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Tuesday 27 September 2016
Second Louisiana Man Pleads Guilty for Role in Illegal Online Pharmacy SchemeRead the Press Release
PITTSBURGH - A resident of Thibodaux, Louisiana, pleaded guilty in federal court to charges of fraud conspiracy, wire fraud, mail fraud and money laundering, United States Attorney David J. Hickton announced today.
Anthony Rouse III, 40, of Thibodaux, Louisiana, pleaded guilty to four-counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was informed that Anthony Rouse III fulfilled US orders from Duangthip Chutivaraporn who operated a series of online pharmacy web sites that offered a wide variety of prescription drugs for sale to United States customers without the need of a prescription or a medical history. There was no physician monitoring drugs used by the customers or requirement of any diagnosis in order to purchase or receive these prescription drugs. The site defrauded customers with false representations as to the legality of obtaining prescription drugs without a prescription. Rouse and another fulfilled orders for Nubain and Fioricet and received payment for their services by means of deposits of their portion of the sale proceeds to foreign bank accounts accessible to them by debit cards.
Judge Conti scheduled sentencing for Jan. 13, 2017 at 10 a.m. The law provides for a total sentence of 90 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration, Office of Criminal Investigations; the U.S. Immigration Customs Enforcement, Homeland Security Investigations; the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation; conducted the investigation leading to the information in this case.
Santa Fe Man Sentenced to Federal Prison for Armed Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Jacob P. Wheeler, 25, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 46 months in prison for his armed bank robbery conviction. Wheeler will be on supervised release for three years after completing his prison sentence.
Wheeler was arrested on May 26, 2015, on a criminal complaint charging him with robbing the Century Bank branch located at 498 N. Guadalupe St. in Santa Fe, on May 15, 2015. Wheeler robbed the bank by pointing a gun at the bank teller, demanding money, and climbing up onto the teller’s counter to grab money from a cash drawer. Wheeler became the target of investigation later that day after the FBI received a tip identifying Wheeler as the bank robber.
Wheeler was subsequently indicted on June 24, 2015, and charged with armed bank robbery.
On March 7, 2016, Wheeler pled guilty to the indictment and admitted that he robbed the Century Bank branch in Santa Fe on May 15, 2015. Wheeler also admitted using a dangerous weapon to commit the robbery.
This case was investigated by the Albuquerque office of the FBI and the Santa Fe Police Department and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Safe City Commission in Fort Worth Awarded $500,000 Federal Grant to Create Safer Neighborhoods Through Sustained Reduction in Gang Violence and Gun CrimeRead the Press Release
FORT WORTH, Texas – U.S. Attorney John Parker announced today that Safe City Commission, which provides programing and services as One Safe Place in Fort Worth, Texas, will receive $500,000 in grant funding as part of the federal government’s efforts to create safer neighborhoods through a sustained reduction in gang violence and gun crime.
The grant, announced by Attorney General Loretta E. Lynch, is one of seven half-million dollar grants awarded last week by the Justice Department’s Office of Justice Programs Bureau of Justice Assistance and funded under the 2016 Violent Gang and Gun Crime Reduction/Project Safe Neighborhoods (PSN) Program.
“My office is committed to working side by side with the people who live in the neighborhoods, our partners at One Safe Place, and our partners in law enforcement to stop the destructive cycle of gun and gang violence that terrorizes our communities,” said U.S. Attorney John Parker. “This grant funding significantly enhances that effort in Fort Worth by providing additional tools for success.”
“As longstanding partners with One Safe Place in the effort to reduce violent crime in Tarrant County, we are extremely pleased the DOJ chose to fund their efforts to reduce gang and gun violence,” said Fort Worth Police Chief Joel Fitzgerald. “We are steadfast in our commitment to meaningful partnerships in the community to make Fort Worth the safest large city in America. This grant award will certainly bring us closer to that reality.”
“PSN has helped ensure a very effective collaboration between local, federal and community based partners, which has reduced gun and gang violence in Fort Worth,” said Ken Shetter, President of One Safe Place. “Funding under the 2016 PSN Program will allow us to take this partnership to the next level, build on the knowledge and best practices that have already been developed, and target resources on hot spots for gun and gang violence. We are particularly excited that the One Safe Place strategy addresses domestic violence as a significant contributor to gun and gang violence in the community.”
PSN is a nationwide commitment to reduce gang and gun crime in the U.S. by networking existing local programs that target gun and gang crime and providing these programs with additional tools for success. PSN’s strategic approach brings more “science” into criminal justice operations by leveraging innovative applications of analysis, technology and evidence-based practices to improve performance and effectiveness while containing costs. The Northern District of Texas PSN Task Force, led by U.S. Attorney Parker, uses partnerships, strategic planning, training, outreach and accountability to implement gang violence and gun crime enforcement, intervention and preventions strategies throughout the district.
One Safe Place will use the grant funds to initiate a multidisciplinary intervention in persistent hotspots in Fort Worth, targeting gang and gun violence through increased collaboration with partner agencies, analysis of related violent crimes, and the implementation of a flexible intelligence-led, problem solving approach. Grant funds will also be used to develop a gang and gun violence prevention media campaign.
“Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities,” said Attorney General Loretta E. Lynch. “These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope.”
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Rosebud Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man who was found guilty of Domestic Abuse by an Habitual Offender and Simple Assault following a jury trial in July of 2016 was sentenced on September 27, 2016, by U.S. District Judge Roberto A. Lange.
Adam Bordeaux, age 32, was sentenced to 33 months in custody, 3 years of supervised release, and a special assessment of $110 to the Federal Crime Victims Fund.
Bordeaux was indicted by a federal grand jury on December 8, 2015. The charges stem from an incident that occurred on November 17, 2015, wherein Bordeaux assaulted his girlfriend at their home in Rosebud. Bordeaux and the victim got into an argument in their bedroom and Bordeaux pushed the victim onto the bed. He then got on top of her, pulled her hair, pushed her face into the blanket, and tried to bite her on the back of her head. The victim was eventually able to push Bordeaux off of her and she fled the house. She called the police from a nearby convenience store. Bordeaux was subsequently questioned by a Rosebud Sioux Tribe Law Enforcement Officer and he claimed the victim attacked him and bit him on the forearm while he was defending himself. The bite mark he showed the officer was inconsistent with Bordeaux’s description of the incident, however, and Bordeaux was arrested.
The crime of Domestic Assault by an Habitual Offender requires proof that the Defendant had at least two prior convictions for domestic assault. At the time of this incident, Bordeaux had three prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse. He also had a prior conviction in federal court for Domestic Assault by an Habitual Offender, and was on federal supervised release when he committed the assault on November 17, 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Bordeaux was immediately turned over to the custody of the U.S. Marshals Service.
Portland Woman Pleads Guilty to Prescription Drug and Fraud ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Shannon Bragdon, 32, of Portland, pleaded guilty today in U.S. District Court to attempting to acquire oxycodone by deception and health care fraud.
According to court records, between May 2015 and March 2016, Bragdon took blank prescriptions from a dentist’s office where she was employed and caused dozens of them to be fraudulently issued for oxycodone pills and presented to at least nine pharmacies in Southern Maine.
On March 21, 2016, a pharmacist alerted authorities after suspecting that an oxycodone prescription Bragdon presented was invalid. DEA agents responded to the pharmacy and encountered Bragdon in the waiting area.
She faces up to four years on the drug charge, ten years on the fraud charge, and up to a $250,000 fine on each charge. Sentencing will be held following the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration.
Philadelphia Woman Charged with Fraudulently Obtaining Prescription DrugsRead the Press Release
Alicia O'Brien, 34, of Philadelphia, Pennsylvania was charged today by Indictment with obtaining prescription drugs by fraud announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of four years in prison, a one-year period of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paintsville Mayor Convicted of Misusing City FundsRead the Press Release
The defendant used city funds for personal expenses
LONDON, Ky. —Paintsville Mayor Robert Porter has been found guilty of misappropriating property and city resources.
A federal jury in London, Ky., convicted Porter on 2 of the three counts of theft of federal funds and one count of bribery. The jury returned the verdict after more than three hours of deliberation, following four days of trial.
One of Porter’s co-defendants, Larry Herald, the former general manager of the Paintsville Utilities Commission, previously pleaded guilty to lying to an FBI agent about his knowledge of Porter’s delinquent utility bills.
Evidence presented at the trial established that, from 2009 until 2012, Porter, with the knowledge, approval and assistance of Herald, did not pay for utilities services provided to residences that he owned in Paintsville. The total delinquency was in excess of $7,000. The evidence also revealed that Porter used thousands of dollars in city and federal funds to pay for personal expenses, such as: maintenance and repairs on his personal automobiles, gasoline for personal trips, and shipping fees for personal items. Evidence at the trial also established that Porter used a city owned vehicle, seized from a drug investigation by the Paintsville Police Department, for personal trips.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Howard S. Marshall, Special Agent in Charge, FBI, and Richard W. Sanders, Kentucky State Police Commissioner, jointly made the announcement.
The investigation was conducted by the FBI and the Kentucky State Police. Assistant U.S. Attorneys Ken Taylor and Andrew Boone are prosecuting this case on behalf of the federal government. Porter is scheduled to be sentenced on January 12. Misappropriating federal property and bribery of a public official each carries a maximum penalty of 10 years and making false statements to a federal agent carries a maximum penalty of five years. However, any sentence following a conviction will be imposed after the Court carefully considers the U.S. Sentencing Guidelines and the federal statutes.
Owner of Sham ‘Veteran-Owned’ Company Sentenced for $100 Million FraudRead the Press Release
BOSTON – A Chelmsford man was sentenced today in U.S. District Court in Boston in connection with recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts.
“Taking advantage of set-aside programs intended to support the economic welfare and stability of veterans is appalling,” said United States Attorney Carmen M. Ortiz. “Through his scheme, Mr. Gorski undercut the efforts of hard-working veterans to compete for valuable government contracts and, as such, defrauded federal agencies dedicated to serving veterans of our armed services.”
“Those who defraud the Federal government by abusing Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides for their own financial gain are effectively taking money out of the hands of deserving veterans,” said Michael J. Missal, Inspector General of the U.S. Department of Veterans Affairs, Office of Inspector General. “The VA OIG will continue to expose those committing fraud and bring them to justice. Today’s sentencing is a reminder to those who abuse set aside programs and the construction industry as a whole, that they must adhere to the laws established by Congress. It also reflects the commitment of Federal law enforcement organizations to pursue illegal conduct within such programs.”
