved in OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RUDY HERNANDEZ, 43, of New London, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 34 months of imprisonment, followed by three years of supervised release, for distributing heroin involved in an overdose earlier this year. This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male. The victim, who had used heroin, was transported to the hospital where he was pronounced deceased. The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim had arranged to purchase heroin from an individual who then acquired the heroin from HERNANDEZ and sold it to the victim.
On April 14, 2016, New London Police and other law enforcement conducted a search of HERNANDEZ’s residence and seized heroin, cocaine and multiple cellular telephones.
HERNANDEZ has been detained since his arrest on April 20. On July 6, 2016, he pleaded guilty to one count of distribution of heroin.
This matter has been investigated by the DEA’s New Haven Tactical Diversion Squad and the Town of Groton Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Nephews of First Lady of Venezuela Found Guilty of Conspiring to Import Cocaine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EFRAIN ANTONIO CAMPO FLORES and FRANQUI FRANCISCO FLORES DE FREITAS were found guilty today of conspiring to import cocaine into the United States. Together with others, CAMPO FLORES and FLORES DE FREITAS agreed to distribute in excess of 800 kilograms of cocaine, knowing and intending that the drugs were destined for the United States. CAMPO FLORES and FLORES DE FREITAS were convicted after a two-week jury trial before U.S. District Judge Paul A. Crotty.
U.S. Attorney Preet Bharara stated: “Today, a unanimous jury found Efrain Antonio Campo Flores and Franqui Francisco Flores de Freitas guilty of conspiring to traffic in massive quantities of cocaine. As the evidence at trial established, the two men thought they would make millions of dollars sending hundreds of kilograms of cocaine to the United States. What they ended up with is a conviction in an American court and the prospect of years in federal prison.”
According to the evidence presented during the trial:
Beginning no later than August 2015, CAMPO FLORES and FLORES DE FREITAS worked with others in Venezuela and elsewhere in an effort to dispatch large loads of cocaine via aircraft from Simón Bolívar International Airport in Maiquetia, Venezuela. In early October 2015, an individual who was cooperating with the Drug Enforcement Administration (“DEA”) in Honduras (“CW-1”) reported to the DEA that a Honduran national had introduced CW-1 to two Venezuelans – later identified as CAMPO FLORES and FLORES DE FREITAS – who were interested in sending cocaine-laden aircraft with legitimate-seeming flight plans from Venezuela to Honduras. On or about October 3, 2015, CW-1 met with CAMPO FLORES, FLORES DE FREITAS, and others in San Pedro Sula, Honduras, to discuss sending hundreds of kilograms of cocaine from Simón Bolívar International Airport to Juan Manuel Gálvez International Airport in Roatan, Honduras.
In late October 2015, two confidential sources working at the direction of the DEA (“CS-1” and “CS-2”) traveled to Caracas, Venezuela, to meet with the defendants. CS-1 purported to be the Mexican boss of the drug trafficking organization with which CW-1 was affiliated, and CS-2 purported to be an associate of CS-1. At a meeting in Caracas on or about October 27, 2015, CAMPO FLORES and FLORES DE FREITAS presented CS-1 and CS-2 with a kilogram of cocaine, referring to it as a “little animal,” so that they could test the quality of the drugs.
In early November 2015, FLORES DE FREITAS met in Honduras with individuals acting at the direction of the DEA as well as co-conspirators, including co-defendant Robert de Jesus Soto Garcia, to further discuss the cocaine shipment. During the recorded meeting, FLORES DE FREITAS and Soto Garcia made precise plans for the drug load, and FLORES DE FREITAS agreed to send the first load of cocaine on November 15, 2015.
On November 10, 2015, CAMPO FLORES and FLORES DE FREITAS flew on a private jet to Haiti intending to pick up an initial multi-million-dollar payment for the cocaine. Later that day, CAMPO FLORES and FLORES DE FREITAS were arrested by Haitian law enforcement officers, expelled from Haiti, and flown to Westchester County International Airport in White Plains, New York on a DEA jet.
