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9 November 2016
Erie Sisters Charged in Fraud SchemeRead the Press Release
ERIE, Pa. - Two residents of Erie, Pennsylvania, have been indicted by a federal grand jury in Erie on charges of conspiracy to defraud the government, theft of government property, aggravated identity theft and false claims against the United States, United States Attorney David J. Hickton announced today.
The twenty-nine-count indictment named Chamere Henderson, 35 and Chamell Henderson, 35, as defendants.
According to the indictment presented to the court, between February 2012 and March 2013, Chamere Henderson filed three fraudulent tax returns by stealing the identities of individuals. The refunds from the tax returns were wired into a bank account to which her sister, Chamell Henderson, had access. Chamell Henderson then removed the refunds from the account in cash. The indictment also alleges that Chamere Henderson filed numerous other false federal tax returns for taxpayers who were unaware that Chamere Henderson had included false information on their returns.
The law provides for a maximum total sentence of 96 years in prison, a fine of $7,250,000, or both for Chamere Henderson and a maximum total sentence of 20 years in prison, a fine of $500,000, or both for Chamell Henderson. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
East Hartford Man Sentenced to 7 Years in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORLANDO TIRADO, 30, of East Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration Hartford Task Force investigation into a drug trafficking organization that distributed large quantities of heroin in the Hartford area.
On June 4, 2014, investigators conducted a motor vehicle stop of TIRADO and, during a consent search of his car, discovered $5200 in cash. On November 27, 2014, TIRADO attempted to flee from Hartford Police officers who were investigating a domestic assault. During the foot chase, investigators observed TIRADO throwing six brick-sized packages, which were seized and found to contain a total of 3,003 bags of heroin. TIRADO was arrested at that time and charged with state narcotics offenses.
In May 2015, while he was on pre-trial release in his state case, court-authorized wiretaps revealed that TIRADO and several associates were working together to sell narcotics. On May 13, 2015, one of TIRADO’s associates traveled from Hartford to New York City where law enforcement officers conducted a motor vehicle stop of the car and seized approximately $125,000 in cash.
TIRADO has been detained since his arrest on June 4, 2015. On June 2, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
TIRADO’s criminal history includes felony convictions for narcotics trafficking offenses and assault and battery on a police officer.
Six other individuals were charged as a result of this investigation.
This matter has been investigated by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments, with the assistance of the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Director of All About Giving, Inc. Charged with Conspiracy and FraudRead the Press Release
LaShane Hayes, 43, of La Vergne, Tennessee, was charged in a criminal information today with conspiracy and wire fraud in relation to her role as the director of All About Giving, Inc., a sponsor agency in the United States Department of Agriculture’s Child and Adult Care Feeding Program (CACFP), announced David Rivera, United States Attorney for the Middle District of Tennessee.
The CACFP was created to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations were responsible for, among other things, enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to these child care providers.
The charging document alleges that Hayes, as a program sponsor, and her co-conspirators defrauded the program in a number of ways, including by overstating the number of All About Giving providers who actually furnished meals to children and by overstating the number of children who received meals from All About Giving providers in order to receive more program funds from the Tennessee Department of Human Services. The total amount of CACFP funds provided to All About Giving between February 2015 and July 2016 by the Tennessee Department of Human Services was $2,198,647.93.
If convicted, Hayes faces up to 20 years in prison and a fine of up to $250,000. She also faces forfeiture of the proceeds of her offenses.
Dental Office Manager Convicted of Fraudulently Obtaining over 100,000 Hydrocodone PillsRead the Press Release
NEWPORT NEWS, Va. – Donna Byrd Talley, 54, of Yorktown, was convicted yesterday by a federal jury on charges of acquiring or obtaining a controlled substance, possession with intent to distribute a controlled substance, and mail fraud.