David Gorski, 51, of Chelmsford, was sentenced by U.S. District Court Judge F. Dennis Saylor to 30 months in prison, one year of supervised release and ordered to pay a fine of $1 million. In June 2016, Gorski was found guilty by a jury following a 12-day trial of conspiring to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (SDVOSB) Program. He was also convicted of four counts of wire fraud.
In 2006, Gorski established a company, Legion Construction, Inc., after recruiting a disabled Korean War veteran to act as the company’s straw owner for the sole purpose of obtaining federal construction contracts set aside under the SDVOSB Program. The purpose of the SDVOSB program is to provide federal contracting assistance to service-disabled veterans who own small businesses by creating set-aside and sole-source acquisitions for such businesses. When the veteran’s deteriorated, Gorski added a second disabled veteran, Peter Ianuzzi, to serve as the figurehead owner of Legion. Legion acquired more than $113 million in federal contracts between 2006 and November 2010, after Gorski falsely represented to federal contracting officers that the company was owned and operated by service-disabled veterans.
In March 2010, a different SDVOSB registered a bid protest against Legion, alleging that Legion should not have been awarded a contract with the U.S. Department of Veterans Affairs at its medical center in White River Junction, VT. The company specifically challenged Legion’s SDVOSB status, noting that it appeared that Gorski, not one of the veterans, was the person running Legion. After retaining the services of a large Boston law firm to assist him, Gorski filed an opposition to the bid protest that contained backdated documents containing false and misleading information. The Small Business Administration denied the bid protest based on Legion’s submission. Gorski then began exploring ways to siphon money from Legion that would not appear as compensation exceeding the pay of the nominal veteran owner, Ianuzzi, in violation of federal regulations, including Ianuzzi “gifting” him $900,000 and establishing private bank accounts into which the company would deposit $2.5 million for Gorski’s benefit. Before the bank accounts could be opened, however, a federal grand jury issued subpoenas to Legion and several witnesses.
“Our nation’s veterans are the ultimate victims when individuals scheme to fraudulently obtain access to federal contracting opportunities set-aside for deserving small businesses owned and operated by service-disabled veterans,” said Inspector General Peggy E. Gustafson. “SBA OIG is committed to protecting the integrity of SBA’s Service-Disabled Veteran-Owned Small Business Concern Procurement Program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”
“We are pleased with today's sentencing and it is quite satisfying to know that people who commit these types of crimes are held accountable,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “There is an important purpose for the Service Disabled Veteran Owned Small Business Program and this individual attempted to exploit that program for his own personal gain while pushing those who deserve it aside.”
Special Agent in Charge, Leo Lamont of Naval Criminal Investigative Service, Northeast Field Office said: “NCIS will continue to work with our law enforcement partners to hold accountable those who would harm, rather than serve, the Department of the Navy warfighters and American taxpayers. By conspiring to manipulate the contracting process through lies and deceit, those involved have drained significant resources from the Navy and have made it harder for legitimate companies that play by the rules, especially those owned by service-disabled veterans, to participate in programs that support the military.”
The case was prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit.
Owner of Biofuel Company Pleads Guilty to Conspiracy and ObstructionRead the Press Release
The owner and manager of a New Jersey feedstock collector and processor pleaded guilty to conspiracy and obstruction for his role in a scheme that generated over $6 million in fraudulent tax credits and the U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) connected to the purported production of biodiesel fuel.
Malek Jalal, 52, pleaded guilty before U.S. District Magistrate Judge Norah McCann King for the Southern District of Ohio, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Acting U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Kathy A. Enstrom for the Internal Revenue Service’s Criminal Investigation and Acting Special Agent in Charge John Gauthier of EPA’s Criminal Enforcement Program in Ohio.
According to his plea, Jalal engaged in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits multiple times on the same loads of fuel. Jalal, who owned Unity Fuels, bought fuel from a New York-based company that arranged for tax credits and RIN credits to be claimed on it. Unity Fuels then blended the fuel with other material and sold it back to the New York company in order to claim tax credits and RIN credits again. Jalal also admitted to obstruction of justice for providing a federal grand jury with altered and falsified documents and to destroying other documents in connection with the subpoena.
“Congress enacted programs incentivizing the production of biofuels in order to make the United States more energy independent and to modernize our energy economy,” said Assistant Attorney General Cruden. “The fraud perpetrated by Mr. Jalal and his co-conspirators undermines these important public policies. This case demonstrates that the Justice Department will vigorously prosecute those seeking to manipulate these programs for personal gain.”
“Violations of renewable fuels laws can have serious impacts on the marketplace and hurt companies that play by the rules,” said Acting Special Agent in Charge Gauthier. “EPA and its law enforcement partners will continue to protect public health and the environment by prosecuting those who blatantly violate laws that reduce greenhouse gas emissions.”
Conspiracy is punishable by up to five years in prison. Obstruction is punishable by up to 20 years in prison. U.S. District Judge Graham will determine the sentence following a pre-sentence investigation by the court.
Assistant Attorney General Cruden and Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman, Senior Trial Attorney Jeremy Korzenik and Assistant United States Attorney J. Michael Marous, who represented the United States in this case.
Morgan City woman sentenced for scheme with Patterson man to commit tax fraudRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Morgan City woman was sentenced Monday to 25 months in prison for her role in a scheme to use stolen identities to file false tax returns and pocket refunds.
Laphrida T. Watts, 40, from Morgan City, La., currently residing in Palmdale, Calif., was sentenced by U.S. District Judge Dee D. Drell on one count of conspiracy to defraud the United States and one count of aggravated identity theft. She was also sentenced to three years of supervised release and was ordered to pay $45,252.02 restitution. According to the January 13, 2016 guilty plea, from February 2013 to August of 2013, Watts and co-defendant Louis W. Carbins Jr., 36, of Patterson, La., knew and allowed individuals from overseas to use stolen identities to file tax returns. The overseas individuals then directed the IRS to deposit the refunds into Carbins’ bank accounts. Watts and Carbins would then wire some of the money overseas and keep the rest. The IRS issued more than $815,000 in refunds to Carbins’ accounts. Watts and Carbins spent $45,681.22 of the funds.
Carbins was sentenced on August 29, 2016 to 60 months in prison and three years of supervised release and was ordered to pay $45,252.02 restitution. He was found guilty of one count of conspiracy to defraud the United States, seven counts of theft of government money and one count of aggravated identity theft after a three-day trial that ended May 25, 2016.
The IRS conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Miami Resident Pleads Guilty in Identity Theft Tax Fraud Scheme Involving the Sale of a Tax Refund CheckRead the Press Release
A Miami resident pled guilty for his involvement in an identity theft tax fraud scheme involving the sale of a tax refund check.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Torrace Wilson, 32, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, on August 27, 2014, Wilson met with a cooperating defendant. During the meeting, Wilson sold a United States Treasury tax refund check in the name of another individual in the amount of $4,443 to the cooperating defendant for a negotiated price of $1,800. Wilson endorsed the back of the check with the name of the victim. He knew that the victim did not authorize him to possess or sell the check.
Wilson is scheduled to be sentenced on November 30, 2016 before United States District Judge Darrin P. Gayles. At sentencing, the defendant faces up to ten years in prison.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant United States Attorney Vanessa S. Snyder.
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.
Mexican national sentenced for immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national was sentenced yesterday to four months for an immigration crime, announced United States Attorney Carol Casto. Edilberto Sanchez-Galvan, 35, previously pleaded guilty to illegally reentering the United States. Sanchez-Galvan is also subject to immediate deportation proceedings.
Sanchez-Galvan admitted that he had previously been convicted of the federal crime of illegally reentering the United States in February 2010. After that conviction, Sanchez-Galvan was deported from the United States to his home country of Mexico. Sanchez-Galvan then illegally reentered the United States and he was found in South Charleston by Department of Homeland Security agents on May 17, 2016.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Mexican citizen arrested in Bossier Parish sentenced to 10 months for reentering the country illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican citizen was sentenced Monday to 10 months in prison on charges that he reentered the United States illegally.
Ruperto Ocampo-Marchan, 38, of Alcapulco Guerrero, Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of illegal reentry of a removed alien. According to the May 5, 2016 guilty plea, a Louisiana state trooper conducted a traffic stop on January 28, 2016 on the vehicle Ocampo-Marchan was driving near Bossier City, La. He was found with two juvenile females who he said he was transporting to Atlanta, Ga. After further investigation, it was determined that the defendant was illegally in the United States and had been removed previously in 2005, 2013 and 2015.
United States Immigrations and Customs Enforcement and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Metroplex Economic Development Corporation in Dallas Awarded $1,000,000 Federal Grant to Support the Texas Offenders Reentry InitiativeRead the Press Release
DALLAS, Texas – U.S. Attorney John Parker announced today that Metroplex Economic Development Corporation, which provides mentoring and transitional services to incarcerated adults in Dallas, Texas, will receive $1,000,000 in grant funding as part of the federal government’s efforts to support safe and successful community reintegration of adults who have been incarcerated.
The grant, announced by Attorney General Loretta E. Lynch, is one of four million dollar grants awarded last week by the Justice Department’s Office of Justice Programs Bureau of Justice Assistance and funded under the 2016 Second Chance Act Comprehensive Community-Based Adult Reentry Program Utilizing Mentors Program.
“Criminal justice reform is impossible without intelligently and honestly addressing the multi-faceted challenges even the most well-intentioned and highly motivated inmates face upon re-entry,” said U.S. Attorney John Parker. “This grant addresses one of the most pressing public safety issues we face in this country.”
The Texas Offenders Reentry Initiative, “TORI,” through the Metroplex Economic Development Corporation, is an intensive 12-month case management program that offers six core services: employment, housing, education, family reunification, health care and spiritual guidance. The program helps former inmates transition to life outside the penal system, dramatically increasing chances for success and reducing the likelihood of recidivism. TORI has served more than 10,000 formerly incarcerated individuals. The U.S. recidivism rate is 67 percent of former prisoners re-arrested and 52 percent re-incarcerated within three years of release. The TORI program’s recidivism rate is at a low nine percent.
