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16 November 2016
Ahmad Khan Rahimi Indicted in Manhattan Federal Court on Terrorism ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mary B. McCord, Acting Assistant Attorney General for the National Security Division, announced that AHMAD KHAN RAHIMI, a/k/a “Ahmad Rahami,” was charged today in Manhattan federal court in an eight-count Indictment for offenses related to his alleged execution and attempted execution of bombings in New York City on September 17, 2016. The case is assigned to U.S. District Judge Richard M. Berman. Rahimi will be arraigned before Judge Berman tomorrow at 1:00 p.m.
Manhattan U.S. Attorney Preet Bharara said: “Two months ago, Ahmad Khan Rahimi allegedly planted bombs in the heart of Manhattan and in New Jersey. The bomb that exploded in Chelsea shattered windows hundreds of yards away and propelled a 100-pound dumpster over 120 feet, injuring over 30 people. Now indicted by a grand jury, Rahimi will face justice in a federal court for his alleged violent acts of terrorism.”
Acting Assistant Attorney General Mary B. McCord said: “Ahmad Khan Rahimi has been indicted in New York and separately charged in New Jersey for allegedly planting and detonating bombs that resulted in numerous injuries. It was through world class investigative work that the defendant was identified and arrested before he could do any more harm. Pursuing those who seek to conduct attacks on our homeland will always remain the highest priority of the National Security Division.”
As alleged in the criminal Complaint that was filed on September 20, 2016, and the Indictment that was filed today[1]:
On September 17, 2016, RAHIMI transported two improvised explosive devices from New Jersey to New York, New York. RAHIMI placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York, New York (the “23rd Street Bomb”) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood of New York, New York (the “27th Street Bomb”).
At approximately 8:30 p.m., the 23rd Street Bomb – consisting of a high explosive main charge – detonated, causing injuries to over 30 people and multiple millions of dollars of property damage across a 650-foot crime scene. The injuries included, among other things, lacerations to the face, abdomen, legs, and arms caused by flying glass, metal shrapnel and fragmentation embedded in skin and bone, and various head injuries. The explosive components appear to have been placed inside a pressure cooker and left in a dumpster. The explosion propelled the more than 100-pound dumpster more than 120 feet. The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high.
Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was located by law enforcement. The 27th Street Bomb, which failed to detonate, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone (likely to function as a timer) and packaged with an explosive main charge, ball bearings, and steel nuts.
Earlier that day, at approximately 9:35 a.m. on September 17, 2016, another improvised explosive device, which also was planted by RAHIMI, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race. The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed on account of other law enforcement activity.
On September 18, 2016, at approximately 8:40 p.m., additional improvised explosive devices that RAHIMI also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth, New Jersey. One of these devices detonated as law enforcement used a robot to attempt to defuse it.
On September 19, 2016, at approximately 9:30 a.m., RAHIMI was arrested by police in Linden, New Jersey. RAHIMI fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued, and placed under arrest. In the course of RAHIMI’s arrest, a handwritten journal was recovered from RAHIMI’s person. Written in the journal were, among other things, mentions of explosive devices and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula, and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.
* * *
RAHIMI, 28, of Elizabeth, New Jersey, is charged in the Indictment with one count of using a weapon of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life in prison; one count of attempting to use a weapon of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life in prison; one count of bombing a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life in prison; one count of destroying property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; one count of interstate transportation and receipt of explosives, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each of which count carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
In addition to the pending charges in Manhattan federal court, RAHIMI also has been charged in the District of New Jersey in a Complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation’s New York Joint Terrorism Task Force, which principally consists of special agents from the Federal Bureau of Investigation and detectives from the New York City Police Department. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Ahmad Khan Rahimi indictment.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
15 November 2016
Wounded Knee Man Sentenced for Breaking into HomeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, man convicted of First Degree Burglary was sentenced on November 9, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gary Rowland Jr., age 32, was sentenced to 18 months of imprisonment, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and restitution in an amount to be determined.
Rowland pleaded guilty on August 5, 2016. The conviction stems from Rowland breaking into a residence and stealing a DVD player, DVDs, and a pair of headphones, and pouring gasoline in the entryway and starting the trailer on fire.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Rowland was immediately turned over to the custody of the U.S. Marshals Service.
Walton County Residents Arrested on A Twenty-Nine Count IndictmentRead the Press Release
Eight members of a drug conspiracy were arrested today on a twenty- nine count drug indictment filed in the Middle District of Georgia, Athens Division, announced United States Attorney G.F. “Pete” Peterman, III.
Michael Deshawn Johnson, 39, wife, Sandra Johnson, 51, daughter Felisha Smith, 31, Rodricus Devoe, 27, Robert Mayweather, 28, William Orlando Randolph, 41, Shapharrier Harper, 25, and Annie R. Malcom, 56, all of Monroe, Georgia, were indicted on November 10, 2016 by a Middle District of Georgia grand jury in a twenty-nine count indictment charging them with drug conspiracy and distribution charges in Monroe, Walton County, Georgia.
According to allegations in the indictment, the defendants conspired to distribute cocaine base, also known as crack cocaine and marijuana for over three years in Monroe, Georgia. Conviction of participation in this conspiracy carries a maximum sentence of a mandatory minimum of ten years to life imprisonment, a fine of up to $10,000,000 and up to five years of supervised release. A copy of the indictment is attached.
All of the defendants were arrested on November 15, 2016 and are expected to have their initial appearance on November 16, 2016 in Macon, Georgia. They are all in custody.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and the Monroe Police Department. Assistant U.S. Attorney Tamara Jarrett is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Two Members of New Haven Drug Ring SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEFFREY HARRISON, also known as “Biscuit,” 36, and CHRISTOPHER HILTON, also known as “C.J.,” 34, both of New Haven, have been sentenced by U.S. District Judge Robert Chatigny in Hartford for their involvement in a New Haven cocaine trafficking organization. HARRISON was sentenced yesterday to 30 months of imprisonment, followed by three years of supervised release, and HILTON was sentenced today to 36 months of probation.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby Lopez and Omar Polanco. The investigation revealed that Lopez and Polanco were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers, including HARRISON and HILTON. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine
On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging Lopez, Polanco, HARRISON, HILTON and six other individuals with various narcotics offenses. All of the defendants pleaded guilty. Lopez and Polanco await sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer R. Laraia.
Two Charleston men sentenced to federal prison for gun crimesRead the Press Release
CHARLESTON, W.Va. – Two Charleston men were sentenced today to federal prison for gun crimes, announced United States Attorney Carol Casto.
Joseph Sampson, 36, was sentenced to two years in federal prison for being a felon in possession of a firearm. He was also sentenced to an additional six months in prison for violating his federal supervised release. The sentences will be served consecutively. Sampson admitted that on May 8, 2016, he was found in possession of a New England Arms 12 gauge short-barreled shotgun. The firearm was discovered during a traffic stop in Charleston. Sampson was prohibited from possessing any firearm under federal law because of a 2003 felony drug conviction in federal court in the Southern District of West Virginia.
In a separate prosecution, Michael Brooks Burgess, 46, was sentenced to a year and a day in federal prison and ordered to pay a $5,000 fine for possession of a firearm by an unlawful user of a controlled substance. On February 8, 2016, Burgess was stopped for speeding and a suspected DUI in Sissonville. During the stop, officers found a vial of methamphetamine in his pocket and over 30 grams of methamphetamine under the driver’s seat. The officers searched the vehicle and found a loaded .45 caliber handgun, three high capacity magazines for a MAC-10 firearm, approximately 50 rounds of ammunition, and over an ounce of marijuana in the trunk of the vehicle. Burgess admitted that he was a habitual, unlawful user of methamphetamine at the time he possessed the gun.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Sampson. Assistant United States Attorney John J. Frail is responsible for the Sampson prosecution. The investigation of Burgess was conducted by the FBI, the United States Postal Inspection Service, and the Kanawha County Sheriff’s Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn is in charge of the Burgess prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
These cases were 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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Tulsa Probate Attorney Pleads Guilty to Embezzling $587,000 from Multiple Estate AccountsRead the Press Release
U.S. Attorney Danny C. Williams, Sr., announced today that Christopher Ivor Mansfield, 38 of Tulsa, a disbarred Tulsa County probate attorney, pleaded guilty before Chief United States District Judge Gregory K. Frizzell to bank fraud and money laundering charges. Mansfield embezzled $587,000 from probate estate accounts according to an information filed on September 29, 2016.
At his change of plea hearing, Mansfield admitted that, from August 2012 to October 2015, he used fraudulent pretense to obtain money entrusted to the Bank of Oklahoma by diverting assets from probate estate accounts using: unauthorized checks made payable to himself; unauthorized transfers of funds from the probate estates; and the unauthorized depositing of checks into his business and personal accounts. Mansfield admitted he used the stolen money on personal expenses, mainly American Express credit card purchases and to support his drug habit
“Mr. Mansfield chose to violate and abuse his position of trust as a probate attorney. As a result, he embezzled $587,030 from eleven probate estates or guardianships,” said U.S. Attorney Williams.
At the time of the alleged crimes, Mansfield was a licensed attorney in the State of Oklahoma who was court-appointed in probate cases. He served as a personal representative in probate cases and was responsible for overseeing the financial affairs of multiple probate estates.
Mansfield will face a maximum penalty of 30 years in prison and a $1,000,000 fine for the bank fraud charges and a maximum penalty for 10 years in prison and a $250,000 fine for the unlawful monetary transaction charge. In addition, the Court could enter a restitution order and a criminal forfeiture money judgment, each in the amount of $587,030.