According to court records and evidence presented at trial, Talley worked as a long-time office manager for Dr. Steven Becker, a Hampton dentist. Talley had control over Dr. Becker’s bank accounts and was responsible for all office administration. From 2002 through 2011, Talley used Dr. Becker’s DEA license to fraudulently obtain over 100,000 pills of hydrocodone from two dental supply companies. Talley distributed the hydrocodone to her husband and others and used it to feed her own addiction. In 2011, Talley made various cash deposits to bank accounts she owned or controlled in amounts over $7,000. On Aug. 18, 2011, investigators with the Virginia Department of Health Professions and the Virginia State Police interviewed Talley, who admitted to ordering hydrocodone. Later that same day, an investigator recovered a pill bottle containing hydrocodone from Talley’s residence, matching shipments of hydrocodone ordered by Talley and received by Dr. Becker’s office two days earlier.
Talley faces a maximum penalty of 10 years in prison when sentenced on Feb. 22, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of Talley will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Ruth A. Carter, Diversion Program Manager (DEA), made the announcement after the verdict was accepted by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Brian J. Samuels and Megan M. Cowles are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-21.
Columbia, Kingdom City Men Sentenced for Drug-trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two co-defendants have been sentenced in federal court for their roles in a conspiracy to distribute crack cocaine and powder cocaine in Boone County, Mo.
Travis Dewayne Dennis, 33, of Columbia, Mo., and Ronnie Lee Gillette, 55, of Kingdom City, Mo., and were sentenced in separate appearances before U.S. District Judge Stephen R. Bough on Tuesday, Nov. 8, 2016. Dennis was sentenced to five years in federal prison without parole. Gillette was sentenced to three years and four months in federal prison without parole.
On April 8, 2016, Dennis pleaded guilty to his role in the conspiracy to distribute crack cocaine. According to court documents, Dennis sold a total of 63.94 grams of crack cocaine to a confidential informant on five separate occasions. Dennis distributed crack cocaine that was supplied to him by co-defendant Malcolm Desean Redmon, also known as “Harp,” 33, of Columbia.
Redmon was sentenced on Sept. 29, 2016, to 24 years and four months in federal prison without parole. Redmon pleaded guilty to participating in a conspiracy to distribute five kilograms or more of powder cocaine and crack cocaine in Boone County from November 2011 to August 2014.
According to court documents, Redmon – the leader of the criminal conspiracy – and those working for him received a total of four kilograms of powder cocaine over the course of the conspiracy. During the investigation, law enforcement purchased 216.78 grams of crack cocaine and 46.04 grams of powder cocaine from members of the conspiracy. Law enforcement also seized 55.5 grams of crack cocaine and 93.63 grams of powder cocaine. The interception of telephone calls and statements made by co-defendants reflected a substantial number of additional transactions between members of the conspiracy. Court documents also cite Redmon’s involvement in numerous shooting incidents and his history of criminal activity, including violent crimes and drug use.
On April 22, 2016, Gillette pleaded guilty to participating in a conspiracy to distribute cocaine and to using a telephone to facilitate a drug-trafficking crime. According to court documents, Gillette was a trusted lieutenant who worked for co-defendant Kenneth Scott, Sr., 48, of Fulton, Mo.
Scott, who was sentenced on Sept. 29, 2016, to 10 years in federal prison without parole, pleaded guilty to his role in the drug-trafficking conspiracy, to being a felon in possession of firearms and to money laundering. Scott admitted that he was a major distributor of cocaine to various persons in the mid-Missouri area, including Columbia and Fulton. Scott was responsible for distributing more than six kilograms of cocaine, some of which had been converted into many pounds of crack cocaine.
Gillette and Dennis are among 14 defendants in this case who have been sentenced; 12 defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Drug Enforcement Administration and the Boone County, Mo., Prosecuting Attorney’s Office.
Clear Brook Man Pleads Guilty to False Labeling of Animal Blood ExportsRead the Press Release
ALEXANDRIA, Va. – Phillip Lloyd, 57, of Clear Brook, pleaded guilty yesterday to making and submitting false labels for animal blood that was transported internationally.