The goal of the Comprehensive Community-Based Adult Reentry Program Utilizing Mentors Program is to identify needs of incarcerated individuals, including, housing, employment, substance abuse, and mental health by trained mentors and create a reentry plan.
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Men Sentenced to Life for KidnappingRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, Senior United States District Judge W. Earl Britt sentenced AKIN SEAN EL PRECISE BEY, 47, of Knightdale, North Carolina to life imprisonment.
On December 7, 2015 a federal jury convicted BEY of conspiracy to commit kidnapping and kidnapping and for being a felon in possession of a firearm and ammunition. A coconspirator GEORGE LINCOLN STANLEY IV, 47, of Durham, North Carolina was also convicted of conspiracy to commit kidnapping and kidnapping and was sentenced to life imprisonment on June 6, 2016.
Two other individuals, HUBERT DIXON, 43, of Durham, North Carolina, and JUDSON HUGH DEBNAM, 34, of Raleigh, North Carolina, were also charged with crimes related to this incident and pleaded guilty to conspiracy to commit robbery. DIXON was sentenced to 47 months’ imprisonment followed by 3 years of supervised release on March 28, 2016. DEBNAM was sentenced to 48 months’ imprisonment followed by 3 years supervised release on September 26, 2016.
Evidence presented during the trial showed that the victim was kidnapped from his home after returning from attending a boxing match in Las Vegas. The victim was targeted for kidnapping due to the belief that he had access to large amounts of cash. The defendants broke into the victim’s house and waited for the victim to return home from Las Vegas. Upon the victim’s return home, the defendants attacked him, restrained him, and ransacked his home in search of cash. The defendants then drove the victim to a storage unit where the victim was held and tortured as the defendants demanded more money. A large sum of cash was ultimately taken from the victim. At the time of their arrests, BEY had over $55,000.00 cash in his home and STANLEY had over $21,000.00 cash in his pocket.
Crime scene technicians recovered the kidnappers’ fingerprints, as well as the victim’s blood, within the storage unit. Zip ties were still attached to a chair within the storage unit and the victim’s personal identification was located on a table. The victim, who was severely injured with a swollen eye, broken leg, ligature marks on his wrists and ankles, and duct tape still attached to his face and neck, was eventually located by law enforcement on a dark dirt road in Nash County, North Carolina.
A search warrant executed at BEY’S house uncovered six firearms; an AR-15 rifle, .32 caliber pistol, Judge Long Colt revolver, .40 caliber pistol, .38 caliber revolver, and a sawed-off 12-gauge shotgun. At the time, BEY was prohibited from possessing any firearms as he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
The investigation of this case was conducted by the Raleigh Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Raleigh/Wake City-County Bureau of Identification, State Bureau of Investigation, Wake County Sheriff’s Office, Durham County Sheriff’s Office and Johnston County Sheriff’s Office. Assistant U.S. Attorney Jonathan Holbrook and Assistant U.S. Attorney Dena King represented the government.
Maurice man sentenced to 24 months in prison for possessing unregistered shotgunRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Maurice man was sentenced Monday to 24 months in prison for possessing an unregistered sawed-off shotgun.
Kevin Patrick Abshire, 32, of Maurice, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possession of an unregistered firearm; namely, a shotgun having a barrel less than 18 inches in length. He was also sentenced to three years of supervised release. According to the June 16, 2016 guilty plea, Abshire admitted that on June 6, 2015, he was involved in a high-speed car chase within the city limits of Lafayette and Lafayette Parish, after he nearly struck an officer of the Lafayette Police Department while that officer was directing traffic at an accident scene. Instead of following the directions of the officers on the scene to turn off the engine to his vehicle, Abshire admitted that he drove away at a high rate of speed, causing officers of the Lafayette Police Department and the Lafayette Parish Sheriff’s Office to pursue Abshire’s vehicle. Abshire was involved in a single-vehicle accident near the Ridge Road area of Lafayette, and upon exiting the vehicle, officers noticed that he was in possession of a shotgun. Officers were successful in subduing Abshire and placing him into custody. The investigation revealed that the shotgun Abshire possessed when he exited the vehicle was not registered to him in the National Firearms Registration and Transfer Record, was loaded, and had a barrel length of 13-7/8 inches.
The ATF, Lafayette Police Department and Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Martinez Resident Sentenced to 41 Months in Tax Fraud SchemeRead the Press Release
OAKLAND – Santiago Reyna was sentenced to 41 months in prison and ordered to pay restitution of $49,639 for his role in a conspiracy to defraud the United States, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down yesterday by U.S. District Judge Haywood S. Gilliam, following the entry of a guilty plea on May 23, 2016.
According to his plea agreement, in 2013 and 2014, Reyna, 36, of Martinez, devised a scheme to defraud the United States and to obtain money by submitting false tax returns. As part of the scheme, Reyna conspired with his codefendant, Lynsey Hartsinck, to obtain personally identifiable information from at least twelve individuals, most of whom resided in Alameda and Contra Costa Counties. Reyna used the names and Social Security numbers of these individuals to prepare and electronically file false tax returns in their names without their knowledge or consent. He also obtained fraudulent refunds in their names. On many of the fraudulent returns he prepared and filed, Reyna directed the IRS to deposit the fraudulent refunds into prepaid debit card accounts that he and Hartsinck controlled. Reyna also rented a postal deposit box from a UPS Store in San Ramon, posing as one of the victims in his scheme. A total of $198,249 was falsely claimed, and fraudulent refunds of no less than $49,639 were obtained as a result of the scheme.
A federal grand jury indicted the defendants on June 16, 2015, with conspiracy to file false claims, wire fraud, aggravated identity theft, and possession of stolen mail. On February 29, 2016, Hartsinck pleaded guilty to her role in the conspiracy and to one count of aggravated identity theft. Reyna pleaded guilty to the conspiracy charge.
In addition to the prison term and the order to pay restitution, Judge Gilliam also sentenced Reyna to a three-year period of supervised release. Reyna will begin serving the sentence on January 3, 2017. Hartsnick has not yet been sentenced.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and by the United States Postal Inspection Service.
Marijuna Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Manila Chicago, 39, of Mobile, Alabama, was sentenced in federal court this afternoon. Chicago pled guilty to three charges—possession with intent to distribute marijuana, using, carrying and possessing a firearm in relation to and in furtherance of a drug trafficking felony, and money laundering—in June of 2016.
United States District Court Judge Callie V. S. Granade imposed a total sentence of 111 months, consisting of 51 months on the drug and money laundering charges, and 60 months on the gun charge, which will run consecutive to the sentences on the other counts. Chicago will serve a five-year term of supervised release when he is released from prison. As conditions of his supervision, Chicago will be subject to testing and treatment for drug abuse. Judge Granade also ordered that Chicago pay $300 in special mandatory assessments. Judge Granade also ordered the forfeiture of Chicago’s interest in several items of property seized during the investigation.
The case was investigated by the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Lower Brule Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on September 26, 2016, by U.S. District Judge Roberto A. Lange.
Conrad Fleury, age 35, was sentenced to 15 months in custody, 2 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fleury was indicted by a federal grand jury on April 13, 2016. He pled guilty on July 11, 2016.
The conviction stemmed from an incident on February 13, 2016, when a call came into the Fort Thompson Police Department reporting that Conrad Fleury had a gun and was threatening suicide. Law enforcement responded immediately and officers called for backup.
The caller approached one of the officers and stated Fleury came home drunk, had a gun, and was saying he was going to kill himself. As a result of Fleury’s threats, two young children had to escape the home by crawling through a window.
Officers entered the home and found Fleury alone with a .22 caliber rifle in a bedroom.
Fleury has a federal conviction from 2012, for Assault with a Dangerous Weapon. The judgment specifically states that Fleury shall not possess a firearm, destructive device or any other dangerous weapon.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency and the Bureau of Alcohol, Tobacco, Firearms & Explosive. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Fleury was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Pleads Guilty in Online Pharmacy Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Morgan City, Louisiana, pleaded guilty in federal court to charges of fraud conspiracy, wire fraud, mail fraud and money laundering, United States Attorney David J. Hickton announced today.
Troy Tapia, 45, of Morgan City, Louisiana, pleaded guilty to four-counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was informed that Troy Tapia fulfilled US orders from Duangthip Chutivaraporn who operated a series of online pharmacy web sites that offered a wide variety of prescription drugs for sale to United States customers without the need of a prescription or a medical history. There was no physician monitoring drugs used by the customers or requirement of any diagnosis in order to purchase or receive these prescription drugs. The site defrauded customers with false representations as to the legality of obtaining prescription drugs without a prescription. Tapia and another fulfilled orders for Nubain and Fioricet and received payment for their services by means of deposits of their portion of the sale proceeds to foreign bank accounts accessible to them by debit cards.
Judge Conti scheduled sentencing for Jan. 13, 2017, at 11 a.m. The law provides for a total sentence of 90 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Food and Drug Administration, Office of Criminal Investigations; the U.S. Immigration Customs Enforcement, Homeland Security Investigations; the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation; conducted the investigation leading to the information in this case.
Leaders of Violent Drug Trafficking Organization Sentenced to Lengthy Prison TermsRead the Press Release
Two Seattle men who led a violent drug trafficking organization distributing meth, heroin and cocaine were sentenced today in U.S. District Court in Seattle to long prison terms for numerous counts of drug trafficking and one count of money laundering, announced U.S. Attorney Annette L. Hayes. SON V. TRAN, 29, the leader of the drug trafficking group was sentenced to 15 years in prison and TUAN A VU, 50, was sentenced to just over 13 years in prison. Both men will serve five years of supervised release after prison. At the sentencing hearing U.S. District Judge John C. Coughenour noted that the men led an organization involved with both drugs and violence.
“These defendants and their organizations pumped large amounts of meth, heroin and cocaine into our communities, and they used violence to get their way,” said U.S. Attorney Annette L. Hayes. “We will continue to use all the law enforcement tools at our disposal to ensure drug organizations like this one – from their leaders on down – are removed from our cities and towns, and held to account.”
The two-year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF), revealed that the organization distributed cocaine, crack cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area. According to court records and testimony at trial, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization. The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month. In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms. During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilos of cocaine, one pound of methamphetamine and $14,000 cash from a rental car. In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle. At the end of the investigation, additional drugs and more than $100,000 in cash was seized from TRAN and VU’s residences.
Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent. The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.