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CAMPO FLORES, 30, and FLORES DE FREITAS, 31, were found guilty of conspiracy to (i) import five or more kilograms of cocaine into the United States from a foreign country; and (ii) distribute five or more kilograms of cocaine knowing and intending that it would be imported into the United States, which carries a mandatory minimum sentence of ten years in prison and a maximum penalty of life in prison. The statutory minimum and maximum penalties are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit, and New York Strike Force. Mr. Bharara also thanked the DEA’s Port-au-Prince Country Office, U.S. Customs and Border Patrol’s National Targeting Center, DEA’s Airwing, the Government of the Republic of Haiti and the Haitian National Police, and the U.S. Department of Justice’s Office of International Affairs for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Brendan F. Quigley are in charge of the prosecution.
Nebraska Resident Sentenced for Failing to Register as a Sex Offender in the State of IowaRead the Press Release
Council Bluffs, IA- On November 17, 2016, Kenneth J. Heavlow, Jr., a 34 year-old Douglas County, Nebraska resident, was sentenced by United States District Court Chief Judge John A. Jarvey, to 24 months in prison followed by five years of supervised release for failing to register as a sex offender, announced United States Attorney Kevin E. VanderSchel.
Heavlow entered a guilty plea on August 11, 2016, to Failure to Register with the Sex Offender Registry in Iowa. Heavlow was required to register as a sex offender in the State of Iowa as a result of a 2008 conviction for attempted child enticement in Sarpy County, Nebraska. An investigation revealed Heavlow moved from a residence in Omaha, Nebraska and was residing in Council Bluffs, Iowa, under a false name, to avoid registering in Iowa.
The investigation was conducted by the United States Marshal Service and the case prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Middlesex County, New Jersey, Man Sentenced to 41 Months in Prison for Thefts from Barnes & NobleRead the Press Release
Used ‘Booster Bag’ to Steal Hundreds of Thousands of dollars in Merchandise
TRENTON N.J. – A Middlesex County, New Jersey, man was sentenced today to 41 months in prison for shoplifting Barnes and Noble merchandise, selling the goods on eBay and failing to report the illicit proceeds to the IRS, U.S. Attorney Paul J. Fishman announced.
Dominick James Izzo, 50, of Piscataway, New Jersey, and Port Orange, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of transportation of stolen goods and one count of tax evasion.
According to the documents filed in this case and statements made in court:
Izzo admitted that he stole merchandise from Barnes & Noble stores in New Jersey, Florida and elsewhere using a “booster bag” lined with aluminum to evade anti-theft alarms. He then listed the stolen merchandise on eBay using nominee seller accounts to conceal his identity. Izzo accepted payment for the stolen merchandise from purchasers via nominee PayPal accounts. Once Izzo received funds via domestic wire transfer from the purchasers, he shipped the stolen merchandise from New Jersey and Florida to the purchasers in several different states.
For the tax years 2009, 2010 and 2011, Izzo admitted he intentionally failed to report $399,485 in income he received from the sale of stolen merchandise from Barnes & Noble and other businesses. Izzo owed the government $67,360.
In addition to the prison term, Judge Wolfson sentenced Izzo to three years of supervised release and ordered to pay restitution of $207,000.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Merritt Island Man Sentenced to 350 Years for Multiple Federal Child Pornography OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Joshua Adam Tatro (24, Merritt Island) to 350 years in federal prison for nine counts of producing child pornography, three counts of receiving child pornography, and one count of possessing child pornography. The Court also ordered him to forfeit the electronic devices that he used during the commission of the offenses.
Tatro was found guilty after a bench trial on July 6, 2016.
According to testimony and evidence presented at trial, on nine separate occasions, between October 2014 and March 2015, Tatro produced images and videos depicting him sexually abusing a three-year-old child. He also used a messaging app on his phone to send and receive images depicting child pornography and uploaded images of child pornography onto an online account that he maintained. Law enforcement began investigating Tatro after they learned of his online activity from the National Center for Missing and Exploited Children.