According to the statement of facts filed with the plea agreement, Lloyd was the owner and manager of Biochemed Services, Inc., a broker of human blood and animal blood products based in Winchester. Biochemed would receive orders from biomedical research companies for specific quantities of human blood, animal blood and products, and would package and export products from the United States. To evade enforcement by the U.S. Fish and Wildlife Service, employees of Biochemed shipped animal blood products with documents that falsely described the contents of the packages as “human” blood products. The actual labels accurately describing the blood shipments as “animal” blood products would be sent in separate FedEx envelopes that would not be inspected by Fish and Wildlife Service or other law enforcement officials.
According to the statement of facts, from in or about January 2014 to in or about May 2016, Biochemed packaged and shipped internationally, products including blood of squirrel monkeys and other primates protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). CITES is an international agreement that provides protection to fish, wildlife and plant populations that are or could be harmed as a result of trade and restricts the international trade and transport of species that are threatened with extinction.
According to the statement of facts, on Jan. 23, 2014, in response to a request for squirrel monkey blood for shipment to a company in Canada known as “Tropicus Research,” Lloyd emailed the customer to confirm shipment with human on the labels, stating the squirrel monkey labels should arrive at the same time in a FedEx letter package. Lloyd then engaged in a telephone conversation about the shipment of monkey blood with an individual claiming to be an employee of Tropicus Research, but who was an employee of the U.S. Fish and Wildlife Service acting in an undercover capacity. On multiple occasions in February 2014, Lloyd caused FedEx to pick up and deliver to Tropicus Research packages of squirrel monkey blood, falsely labeled as “Human Blood,” accompanied by a commercial invoice indicating that the shipment contained human blood.
Lloyd faces a maximum penalty of five years in prison when sentenced on Jan. 27, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. District Judge District Judge Gerald Bruce Lee. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-226.
Bushwick Drug Dealer Sentenced to Life in Prison for Orchestrating Two Contract MurdersRead the Press Release
Earlier today, Brooklyn drug trafficker Shaun Taylor, also known as “S-Dot,” was sentenced to ten life terms plus 50 years in prison. Following a three-week jury trial, Taylor was convicted on September 8, 2014, of all charges including murder for hire, drug-related murder, narcotics trafficking conspiracy, and firearms offenses. The charges arose from the defendant’s participation in a decade-long narcotics trafficking operation in the Bushwick neighborhood of Brooklyn, which was responsible for distributing kilogram quantities of heroin, cocaine, and crack cocaine in Brooklyn, Queens, and Long Island. Taylor ordered two murders during the conspiracy, one of which resulted in the death of an unintended victim, whom Taylor’s hitman shot in a case of mistaken identity.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and James P. O’Neill, Commissioner, New York City Police Department.
The evidence at trial established that Taylor frequently recruited young men to settle scores on his behalf. When another drug dealer stole the cellular telephone Taylor used to conduct his narcotics business, he recruited Timothy Pinkney to murder him. On April 29, 2005, Taylor offered Pinkney $1,500 to carry out the hit, drove Pinkney to the scene, and mistakenly directed him to shoot Terrance Barnett, who was standing in front of a school in Bushwick. Barnett just happened to be visiting Brooklyn for the weekend and had no prior relationship with Taylor or Pinkney. Pinkney shot Barnett in the head and torso at close range, killing him. Pinkney subsequently pled guilty to his role in the murder and is currently serving a 23-year prison sentence.
Two years later, Taylor and a co-conspirator stole approximately five kilograms of cocaine that was shipped to Joseph Vargas. Fearing Vargas might retaliate, Taylor hired two young men to kill him. On June 20, 2007, Taylor drove with the men to point out Vargas, who was at a car wash on DeKalb Avenue in Bushwick. Taylor provided the murder weapon and left the scene. One of the men entered the carwash and shot Vargas and his brother. Vargas’s brother survived, but Vargas was killed.
“The defendant was responsible for two murders – one, another drug dealer, the other, an innocent bystander who tragically was in the wrong place at the wrong time – once again demonstrating the inextricable link between drug trafficking and wanton violence. Taylor will now spend the rest of his life behind bars for his depraved acts,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation and the New York City Police Department for their outstanding work in this case.