Both Son V. Tran and Tuan A. Vu were convicted of conspiracy to distribute controlled substances. Son V. Tran was also convicted of fifteen separate counts of distribution of controlled substance or possession of controlled substance with intent to distribute offenses. Tuan A Vu was similarly convicted of eleven separate counts of distribution of controlled substance or possession of controlled substance.
More than twenty other defendants have been sentenced in the case to prison terms ranging from two years to twelve years.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Kate Vaughan.
Lancaster Man Sentenced and Ordered to Pay More Than $1 Million for Illegally Uploading Screeners of ‘The Revenant’ and ‘The Peanuts Movie’Read the Press Release
LOS ANGELES – A Lancaster man was sentenced yesterday in federal court for criminal copyright infringement for illegally posting screener versions of two movies – “The Revenant” and “The Peanuts Movie” – to a publicly accessible website. As a result of the illegal upload, “The Revenant” was available for download six days before its limited release in theaters and more than 1 million people were able to download the film within a six-week period, which caused Twentieth Century Fox Film Corporation to suffer losses of well over $1 million.
William Kyle Morarity, 31, who used the screen name “clutchit,” pled guilty earlier this year to felony copyright infringement and was sentenced this week by United States District Court Judge Stephen V. Wilson to eight months’ home detention and 24 months’ probation. He was also ordered to pay $1.12 million in restitution to Twentieth Century Fox.
Morarity agreed to assist the FBI in the production of a public service announcement to assist the government in educating the public about the harms of copyright infringement and the illegal uploading of movies that are the legal property of the movie studio.
Morarity obtained the screeners without authorization while at work on a studio lot. He copied the screeners onto a portable drive and uploaded the movies from his home computer on December 17 and 19, 2015, to a BitTorrent website called “Pass the Popcorn,” which allowed downloading via a peer-to-peer network.
“The film industry creates thousands of jobs in Southern California,” said United States Attorney Eileen M. Decker. “The defendant’s illegal conduct caused significant harm to the victim movie studio. The fact that the defendant stole these films while working on the lot of a movie studio makes his crime more egregious.”
"Mr. Morarity used his position of trust to gain access to sensitive intellectual property, then shared that content online and incurred large-scale losses to the owner of that property," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The theft of intellectual property - in this case, major motion pictures - discourages creative incentive and affects the average American making ends meet in the entertainment industry."
The case against Morarity was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jennie Wang.
LaSalle Street Kidnapper found guilty in Federal CourtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced guilty verdicts against a Detroit, Michigan man, for kidnapping two Indianapolis children from their LaSalle Street home in March of 2015. An Indianapolis jury found John Thomas a/k/a Jay, 39, guilty of two counts of kidnapping and one count of conspiracy to commit kidnapping after a six-day trial before U.S. District Court Chief Judge Richard L. Young.
“I want to commend the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department for their immediate reaction to this kidnapping,” said Minkler. “As a result of their non-stop efforts, this case was solved in less than 48 hours, the victims were rescued and the defendants arrested. Law enforcement has sent a strong message; when children are involved, we will send the cavalry.”
Testimony in court indicated, Thomas was a drug dealer from Detroit. On February 28, 2015, Thomas’s former girlfriend Whitney Blackwell took a large quantity of narcotics and narcotic proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Blackwell.
On March 2, 2015, Thomas and other members of the conspiracy conducted a home invasion on LaSalle Street in Indianapolis and kidnapped Blackwell’s minor siblings, holding them for ransom. They used a blindfold, towel and a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the fingers of one of the children to compel him to reveal the location of Blackwell, the narcotics and narcotic proceeds taken from Thomas. Thanks to the efforts of law enforcement in Indianapolis and Detroit, both victims were returned safely.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
Five other co-conspirators have pleaded guilty in federal court and are awaiting sentencing:
Alaa Al-Salehi, a/k/a Big Boi, 24
April Sandell, 27
Bernando Reeves, a/k/a C-Note, 21
Mohammed Karkash a/k/a MJ, 23
Ali Hussain Ashore, 27
According to Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, who prosecuted this case for the government, Thomas and the other kidnappers face a mandatory minimum sentence of 20 years and a maximum of life in prison. The United States Attorney’s Office will request a sentence of life for Mr. Thomas. Parole has been abolished in the federal system. Thomas will be sentenced on December 8, 2016.
Kirby Inland Marine to Pay $4.9 Million in Civil Penalties and Provide Fleet-Wide Improvements to Resolve U.S. Claims for Houston Ship Channel Oil SpillRead the Press Release
Kirby Inland Marine L.P. has agreed to pay $4.9 million in Clean Water Act civil penalties and to implement fleet-wide operational improvements to settle claims stemming from a 4,000-barrel (168,000-gallon) oil spill in the Houston Ship Channel in March 2014, the Department of Justice and the Coast Guard announced today.
In its complaint, filed today in the U.S. District Court for the Southern District of Texas along with the notice of lodging of a consent decree, the United States alleges that Kirby is liable under the Clean Water Act for the oil spill. The spill occurred on March 22, 2014, when a Kirby tow boat, the Miss Susan, was pushing two 300-foot oil barges in the “Texas City Y” area of the Houston Ship Channel in fog conditions. Despite detecting the nearby presence of a 585-foot bulk cargo ship, the Summer Wind, traveling up the Houston Ship Channel, Kirby’s tow boat and barges tried to cross the channel in front of the cargo ship. As a result, Kirby’s lead oil barge was struck by the cargo ship and approximately 4,000 barrels of heavy marine fuel oil spilled out of the barge into the waterway. From there, oil flowed out of the channel and spread down the Texas coastline. Approximately 160 miles of shoreline were oiled as a result of the spill, including sensitive marsh habitat, the national wildlife refuge on Matagorda Island, Mustang Island State Park and Padre Island National Seashore. A full assessment of the injuries caused by the spill to marine and terrestrial natural resources is ongoing and will be addressed separately.
“This settlement sends a clear message that vessel owners and operators have a responsibility to protect our waters, people and the environment from oil spills and those who violate that duty will be held accountable under the law,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The remedial measures in this agreement will upgrade navigational equipment, provide employee training, and improve operational practices across an entire fleet of vessels.”
“This case illustrates the inherent risk in transporting oil and other chemicals along our waterways,” said Eighth Coast Guard District Commander, Rear Adm. David Callahan. “The Coast Guard remains committed to enforcement, prevention and response with regards to our nation's waterways and natural resources.”
In addition to payment of the civil penalties, Kirby in the consent decree commits to improve its operations across its entire fleet of hundreds of vessels operating in the inland waters of the United States. These remedial measures require Kirby to install enhanced navigational equipment on vessels, provide employee training on the new and enhanced equipment, provide additional navigation skills training, including a simulator-based exercise involving a Texas City Y scenario and improved operational practices such as entering complete tow dimensions in each vessel’s automatic identification systems before embarking on every transit. As part of the settlement, Kirby also agrees to waive any limits on its liability under the Oil Pollution Act related to the oil spill incident at issue in this case.
The remedial measures and the penalties to be paid by Kirby under the consent decree are in addition to the costs the company has already incurred or will incur to clean up the oil spill, reimburse federal and State response efforts, compensate victims of the oil spill and compensate the public for injuries to natural resources.
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Southern District of Texas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Jury Convicts Two in $2.6M Stolen Identity, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted two employees of a Pawtucket grocery store, the Dominican Supermarket, for their participation in a conspiracy to use the stolen identities of more than 400 individuals on fraudulent tax returns, resulting in the receipt of more than $2.6 million dollars in fraudulent federal tax return payments, announced United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; and Stephen Marks, Special Agent in Charge of the United States Secret Service.
The jury, following six days of testimony and seven hours of deliberations over two days, convicted Doris Morel 44, of Central Falls, a full-time cashier at the Dominican Supermarket, on one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. The jury convicted Erika Tomasino, 44, of Central Falls, a secretary for the owner of the supermarket, on one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft.
The jury acquitted Morel of one count of mail fraud and Tomasino of one count of aggravated identity theft.
Morel and Tomasino, released on unsecured bond with electronic monitoring, are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on December 22, 2014.
Two other individuals who participated in the conspiracy, Juan Vasquez, 53, of Pawtucket, the owner of the Dominican Supermarket, and his sister, Belkis Vasquez, 50, of Central Falls, previously pleaded guilty to federal charges brought in this matter and are scheduled to be sentenced on November 4, 2016.
Juan Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy. Both are scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on November 4, 2016.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in an extensive Stolen Identity Refund Fraud (SIRF) scheme. SIRF schemes involve the misuse of personal identifying information of individuals to file fraudulent tax returns. In this particular scheme, fraudulent tax returns were filed using stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico.
According to the government’s evidence, fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 27 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, according to the government’s evidence, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Hampshire County man pleads guilty to unlawful possession of a stolen firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Scott Rinker, 31, of Romney, West Virginia, pled guilty today to a federal firearms charge, United States Attorney William J. Ihlenfeld, II, announced.In August 2015, Rinker knowingly possessed four stolen firearms in Mineral and Hampshire Counties, West Virginia. Moore pled guilty today to one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Hampshire County Sheriff’s Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Guatemalan Man Sentenced for Third Illegal Entry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Otilio Sales-Gomes 34, of Guatemala, was sentenced today to serve eight (8) months in prison following his guilty plea to illegally reentering the United States. This was his second felony conviction for this offense and involved his third illegal entry in the United States, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Field Office Director, U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations—Buffalo Field Office.
In pleading guilty, Sales-Gomes admitted that he returned to the United States approximately one year ago and that he was recently living and working illegally in Oriskany, New York. Sales-Gomes also admitted that he was first removed from the United States in September 2005, and that he later returned illegally to the United States. Nearly two years later, in June 2007, Sales-Gomes was convicted in the United States District Court for the District of New Mexico of one felony count of reentry after removal, after which he was deported a second time.
Following the completion of his eight-month prison sentence, Sales-Gomes will be subject to removal proceedings for the third time. Sales-Gomes was sentenced by Chief United States District Judge Glenn T. Suddaby, who presided over the case and who took Sales-Gomes’s earlier guilty plea.
This case was investigated by the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations, and was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former Postal Worker Sentenced for Stealing from the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Nichole Crosson, 23, of Buffalo, NY, who was convicted of opening mail without lawful authority, was sentenced to two years probation by U.S. Magistrate Judge Michael j. Roemer. The defendant was also ordered to pay $1,729.21 in restitution.