The case is being investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation; and prosecuted by Assistant United States Attorneys Charles McLoughlin and Catherine Depew.
Three Treasure Valley Methamphetamine Dealers Sentenced to Federal PrisonRead the Press Release
BOISE – Deanna Renee Moon, 61, of Boise, Idaho; Clark Douglas Fullmer, 50, of Boise, Idaho; and Lance Edward Chlarson, 32, of Marsing, Idaho were sentenced today for their role in a methamphetamine trafficking conspiracy, announced U.S. Attorney Wendy J. Olson. Moon pleaded guilty to one count of distributing methamphetamine on August 4, 2016, and was sentenced to 24 months in prison to be followed by three years of supervised release. Fullmer pleaded guilty to conspiracy to distribute methamphetamine on July 26, 2016, and was sentenced to 112 months in prison to be followed by five years of supervised release. Chlarson pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine on July 26, 2016, and was sentenced to 140 months imprisonment to be followed by five years of supervised release. All three individuals were also ordered by Senior U.S. District Judge Edward J. Lodge to forfeit $6,940 in cash proceeds.
Moon, Fullmer, and Chlarson each sold between 50 and 150 grams of actual methamphetamine to an undercover officer over a period of ten months, spanning from April 2, 2015 to February 9, 2016. All three have prior felony convictions. Moon had a prior conviction for possession of a controlled substance; Fullmer had prior convictions for grand theft, robbery, and possession of a controlled substance; Chlarson had prior convictions for possession of heroin, burglary, aggravated assault, and possession of a controlled Substance.
At sentencing this morning, Judge Lodge told the defendants, “I can’t tell how you how much hardship and pain we see with individuals before this Court whose lives have been destroyed by their addiction to methamphetamine.”
These cases are the result of an investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Three More Twin Cities Men Sentenced for Providing Material Support to ISILRead the Press Release
Six of nine defendants expected to be sentenced this week for conspiring to provide material support to ISIL have now been sentenced in U.S. District Court in Minneapolis. HAMZA AHMED, 21, was sentenced today to 15 years in prison. ADNAN FARAH, 20, was sentenced to 10 years in prison. HANAD MUSSE, 21, was sentenced to 10 years in prison.
The announcement was made by United States Attorney for the District of Minnesota Andrew M. Luger, FBI Special Agent in Charge of the Minneapolis Division Richard T. Thornton, and Acting Assistant Attorney General for the National Security Division Mary B. McCord.
“Today's sentences reflect the seriousness of these defendant's crimes,” said USA Luger. “Although all three defendants pleaded guilty before trial, none were willing to cooperate with the United States. ISIL continues to target Minnesota's Somali community. Only by working together will we succeed in ending this threat.”
“The sentences handed down today reflect the true gravity of the defendants' crimes to betray their country, travel overseas, and ultimately join a terrorist organization dedicated to the murder of innocent people,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “We hope these sentences will serve as a strong message that those who support terrorism will face justice. The FBI, through our Joint Terrorism Task Force, remains dedicated to working with our community partners to disrupt threats posed by ISIL and their supporters.”
According to his guilty plea, in May 2014, AHMED applied for and later received federal financial aid, which he claimed would be used to attend Minnesota Community and Technical College. Instead, AHMED used that money to purchase a Greyhound bus ticket from Minneapolis to New York City, and airfare from New York that he thought would enable him to travel to Syria to join ISIL. He was stopped at JFK International Airport by federal agents. AHMED pleaded guilty on April 25, 2016.
According to his guilty plea, A. FARAH participated in the conspiracy throughout 2014 and early 2015 in various capacities, including attempting to obtain a real passport to travel to Syria to join ISIL. When that effort failed, A. FARAH provided money and a photograph in an attempt to obtain a false passport so that he could travel to Syria to join ISIL. A. FARAH also aided MUSSE in his effort to obtain a false passport. A. FARAH pleaded guilty on April 14, 2016.
According to his guilty plea, in November 2014, MUSSE traveled by Greyhound bus from Minneapolis to New York City where he joined three of his co-conspirators at JFK International Airport. While at JFK, MUSSE purchased round-trip airfare to Athens, Greece, with the intention of traveling onward to Syria to join ISIL. He was stopped at JFK International Airport by federal agents. MUSSE pleaded guilty on September 9, 2015.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force (JTTF). The JTTF includes members from the following departments: the United States Marshals Service, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department, St. Paul Police Department, Ramsey County Sheriff’s Office, Hennepin County Sheriff’s Office, Federal Air Marshals Service, Customs and Border Protection, Department of Defense, Immigration and Customs Enforcement, Minneapolis Police Department, Burnsville Police Department, Department of State, the Airport Police, Criminal Investigation Division of the IRS, and the FBI.
This case was prosecuted by Assistant U.S. Attorneys Andrew Winter, John Docherty and Julie Allyn, with assistance from the Department of Justice National Security Division’s Counterterrorism Section.
Defendant Information:
HAMZA NAJ AHMED, 21
Minneapolis, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
- Financial aid fraud, 1 count
Sentenced:
- 15 years in prison
- 20 years of supervised release
ADNAN ABDIHAMID FARAH, 20
Minneapolis, Minn.
Convicted:
- Conspiracy to provide material support to a designated foreign terrorist organization, 1 count
Sentenced:
- 10 years in prison
- 20 years of supervised release
HANAD MUSTOFE MUSSE, 21
Minneapolis, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
Sentenced:
- 10 years in prison
- 20 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three More Minnesota Men Sentenced for Providing Material Support to ISILRead the Press Release
Six of nine defendants expected to be sentenced this week for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, have now been sentenced in U.S. District Court in Minneapolis. Hamza Naj Ahmed, 21, of Minneapolis, Minnesota, was charged with an additional count of financial aid fraud, and was sentenced today to 15 years in prison and 20 years supervised release. Adnan Abdihamid Farah, 20, of Minneapolis, Minnesota, was sentenced to 10 years in prison and 20 years supervised release. Hanad Mustofe Musse, 21, of Minneapolis, Minnesota, was sentenced to 10 years in prison and 20 years supervised release.
The announcement was made by Acting Assistant Attorney General for the National Security Division Mary B. McCord, U.S. Attorney Andrew M. Luger for the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division.
"Today's sentences reflect the seriousness of these defendants’ crimes," said U.S Attorney Luger. "Although all three defendants pleaded guilty before trial, none were willing to cooperate with the United States. ISIL continues to target Minnesota's Somali community. Only by working together will we succeed in ending this threat."
“The sentences handed down today reflect the true gravity of the defendants’ crimes to betray their country, travel overseas, and ultimately join a terrorist organization dedicated to the murder of innocent people,” said Special Agent in Charge Thornton. “We hope these sentences will serve as a strong message that those who support terrorism will face justice. The FBI, through our Joint Terrorism Task Force, remains dedicated to working with our community partners to disrupt threats posed by ISIL and their supporters."
According to his guilty plea in May 2014, Ahmed applied for and later received federal financial aid, which he claimed would be used to attend Minnesota Community and Technical College. Instead, Ahmed used that money to purchase a Greyhound bus ticket from Minneapolis to New York City, New York, and airfare from New York that he thought would enable him to travel to Syria to join ISIL. He was stopped at JFK International Airport in New York by federal agents. Ahmed pleaded guilty on April 25.
According to his guilty plea, A. Farah participated in the conspiracy throughout 2014 and early 2015 in various capacities, including attempting to obtain a real passport to travel to Syria to join ISIL. When that effort failed, A. Farah provided money and a photograph in an attempt to obtain a false passport so that he could travel to Syria to join ISIL. A. Farah also aided Musse in his effort to obtain a false passport. A. Farah pleaded guilty on April 14.
According to his guilty plea, in November 2014, Musse traveled by Greyhound bus from Minneapolis to New York City where he joined three of his co-conspirators at JFK. While at JFK, Musse purchased round-trip airfare to Athens, Greece, with the intention of traveling onward to Syria to join ISIL. He was stopped at JFK by federal agents. Musse pleaded guilty on Sept. 9, 2015.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force (JTTF). The JTTF includes members from the following departments: the U.S. Marshals Service, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department in Minnesota, St. Paul Police Department in Minnesota, Ramsey County Sheriff’s Office in Minnesota, Hennepin County Sheriff’s Office in Minnesota, Federal Air Marshals Service, Customs and Border Protection, Department of Defense, Immigration and Customs Enforcement, Minneapolis Police Department, Burnsville Police Department in Minnesota, Department of State, the Airport Police, IRS Criminal Investigation Division and the FBI.
This case was prosecuted by Assistant U.S. Attorneys Andrew Winter, John Docherty and Julie Allyn of the District of Minnesota, with assistance from the National Security Division’s Counterterrorism Section.
Three Eagle Butte Residents Indicted for Forgery and LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that three Eagle Butte, South Dakota, residents have been indicted by a federal grand jury for sixteen counts of Forgery and one count of Larceny.
Gillis Bear Stops, Jr., age 40, Chelsea White Eyes, a/k/a Chelsea Elk Eagle, age 40, and Daryl Eagle Horse, a/k/a Daryl Hawk Eagle, age 29, were indicted on October 12, 2016. They appeared before U.S. Magistrate Judge Mark Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 29, 2016, and August 27, 2016, in Eagle Butte, the three defendants falsely made, completed, altered, or passed a total of 16 checks, with an intent to defraud the victim. They received over $1,000.00 in cash.