“Shaun Taylor has shown a disregard for human life by paying others to do his dirty work for him, all so he could maintain total control over his drug trade in Brooklyn. In his desire to seek revenge, an innocent man Terrance Barnett died for no reason. The FBI and our law enforcement partners will continue to work every day to stop the corrosive effects the drug trade has on our communities,” stated FBI Assistant Director-in-Charge Sweeney.
The sentence was imposed by Chief United States District Judge Dora L. Irizarry.
The government’s case is being handled by Assistant United States Attorneys Matthew Amatruda, David Pitluck, and Tali Farhadian.
The Defendant:
SHAUN TAYLOR
Age: 32
Brooklyn, NYE.D.N.Y. Docket No. 10-CR-268
Buffalo Man Sentenced on Wire Fraud and Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Salvatore Letizia, 40, of Buffalo, NY, who was convicted of wire fraud and tax evasion before U.S. District Judge Richard J. Arcara, was sentenced to 41 months in prison.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that from 2005 until 2009, Letizia defrauded four individuals out of more than $360,000. The defendant made false representations to entice the victims to invest in fictional business ventures. Letizia took the invested funds and credit lines and used them for his personal benefit. In addition, the defendant failed to file any tax returns for the tax years 2005 through 2009 declaring the income that resulted from the fraudulent activity.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen Niagara, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Baltimore Man Sentenced to 10 Years in Federal Prison for a Series of Commercial RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Taft Redd, age 45, of Baltimore, Maryland, today to 10 years in federal prison, followed by 3 years of supervised release, for six commercial robberies committed between July 22 and August 18, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, in each robbery Redd entered the store, approached the register, displayed what appeared to be a black handgun, and demanded money. Redd stole cash from each store and occasionally took merchandise as well. Specifically, on July 22 and August 18, 2015 Redd robbed the same convenience store located in the 5200 block of Harford Road in Baltimore; on July 22 Redd robbed a shoe store located in the 3200 block of Greenmount Avenue in Baltimore; July 29 and August 12, 2015 Redd robbed the same shoe store located in the 3900 block of Erdman Avenue in Baltimore; and on August 16, 2015 Redd robbed a fast food restaurant in the 2000 block of N. Broadway in Baltimore.
When Redd was arrested on August 19, 2015, he was in possession of a black BB gun that was the same weapon seen by witnesses in the six robberies.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.
Asheville Area Cattle Farm and Owner Plead Guilty to Clean Water Act Violation for Discharging Cow Feces into French Broad RiverRead the Press Release
ASHEVILLE, N.C. – Crowell Farms, Inc. located in Asheville, and its owner pleaded guilty in federal court today to criminal violations of the Clean Water Act, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Andy Castro of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office, and Judy Billings, Special Agent in Charge of the State Bureau of Investigations’ Diversion and Environmental Crimes Unit (SBI/ DECU).
A criminal bill of information filed in U.S. District Court on October 4, 2016, charged Crowell Farms, Inc. (Crowell Farms) and Michael Alexander Crowell, 65, of Asheville, with one count of violation of the Clean Water Act, in connection with the discharging of cow feces into the French Broad River. According to filed documents and statements made in court, Crowell Farms is in the beef cattle farming business maintaining more than 150 cows and manages many acres of agricultural fields. In the annual course of its operations, Crowell Farms disposes of thousands of pounds of solid and liquid animal waste, which are considered pollutants under the Clean Water Act. Michael Crowell is the Operator Responsible-in-Charge (ORC) for the permitted waste disposal system at Crowell Farms. As the ORC, Michael Crowell is responsible for ensuring that animal waste is properly disposed into the farm’s waste management system, namely in solids waste lagoons.
Michael Crowell admitted in court today that from in or about November 2015 through at least December 2015, he had installed bypasses at the farm’s waste lagoons that were discharging liquid animal waste into a tributary of the French Broad River. Michael Crowell also admitted that he had trouble managing Crowell Farms’ waste management system and that he had installed the bypasses himself. Filed documents show that Michael Crowell previously told inspectors he was aware that he had done “the wrong thing.” Crowell Farms does not have a permit to discharge liquid waste to waters and it is only permitted to discharge it to an on-site land application system. State inspectors further discovered that Crowell Farms does not own the proper land application equipment.