Assistant U.S. Attorney John D. Fabian, who handled the case, stated that the defendant, a former United States Postal Service mail carrier, opened mail and removed gift cards and cash while working as a mail carrier. For instance, Crosson removed $50 in cash from a greeting card intended for delivery to a resident in West Seneca, NY in April 2016. Between January 1, 2016 and April 15, 2016, the defendant removed cash and gift cards totaling $1,729.21 from a number of mailings.
The sentencing is the culmination of an investigation on the part of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA., with the assistance of the Eden Police Department, under the direction of Chief Michael J. Felschow.
Former Director of Detroit Office of Departmental Technology Services Pleads Guilty to BriberyRead the Press Release
The former director of the city of Detroit’s Office of Departmental Technology Services (DTS) pleaded guilty today for accepting more than $29,500 in bribe payments from two information technology companies providing services and personnel to the city of Detroit.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge David P. Gelios of the FBI’s Detroit Division made the announcement.
Charles L. Dodd Jr., 46, of Canton, Michigan, pleaded guilty to one count of federal program bribery before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan. Sentencing has been scheduled for Jan. 9, 2017.
According to admissions made in connection with today’s plea, Dodd has held numerous supervisory positions with the city of Detroit in which he exercised discretionary supervisory authority over a staff of dozens of city employees and contractors, and held substantial influence over the administration of multimillion-dollar contracts between the city of Detroit and private information technology companies.
Between 2009 and 2016, Dodd accepted cash payments totaling more than $15,000 and a trip to North Carolina, among other things of value, from an individual who was then the president and CEO of an information technology company, according to the plea agreement. Dodd admitted that during that same time period, he also accepted more than $14,500 in cash payments from the CEO and an employee of another information technology company. In return for these cash payments and other things of value, Dodd agreed to provide preferential treatment to the companies, he admitted.
The FBI’s Detroit Division investigated the case. Trial Attorneys Robert J. Heberle and Nicholas Connor of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bruce Judge of the Eastern District of Michigan are prosecuting the case.
Former Correctional Officer Pleads Guilty to Bribery ChargeRead the Press Release
WAYCROSS, GA--A former correctional officer, Mathew Stone, 28, from Kingsland, Georgia, pleaded guilty yesterday in federal court before Chief U.S. District Judge Lisa Godbey Wood for accepting a bribe from inmates at Correctional Institution D. Ray James, a privately operated facility which houses federal inmates through a contract with the Federal Bureau of Prisons, in Folkston, Georgia.
According to court documents and statements made in court, Stone accepted money for smuggling contraband items into Correctional Institution D. Ray James. Specifically, Stone plead guilty to one count of bribery for accepting $1,100 to provide prohibited objects, such as cellphones and tobacco, to inmates at the correctional institution.
Stone faces a maximum term of 15 years in prison and a $250,000 fine for his conviction of bribery. There is no parole in the federal system. Stone’s sentencing will be scheduled after the U.S. Probation Office conducts a presentence investigation.
The case was investigated by special agents of the U.S. Department of Justice Office of the Inspector General. Assistant U.S. Attorney Marcela C. Mateo is prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Chief Executive of South Carolina Hospital Pays $1 Million and Agrees to Exclusion to Settle Claims Related to Illegal Payments to Referring PhysiciansRead the Press Release
The Department of Justice announced today that it has reached a $1 million settlement with Ralph J. Cox III, the former chief executive officer of Sumter, South Carolina-based Tuomey Healthcare System, for his involvement in the hospital’s illegal Medicare and Medicaid billings for services referred by physicians with whom the hospital had improper financial relationships.
Under the terms of the settlement agreement, Cox will also be excluded for four years from participating in federal health care programs, including providing management or administrative services paid for by federal health care programs. The illegal physician arrangements resulted in a $237.4 million judgment against Tuomey following a jury verdict. On Oct.16, 2015, the United States resolved its judgment against Tuomey for payments totaling $72.4 million, and the hospital was sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.
“Sweetheart deals between hospitals and referring physicians distort medical decision making and drive up the cost of healthcare for patients and insurers alike,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Patients have a right to be confident that a physician who orders a procedure or test does so because that service is in the patient’s best interest, and not because the physician stands to gain financially from the referral. Today’s settlement demonstrates that the Justice Department and its law enforcement partners will hold individual decision makers accountable for their involvement in causing the companies and facilities they run to engage in unlawful activities.”
The judgment against Tuomey related to violations of the Stark Law, a statute that prohibits hospitals from billing Medicare for certain services, including inpatient and outpatient hospital care, that have been referred by physicians with whom the hospital has an improper financial relationship. The Stark Law includes exceptions for many common hospital-physician arrangements, but generally requires that any payments that a hospital makes to a referring physician be at fair market value for the physician’s actual services, and not take into account the volume or value of the physician’s referrals to the hospital. The government alleged that Cox, fearing that Tuomey could lose lucrative outpatient procedure referrals to a new freestanding surgery center, caused Tuomey to enter into contracts with 19 specialist physicians that required the physicians to refer their outpatient procedures to Tuomey and, in exchange, paid them compensation that far exceeded fair market value and included part of the money Tuomey received from Medicare for the referred procedures. During the trial against the hospital, the government argued that Cox ignored and suppressed warnings from one of Tuomey’s attorneys that the physician contracts were “risky” and raised “red flags.”
On May 8, 2013, after a month-long trial, a South Carolina jury determined that the contracts violated the Stark Law. The jury also concluded that Tuomey had filed more than 21,000 false claims with Medicare. On Oct. 2, 2013, the trial court entered a judgment under the False Claims Act in favor of the United States for $237.4 million. The United States Court of Appeals for the Fourth Circuit affirmed the judgment on July 2, 2015. Cox was terminated as Tuomey’s chief executive officer in the fall of 2013.
“Our office was pleased to partner with the Justice Department’s Civil Division and the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) in this important case,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “The lengthy legal process has vindicated the government’s position that the financial arrangement between this hospital corporation and certain physicians was improper and not in the interest of patients.”
“Individuals and entities that defraud Federal health care programs face exclusion from those programs by the Department of Health and Human Services Office of Inspector General (OIG),” said Gregory E. Demske, chief counsel to the HHS Inspector General. “OIG is committed to protecting the programs and patients from health care executives who, like Mr. Cox, lead or participate in schemes to defraud Medicare or Medicaid. Entities engage in fraud because of actions by individuals and OIG will continue to identify and take administrative enforcement actions against such individuals.”
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 $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal health care programs.” Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The judgment against Tuomey and this settlement were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of North Carolina and HHS and its OIG.
The case against the hospital is captioned United States ex rel. Drakeford v. Tuomey Healthcare System, Inc., Case No. 3:05-cv-02858 (MBS) (D.S.C.). The claims resolved by the settlement with Cox are allegations only, and there has been no determination of his individual liability.
Federal Racketeering Indictment of 24 Alleged Members of Baltimore “Murdaland Mafia Piru” Bloods GangRead the Press Release
Baltimore, Maryland - A federal grand jury has returned an indictment charging 24 defendants with a racketeering conspiracy involving their participation in the gang activities of Murdaland Mafia Piru (MMP), which allegedly operated in Northwest Baltimore and Baltimore County. MMP members allegedly engaged in criminal activities in furtherance of the gang, including narcotics trafficking, murder, attempted murder, assault, extortion, obstruction of justice, witness intimidation and retaliation, and money laundering.
The superseding indictment was returned on September 22, 2016 and unsealed today upon the arrest of the defendants. Led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), over 150 law enforcement officers participated in today’s operation, arresting seven defendants from this indictment. Agents executed 12 search warrants and seized five firearms, a taser and a small quantity of heroin and marijuana. A total of 17 defendants are in custody. ATF is still searching for seven of the defendants. Anyone having information can call the ATF 24/7 hotline at 1-888-ATF-TIPS (1-888-283-8477) or send an email to [email protected] . You can also send a text anonymously via the “ReportIt” mobile app (www.reportit.com) using the ATF Baltimore Field Division as the location.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“Most shootings in Baltimore are committed by drug dealers, and conspiracy cases get their attention,” said U.S. Attorney Rod J. Rosenstein. “We can reduce violence by prosecuting members of gangs that foment violence.”
According to the indictment, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates on the streets and in correctional facilities in Maryland and elsewhere. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction.
MMP is descended from the Tree Top Piru (TTP) subset of the Bloods gang. MMP gang paperwork, states that the 2008 federal indictment of the TTP Bloods gang “destroyed” TTP. Several former TTP members took advantage of the power vacuum created by the federal indictment and formed MMP in TTP’s stead. Although MMP adopted some of the same practices as TTP, it developed its own unique ideology—in particular, an association with the terminology and symbols of the Italian Mafia, and a preoccupation with money and murder.
According to the indictment, MMP is organized hierarchically, with Dante Bailey, known as “the Don,” at the top and various subordinates underneath. There are also MMP units corresponding to different geographic regions or prisons, each consisting of a “Boss,” an “Underboss,” and various “Capos,” “Lts,” and “soldiers.” MMP members are required to follow certain rules of conduct. Members who violate these rules are subject to disciplinary measures or “sanctions,” ranging from fines or work assignments for minor violations, to physical beatings or stabbings for more serious violations, to murder for the most serious violations. MMP members enhance their status within the gang by carrying out acts of violence against rivals; for instance, members can earn a “lightning bolt” tattoo for “killing for the Mob.” Prospective members of MMP were required to successfully complete an initiation process and recite an oath of loyalty called the “Omerta Code.” MMP members were required to pay dues to the gang consisting of a portion of the proceeds of their criminal activities, and they were subject to reprisal for failing to do so. MMP members and associates use gang-related terminology, symbols, and tattoos. They frequently identify with the letter “M,” which is the first letter of “Murdaland,” “Mafia,” and “Mob”; with the color red, which is the color of the Bloods gang; and with the number “5200,” which is a reference to the 5200 block of Windsor Mill Road. MMP members could “earn” gang tattoos, including an “M” for taking the MMP oath, a lightning bolt for committing murder in furtherance of the gang, and a pink rose for the wife of an MMP member.