The charges are merely an accusation and each of the three defendants is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Each of the three defendants were released on conditions pending trial. A trial has been scheduled for December 31, 2016.
Third Defendant Sentenced in Child Sex Trafficking CaseRead the Press Release
TALLAHASSEE, FLORIDA – Derek Lamar Reddick, 28, of Boynton Beach, Florida, was sentenced to 235 months in prison yesterday afternoon for sex trafficking of a minor and conspiracy to transport a minor for prostitution. After incarceration, Reddick will serve a 20-year term of supervised release and be required to register as a sex offender. In July 2015, Reddick’s co-conspirator Christine Thurman, 30, of Thomasville, Georgia, was sentenced to 126 months in prison for conspiracy and sex trafficking of a minor. In October 2016, co-conspirator Timothy Gosier, 28, of Thomasville, was sentenced to 36 months in prison for conspiracy and coercion to engage in prostitution. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In January 2014, an undercover investigator arranged to meet a girl featured in an online sex trafficking advertisement posted by the defendants. At the motel where the meeting was to take place, investigators observed Reddick and Thurman leave a room adjacent to the motel room where the girl had arranged to meet the undercover officer. A search of both rooms revealed evidence of prostitution; documentation that the rooms were registered to Reddick and Thurman; and personal belongings of the victim, Reddick, and Thurman. Investigators were later able to establish that Reddick was connected to prepaid debit cards that had been used to pay for the online advertisements and vehicle rentals to transport the victim for prostitution. Gosier was involved in transporting this victim on several occasions.
In May 2014, investigators discovered an online advertisement featuring another underage girl, which led them to the same motel where the previous victim had been found. Reddick was observed dropping off the victim at a motel room. Directly afterwards, a customer who had arranged to meet the victim entered the motel room. Investigators immediately went to the room and arrested the man. Reddick was arrested a short distance away.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, and the Tallahassee Police Department, whose joint investigation led to the charges in this case. It was prosecuted by Assistant United States Attorney Eric K. Mountin.
“This case is an example of the positive impact local and federal law enforcement officers have when they join efforts to protect children from predators who would exploit them for personal, financial gain,” said United States Attorney Canova. “My office and the Department of Justice will continue to prioritize these cases, both in the investigative phase and during prosecution, as they are so profoundly important.”
“This is a horrific example that child sex trafficking exists even in the best of communities,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This sentencing will stop this predator from harming any more young girls and will serve as a warning that HSI special agents will aggressively investigate crimes against our children.”
“Trafficking minors for sexual exploitation is a horrific crime, and one that the FBI remains dedicated to fighting,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “Offenders like the perpetrators in this investigation must know that the FBI and our law enforcement partners will stop at nothing, and use every resource available, to fight for the interests of our young people and bring justice to bear upon those seeking to exploit their vulnerabilities.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Ten Arrested Following Two Year Investigation of South Sound Drug Trafficking RingRead the Press Release
A Drug Enforcement Administration led task force conducted raids at 14 locations across King and Pierce Counties, as well as locations in Oregon, following a two-year investigation of drug trafficking, announced U.S. Attorney Annette L. Hayes. Law enforcement searched residential and business locations in Maple Valley, Enumclaw, Ravensdale, Auburn, Kent, Federal Way, Graham, Tacoma, Puyallup, and Bellevue. Additional searches and arrests occurred in Springfield, Oregon. The defendants will appear in U.S. District Court in Tacoma today and tomorrow during the 2:30 PM initial appearance calendar.
In addition to searches at various properties, thirteen vehicles associated with the drug trafficking organization are also being searched. Members of the group allegedly transported drugs and money in hidden compartments of various vehicles. The businesses searched include a landscaping business, an auto wrecking yard, a motorsports/boat business and a pawn shop.
Over the course of the investigation, and with today’s searches, law enforcement has seized more than $350,000 in cash, more than thirty pounds of methamphetamine, cocaine and firearms.
Those arrested on the indictment today include: BERNABE NAVA AMBRIZ, 37, of Maple Valley; VINCENT PHILLIP CORSALETTI, 51, of Springfield, Oregon; SERAFIN MENDOZA CABRERA, 37, of Federal Way; SAUL MENDOZA CABRERA, 35, of Kent; ADAN GUTIERREZ RASO, 22, of Kent; JESSICA CARVER, 46, of Puyallup; and THOMAS RADFORD, 34, of Graham. Three additional defendants were arrested on criminal complaints: CLINTON BJORNSON, 34, of Bellevue; QUINN HINKLE, 45, of Tacoma; and JOEL CHAVEZ, 21, of Maple Valley.
The charges contained in the indictment and criminal complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was investigated by the Drug Enforcement Administration in Tacoma and Eugene, Oregon, with assistance from the West Sound Narcotics Enforcement Task Force (WESTNET), Pierce County Sheriff’s Office, Portland (Oregon) Police Bureau, and Springfield (Oregon) Police Department. The case is being prosecuted by Assistant United States Attorneys Marci Ellsworth and Amy Jaquette.
TSA Officer and Seven Others Arrested on Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced that eight individuals were arrested on Wednesday, November 9, 2016, on federal drug conspiracy charges for their involvement in a drug trafficking network operating in Charlotte and Greensboro, N.C. The criminal complaint was unsealed today following the defendants’ court appearances in federal court.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Harold Scott, Jr., Special Agent in Charge, Office of Inspection - Washington Field Office of the Department of Homeland Security’s Transportation Security Administration (TSA) join U.S. Attorney Rose in making today’s announcement.
The eight defendants named in the criminal complaint were arrested on charges of conspiracy and attempt to distribute and to possess with intent to distribute Schedule I and Schedule II controlled substances; and distribution of controlled substances and possession with intent to distribute Schedule I and Schedule II controlled substances. They are:
- Jamie Blunder, 48, of Charlotte.
- David Pate, 44, of High Point, N.C.
- Alafia Fowlkes, 42, of Jamestown, N.C.
- Samuel Little, 58, of Greensboro.
- Irvin Lampley, 56, of Greensboro.
- Aaron Dixon, 40, of Greenville, N.C.
- Cameron Roberts, 29, of Greensboro.
- Dennis Harrington, 47, of Greensboro.
A ninth defendant named in the charging document, Willie Nevius, 48, of Greensboro, has not been arrested yet.
According to allegations contained in the criminal complaint, beginning in at least December 2015, the defendants operated as a drug conspiracy responsible for trafficking cocaine, marijuana and other controlled substances in Charlotte and Greensboro. The criminal complaint alleges that Blunder, a TSA officer, was the leader of the conspiracy and used a network of co-conspirators to transport and distribute the narcotics to and from Greensboro and elsewhere. According to the affidavit filed with the criminal complaint, the investigation to date indicates that while Blunder did not utilize the Charlotte Douglas Airport to traffic narcotics, he may have relied on his TSA position to avoid law enforcement detection while travelling to, within, and back from the Jamestown, High Point, and Greensboro areas.
In addition to last week’s arrest of the eight defendants, law enforcement executed multiple search warrants and recovered eight firearms, at least two kilograms of cocaine and more than $150,000 in cash. Over the course of the investigation, law enforcement also recovered drug paraphernalia and packaging material consistent with kilogram-quantity cocaine wrapping and packaging.
The charges contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Rose thanked the FBI for leading the investigation and TSA for their invaluable assistance with this case.
Assistant U.S. Attorneys Corey Ellis and Lambert Guinn of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
David D. Lerssen, Jr., 34, of Springfield, was sentenced by U.S. District Judge Beth Phillips to eight years in federal prison without parole.
On June 28, 2016, Lerssen pleaded guilty to receiving and distributing child pornography. Lerssen was arrested following an investigation into the use of a peer-to-peer file-sharing network to distribute child pornography. Lerssen’s computer was identified as distributing child pornography and law enforcement officers executed a search warrant at his residence.
According to court documents, Lerssen had more than 876 files containing child pornography, with victims ranging in age from toddlers to 17 years old, including prepubescent children engaged in bondage or sadistic conduct. Lerssen had a large amount of child pornography on multiple devices. He used multiple mediums and Web sites to not only view child pornography, but to receive and distribute it. Lerssen admitted to viewing child pornography for the past five years.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spartanburg Man Sentenced in Three Million Dollar Wire FraudRead the Press Release
Contact Person: David Stephens (864) 282-2100
Greenville, South Carolina ---- Acting United States Attorney Beth Drake announced today that Claus C. Foerster, age 56, formerly of Spartanburg, South Carolina, was sentenced today for multiple counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. United States District Judge Bruce H. Hendricks, sitting in Greenville, sentenced Mr. Foerster to serve twenty-four months in prison to be followed by supervised release for three years. Additionally, Mr. Foerster was ordered to pay $3,543,829.48 in restitution to the victims.
At the guilty plea hearing on May 10, 2016, Assistant United States Attorney David C. Stephens advised the court of the following. From 1997 through 2014 Mr. Foerster was a financial advisor employed by national investment counseling firms. In approximately 2000 Mr. Foerster began stealing from his clients. He advised the clients that he had located better investments than their current portfolio. He would then tell them that to get into these investments they had to withdraw their funds from Foerster’s employers’ accounts and transfer them to Foerster’s account for further investment. Once the funds were in Mr. Foerster’s account he diverted them to his own use. By creating bogus account statements and on occasion returning some funds to the clients as “profits” he was able to keep the scheme going for over a decade. By his use of this scam Foerster cheated his clients out of more than three million dollars ($3,000,000.00).