In addition to pleading guilty to violating the Clean Water Act, Crowell Farms has also agreed: 1) to pay a fine of $40,000 (reduced by the $27,000 fine paid to the State of North Carolina), which will be directed to entities that safeguard the French Broad River and other environmental concerns in the Southeast; 2) to serve a probationary term of three years during which regulators and investigators can inspect their records and facilities without notice and without a warrant; and 3) to design and implement a compliance plan subject to approval by the EPA. At sentencing, Michael Crowell faces a maximum prison term of three years and an additional fine of $5,000 to $50,000. A sentencing date has not been set yet.
The Clean Water Act is a federal law enacted to prevent, reduce and eliminate pollution, and to restore and maintain the chemical, physical, and biological quality of the Nation’s waters for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. The French Broad River supplies drinking water to more than one million people and is frequently used for recreational water activities, such as swimming and kayaking. It is also protected because it supports secondary recreation, including fishing, fish consumption, and agriculture.
The investigation was led by the EPA’s Criminal Investigation Division and SBI’s DECU. Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Alexandria woman pleads guilty to illegally using clinic credit cards to steal $119,000Read the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that an Alexandria woman pleaded guilty Monday to using an Alexandria clinic’s credit cards to make unauthorized purchases of $119,000.
Alaina Stansell, 35, of Alexandria, pleaded guilty before U.S. District Judge Dee D. Drell to one count of wire fraud. According to the guilty plea, Stansell worked in a urology clinic in Alexandria where she had access to the office’s credit cards. She used the credit cards from December 1, 2013 to March 30, 2015 to make unauthorized purchases and expenditures totaling approximately $119,000.
Stansell faces up to 30 years in prison, five years of supervised release, restitution and a $250,000 fine. A sentencing date of February 3, 2017 was set.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Albuquerque Man Sentenced to 12 Years for Discharging Firearm During Attempted Robbery of RestaurantRead the Press Release
ALBUQUERQUE – Peter Pagan, 23, of Albuquerque, N.M., was sentenced yesterday in federal court to 147 months in prison for violating the Hobbs Act by attempting to rob an Albuquerque-area fast food restaurant and discharging a firearm during the attempted robbery. Pagan will be on supervised release for three years following his prison sentence.
Pagan was charged by criminal complaint in Oct. 2015, with discharging a firearm while attempting to rob the Blake’s Lotaburger located at 6215 San Antonio Dr. NE in Albuquerque on Jan. 27, 2015. According to the complaint, Pagan entered the restaurant, pointed a firearm at employees, and demanded money. When the employees were unable to open the cash register, Pagan shot a round of ammunition into the ceiling before running out of the restaurant. When a customer attempted to chase him down, Pagan fired nine rounds into the customer’s vehicle.
Pagan was indicted on Nov. 17, 2015, and was charged with violating the Hobbs Act and discharging a firearm during a crime of violence. According to the indictment, Pagan committed the crimes on Jan. 27, 2015, in Bernalillo County, N.M.
On Aug. 8, 2016, Pagan pled guilty to the indictment. In entering the guilty plea, Pagan admitted that on Jan. 27, 2015, he entered a Blake’s Lotaburger armed with a loaded handgun and demanded money. Pagan further admitted firing a round into the ceiling of the restaurant when employees were unable to open the cash register.
State charges against Pagan were dismissed in favor of federal prosecution.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul H. Spiers and Rumaldo R. Armijo prosecuted the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Alabama Man Sentenced to Prison for Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
A Montgomery County, Alabama resident was sentenced to 28 months in prison for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Lambert Derran Smothers aka Main or Mane, 25, admitted that he participated in a conspiracy which used stolen personal identifying information including names, dates of birth and social security numbers to file more than 100 fraudulent income tax returns relating to tax years 2010, 2011 and 2012. On the returns, Smothers and his co-conspirators fraudulently claimed at least $157,292 in income tax refunds.