On March 17, 2015, agents from the Brevard County Sheriff’s Office executed a search warrant at Tatro’s residence, where he and the child victim were living. During the execution of the warrant, cell phones were recovered from Tatro’s pocket and his bedroom. A forensic examination of those phones led to the recovery of the explicit images and videos that Tatro had produced. During an interview with agents, Tatro admitted to producing the images and videos, and to sending them to others using the messenger app.
In total, Tatro possessed 76 videos and 692 photographs of child pornography on his cell phones. A search of his online drive account revealed more than 1,000 stored images of child pornography. Several of the images in Tatro’s possession depicted children under the age of 12 being sexually abused and exploited.
“This predator will spend the rest of his life behind bars, where he can no longer harm children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The dedicated work of HSI special agents and our Brevard County Sheriff’s Office partners have made our communities a safer place.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Merritt Island Man Sentenced to 350 Years for Multiple Federal Child Pornography OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Joshua Adam Tatro (24, Merritt Island) to 350 years in federal prison for nine counts of producing child pornography, three counts of receiving child pornography, and one count of possessing child pornography. The Court also ordered him to forfeit the electronic devices that he used during the commission of the offenses.
Tatro was found guilty after a bench trial on July 6, 2016.
According to testimony and evidence presented at trial, on nine separate occasions, between October 2014 and March 2015, Tatro produced images and videos depicting him sexually abusing a three-year-old child. He also used a messaging app on his phone to send and receive images depicting child pornography and uploaded images of child pornography onto an online account that he maintained. Law enforcement began investigating Tatro after they learned of his online activity from the National Center for Missing and Exploited Children.
On March 17, 2015, agents from the Brevard County Sheriff’s Office executed a search warrant at Tatro’s residence, where he and the child victim were living. During the execution of the warrant, cell phones were recovered from Tatro’s pocket and his bedroom. A forensic examination of those phones led to the recovery of the explicit images and videos that Tatro had produced. During an interview with agents, Tatro admitted to producing the images and videos, and to sending them to others using the messenger app.
In total, Tatro possessed 76 videos and 692 photographs of child pornography on his cell phones. A search of his online drive account revealed more than 1,000 stored images of child pornography. Several of the images in Tatro’s possession depicted children under the age of 12 being sexually abused and exploited.
“This predator will spend the rest of his life behind bars, where he can no longer harm children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The dedicated work of HSI special agents and our Brevard County Sheriff’s Office partners have made our communities a safer place.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lovington Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Michael Gibson, 28, of Lovington, N.M., was sentenced today in federal court in Las Cruces, N.M., to 90 months in prison for his conviction on a methamphetamine trafficking charge. Gibson will be on supervised release for four years after completing his prison sentence.
Gibson was arrested on May 20, 2015, on a criminal complaint charging him with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. According to the complaint, on Sept. 10, 2014, Gibson distributed approximately 55.6 grams of methamphetamine to an undercover law enforcement agent. The complaint further alleges that Gibson possessed a pistol during the drug trafficking transaction, which he placed in his lap during the transaction.
Gibson was indicted on Oct. 14, 2015, and charged with distribution of methamphetamine and carrying a firearm in furtherance of a drug trafficking crime on Sept. 10, 2014, in Lea County, N.M. The indictment was subsequently superseded on April 21, 2016. The superseding indictment includes forfeiture provisions requiring Gibson to forfeit $2,900 to the United States.
On July 18, 2016, Gibson pled guilty to Count 1 of the superseding indictment charging him with distribution of methamphetamine. In entering the guilty plea, Gibson admitted that on Sept. 10, 2014, he sold approximately 49.54 grams of methamphetamine to an undercover law enforcement agent.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lea County Drug Task Force. Assistant U.S. Attorneys Selesia L. Winston and Renee L. Camacho prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. 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.