The case was investigated by the United States Secret Service and prosecuted by AUSA David Stephens of the Greenville Office.#####
South Carolina Couple Charged with Trafficking Counterfeit GoodsRead the Press Release
David Haisten, 51, and Judy Haisten, 51, both of Irmo, South Carolina, were charged by Indictment, unsealed yesterday, with one count of conspiracy, six counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act, five counts of distributing misbranded animal drugs, and three counts of trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. According to the Indictment[1], the defendants operated an online business that sold unregistered and misbranded pet pesticides, misbranded animal drugs, and counterfeit DVDs.
If convicted, the defendants face a maximum possible sentence of 54 years imprisonment, a 3‑year period of supervised release, a $7,850,000 fine, and a $950 special assessment.
The case was investigated by the Environmental Protection Agency Office of Inspector General, the Food and Drug Administration Office of Criminal Investigations, the Department of Homeland Security, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
[1] An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Seventh Conspirator in Treasure Valley Drug Distribution Ring SentencedRead the Press Release
BOISE – Breeannyn Nicole Pederson, 26, of Parma, Idaho was sentenced today to 18 months for conspiracy to distribute controlled substances, U.S. Attorney Wendy J. Olson announced. Following her period of imprisonment, she will be placed on three years of supervised release. Pederson was indicted on December 8, 2015, in a superseding indictment and entered her guilty plea on June 2, 2016.
Pederson, one of eleven co-conspirators in the drug distribution ring, sold a variety of prescription pills throughout the Treasure Valley at the direction of Stacy Duane Wilfong. Wilfong was sentenced earlier this year to over 18 years in federal prison for his leadership role in the conspiracy. In addition to prescription pills, Wilfong and his co-conspirators sold methamphetamine, heroin, and a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts” to individuals throughout the Treasure Valley.
Five other co-conspirators have already been sentenced. Anthony “Tony” Kitchen, 48, is serving a 71-month sentence in federal prison, Jocelin Jessica Gonzalez, 19, is serving 40 months in prison, Elizabeth Ann Gaytan, 37, was sentenced to 100 months of imprisonment, and Isela Garza, 30, was sentenced to 48 months in prison. All four are from Nampa. Regina Wade, 50, of Boise was sentenced to 41 months in prison.
Co-defendant David Anthony Wales, 31, of Boise, is scheduled to be sentenced on February 22, 2017. Two other co-defendants are scheduled to enter guilty pleas. Adam William Dillon, 28, of Nampa is scheduled for a plea change on November 22, 2016, and Jason Lee Burgess is currently scheduled for a plea change on November 16, 2016. One co-defendant, John Matthew Caviness, Jr., 34, of Caldwell, is currently set for trial.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Sebring Mother and Son Sentenced to Prison for Conspiring to Import Ecstasy into the United StatesRead the Press Release
Yesterday, a mother and her son from Sebring were sentenced to federal prison, by U.S. District Judge Jose E. Martinez in Fort Pierce, for conspiring to import Ecstasy from the Netherlands into the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Diane J. Sabatino, Director, Office of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
Annalisa Anfuso Patterson, 56, and her son Jake Elwyn Patterson, 19, previously pleaded guilty to conspiracy to import a controlled substance 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” in violation of Title 21, United States Code, Section 963; and attempted possession with intent to distribute a controlled substance- 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy” in violation of Title 21, United States Code, Section 846 and Title 18, United States Code, Section 2. Annalisa Patterson was sentenced to 24 months’ imprisonment, to be followed by 3 years of supervised release. Jake Patterson was sentenced to 18 months’ imprisonment, to be followed by 3 years of supervised release.
According to the court record, including the stipulated factual proffer, U.S. Customs and Border Protection (CBP) Officers in Miami identified, searched and detained two U.S. Postal Service parcels, destined for Highlands County. The parcels were found to contain approximately 525 tablets of 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” a schedule I controlled substance. On May 17, 2016, HSI agents, with the assistance of United States Postal Inspectors, conducted a controlled delivery of one of the parcels to Sebring, Florida. Annalisa Patterson accepted and opened the parcel. Law enforcement then executed a search warrant at the residence and observed, next to the opened parcel, a laptop computer with images of MDMA on the screen.
The court record indicates that Annalisa and Jake Patterson used Bitcoins to place orders for MDMA from the Netherlands, using internet websites (the “dark web”). Jake Patterson used a test kit to ensure that the substances they had purchased were in fact Ecstasy. Annalisa and Jake Patterson supplied other individuals with Ecstasy, from their Sebring residence.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CBP, and USPIS. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Rapid City Man Sentenced for Illegally Possessing FirearmsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Stolen Firearms was sentenced on November 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Sullivan, age 29, was sentenced to 18 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $1336.00 in restitution.
Sullivan was charged on August 18, 2015, and pleaded guilty on August 5, 2016.
The conviction stems from Sullivan being in possession of a Ruger 9mm pistol and a KAHR .40 caliber pistol, that he knew were stolen from a local pawn shop.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Sullivan was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Sentenced for Assaulting a WomanRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Leslie Gayle White Calf, age 33, was sentenced to 18 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
White Calf was charged on January 26, 2016, and pleaded guilty on July 22, 2016. The conviction stems from White Calf kicking a woman in the face and head several times, while wearing work-style boots at a home in Pine Ridge.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
White Calf was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Sentenced for Assaulting a WomanRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault by Strangulation and Suffocation was sentenced on November 9, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Tommy Blue Bird, age 28, was sentenced to 78 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Blue Bird was charged on May 24, 2016, and pleaded guilty on August 5, 2016. The conviction stems from Blue Bird striking a woman with his fist and other objects, as well as strangling her over a period of four days.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Park Tudor Deferred Prosecution AgreementRead the Press Release
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that a Deferred Prosecution Agreement has been reached between the United States Attorney’s Office and Park Tudor School.
The document outlines an agreement reached as a result of an investigation by the United States Attorney’s Office, the FBI and the Indianapolis Metropolitan Police Department into Park Tudor’s handling of former coach Kyle Cox’s sexual abuse case. Cox was convicted of coercion and enticement of a minor to engage in illegal sexual activity and sentenced to 14 years imprisonment.
Ohio Man Sentenced for Possession with Intent to Distribute Heroin in Northern KentuckyRead the Press Release
COVINGTON, Ky. — A Milford, Ohio, man who previously admitted to possessing heroin with the intent to distribute it, has been sentenced 168 months in federal prison.
On Monday, U.S. District Court Judge Amul Thapar sentenced 34 year-old Thomas Kimbro for the offense. The sentence was enhance because of Kimbro’s criminal record. Under federal law, Kimbro must serve at least 85 percent of his prison sentence.
Kimbro pleaded guilty in August 2016 and admitted that he possessed approximately six grams of heroin with the intent to distribute it in Kenton County.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation was conducted by the Covington Police Department and the Federal Bureau of Investigation’s Safe Streets Task Force. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
New York Tax Return Preparer Sentenced to PrisonRead the Press Release
A Bay Shore, New York tax return preparer was sentenced to 12 months and one day in prison today in the U.S. District Court for the Eastern District of New York, for aiding and assisting in the preparation of a false tax return for others, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to court documents, Thelma Rodriguez-Garden, 55, owned and operated Garden Insurance Agency Corporation, a tax return preparation business in Suffolk county. For tax years 2008 through 2011, Rodriguez-Garden prepared false individual income tax returns that included, among other falsities, grossly inflated or wholly fictitious itemized deductions for unreimbursed employee expenses, causing a loss to the Internal Revenue Service (IRS) of at least $107,459. Rodriguez-Garden pleaded guilty to the charges on March 14.
In addition to the prison term imposed by U.S. District Judge Joseph F. Bianco, Rodriguez-Garden was also ordered to serve one year of supervised release and to pay $107,459 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell 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.
New Jersey Cardiac Monitoring Company Agrees to Pay over $1.35 Million to Resolve Claims It Paid Illegal Kickbacks to Physicians,Read the Press Release
NEWARK, N.J. – MedNet Inc., a Ewing, New Jersey-based remote cardiac monitoring company and a subsidiary of BioTelemetry Inc., has agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services, U.S. Attorney Paul J. Fishman announced today.
According to settlement agreement:
From March 15, 2006, through Jan. 31, 2014, before BioTelemetry acquired MedNet, MedNet entered into “fee-for-service” or “direct-bill” agreements with certain hospital and physician clinic customers. MedNet charged a fee to the customers for certain services that the company performed in connection with event monitoring and telemetry, two types of cardiac monitoring services. MedNet allowed the customers to bill Medicare directly for these same services and retain the reimbursements they received from Medicare, which exceeded the fee that MedNet charged them.
These agreements resulted in a net profit to MedNet’s customers who submitted claims to Medicare in accordance with the agreements, primarily for services that MedNet — and not the customers — performed. The government contends that MedNet entered these agreements and provided this remuneration to these customers in order to induce referrals from those customers for MedNet’s services.
The government alleges that the remuneration MedNet provided in connection with the agreements was illegal remuneration under the Anti-Kickback Statute. As a result, MedNet caused to be submitted to Medicare false claims for cardiac monitoring services provided to patients of its customers.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The settlement is the culmination of an investigation conducted by special agents of the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Nicole F. Mastropieri of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Navy Officer Pleads Guilty in Massive Fraud and Corruption ScandalRead the Press Release
A retired Navy Captain pleaded guilty today for his role in a massive bribery and fraud scheme involving a foreign defense contractor for the U.S. Navy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
Michael Brooks, 57, of Fairfax Station, Virginia, pleaded guilty to one count of conspiracy to commit bribery before U.S. Magistrate Judge Karen Crawford of the Southern District of California. In May 2016, Brooks was charged in connection with his interactions with Leonard Glenn Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Brooks is scheduled to be sentenced on Feb. 17, 2017.