“Stolen identity refund crimes cause untold damage and hardship to the individual victims and drain the U.S. Treasury,” said Principal Deputy Assistant Attorney General Ciraolo. “Individuals who engage in this criminal conduct will be prosecuted, and will face prison terms and monetary penalties.”
“Protecting tax payer dollars is a priority for my office,” said U.S. Attorney Beck. “Identity theft and tax fraud affects too many people in our communities and we must use all available resources under the law to destroy it. I want to thank the IRS Criminal Investigations and the U.S. Secret Service for identifying and shutting down this criminal scheme.”
“Stealing from the government is not a way to earn a living,” said Special Agent in Charge Veronica Hyman-Pillot for the Internal Revenue Service-Criminal Investigation (IRS-CI). “Lambert Smothers and his associates victimized many taxpayers in their attempt to make quick money. Today’s sentencing should emphasize the message that IRS-CI will continue to put forth every effort to identify, investigate, and recommend prosecution on individuals who commit refund fraud.”
Smothers pleaded guilty in July to conspiring to defraud the United States, theft of government money and aggravated identity theft. In addition to the term of prison imposed, Smothers was also ordered to serve three years of supervised release and to pay $81,792.41 in restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-CI and the U.S. Secret Service, who conducted the investigation, and Trial Attorneys Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
A Home Town HeroRead the Press Release
SALT LAKE CITY-- In September, I had the honor of attending a West Valley City Council meeting to recognize Officer Cody Brotherson and his colleagues for their outstanding police work in swiftly and safely capturing an armed and dangerous gang member. When I learned Sunday of Officer Brotherson’s tragic death, I remembered shaking his hand and thinking that this dedicated young man had all the qualities to be a hero in his home town of West Valley City. And he was.
In the early hours of Sunday morning, Officer Brotherson was once again protecting our community by laying tire spikes to stop a stolen car when he was struck and killed by the fleeing suspects. There is no greater sacrifice a person can make than to give his own life to keep our community safe.
While the rest of us are sleeping, men and women in law enforcement are on the streets risking their lives. We ask our law enforcement officers to work long hours with little pay, to subject themselves to intense public scrutiny, and to put themselves in harm’s way. We ask officers and their families to sacrifice their own safety and security for our wellbeing. It is too much to ask of any citizen, yet these brave men and women do it every single day.
Law enforcement professionals like Officer Brotherson are not in it for the accolades, and they rarely get them. I consider it a great honor to have had the opportunity to meet Officer Brotherson and to present him with an award for his service to our community. So young and so heroic, Officer Brotherson made a huge impact for the good of our community before his premature departure. My thoughts and prayers are with Officer Brotherson’s family and friends, and with my dear colleagues at the West Valley City Police Department, during this very difficult time.
8 November 2016
“Coyote” se Declara Culpable de Conspiración para Estafar a Inmigrantes que Buscaban Ingresar a EE.UU. y a Sus Parientes en Estados UnidosRead the Press Release
FRESNO, California. —Un hombre que anteriormente se hacía pasar por traficante de inmigrantes (conocido también como “coyote”) se declaró culpable en el día de hoy de perpetrar un complot que buscaba privar de la libertad a ciudadanos mexicanos que buscaban ingresar a EE.UU. sin contar con la documentación necesaria, y retenerlos a fin de obligar a sus parientes que ya eran residentes en EE.UU. a que pagaran dinero a cambio de su liberación, tal como lo anunciara el Fiscal (encargado) de Estados Unidos, Phillip A. Talbert.
Martin Carranza Sánchez, de 45 años de edad y oriundo de México, se declaró culpable en el día de hoy de conspirar para cometer estafa por vía telefónica. De acuerdo con su convenio declaratorio, entre enero de 2010 y el 21 de enero de 2016, Carranza Sánchez se hacía pasar por traficante de inmigrantes indocumentados y prometía de manera falsa que entregaría a los inmigrantes en Estados Unidos luego de que le pagaran una suma de dinero. Carranza Sánchez les ordenaba a los residentes en EE.UU. que enviaran el dinero mediante transferencia electrónica a varias cuentas bancarias ubicadas en el Distrito Este de California, dineros que él y sus cómplices recogían en última instancia.