Know Your Rights - What to Do if You've Been a Victim of a Hate CrimeRead the Press Release
The FBI recently released statistics on hate crimes committed in the US in 2015. Hate crimes are one of the highest priorities of the Department of Justice and the FBI because of the devastating impact they have on families and communities.
A hate crime is defined as a criminal offense against a person or property motivated in whole or in part by an offender’s bias against a race, religion, disability, sexual orientation, ethnicity, gender, or gender identity.
If you, or someone you know, is the victim of a hate crime and feel unsafe, call your local police department immediately. The FBI works with its law enforcement partners to investigate hate crime allegations. Success in helping keep our community safe depends on the public’s cooperation and increases when hate crimes are promptly reported and all potential evidence is preserved to assist in the investigation.
Oftentimes, victims of hate crimes are afraid to come forward or lack the confidence that law enforcement will actively investigate their claims. We want to assure the residents of our district that our offices are committed to investigating and prosecuting hate crimes and encourage those who find themselves on the receiving end of a hate crime, or are a witness to a hate crime, to call either the FBI at (313) 965-2323 or the United States Attorney’s Office at (313) 226-9151.
“Hate crimes laws are designed to protect members of all groups, whether they are members of minority groups or majority groups,” McQuade said. “We take these crimes very seriously because of the harm they cause to the victim and the fear they create in other members of the same group.”
“The FBI is committed to defending the civil rights of everyone. To that end and in coordination with our local and state partners, we will investigate acts that involve the use of or threat of force against an individual because of his/her race, color, religion, national origin, disability, or gender ", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “In addition to harm to a victim or damage done to a victim’s property, hate crimes are meant to threaten and intimidate an entire community. The FBI won’t stand by idly when hate crimes are committed.”
Kidnapper Who Planned to Sell Victim into Sex Slavery is Sentenced to 204 Months in Federal PrisonRead the Press Release
DALLAS — Gregory Steven Hunt, a/k/a “K.C.,” of Dallas, was sentenced on Friday to 204 months in federal prison, following his guilty plea in April 2015 to one count of kidnapping, announced U.S. Attorney John Parker of the Northern District of Texas.
Hunt, 44, and his co-defendant, Steric Paul Mitchell, 46, planned to kidnap a female victim and sell her into sex slavery. Mitchell was convicted, after a nearly two-week trial in August 2015, on one count of conspiracy to commit kidnapping and one count of kidnapping. His sentencing date is pending.
According to evidence presented at Mitchell’s trial and documents filed in the case, Mitchell and Hunt knew each other from the neighborhood, and in early May 2012, Mitchell hired Hunt to pick up the victim at a hotel and transport her to another location under the ruse that Hunt was taking her to a private party. In fact, Hunt and Mitchell planned to kidnap and sexually assault her. Hunt was also supposed to pay another woman, R.E., $100 when he picked up the victim from the motel, and Hunt understood he would get to have sex with the victim as part of the agreement.
R.E. told the victim that she had a “good friend” who wanted to hire a private dancer for a party, and that the men were “safe.” At a Dallas hotel, R.E. introduced the victim to Hunt, who paid R.E. the $100 and then drove the victim to an abandoned house in Dallas where Mitchell was waiting.
At the abandoned house, Mitchell threatened the victim with a firearm and shocked her with a Taser to frighten and restrain her. Hunt then raped her while Mitchell stood guard with a firearm. Mitchell then shocked her again with a Taser, bound her ankles and wrists, wrapped her in a bed sheet, carried her to another motor vehicle, and put her in the backseat. He then drove the victim to a second location, tied her to a chair, raped her, and told her he planned to sell her into sexual slavery. He held her overnight at that location. Later, he wrapped her in a bed sheet again, put her in the backseat of a vehicle, and drove her to a house in Duncanville, Texas, where he sexually assaulted her. At this third location, the victim was able to locate a cell phone and place four 911 calls; officers with the Duncanville Police Department found and rescued her.
The FBI and the Duncanville Police Department investigated. Assistant U.S. Attorneys Cara Foos Pierce and Andrew Wirmani prosecuted.