According to admissions made in connection with the plea agreement, from June 2006 to July 2008, Brooks served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines. In exchange for travel and entertainment expenses, hotel rooms and the services of prostitutes, Brooks used his office to benefit GDMA and Francis, including by securing quarterly diplomatic clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic clearance of the U.S. Embassy. Brooks also allowed Francis to ghostwrite official U.S. Navy documents and correspondence, which Brooks submitted as his own. In addition, Brooks provided Francis with sensitive, internal U.S. Navy information, including billing information belonging to a GDMA competitor and U.S. Navy ship schedules.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Brooks, 11 of those are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Supervisory Special Agent John Beliveau II, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have also pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy; and on Oct. 14, 2015, Beliveau was sentenced to serve 144 months in prison and ordered to pay $20 million in restitution to the Navy. Gilbeau, Sanchez and Simpkins await sentencing. Pitts was charged in May 2016 and his case remains pending.
Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy. Francis and Aruffo have pleaded guilty and await sentencing; Peterson’s and Raja’s cases are pending.
The NCIS, DCIS and DCAA are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargesRead the Press Release
ALBUQUERQUE – Tracey Beaver, 38, an enrolled member of the Navajo Nation who resides in Pinehill, N.M., pled guilty today in federal court in Albuquerque, N.M., to involuntary manslaughter charges.
Beaver was arrested on Sept. 24, 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Beaver killed two victims when he crashed his vehicle on Sept. 9, 2016, on the Ramah Navajo Indian Reservation in Cibola County, N.M. At the time of the crash, Beaver was driving under the influence of alcohol.
During today’s proceedings, Beaver pled guilty to a felony information charging him with two counts of involuntary manslaughter. In entering the guilty plea, Beaver admitted killing the two victims by driving recklessly while under the influence of alcohol. Beaver acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Gallup office of the FBI, the New Mexico State Police and the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Nicholas Marshall.
Moore County Marijuana Trafficker Sentenced to 188 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — Guadalupe Reyes, a/k/a “Lupe,” 49, of Etter, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 188 months in federal prison, following his guilty plea in June 2016 to one count of conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
In addition, Reyes must forfeit to the government several parcels located in Moore County, Texas.
Co-defendant Marco Saucedo, 45, of Cactus, Texas, was sentenced in September 2016 to 48 months in federal prison following his guilty plea to one count of unlawful use of a communications facility.
According to documents filed in the case, in November 2014, officers with the Cactus Police Department responded to a weapon being discharged at a residence in Cactus that was owned by Guadalupe Reyes, and they determined that the individual who discharged the firearm was renting the property from Reyes. After obtaining consent to search, officers found more than $130,000 in cash inside the residence, which the resident advised was cash that he, at the direction of Reyes and Saucedo, brought back the previous week from Wichita and Topeka, Kansas.
The resident further disclosed he had been working for Reyes for several months, transporting large amounts of marijuana from Amarillo and Fritch, Texas, to other states, such as Kansas and Ohio. He would also transport large amounts of cash – proceeds from the sale of the marijuana – from those locations to the Cactus area, all at the direction of Reyes and Saucedo, who would pay him a set amount for each of the runs he made.
The resident indicated he had made approximately 10 trips to Wichita, Topeka, and Kansas City, Kansas, as well as to Toledo, Ohio, to deliver marijuana for Reyes, estimating that he had delivered approximately 8,000 pounds of marijuana while employed by Reyes. He further stated that on at least four occasions, he had returned with approximately $400,000 in cash for marijuana he had delivered. He further stated that Reyes instructed him to keep the money at the residence until it was retrieved by other, unnamed individuals. The individual also stated that both Reyes and Saucedo had directed him to only use pre-paid cell phones when communicating with them or the buyers.
In recorded conversations in November 2014, Reyes stated, among other things, that he was worried about law enforcement taking some of his properties.
This OCDETF case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Moore County Sheriff’s Office and the Cactus Police Department. Assistant U.S. Attorney Sean Long was in charge of the prosecution.
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Mobridge Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Assault Resulting in Substantial Injury to an Intimate Partner, and Domestic Assault by an Habitual Offender.
Tracy Peters, age 50, was indicted on November 8, 2016. He appeared before U.S. Magistrate Judge Mark Moreno on November 9, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 3, 2016, Peters assaulted an intimate or dating partner with a dangerous weapon, and that said assault resulted in serious bodily injury to the victim. The Indictment further alleges that Peters has been convicted on at least two separate prior occasions for assaults against an intimate partner.
The charge is merely an accusation and Peters is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Peters was released from custody on conditions pending trial. A trial date has not been set.
Mission Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Involuntary Manslaughter was sentenced on November 8, 2016, by U.S. District Judge Roberto A. Lange.
Donovan Dale Wright, age 49, was sentenced to 30 months in custody, followed by 3 years of supervised release, $1,524.25 in restitution, and a $100 special assessment to the Federal Crime Victims Fund. Additional restitution may apply.
Wright was indicted by a federal grand jury on February 17, 2016. He pled guilty on August 22, 2016.
The conviction stemmed from an incident that occurred in the early morning hours of January 30, 2016. Wright had been drinking in Rosebud the previous evening. At approximately 3:30 a.m., he was driving northbound on BIA Route 1 near Rosebud, South Dakota, on his way home to Mission, when he struck a pedestrian, Robin Heath Star Boy, who was walking along the highway. Star Boy died as a result of the collision. Wright immediately drove to the Rosebud Police Department, reported what had happened, and assisted a police officer in locating Star Boy’s body. At the time of the collision, Wright’s blood-alcohol content was at least .150%. The legal limit is .08%.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
Wright was immediately turned over to the custody of the U.S. Marshals Service.
Miami-Dade Resident Sentenced to Fifteen Months in Prison for Distributing Contaminated CheeseRead the Press Release
A Miami-Dade County resident was sentenced to 15 months in prison, by U.S. District Judge Robert N. Scola, Jr., for distributing contaminated cheese.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
Christian Rivas, the owner of Oasis Brands, Inc. (“Oasis”), located in Miami, Florida, previously pled guilty to a two-count criminal Information. Pursuant to Count 1, a felony, Rivas, with the intent to defraud and mislead, delivered cheese processed and packed at the Oasis facility into interstate commerce that was “adulterated . . . in that it contained lysteria monocytogenes (“listeria”) a deleterious substance, which may render the food injurious to health,” in violation of Title 21, United States Code, Section 331(a) and 333(a)(2). Pursuant to Count 2, a misdemeanor, Rivas, as the responsible corporate official of Oasis, delivered cheese into interstate commerce, “which was prepared, packed and held [at the Oasis facility] under insanitary conditions whereby it may have been rendered injurious to health,” in violation of Title 21, United States Code, Section 331(a) and 333(a)(1).
“Consumer protection is a top priority for the U.S. Attorney’s Office,” stated U.S. Attorney Wifredo Ferrer. “The Southern District of Florida will continue to work with the FDA to identify for prosecution cases where consumers are exposed to the risk of serious harm from contaminated food purchased in the marketplace, while being fraudulently led to believe that it is safe.”
“U.S. consumers rely on the FDA to ensure that the food they eat is safe and wholesome,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to pursue and bring to justice those who put the public’s health at risk by allowing contaminated foods to enter the U.S. marketplace.”
According to the court record, including the sentencing hearing and stipulated statement of facts in support of Rivas’ guilty plea, the Virginia Department of Agriculture and Consumer Services had alerted the FDA to the fact that cheese supplied by Oasis and located at a Virginia grocery store had been randomly sampled on July 26, 2014 and had tested positive for the presence of listeria. A resulting FDA inspection of the Oasis processing facility revealed “numerous failures to comply with current Good Manufacturing Practice federal regulatory standards,” as well as several environmental swab samples taken from within the facility which tested positive for the presence of listeria.
At the close of the first inspection on August 22, 2014, Rivas agreed to do the following: (1) suspend manufacturing of new cheese products; (2) hire a consultant to inform the firm how to clean its facility; (3) stop distribution of finished food products in its inventory until a laboratory (retained by Oasis at its cost) could confirm that Oasis’ cheese products and its facility were negative for listeria; and (4) place all in-process product which was in the process of being manufactured or packaged and on the verge of distribution on hold until further discussions with FDA officials.
From October 7 through December 16, 2014, the FDA conducted a follow-up inspection at the Oasis facility and collected product samples of “Lacteos Santa Martha Cuajada en Hoja Fresh Curd,” then in storage at the facility, one of which later tested positive for listeria.
The court record indicates that subsequent to the first inspection and during the period September 24, 2014 through October 1, 2014, Rivas had, in violation of his agreement with the FDA, finished packaging multiple trays of cheese then held in-processing and had gone on to ship and distribute these items. The cheese in question also consisted of numerous cases of individually packaged “Lacteos Santa Martha Cuajada en Hoja Fresh Curd.” Rivas had initiated these shipments after he had learned from his testing laboratory, on September 24, 2014, that a sample of this same product had tested positive for the presence of listeria.
During the course of the sentencing hearing, the Court was informed that the Centers for Disease Control (CDC) had determined through DNA testing that an identified number of individuals were physically harmed as a consequence of having consumed contaminated cheese from Oasis during the summer and fall of 2014.
Mr. Ferrer commended the investigative efforts of the FDA-OCI. This case was prosecuted by Assistant U.S. Attorney Peter Outerbridge.