The indictment alleges that members and associates of MMP operated street-level drug distribution “shops” in various locations in Baltimore City and distributed heroin, cocaine, and crack cocaine, among other controlled substances. Non-members who wished to sell drugs in MMP’s territories were forced to pay a “tax” or were targeted for violence by MMP members. MMP’s primary drug shops were located in the 5200 block of Windsor Mill Road (which MMP considered to be its headquarters), and at the intersection of Gwynn Oak Avenue and Liberty Heights Avenue. The drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, which made it easily accessible to drug customers driving from western Maryland and neighboring states. It was not unusual for MMP members and associates to sell over a kilogram of drugs per week at this location, which could translate to over $100,000 in drug revenue per week.
According to the indictment, MMP members and associates purchased, maintained, and circulated weapons and firearms for use in criminal activity by MMP members. They frequently obtained firearms from drug customers in exchange for drugs. MMP members and associates used violence, threats of violence, and intimidation to prevent victims and witnesses from cooperating with law enforcement against members of MMP about criminal acts committed by MMP.
The indictment alleges that MMP members and associates concealed the illegal source of funds by purchasing automobiles and other valuable property through nominees. MMP members and associates also gambled drug proceeds at casinos in and around Maryland, or simply funneled drug proceeds through casinos to launder the money by making it appear as though they had won the money gambling.
Further, the indictment alleges that MMP members and associates attempted to assume control over legitimate businesses that operated in MMP’s drug territories, including a gas station in the 5200 block of Windsor Mill Road. MMP members and associates frequently stashed drugs and firearms on the premises of the gas station and made drug sales at the gas pumps or within the store itself. MMP allegedly used social media websites to assert its claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance individual members’ status within the gang. MMP members and associates posted photographs and rap videos to these social media websites in which they flaunted firearms and threatened to kill those who stood in the way of the gang.
The indictment charges the following defendants in the racketeering conspiracy:
Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 37, of Windsor Mill, Maryland;
Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 31, of Windsor Mill;
Adrian Jamal Spence, a/k/a “Spittle,” “SP,” and “AJ,” age 29, of Baltimore;
William Banks, a/k/a “Trouble,” age 27, of Baltimore;
Randy Banks, a/k/a “Dirt,” age 38, of Baltimore;
Ayinde Deleon, a/k/a “Murda,” and “Yin,” age 31, of Baltimore;
Dominick Wedlock, a/k/a “Rage,” and “Nick,” age 29, of Baltimore;
Jamal Lockley, a/k/a “T-Roy,” and “Droid,” age 37, of Baltimore;
Dwight Jenkins, a/k/a “Huggie,” and “Unc,” age 48, of Baltimore;
Jacob Bowling, a/k/a “Jakey,” “Ghost,” and “Fred,” age 30, of Gwynn Oak, Maryland;
Corloyd Anderson, a/k/a “Bo,” age 33, of Owings Mills, Maryland;
Melvin Lashley, a/k/a “Menace,” age 26, of Baltimore;
Devon Dent, a/k/a “Tech,” age 26, of Gwynn Oak;
William Jones, a/k/a “Bill,” and “Smalls,” age 27, of Baltimore;
Jarmal Harrid, a/k/a “J-Rock,” and “PJ,” age 27, of Gwynn Oak;
Jamal Smith, a/k/a “Mal,” and “Lil Mal,” age 25, of Gwynn Oak;
Tiffany Bailey, a/k/a “Tiff,” age 31, of Windsor Mill;
Takuma Tate, a/k/a “Oop,” and “Ook,” age 37, of Baltimore;
Maurice Pollock, a/k/a “Reese,” age 22, of Baltimore;
Shakeen Davis, a/k/a “Creams,” age 22, of Baltimore;
Charles Blackwell, a/k/a “Ci-Bo,” and “Lil Charlie,” age 21, of Woodlawn, Maryland;
Kenneth Torry, a/k/a “Kenny,” age 39, of Owings Mills;
Delante Lee, a/k/a “Tay Tay,” age 21, of Baltimore; and
Jay Greer, a/k/a “Champagne,” “Montana Gold,” and “Slick,” age 24, of Baltimore.All but Spence are also charged with conspiracy to distribute narcotics.
All 24 defendants face a maximum sentence of life in prison for the racketeering conspiracy. All but Spence also face a mandatory minimum of 10 years and a maximum of life in prison for the drug conspiracy. D. Bailey, Johnson, Spence, W. Banks, Jenkins, and Torry also face gun charges. D. Bailey, Johnson, T. Bailey, Lockley, Pollock, Lee, Jenkins, and Bowling also face related drug distribution charges. The defendants arrested today are expected to have initial appearances in U.S. District Court in Baltimore. The defendants already in custody will be scheduled for an initial appearance at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Christina Hoffman, Jason D. Medinger, and Daniel C. Gardner, who are prosecuting the case.
MURDERLAND MAFIA
DEFENDANT
NICKNAME
COUNTS
Dante BAILEY
Gutta
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
15 Felon in Possession of Firearms and Ammunition
18 Possession with Intent to Distribute Heroin
Dontray JOHNSON
Gambino
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
4 Possession with Intent to Distribute Heroin
5 Felon in Possession of Ammunition
8 Discharging Firearm in Furtherance of Drug Trafficking Crime
Adrian Jamal SPENCE
Spittle
1 RICO Conspiracy
6 Felon in Possession of Firearm and Ammunition
William BANKS
Trouble
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
3 Discharging Firearm in Furtherance of Drug Trafficking Crime
28 Felon in Possession of Firearms and Ammunition
*Randy BANKS
Dirt
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Ayinde DELEON
Murda
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Dominick WEDLOCK
Rage
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Jamal LOCKLEY
T-Roy
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
9 Distribution of Cocaine Base
Dwight JENKINS
Huggie
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
16 Distribution of Heroin
17, 19, 21 Distribution of Heroin and Cocaine Base
22 Distribution of Cocaine Base (28+ grams)
23 Felon in Possession of Firearm and Ammunition
24 Distribution of Heroin and Cocaine Base (28+ grams)
Jacob BOWLING
Jakey
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
20, 25 Distribution of Cocaine Base
26, 27 Distribution of Cocaine Base (28+ grams)
Corloyd ANDERSON
Bo
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Melvin LASHLEY
Menace
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Devon DENT
Tech
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
William JONES
Smalls
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Jarmal HARRID
J-Rock
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
*Jamal SMITH
Mal
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
*Tiffany BAILEY
Tiff
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
18 Possession with Intent to Distribute Heroin
*Takuma TATE
Oop
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Maurice POLLOCK
Reese
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
10, 11, 12 Distribution of Heroin
*Shakeen DAVIS
Creams
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
Charles BLACKWELL
Ci-Bo
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
*Kenneth TORRY
Kenny
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
7 Felon in Possession of Firearm and Ammunition
*Delante LEE
Tay Tay
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
13, 14 Distribution of Cocaine Base
Jay GREER
Slick
1 RICO Conspiracy
2 Conspiracy to Distribute (1kg+ heroin; 280g+ cocaine base)
*Indicates defendants not arrested.
Federal Officials Close Review into the Death of Darrius StewartRead the Press Release
Memphis, TN – The Justice Department has announced that the independent federal review into the fatal shooting of Darrius Stewart on July 17, 2015, in Memphis, Tennessee, found insufficient evidence to support federal criminal civil rights charges against Memphis Police Department (MPD) Officer Connor Schilling.
Officials from the U.S. Attorney’s Office of the Western District of Tennessee met today with Stewart’s family and their representatives to inform them of this decision.
The U.S. Attorney’s Office for the Western District of Tennessee, the Department of Justice’s Civil Rights Division, and the Federal Bureau of Investigation (FBI) conducted a comprehensive independent review of the circumstances related to Stewart’s death. This included a review of witness statements, video footage, and other information obtained during the 2015 investigation conducted by the MPD and the Tennessee Bureau of Investigation (TBI). Additionally, federal investigators consulted with the Shelby County Medical Examiner and a TBI forensic scientist.
In conducting the review, federal authorities were tasked with determining whether Schilling violated federal law by willfully using unreasonable force against Stewart. Under the applicable federal criminal civil rights statute, Title 18, United States Code, Section 242, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard imposed by law. Mistake, misperception, negligence, or poor judgment is not sufficient to establish a federal civil rights violation.
In this case, civilian witnesses saw a physical confrontation between Schilling and Stewart. It is uncontroverted that Schilling and Stewart engaged in a violent struggle for several minutes before Schilling shot Stewart. Video evidence shows that at one point Stewart was able to get on top of Schilling. Based on these eyewitness accounts, the statement of the officer involved, the video, and the physical evidence, there is insufficient evidence to disprove Schilling’s assertion that he needed to use deadly force against Stewart.
Federal authorities further determined that there is insufficient evidence to prove beyond a reasonable doubt that Schilling’s second shot was unreasonable. Much of the evidence tends to show that the second shot followed only a few seconds after the first. Since eyewitness accounts and physical evidence both indicate that the second shot came very soon after Stewart stood up in close proximity to Schilling, the evidence cannot establish that the threat initially posed by Stewart had abated at the time of the second shot. Under the law, the use of deadly force is justified when an officer has reasonable cause to believe that a suspect poses a threat of serious physical harm, either to the officer or to others. In this particular matter, the evidence does not disprove Schilling's account that he used no more force than he reasonably believed necessary to protect himself and to stop a perceived threat.
Based on a careful and thorough review, federal investigators determined that there is insufficient evidence to establish beyond a reasonable doubt that Schilling violated Section 242. Accordingly, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident.
The U.S. Attorney’s Office for the Western District of Tennessee, along with its law enforcement partners, remains committed to investigating allegations of excessive force and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Justice Department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Defendant in Los Angeles-Area Synthetic Drug Ring Sentenced to 16 Months in Federal Prison for Manufacture and Distribution of ‘Spice’Read the Press Release
LOS ANGELES – A Glendale man has been sentenced to 16 months in federal prison for his role in the large-scale manufacture and distribution of synthetic drugs that are commonly called “spice.”
Yesterday afternoon, Faisal Iqbal, 34, one of 16 defendants arrested in connection with a synthetic drug ring operating out of Los Angeles, was sentenced by U.S. District Court Judge Manuel L. Real. Iqbal and his co-conspirators were charged with conspiring to manufacture and distribute synthetic cannabinoids, which are designed to mimic the effects of THC, the psychoactive agent in marijuana, and with structuring financial transactions. Iqbal pled guilty to conspiracy to distribute synthetic cannabinoids and to structuring a financial transaction to avoid a reporting requirement.