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Kanawha County felon caught by homeowner during break-in sentenced to nearly five years in federal prisonRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man who violated his federal supervised release by breaking into a house and stealing a pistol was sentenced to federal prison today, announced United States Attorney Carol Casto. Travis Lee Hudnall, 32, previously pleaded guilty to being a felon in possession of a firearm. In today’s hearing, he was sentenced to three years and ten months in federal prison for that offense. He was also sentenced to an additional year in prison for violating his federal supervised release. The sentences will be served consecutively.
Hudnall admitted that on June 7, 2016, he broke into a residence in Hansford and stole a computer tablet and a loaded .40 caliber Smith & Wesson Model SW40C pistol. Hudnall additionally admitted that he stole a chainsaw from the surrounding property. As Hudnall was leaving the residence, the homeowner arrived and confronted Hudnall. Following a struggle, the homeowner detained Hudnall on the ground until law enforcement arrived. Hudnall was prohibited under federal law from possessing any firearm because of two previous felony convictions, one in Kanawha County Circuit Court for daytime entering without breaking and another in federal court in the Southern District of West Virginia for being a felon in possession of a firearm.
The investigation was conducted by the Kanawha County Sheriff’s Office, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Justice Department Settles Immigration-Related Discrimination Claim Against the Denver Sheriff DepartmentRead the Press Release
The Justice Department reached a settlement today resolving claims that the Denver Sheriff Department discriminated against work-authorized immigrants in violation of the Immigration and Nationality Act (INA). The Denver Sheriff Department is the largest sheriff department in the state of Colorado.
The Justice Department’s investigation found that from approximately Jan. 1, 2015, until approximately March 23, 2016, the Denver Sheriff Department discriminated based on citizenship status by requiring applicants for deputy sheriff positions to be U.S. citizens and publishing job postings with U.S. citizenship requirements, in violation of the INA. The INA’s anti-discrimination provision prohibits employers from limiting jobs to U.S. citizens except where the employer is required to do so by law, regulation, executive order or government contract. The Denver Sheriff Department was not subject to one of the INA’s exceptions.
Under the terms of the settlement agreement, the Denver Sheriff Department will pay $10,000 in civil penalties; identify applicants who may have been disqualified from consideration for deputy sheriff positions due to the citizenship requirement and consider these applicants’ qualifications without regards to their citizenship; train its human resources staff on the anti-discrimination provision of the INA and review and revise its policies and procedures to comply with the requirements of the INA’s anti-discrimination provision.
“We commend the Denver Sheriff Department for its cooperation and commitment to removing unnecessary and unlawful employment barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Eliminating this unlawful citizenship requirement will help ensure that the Denver Sheriff Department hires the best and most qualified individuals to protect and serve. The entire community will benefit from these reforms.”The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the OSC worker hotline for assistance.
Denver Sheriff Department Settlement AgreementIrving, Texas Man Sentenced for Being a Felon in Possession of AmmunitionRead the Press Release
TYLER, Texas – A 49-year-old Irving resident has been sentenced to fifty-seven months in prison, announced Acting U.S. Attorney Brit Featherston today.
Gary Wayne Blanton (Blanton) pleaded guilty on April 26, 2016 to a charge of being a felon in possession of ammunition. He was sentenced today to 57 months imprisonment during an appearance before U.S. Circuit Judge Catharina Haynes.
According to the evidence presented at the plea hearing, on November 12, 2015, at approximately 3:00 a.m., a Gun Barrel City police officer observed Blanton driving a vehicle with no tail lights.
After police stopped the vehicle and identified Blanton, the officer determined that Blanton had an outstanding arrest warrant. When the officer asked Blanton to get out of the car, Blanton sped away, evading detention. The officer pursued Blanton in his patrol car at speeds exceeding 100 m.p.h. After a few minutes, Blanton pulled over and surrendered to the police. An inventory of Blanton’s vehicle led to the discovery of a stolen 9mm caliber semiautomatic pistol, a loaded Glock magazine, a bullet, and a digital scale in the trunk.