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.
Marine Pilot Pleads Guilty to Possession of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Corpus Christi man has admitted to possessing child pornography, announced U.S. Attorney Kenneth Magidson. Jason Michael Ehret, an active duty Marine Corps major serving as an aviation flight instructor, pleaded guilty today.
The court heard today that Corpus Christi Police Department detectives, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Ehret.
In March 2016, agents executed a search warrant at Ehret’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 160 images and approximately four videos of child pornography.
Senior U.S. District Judge Janis Graham Jack accepted the guilty plea today and set sentencing for Jan. 25, 2017. At that time, Ehret faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ehret also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Ehret was arrested on the federal charges in September 2016 and has been in custody since that time where he will remain pending his sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Naval Criminal Investigative Service and the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
MS-13 Gang Member Sentenced to 40 Years in Prison for Execution-Style Double-Murder in BrentwoodRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Arnolvin Umanzor Velasquez, a member of the Brentwood Locos Salvatruchas (BLS) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced to 40 years in prison in connection with his involvement in the December 18, 2011, execution-style murders of two brothers, Ricardo and Enston Ceron. After committing the murders, in order to avoid apprehension, Velasquez, who is an El Salvador citizen, fled to his home country before returning to the United States and relocating to Georgia. On May 19, 2015, Velasquez was located and arrested in Flowery Branch, Georgia, by a Federal Bureau of Investigation (FBI) SWAT team and transferred to the Eastern District of New York in custody. Thereafter, on March 11, 2016, Velasquez pled guilty to the Ceron brothers’ murders.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Timothy Sini, Commissioner, Suffolk County Police Department.
“The MS-13 is a scourge on too many communities on Long Island, across the United States, and around the world. The senseless acts of violence committed by its members cannot and will not be tolerated and will be met with resolute and unwavering enforcement by this Office and the members of the FBI’s Long Island Gang Task Force,” stated United States Attorney Capers. “Today’s sentence should serve a reminder to MS-13 members: If you engage in violence in this district, you will be prosecuted to the fullest extent of the law and justly punished.”
“This case illustrates how MS-13 maintains an ironfisted control over their turf, no life is protected, not even their own members. Their goal is to create chaos wherever they plant their flag. Our Long Island Safe Streets Task Force is working day and night, hand in hand with our partners, to get these gang members out of our communities,” stated FBI Assistant Director-in-Charge Sweeney.
“The Suffolk County Police Department is fully committed to decimating the MS-13 in the Brentwood area. We will continue our multi-pronged strategy which entails collecting intelligence and creating strategic subject lists of known gang members, intense street enforcement targeted at those individuals, and collaboration with our federal law enforcement partners, including the FBI and the United States Attorney's Office, to strategically prosecute gang members under the federal RICO statute,” stated Commissioner Sini. “This sentencing is yet another step in the right direction, but we will not stop until the job is done.”
As set forth in prior court filings, a detention letter, and the government’s sentencing memorandum, the BLS clique killed Enston Ceron because he was not attending meetings or “putting in work” for the MS-13, and the clique members were concerned that he might cooperate with law enforcement authorities if he were arrested. The BLS clique also murdered his brother, Ricardo Ceron, who belonged to the Western clique of the MS-13, because they were concerned he would retaliate if he learned that the BLS killed his brother. On December 18, 2011, Velasquez and Sergio Cerna, who had agreed to carry out the murders and were armed with .22 caliber and 9mm semi-automatic handguns, asked Enston and Ricardo Ceron for a ride home from a party. When the car stopped in the vicinity of Lincoln Avenue and Stockton Streets in Brentwood, Velasquez and Cerna executed the Ceron brothers, shooting them in the head and torso at close range. Velasquez and Cerna exited the car and when another vehicle approached the murder scene and stopped to try to help, Cerna fired multiple shots at the Good Samaritan, striking him once in the chest. Miraculously, the Good Samaritan survived the shooting.
Today’s sentence is the latest event in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or cliques, the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, and Suffolk County Police Department.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Paul G. Scotti are in charge of the prosecution.
The Defendant:
ARNOLVIN UMANZOR VELASQUEZ (“Momia” and “Lito”)
Age: 23
Brentwood, New York and Flowery Branch, GeorgiaE.D.N.Y. Docket No. 15-CR-087 (S-2)(JFB)
Lynchburg Man Sentenced on Federal Gun ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Lynchburg man, who illegally possessed a firearm after being a previously convicted felon, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, United States Attorney John P. Fishwick Jr. announced today.
Shawn Vernol Preston, 54, of Lynchburg, previously pled guilty to one count of unlawful transport of a firearm. Today in District Court, Preston was sentenced to 72 months in federal prison and three years of supervised release thereafter.
“From the moment I took office as the United States Attorney I have made it a priority to work with our law enforcement partners to get illegal guns off our streets and out of our communities,” United States Attorney Fishwick said today. “Individuals who are prohibited from possessing firearms must not be allowed to possess weapons, period. When they do, our communities are less safe and law enforcement must get involved.”
According to evidence presented at previous hearings by United States Attorney John P. Fishwick Jr., on December 18, 2015 at around 7:30 p.m., Preston was approached by a Lynchburg police officer after he matched the physical description of someone who was reported to be seen with a gun. When Preston was approached by the officer, he refused to be patted down and eventually took off running.
A foot chase ensued and the Lynchburg police officer observed Preston reach into the front waistband of his pants and pull out a pistol with a silver slide. Preston ran behind a row of houses. The officer did not pursue him because she was alone and the lighting was poor. After additional units arrived, Preston emerged from behind the houses without the gun. He was arrested and placed in handcuffs. After searching behind the homes where Preston ran, another officer with the Lynchburg Police Department located a loaded, .45 silver pistol with a black grip lying on the ground.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lynchburg Police Department. United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Lemon Bay Drugs North and Brooksville Drugs Agree to Pay $750,000 to Resolve False Claims Act AllegationsRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Lemon Bay Drugs North, Inc. and Brooksville Drugs, Inc. have agreed to pay a total of $750,000 to the government to resolve allegations that the pharmacies violated the False Claims Act by causing claims to be submitted to federal health care programs for prescription drugs that were never dispensed.
Lemon Bay Drugs is a pharmacy operating in North Port, Florida and Brooksville Drugs is a pharmacy operating in Brooksville, Florida. Both pharmacies are managed by Benzer Pharmacy Holding LLC and are owned by Alpesh Patel.
The settlement announced today resolves allegations that Lemon Bay Drugs and Brooksville Drugs provided Medicare and Medicaid patients generic versions of certain medications, but charged Medicare and Medicaid for the brand name versions of those medications. The settlement covers allegations that the pharmacies knowingly submitted false claims by billing the government programs for certain drugs they could not have dispensed because they did not have sufficient inventory of those drugs.
The allegations against the pharmacies were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower, a former pharmacy technician who worked at Lemon Bay Drugs, will receive $142,500 as her share of the recovery.
“The United States Attorney’s Office is committed to protecting Medicare and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Those who violate the False Claims Act to generate profit will be held accountable.”
This investigation was handled by Assistant U.S. Attorney Kyle S. Cohen with assistance from the Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the FBI, the Florida Medicaid Fraud Control Unit, the North Port Police Department, and the Sarasota County Sheriff's Office.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States ex. rel. Vicmary Aguilar-Morales v. Lemon Bay Drugs North, Case No. 2:12-cv-536-FtM-29SPC.
Leader of Baltimore BGF Gang Sentenced to Life in Prison for Federal Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – On November 14, 2016, U.S. District Judge James K. Bredar sentenced BGF leader Mark Bazemore, a/k/a Uncle Mark, age 31, of Baltimore, to life in prison for racketeering and drug conspiracies related to his Black Guerilla Family (BGF) gang activities. Judge Bredar sentenced Michael Smith, Jr., a/k/a Mikey, Lil Mike and Mik, age 30, of Baltimore, to 210 months in prison, and Timothy Hurtt, a/k/a Uncle Tim and Tim, age 45, of Baltimore County, to 324 months in prison, each followed by five years of supervised release for participating in a racketeering conspiracy and drug conspiracy related to their membership in BGF. A federal jury convicted them of those charges on June 6, 2016. Bazemore and Hurtt were also convicted of conspiring to use and carry a firearm in relation to a crime of violence and a drug trafficking crime. Bazemore was also convicted of conspiring to commit murder in aid of racketeering; and attempted murder in aid of racketeering.
Today, Judge Bredar sentenced Irvin Vincent, age 28, of Hanover, Maryland, to 18 years in prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his membership in the Black Guerilla Family (BGF) gang, possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; Chief Gary Gardner of the Howard County Police Department; Howard County State’s Attorney Dario Broccolino; and Baltimore City State’s Attorney Marilyn Mosby.
“If we want to stop the killing in Baltimore, we need to remove the killers from Baltimore,” said U.S. Attorney Rod J. Rosenstein.
The Black Guerilla Family (BGF) is a nationwide gang operating in prisons and on the streets of cities throughout the United States. BGF is involved in criminal activity, including murder, robbery, extortion, narcotics trafficking, obstruction of justice and witness intimidation in Baltimore, in Maryland, and elsewhere. BGF members were required to follow a code of conduct. Members who violate this code or disobey an order from a superior are subjected to disciplinary measures called “sanctions,” which include fines, physical beatings, stabbings, and murders administered by other BGF members. According to court documents and evidence presented at trial, these defendants and other BGF members regularly paid dues to BGF and met to discuss gang business, including: the sanctioning of BGF members; the identities of individuals suspected of cooperating with law enforcement and actions to be taken against them; and the commission of future crimes.