“Although these are called ‘synthetic’ drugs, the dangers they pose are very real,” said United States Attorney Eileen M. Decker. “Without controls on the ingredients and manufacture of these drugs, the defendant’s products could cause severe harm to users, including death.”
Over the past several years, the DEA has identified more than 400 new designer drugs in the United States – most of which are manufactured in rogue labs in China and sold on the Internet or in retail outlets such as smoke shops, gas station convenience stores and bodegas. These substances are generally sold in brightly colored packaging, marketed to young people, and billed as “safe” alternatives to marijuana or dangerous party drugs such as MDMA (ecstasy). The synthetic drugs are commonly marked with the disclaimer “not for human consumption” and/or “DEA compliant” which is an attempt to shield distributors from prosecution. Abuse of these psychoactive substances has resulted in increasing numbers of overdose incidents, emergency room visits and even deaths.
A total of 16 defendants were charged in three separate indictments with manufacturing and distributing synthetic cannabinoids. The chemicals are mixed with agents – often acetone – to create a mixture that is sprayed onto plant material – typically marshmallow leaf or damania leaf – to create synthetic marijuana, which is commonly referred to as “spice” or “herbal incense.” Such synthetic cannabinoids are smoked or orally ingested, and are referred to in three indictments as smokable synthetic cannabinoids (SSCs). The SSCs discussed in the indictment were sold under brand names that included “Sexy Monkey,” “Crazy Monkey,” “Scooby Snax,” “Bizarro” and “Mad Hatter.”
The case was investigated by agents from the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Karen Escalante.
More information about synthetic designer drugs can be found on the Drug Fact Sheets at www.DEAdiversion.usdoj.gov.
DARKODE Member from Kentucky Sentenced for Role in Compromising Others ComputersRead the Press Release
PITTSBURGH - A resident Hampton, Kentucky of has been sentenced in federal court to two years of probation, with 50 hours of community service and computer monitoring on his conviction of one count of a violation of the CAN-SPAM Act, in violation of 18 U.S.C. §§1037(a)(1) and (b)(2)(A), United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Ryan Neil Green, age 32, of Hampton, KY.
According to information presented to the court, Green knowingly accessed a protected computer without authorization, namely a computer that had been infected by the Facebook Spreader and Slenfbot, and did intentionally initiate the transmission of multiple commercial electronic mail messages from or through such computer.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Green.
Corpus Christi Man Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
In February 2016, authorities learned that Jesus Villalobos had been communicating via cellular telephone text messages and a social media application with an 11-year-old female. During those communications, Villalobos enticed the victim into sending him sexually explicit photographs of herself.
In April 2016, law enforcement executed a search warrant at the Villalobos residence and seized various electronic devices. A forensic analysis on those devices led to the discovery of several photographs of the child that were sexually explicit in nature.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for Dec. 13, 2016. At that time, Villalobos faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, Villalobos 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.
Villalobos was arrested on federal charges in July 2016 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges are the result of an investigation conducted by Immigration and Customs Enforcement’s Homeland Security Investigations with the assistance of 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."
Clarksburg woman pleads guilty to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Danna J. Hern, 30, of Clarksburg, West Virginia, pled guilty to heroin distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Hern pled guilty to one count of “Conspiracy to Possess With the Intent to Deliver Heroin.” She faces up to twenty years in prison and a fine up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Castor couple plead guilty to roles in converting rifle into a machine gunRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Castor couple pleaded guilty to charges related to converting a rifle into a machine gun.
Michael Deen Reeves, 58, and Crissy Lawson Reeves, 37, of Castor, La., and who are married pleaded guilty before U.S. District Judge Elizabeth E. Foote. Michael Reeves pleaded guilty to one count of manufacturing an unregistered firearm, and Crissy Reeves pleaded guilty to one count of transferring an unregistered firearm. According to the guilty pleas, a cooperating witness informed law enforcement officials that he had met with Michael and Crissy Reeves in October of 2015 to purchase a fully automatic SKS rifle. They negotiated a price, and Crissy Reeves agreed to retrieve a previously pawned rifle from a pawn shop in Natchitoches, La. Law enforcement recorded the defendants on October 30, 2016 in their home selling the rifle to the witness. Law enforcement agents also recorded Michael Reeves converting the Norinco SKS 7.62 x 39 mm rifle to a fully automatic rifle.
They face up to 10 years in prison, three years of supervised release, forfeiture of the seized items and a $10,000 fine. A sentencing date of January 20, 2017 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Bienville Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jonathan S. Drucker is prosecuting the case.
California Woman Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Latricia Newell was sentenced to 48 months in prison involving her use of counterfeit credit cards to purchase gift cards in the St. Louis area.
According to court documents, on January 31, 2016, a Chesterfield, Missouri, police officer received a call that Latricia Newell had used a credit card embossed in her name to purchase gift cards. However, when the receipt was printed, it revealed that the account number used to make the purchase had been issued to an individual other than Newell. When the officer approached her vehicle, he noticed 20 cards had fallen out of her purse. By searching her car, the officer found 51 gift cards that had been fraudulently purchased, and 64 credit/debit cards embossed in Newell’s name. The 64 credit/debit cards were similar to the card which triggered the investigation in that the magnetic strips on the back of the cards were encoded with the account numbers of others. Newell advised the arresting officers that she had traveled to the St. Louis metropolitan area from California with the cards in her possession.
After her arrest, law enforcement officers discovered her use of re-encoded credit cards to purchase gift cards and other merchandise in the Missouri cities of St. John, Brentwood, Clayton, and Hazelwood. When the magnetic strips found on the back of the cards in defendant’s possession were scanned by law enforcement officers, the officers discovered that the account numbers had been issued by financial institutions to more than 60 individuals. Further investigation by the United States Secret Service revealed that on February 21, 2014, airport authorities in Austin, Texas, discovered more than 323 gift cards and 39 re-encoded cards during a routine screening of baggage that was to be flown from Austin, Texas, to Los Angeles, California. Of the 39 counterfeit cards discovered, 38 were embossed in Newell’s name. Newell was on the manifest for the flight.
Newell, Harbor City, CA, pled guilty in June to one felony count of possession of 15 or more counterfeit credit cards, two felony counts of aggravated identity theft and one count of use of unauthorized access devices. She appeared today for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the Missouri police departments of Chesterfield, St. John, Brentwood, Clayton and Hazelwood and the United States Secret Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Bureau of Prisons inmate pleads guilty to assaultRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Fleming, 30, currently incarcerated at Federal Correctional Institution Gilmer, pled guilty today to assaulting a correctional officer, United States Attorney William J. Ihlenfeld, II, announced.
In June 2014, Fleming intentionally assaulted a correctional officer with the intent to inflict bodily harm. Fleming pled guilty today to one count of “Assaulting, Resisting, and Impeding Certain Officers or Employees.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Federal Bureau of Prisons Special Investigations Services Unit investigated.
U.S. District Judge Irene M. Keeley presided.
Buffalo Woman Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Ashley Hollins, 29, of Buffalo, NY, pleaded guilty today to bank fraud before U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Maura K. O’Donnell, and Elizabeth R. Moellering, who are handling the case, stated that between 2010 and 2015, the defendant opened bank accounts in her name, and in the names of others, at various area banks. Hollins then wrote and negotiated, or attempted to negotiate, over 200 checks against these bank accounts, totaling approximately $55,860. The defendant knew that the bank accounts did not have sufficient funds to cover the amounts of the checks. Hollins also withdrew funds from some of the accounts before the banks realized that the checks would not clear or that the accounts on which they were drawn had been closed.
The plea is the culmination of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division.
Sentencing is scheduled for January 5, 2017 before Judge Vilardo.
Branson, Springfield Men Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., man and a Springfield, Mo., man were indicted by a federal grand jury today in separate and unrelated cases related to the sexual exploitation of minors.
USA v. Adams
Samuel Lynn Adams, 28, of Branson, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Adams on Sept. 1, 2016, which charged him with the same offense.
The federal indictment alleges that Adams received and distributed child pornography from Jan. 1 through July 21, 2016.
According to an affidavit filed in support or the original criminal complaint, law enforcement officials received a CyberTip from the National Center for Missing and Exploited Children on March 4, 2016, regarding a video file of suspected child pornography posted on Adams’s Gmail account.
On July 21, 2016, Branson police officers were contacted by Motel 9, an extended stay motel where Adams had been residing. According to the owner of the motel, a housekeeper found an SD memory card that contained suspected child pornography while cleaning the room vacated by Adams earlier that day.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Branson, Mo., Police Department.
USA v. Dunn
Mark Damon Dunn, 30, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Dunn used the Internet and a cell phone to attempt to persuade, induce and entice a minor victim (less than 17 years of age) to engage in illicit sexual activity from June 1, 2016, to July 13, 2016.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
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."
Bonner County Man Sentenced for Counterfeiting CurrencyRead the Press Release
COEUR D’ALENE – Daniel Keith Snyder, 51, of Hope, Idaho, was sentenced yesterday for manufacturing counterfeit obligations, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Snyder to twelve months and one day, to be followed by three months home confinement, and three years supervised release. Snyder was also ordered to pay $1,150 in restitution to counterfeit victims. Snyder was indicted by a federal grand jury in Coeur d’Alene on January 20, 2016.
According to the arguments made in court, Snyder admitted that in late 2015, and early 2016, he manufactured counterfeit $50 notes that were passed at businesses in Sandpoint and Ponderay. In mid-January 2016, the Bonner County Sheriff’s Office and a U.S. Secret Service agent served a search warrant at Snyder’s residence. During this search, investigators seized a computer printer and other items that had been used to manufacture counterfeit currency. At least forty-six notes were passed in north Idaho before Snyder was apprehended.
“This conviction is the culmination of a collaborative effort by the Bonner County Sheriff’s Office, Ponderay Police Department, U.S. Attorney’s Office and U.S. Secret Service,” said Resident Agent in Charge of the Spokane Office of the Secret Service Greg Ligouri. Ligouri went on to say, “the Secret Service truly believes in the partnership approach to policing. By working together, law enforcement has a greater impact on our communities and in stopping those who prey on them.”
The case was investigated by the Bonner County Sheriff’s Office, Ponderay Police Department, and the Spokane office of the United States Secret Service.