Officers also recovered loose methamphetamine from the front passenger seat of Blanton’s car. An additional small baggie of methamphetamine was discovered on the side of the road where Blanton was initially stopped. When Blanton was being booked into jail, officers discovered two 9 mm. cartridges in Blanton’s right front pants’ pocket.
At the time of his arrest, Blanton had previous convictions for the following felony offenses: Theft of a Firearm, Burglary of a Vehicle – Habitual, Unauthorized Use of a Motor Vehicle, and two convictions for Unlawful Possession of a Controlled Substance - Amphetamine.
This case was investigated by the Gun Barrel City Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Tyler Office, and prosecuted by Assistant U.S. Attorney Jim Noble.
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Illinois Man's Prison Sentence Enhanced for Obstructive Conduct Related to "Sovereign Citizen" ProtestsRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eric J. Simpson, 48, of Sauget, Illinois, was sentenced, on November 17, 2016, to 78 months in federal prison for distribution of crack cocaine.
On June 17, 2015, the Grand Jury returned an Indictment charging Simpson with distributing cocaine. Records filed in court established that beginning in mid-February through mid-March, Agents with the US Bureau of Alcohol, Tobacco, Firearms, and Explosives recorded Simpson dealing drugs to a confidential informant (CI) six times. During this period, Simpson sold 80.1 grams of crack cocaine to the CI while openly talking about using firearms. Subsequently, agents executed a federal search warrant at Simpson’s home, where they seized several loaded firearms, ammunition and drugs. Evidence revealed that after Simpson was released from custody on March 14, 2015, he immediately threatened the CI.
Prior to sentencing, Simpson filed numerous frivolous motions challenging the Court’s jurisdiction, commonly referred to as "sovereign citizen" pleadings. He was unable to work with three different lawyers and evidence discussed in Court established that he sent harassing communications to the prosecutor and judge. That conduct caused repeated delays in his sentencing and led to his incarceration after his bond was revoked on September 7, 2016.
At sentencing, the Court found that Simpson had engaged in repeated acts of obstructive conduct that unnecessarily interfered with the prosecution of his case including falsely accusing his attorneys of malfeasance, filing frivolous pleadings and caused harassing mailings to be sent to the prosecutor and to the Court. Consequently, Simpson’s request for acceptance of responsibility was denied and a sentencing enhancement for obstructing justice was applied. Simpson was sentenced to 78 months imprisonment, a $1,000 fine, a $100 Special Assessment, and 3 years of supervised release.
The investigation was conducted by agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
INTERPOL Washington Interns Participate in CFC ProgramRead the Press Release
The Combined Federal Campaign (CFC) is the largest and most successful annual workplace charity campaign. Its mission is to promote and support philanthropy through an employee-focused program that provides all federal employees with opportunities to support eligible non-profit organizations. Today, an estimated 20,000 nonprofit charitable organizations worldwide participate in CFC events. Throughout the campaign season (September 1st to December 15th), pledges made by Federal civilian, postal, and military donors support these organizations and aim to improve the quality of life for all. The 2016 campaign theme, Show Some Love, encourages awareness of causes and charities that Federal employees support.
The INTERPOL Washington interns recognized the important work done by the CFC and participated in their Show Some Love campaign. They each contributed three causes or charities that they support. Some of these causes included animal rights, domestic violence awareness, veterans’ rights, medical research, refugee support, and environmental conservation. All of the causes were then compiled onto two poster boards, which are now hung around the INTERPOL Washington office to promote charitable participation and demonstrate the interns’ support for the CFC. “It’s a great opportunity to get involved,” said Public and Congressional Affairs intern Kimberly Campbell. “This campaign encouraged me to identify and support charities that are important to me.”
The INTERPOL Washington six-month internship program offers an excellent opportunity for those interested in law enforcement to gain experience and connections. The application deadline for the July-December 2017 internship is February 15, 2017. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.