According to trial evidence, Bazemore, who was a BGF leader, issued sanctions on several fellow BGF members, including the attempted murder of one BGF member who was shot on March 10, 2014, and the murder of another member who was killed on June 16, 2014. Bazemore and Smith collected dues from BGF members who were dealing drugs in the area of Pratt and Payson Streets, a BGF controlled open-air drug shop in Baltimore. In addition to collecting dues, the defendants conspired to operate street-level drug shops throughout Baltimore where they distributed heroin. Timothy Michael Gray, a/k/a “Mike Gray,” who was the Baltimore “city-wide” commander of BGF would often be driven by Hurtt to various BGF-controlled drug shops, like Pratt and Payson, to collect drugs and money from their subordinates. In addition, Hurtt and Gray provided armed protection in a BGF drug deal.
According to his plea agreement, Vincent obtained wholesale quantities of heroin, which he distributed to other BGF members for redistribution, or provided the heroin to intermediaries to be sold in Howard County, Maryland, and elsewhere. Vincent often packaged his individual units of heroin in small green bags. Vincent was overheard by law enforcement discussing the wholesale purchase and sale of heroin to various customers in Howard County and other locations throughout Maryland. On July 8, 2014, Vincent was arrested driving his vehicle after being observed meeting with his source of supply, and a search and seizure warrant was executed on his apartment in Anne Arundel County, Maryland. Agents recovered approximately 75 grams of heroin, as well as heroin packaged in green bags; a loaded Taurus .357 revolver on top of a document containing the BGF oath; and a loaded 9mm handgun. A later search of Vincent’s car revealed a hidden compartment behind the dashboard containing an additional 50 green bags containing heroin, a ski mask, and a loaded 9mm handgun.
According to evidence presented at today’s sentencing hearing, two of Vincent’s regular drug customers obtained heroin from him or one of his employees which they provided to two individuals in Howard County who died of a heroin overdose. According to today’s testimony, after being advised by his customers that someone may have died from using his heroin, Vincent stated that he did not want to hear about it, and told the customers not to bring it up again.
Timothy Michael Gray, a/k/a “Mike Gray,” age 48, of Baltimore, previously pleaded guilty to the racketeering conspiracy. Nine other co-defendants pleaded guilty to their roles in the conspiracies and are awaiting sentencing, including six defendants who are scheduled to be sentenced this week.
United States Attorney Rod J. Rosenstein praised the FBI; Baltimore City and Howard County Police Departments; and Baltimore City and Howard County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Keri Borzilleri, on detail from the Maryland Attorney General’s Office for her assistance in today’s sentencing, and Assistant United States Attorneys James T. Wallner and Clinton Fuchs, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Las Cruces Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Virginia Ilene Faudoa, 39, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge.
Faudoa was arrested on July 7, 2016, on a criminal complaint charging her with possession of methamphetamine with intent to distribute and possession of a firearm in relation to a drug trafficking crime on Feb. 16, 2016, in Dona Ana County, N.M. According to the complaint, on Feb. 16, 2016, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force agents located a handgun with ammunition, approximately 12.4 grams of methamphetamine packaged for distribution and drug paraphernalia inside Faudoa’s hotel room.
Faudoa was subsequently indicted on Oct. 19, 2016, and charged with possession of methamphetamine with intent to distribute on Feb. 16, 2016, in Dona Ana County.
During today’s proceedings, Faudoa pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute and admitted that on Feb. 16, 2016, law enforcement agents searched her hotel room and located approximately 12 grams of methamphetamine after receiving information that she was selling methamphetamine out of the room.
At sentencing, Faudoa faces a statutory maximum penalty of 20 years in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hazleton Man Sentenced to 15 Months’ Imprisonment for Passing Counterfeit MoneyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Judge Richard P. Conaboy sentenced a Hazleton man to 15 months’ imprisonment for passing counterfeit $100 bills between December 2012 and February 2013.
According to United States Attorney Bruce D. Brandler, Edwin Batista, age 36, of Hazleton, Pennsylvania, received the sentence following his guilty plea to a one-count information charging him with passing counterfeit $100 bills at various businesses in Luzerne County. In addition to the term of imprisonment, Judge Conaboy ordered Batista to pay $6,510 in restitution, and to serve a three-year term of supervised release following his imprisonment.
The case was investigated by the Scranton office of the United States Secret Service, and the Hazleton Police Department. Assistant United States Attorney John Gurganus prosecuted the case.
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Gray Man Sentenced to 17½ Years for Trafficking Bath Salts, Fentanyl, and HeroinRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Scot Stolkner, 44, of Gray, Maine, was sentenced in U.S. District Court by Judge Jon D. Levy to 17½ years in prison and six years of supervised release for conspiring to distribute bath salts, fentanyl, and heroin. In addition, Stolkner was ordered to forfeit about $55,000. He pleaded guilty on April 1, 2016.
According to court records, from at least August 2014 through July 2015, Stolkner led a conspiracy that distributed bath salts, heroin, and fentanyl throughout the state. Stolkner obtained heroin and fentanyl from New Hampshire and Massachusetts suppliers and obtained bath salts through the mail from a source outside of the United States. Stolkner distributed the drugs personally and through other conspirators.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Scarborough and Portland Police Departments.
Former U.S. Naval Attaché in the Philippines Pleads Guilty to Conspiracy to Commit Bribery in Massive Navy Corruption ScandalRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – November 15, 2016
SAN DIEGO – Retired U.S. Navy Captain Michael Brooks pleaded guilty today for his role in a massive bribery and fraud scheme involving a foreign defense contractor.
Brooks, 57, a retired Navy Captain, of Fairfax Station, Virginia, pleaded guilty to one count of conspiracy to commit bribery before U.S. Magistrate Judge Karen Crawford. In May 2016, Brooks was charged in connection with his interactions with Leonard Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Brooks is scheduled to be sentenced on February 17, 2017.
According to admissions made in connection with the plea agreement, from June 2006 to July 2008, Brooks served as the U.S. Naval Attaché at the U.S. Embassy in Manila, Philippines. In exchange for travel and entertainment expenses, hotel rooms and the services of prostitutes, Brooks used his office to benefit GDMA and Francis, including by securing quarterly diplomatic clearances for GDMA vessels, which allowed GDMA vessels to transit into and out of the Philippines under the diplomatic clearance of the U.S. Embassy. Brooks also allowed Francis to ghostwrite official U.S. Navy documents and correspondence, which Brooks submitted as his own. Brooks also provided Francis with sensitive, internal U.S. Navy information, including billing information belonging to a GDMA competitor and U.S. Navy ship schedules.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Including Brooks, 11 of those are current or former U.S. Navy officials, including Admiral Robert Gilbeau, Lt. Commander Gentry Debord, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Supervisory Special Agent John Beliveau II, Petty Officer First Class Daniel Layug and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Debord, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have also pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy; and on Oct. 14, 2015, Beliveau was sentenced to serve 144 months in prison and ordered to pay $20 million in restitution to the Navy. Gilbeau, Sanchez and Simpkins await sentencing. Pitts was charged in May 2016 and his case remains pending.
Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy. Francis and Aruffo have pleaded guilty and await sentencing; Peterson’s and Raja’s cases are pending.
The NCIS, DCIS and DCAA are conducting the ongoing investigation. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16-CR-1206
U.S. Navy Captain Michael Brooks, retired Age 57 Fairfax Station, Virginia
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Credit Union Employee Sentenced to Prison for Embezzling Nearly $2.5 MillionRead the Press Release
DES MOINES, IA – On November 15, 2016, Linda Lee Clark, 68, of Corydon, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 78 months in prison for embezzlement by a credit union employee, announced United States Attorney Kevin E. VanderSchel. Clark was ordered to serve five years of supervised release following her imprisonment and to pay $2,494,809.33 in restitution.
On July 15, 2016, Clark pled guilty to a United States Attorney’s Information charging her with embezzlement by a credit union employee. Clark admitted to embezzling approximately $2,494,809 of funds from the SCICAP Credit Union in Chariton, Iowa, from the time she began working there as a bookkeeper in 1978 until she resigned in August 2015. Clark redirected account holders’ deposits into her own personal account and the accounts of her children; and initiated unauthorized withdrawals of funds from member accounts into her own personal account and the accounts of her children. Clark concealed the embezzlement by maintaining two sets of accounting records on the Credit Union’s data processing system. As a result of Clark’s embezzlement, the Credit Union became insolvent and was forced into liquidation.
This matter was investigated by the National Credit Union Administration and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Florida Man Admits Defrauding Bergen County, New Jersey, Company Out of More Than $1.5 MillionRead the Press Release
TRENTON, N.J. – A Windermere, Florida, man today admitted using phony invoices to fraudulently obtain over $1.5 million from a factoring company in Bergen County, New Jersey, U.S. Attorney Paul J Fishman announced.
Jerry Guidice, 57, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company. Pursuant to the agreement, the trucking company would assign some of its accounts receivable to the factoring company in return for short-term financing.
However, Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result of the invoices, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Christopher Atcachunas Esq., Orlando, Florida
Florence Man Sentenced 180 Months for Methamphetamine and Firearm OffensesRead the Press Release
COVINGTON, Ky. — A Florence, Ky., man, who previously admitted to conspiring to distribute over 50 grams of methamphetamine and possessing a firearm to further his drug trafficking, has been sentenced to 180 months in federal prison.