Associate of Decavalcante Crime Family Sentenced to More Than Two Years in Prison for Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 30 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
John Capozzi, 36, of Union, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of more than 500 grams of cocaine. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Capozzi was arrested and charged by complaint in March 2015, along with nine members of the DeCavalcante crime family. He admitted that between Dec. 12, 2014 and March 2015, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
In addition to the prison term, Judge Walls sentenced Capozzi to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: Neil G. Duffy III Esq., Union, New Jersey
Arizona Agencies Awarded over $9 Million in Federal Grants to Combat Crime, Assist Victims, and Promote Public and Officer Safety.Read the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that over $9 million in federal grant funds have been awarded to a variety of Arizona-based state, local, and non-profit organizations. The federal grant awards, which are individually summarized below, are intended to combat crime, assist victims of crime, and promote public and officer safety:
• Rocky Mountain Information Network: Awarded $4,740,957 to offer support to regional law enforcement agencies, critical analytical and investigative support services, and de-confliction to enhance officer safety. (Grant No. 2015-RS-CX-0003)
• Maricopa County: Awarded $1,064,609 to support its probation, prosecution, enforcement, forensic, and prevention programs, with the goal of preventing and controlling crime and increasing officer safety. (Grant No. 2016-DJ-BX-0801)
• Arizona Governor’s Office: Awarded $828,727 to support its Juvenile Justice and Delinquency Prevention program. (Grant No. 2016-JF-FX-0013)
• Arizona Department of Corrections: Awarded $742,528 to assist in formulating a comprehensive response to the increasing number of people who are released from prison and jails. (Grant No. 2016-RV-BX-0001)
• Against Abuse, Inc.: Awarded $599,494 to improve the response of civil and criminal systems to families of domestic violence. (Grant No. 2016-FJ-AX-00002)
• Southwest Center for Law and Policy: Awarded $450,000 to assist and support victims of crime. (Grant No. 2016-TA-AX-K014)
• National Advocacy & Training Network: Awarded $349,445 to provide aid to victims of sexual assault, domestic violence, and stalkers. (Grant No. 2016-WH-AX0013)
• Arizona Coalition To End Sexual Assault And Domestic Violence: Awarded $239,532 to administer the State and Territorial Sexual Assault and Domestic Violence Coalition Program. (Grant No. 2016-MU-AX-0002)
“These funds support the basic operational needs of each of the individual agencies named in this release, within our District,” said U.S. Attorney John S. Leonardo. “These grants will enhance our District’s efforts to reduce crime and increase public safety. We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
The grant funds identified above were supplied by a variety of federal awarding agencies, all of which are components of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about Office of Justice Programs and its components can be found at:
http://www.ojp.usdoj.gov
Information about Bureau of Justice Assistance and its programs can be found at:
https://www.bja.gov/Default.aspxInformation on the Office on Violence against Women can be found at:
https://www.justice.gov/ovw/grant-programs
Information on the Office of Juvenile Justice and Delinquency can be found at:
http://www.ojjdp.gov/
RELEASE NUMBER: 2016-085_GEN GRANTS _1
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
American Living in Australia Charged in Securities Fraud Case Involving Scheme to Fraudulently Inflate by Nearly $100 Million the Cost of Santa Monica Software Company Being Purchased by Computer Sciences Corp.Read the Press Release
LOS ANGELES – A former executive at Commonwealth Bank of Australia (CBA) was charged today in federal court with participating in a scheme to fraudulently generate revenue for a software company that was being purchased by Computer Sciences Corporation (CSC), which was misled into paying a $98 million incentive bonus as a result of the scheme.
Keith Hunter, 62, of Surrey Hills, Australia, a United States citizen who was the executive general manager in charge of infrastructure and operations at CBA, was named in a two-count criminal information filed this morning. The information charges Hunter with two counts – conspiracy to commit securities fraud and wire fraud, and wire fraud.
The information alleges a scheme in which Hunter and several co-conspirators in Australia and the United States developed a plan to defraud CSC by inflating revenues for a Santa Monica-based company that CSC was purchasing – ServiceMesh, Inc., which provided cloud computer management software. In the scheme, members of the conspiracy in late 2013 and early 2014 caused CBA to purchase $10 million in goods and services from ServiceMesh. According to the court documents filed today, CBA employees, including Hunter, received undisclosed kickbacks from a senior executive of ServiceMesh in exchange for awarding the $10 million in contracts to ServiceMesh.
“Schemes like the one charged today compromise the integrity of our financial system, and this defendant’s fraud caused significant harm to CSC and its shareholders, all for his own personal profit,” said United States Attorney Eileen M. Decker. “Everyone who invests in American companies, especially American workers investing their hard-earned money directly or through a retirement plan, deserves protection from this kind of fraud.”
Solely as a result of the scheme described in the information, ServiceMesh reached a performance goal that triggered CSC to pay a $98 million “earnout payment” to ServiceMesh shareholders in March 2014. The information alleges that a portion of the “earnout payment” received by the senior executive of ServiceMesh who was involved in the scheme funded the kickbacks paid to CBA employees, including payments to Hunter of approximately $630,000.
“This scheme resulted in CSC, a publicly traded company, overpaying $98 million dollars to purchase ServiceMesh. Today's announcement sends a clear message to executives that accepting bribes with the intent to inflate revenue and generate a business advantage is a crime with serious consequences," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "International boundaries do not limit the FBI from working with our foreign and domestic partners to hold accountable individuals who engage in commercial bribery and securities fraud."
The scheme allegedly caused CSC to suffer nearly $100 million in losses when it made the unwarranted earnout payment that followed a base payment of $163 million for ServiceMesh.
Hunter has pleaded guilty and is currently pending sentencing on bribery charges in an Australian court. Authorities in the United States expect Hunter to face the charges filed today after he completes any sentence he receives in Australia.
An information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The two counts in the information together carry a statutory maximum penalty of 45 years in federal prison.
The United States Securities and Exchange Commission today filed a civil complaint against Hunter charging him with securities fraud, along with a consent and proposed judgment.
The United States Attorney’s Office would like to thank the New South Wales Police Force, Fraud and Cybercrime Squad, in Australia for its assistance in this investigation.
The case against Hunter is the product of an ongoing investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Stephen A. Cazares and Ann C. Kim of the Major Frauds Section.
Albany Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Salvatore Commisso, age 33, of Albany, New York, pled guilty yesterday to conspiring to distribute the controlled substance oxycodone.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Commisso faces up to 20 years in prison and 3 years of post-imprisonment supervised release when he is sentenced on January 24, 2017 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his plea, Commisso admitted that from at least December 2015 through February 2016, he obtained approximately 745 oxycodone tablets from a co-conspirator for resale in the Northern District of New York.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Monday 26 September 2016
“Babysitter” Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mathis woman who was supposed to care for a young child but who instead recorded her sexual assault has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Rosa Linda Ganceres, 54, entered a guilty plea June 8, 2016, to sexual exploitation of a child, otherwise known as production child pornography.
Today, U.S. District Judge Nelva Gonzales Ramos handed Ganceres the maximum terms of 360 months in federal prison to be immediately followed by 10 years of supervised release, during which time she will have to comply with numerous requirements designed to restrict her access to children and the Internet. She will also be ordered to register as a sex offender. The court took into consideration a letter read in court by the mother of the victim, in which she described the impact the sexual abuse has had on the child. In handing down the sentence, Judge Ramos stated “The facts of this case are horrendous. What you did to those children is unimaginable.”
At the time of her plea, the court heard that Ganceres and her boyfriend and registered sex offender - Daniel Benson Billman, 43, of Aransas Pass, placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child. Instead, Billman sexually assaulted the two-year-old girl while Ganceres recorded the assault.
In August 2015, authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres recorded.
Billman has also pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s 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."
Winthrop Man Sentenced to 57 Months on Drug and Gun ChargesRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Chad Goucher, 38, of Winthrop, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 57 months in prison and three years of supervised release for possessing with the intent to distribute heroin, possession of a firearm by a felon, and possession of an unregistered sawed-off shotgun. Goucher pleaded guilty to these charges on February 1, 2016.
According to court records, on March 6, 2015, law enforcement officers executed a search warrant at Goucher’s Winthrop residence. Officers recovered heroin, drug paraphernalia, and three firearms, including a .12 gauge Iver Johnson sawed-off shotgun. Goucher had a prior felony conviction which prohibited him from possessing firearms. Goucher admitted to law officers that he intended to distribute some of the heroin and he also admitted that he knew that he was not permitted to possess firearms.
At sentencing, Judge Woodcock noted that Goucher was a significant drug dealer, called his actions “disgraceful,” and said that he had disgraced his family’s name by turning his own mother’s home into a drug den.
The investigation was conducted by the Winthrop Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wife of Bookmaker Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
BOSTON – The wife of Joseph Yerardi, Jr., a previously convicted bookmaker, pleaded guilty and was sentenced today in U.S. District Court in Boston in connection with hiding funds in overseas accounts to evade forfeiture payments to the U.S. Government.
Rafia Feghi, 69, who was born in Iran and lives in Newton, was sentenced by U.S. District Judge Richard G. Stearns to one year and two days in prison, and all of the funds in a Liechtenstein account (now worth more than $1 million) were signed over to the United States government. According to the terms of the plea agreement, Feghi also pleaded guilty today to conspiracy to defraud the United States and to obstruct justice.
Over a period spanning more than 25 years, Feghi hid hundreds of thousands of dollars that her husband, Joseph A. Yerardi, Jr., earned from illegal bookmaking and loansharking, to evade a $916,000 forfeiture order and a $50,000 fine that were imposed on Yerardi when he was sentenced in 1995 on a federal racketeering conviction. Feghi was charged with using multiple accounts under various names, first in Canada, and eventually in Liechtenstein, to hide the money from the United States government.
In 2010, the government of Liechtenstein notified the United States of a suspicious account that contained more than $800,000 and was controlled by Feghi, who had been convicted in 2009 of money laundering in connection with Yerardi’s illegal businesses. Liechtenstein froze the suspicious account, and the United States filed court papers to obtain the money to satisfy Yerardi’s longstanding forfeiture order and fine. From 2010 to July 2016, Feghi and co-conspirators repeatedly lied to the courts in Liechtenstein and the United States in attempts to hide the true ownership and source of the funds.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Michael L. Tabak of Ortiz’s Organized Crime and Gang Unit.