U.S. District Court Judge Amul Thapar formally sentenced 44 year-old Domingo Garcia yesterday. Under federal law, Garcia must serve 85 percent of his prison sentence.
Garcia previously admitted that he conspired with others to distribute between 50 and 150 grams of crystal methamphetamine and possessed a firearm in order to protect his drugs and drug proceeds.
Garcia pleaded guilty in August of 2016.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly announced the sentence.
The investigation was conducted by the Drug Enforcement Administration. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
Felon Sentenced to 20 Years in Prison for Possession of AmmunitionRead the Press Release
NORFOLK, Va. – Wesley Paul Hadsell, 38, of Norfolk, was sentenced today to 240 months in prison for being a felon in possession of ammunition.
Hadsell pleaded guilty on Nov. 6, 2015. According to the statement of facts filed with the plea agreement, Hadsell admitted that on Dec. 23, 2013, he purchased ammunition at Bob’s Gun Shop in Norfolk and that on Dec. 31, 2013, he took that ammunition to a gun range in Chesapeake, where he and other individuals used some of the ammunition. Hadsell retained possession of approximately 80 rounds of ammunition after the trip to the range. Hadsell has at least 10 prior convictions for crimes ranging from burglary and bank robbery to felonious restraint. Hadsell’s prior convictions qualified him as an Armed Career Criminal, which subjected him to a 15-year mandatory minimum sentence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael Boxler, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Michael Goldsmith, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Andrew Bosse and Former Managing Assistant U.S. Attorney Benjamin L. Hatch prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-116.
Federal Way Man Sentenced to 24 Years in Prison for Production and Distribution of Images of Child RapeRead the Press Release
A 33-year-old Federal Way man was sentenced today in U.S. District Court in Seattle to 24 years in prison for production and distribution of child pornography, announced U.S. Attorney Annette L. Hayes. VICTOR LARRY LEE WRIGHT pleaded guilty in August 2016, admitting that he made videos of himself molesting a 7-year-old child. He then shared those images with others via a peer to peer file sharing program. In addition to the lengthy federal sentence, WRIGHT faces 26 and a half years in prison in King County Superior Court for rape of a child. U.S. District Judge John C. Coughenour ordered WRIGHT to be under a lifetime term of federal supervision following his prison term.
“This defendant violated his young victim twice. First, via sexual assault, and second by distributing images of that depraved and horrific crime across the internet,” said U.S. Attorney Annette L. Hayes. “I commend the work of law enforcement to identify and arrest this defendant, and the partnership between my office and the King County Prosecutor to ensure this defendant receives long federal and state prison sentences, and a lifetime of supervision for his crimes. Our kids deserve nothing less.”
According to records in the case, in April 2015 an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was working in an undercover capacity when he noted an individual sharing files on a peer to peer network. The individual provided the undercover agent with the password to access the files. The agent determined the files contained an extensive child pornography collection showing images of the rape and molestation of multiple children. Further investigation revealed the person sharing the files was WRIGHT. In May 2015, WRIGHT was arrested following a court authorized search of electronic devices at his Federal Way residence. Forensic examination by HSI revealed the devices contained images of WRIGHT sexually assaulting a 7-year-old child. The examination also uncovered chat messages with others where WRIGHT discusses sexually molesting the child.
“The thorough investigative approach by our special agents not only helped secure an appropriate sentence today, but more importantly identified a victim subject to Wright's abuse,” said Steve Cagen, special agent in charge of Homeland Security Investigations Seattle. “Partnering with local law enforcement, we will continue steadfast in our efforts to rid all communities of likeminded child predators.”
WRIGHT has been in custody since his arrest in May 2015. Under the terms of the plea agreement he will plead guilty to rape of a child in King County Superior Court following his sentencing on federal charges.
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 Department 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.justice.gov/psc.
The case was investigating by Homeland Security Investigations and the Federal Way Police Department. The case is being prosecuted by Assistant United States Attorney Kate Vaughan.
Federal Jury Convicts Last Two of Eight Individuals in Money Laundering SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Erick Estrada-Lopez (41, Jacksonville) and Michael Rounsville (48, Callahan) guilty of crimes arising out of a money laundering scheme. Estrada-Lopez was convicted of conspiracy to commit money laundering and faces a maximum penalty of 20 years in federal prison. Rounsville, an officer with the Jacksonville Sheriff’s Office, was convicted of accessing a law enforcement database without authorization for financial gain and in furtherance of the money laundering scheme. He faces a maximum penalty of 5 years’ imprisonment. The sentencing hearings have been scheduled for February 27, 2017.
According to evidence presented at trial, Estrada accepted $42,000 in cash from co-defendant Manuel Rodriguez (33, Middleburg), which was part of $200,000 that Rodriguez had agreed to launder for an undercover agent who was posing as a drug dealer. Estrada deposited the cash in his business bank account and obtained a $42,000 cashier’s check that Rodriguez deposited into his bank account the same day. The next day, Rodriguez wired the $42,000, along with an additional $25,000, into the undercover agent’s covert bank account to complete the laundering of the cash.
At the request of his co-conspirators, Rounsville ran the covert name of the undercover agent through the FBI’s National Crime Information Center (“NCIC”) database and the Florida’s Driver and Vehicle Information Database (“DAVID”), both of which are accessible to law enforcement only. Rounsville then reported the results of those searches to the conspirators. Rodriguez testified at trial that, at the request of another co-defendant, he had delivered an envelope containing an unknown amount of cash to Rounsville while he was engaged in off-duty work at a road construction site in Jacksonville.
"This is an important victory for the American public,” said Kim Lappin, IRS Criminal Investigation, Special Agent in Charge of the Tampa Field Office. “Rooting out public corruption remains one of IRS-CI’s highest priorities and this verdict underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who have violated the public’s trust. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to disrupt and dismantle criminal organizations and bring criminals to justice."
Hedar Khlaf (34, Jacksonville), Mollie Bass (32, Jacksonville), Diane Harrison (58, Jacksonville), Christian Magliano (27, Miami), Bruce Childs (47, Jacksonville), and Rodriguez previously pleaded guilty for their roles in the money laundering scheme. Their sentencing hearings have not yet been scheduled.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Nevada Highway Patrol. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Federal Inmate to Serve Additional 15 Years for Assaulting Correctional OfficerRead the Press Release
Oklahoma City, Oklahoma – Today, Anthony Kendall, 28, an inmate in custody of the Federal Bureau of Prisons (BOP), was sentenced by United States District Judge David L. Russell to serve an additional 15 years in a federal prison for assaulting a correctional officer, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records and court proceedings, on May 8, 2015, Kendall was an inmate at BOP’s Federal Transfer Center (FTC) located in Oklahoma City. He was in BOP custody after being sentenced to serve a ten-year sentence following his conviction for armed aggravated assault out of the District of Columbia. While at the FTC, Kendall refused to accept an assigned cell, became disruptive and eventually head-butted an FTC Correctional Officer causing a laceration to the Officer’s face. The Correctional Officer also injured his hip while trying to subdue Kendall.
On February 2, 2015, a federal grand jury indicted Kendall assaulting a correctional officer. On June 8, 2016, he pled guilty.
At a sentencing hearing today, Judge Russell sentenced Kendall to serve 15 years consecutively to his current ten-year sentence, followed by three years of supervised release upon completion of his prison term.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons Special Investigative Service. The case was prosecuted by Assistant U.S. Attorney Ashley L. Altshuler.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictments against the following: Santonio Dwayne Ramsey, of Columbia, South Carolina, was charged in a 1-count indictment with escaping from a federal halfway house, a violation of Title 18, United States Code, Section 751(a). The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
Nigel Michael Sandiford, a/k/a “Michael H. Rogers,” a/k/a “Cecil Price,” of Columbia, South Carolina, was charged in a 1-count indictment with being a felon in possession of firearms and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Permanently Bars Detroit Area Former Liberty Tax Service Franchisee from Preparing Tax ReturnsRead the Press Release
A federal court in Detroit, Michigan has permanently barred a former Liberty Tax Service franchise owner and his operating company from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order prohibits Craig M. Comer and Comer Inc. from acting as federal tax return preparers and operating a tax return preparation business. Comer and Comer Inc. agreed to the civil injunction order entered against them.
On Jan. 28, the government filed suit against Comer and Comer Inc. and alleged that their five Detroit area Liberty Tax Service stores prepared federal income tax returns that improperly inflated claims for tax refunds and refundable credits for customers during 2013, 2014 and 2015. According to the government’s complaint, the defendants also altered completed, customer-signed tax returns to increase the fees they charged customers and then forged the customers’ signatures on the returns when re-signing and filing them with the Internal Revenue Service (IRS). As of March, Comer and Comer Inc. claimed to no longer own or operate any Liberty Tax Service stores. Today’s court order, among other prohibitions, bars the defendants from operating a tax return preparation business and includes disbarment from practice before the IRS in any capacity.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairview Park man charged with making threats against the President-ElectRead the Press Release
A Fairview Park man was charged in federal court for making threats against President-Elect Donald Trump, said U.S. Attorney Carole S. Rendon and Craig Wisniewski, Special Agent in Charge of the Secret Service’s Cleveland office.
Zachary Benson, 24, posted threats on his Twitter account around 1 a.m. on November 9, including: “My life goal is to assassinate Trump. Don’t care if I serve infinite sentences. That man deserves to decease existing,” according to an affidavit filed in the case.
Benson later admitted to making the threats after watching election returns. He said he had no intentions related to the posts and was frustrated about the President-Elect’s policies, according to the affidavit.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Karrie Howard following an investigation by the U.S. Secret Service.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.