Según documentos radicados en el tribunal, Carranza Sánchez les indicaba a los inmigrantes que se dirigieran a cierto lugar en México en donde sus cómplices los agarraban y detenían en contra de su voluntad, con el fin de lograr que se les pagara. Los cómplices llamaban por teléfono a los residentes en EE.UU., informándoles que los inmigrantes serían entregados pronto en Estados Unidos, o que ya habían logrado cruzar la frontera con éxito, indicándoles a los residentes en EE.UU. que efectuaran la transferencia electrónica del pago. En múltiples ocasiones, Carranza Sánchez y sus cómplices amenazaron con causarles daño físico a los inmigrantes a menos que los residentes en EE.UU. pagaran de forma inmediata.
De acuerdo con el convenio declaratorio, Carranza Sánchez nunca tuvo la intención de facilitarles a estos inmigrantes su ingreso a Estados Unidos sin ser detectados. En muchos casos, una vez que los parientes hubiesen transferido la suma requerida, Carranza Sánchez les indicaba a los inmigrantes que cruzaran la frontera y la Patrulla Fronteriza de Estados Unidos los aprehendía de inmediato.
La investigación dio cuenta de que Carranza Sánchez y sus cómplices estafaron a los residentes de EE.UU. en cuantía de unos $95.000 dólares como resultado de su complot. El convenio declaratorio le obliga a restituirles a las víctimas de su delito esa misma suma de dinero.
Este caso es el resultado de una investigación llevada a cabo por la sección de investigaciones del Departamento de Seguridad Interna (HSI, por sus siglas en inglés) adscrita al Departamento de Inmigración y Aduanas de EE.UU. (ICE, por sus siglas en inglés). La Fiscal Auxiliar de Estados Unidos Angela L. Scott es quien adelanta el caso.
Se ha programado la imposición de la condena a Carranza Sánchez para el 6 de febrero de 2017 a las 10:00 a.m. por parte del Juez de Distrito de EE.UU. Dale A. Drozd. Carranza Sánchez se enfrenta a una pena máxima por ley de 20 años de prisión. Sin embargo, la condena final será determinada a juicio del tribunal luego de tomar en cuenta algunos de los factores estatutarios, así como las Pautas Condenatorias Federales, las cuales toman en cuenta varios.
Two Florida Men Sentenced to over Ten Years in Prison for Multi-State for Biofuel Fraud SchemeRead the Press Release
Yesterday, Thomas Davanzo, of Estero, Florida, and Robert Fedyna, of Naples, Florida, were sentenced to 121 months and 135 months in prison, respectively, for their participation in a multi-state scheme to defraud biofuel buyers and U.S. taxpayers by fraudulently selling biofuelcredits and fraudulently claiming tax credits, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida. Both defendants were also ordered to forfeit ill-gotten gains from the conspiracy of over $46 million and other items to the government, including gold coins, jewelry and Rolex watches, thoroughbred horses, vehicles and properties.
Davanzo and Fedyna operated several shell companies that were used to facilitate the scheme. As part of the scheme, Davanzo and Fedyna operated entities that purported to purchase renewable fuel, on which credits had been claimed and which was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again. This cycle was repeated multiple times.
“In their pursuit of personal gain, the defendants perpetrated a multi-state conspiracy that defrauded and undermined a federal program intended to further the energy independence of our nation,” said Assistant Attorney General Cruden. “Today’s sentence is a just punishment for these serious crimes against the American people.”
“This case shows that EPA is committed to eliminating fraud in the renewable fuels market and ensuring a level playing field for businesses that play by the rules,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The sentences handed down show the serious nature of these crimes and that EPA will continue to hold criminals accountable.”
In addition, both Davanzo and Fedyna laundered the proceeds of the scheme through various shell entities. Davanzo and Fedyna established bank accounts in the names of shell entities. Funds were cycled through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
Davanzo and Fedyna also directed and participated in the generation of false paperwork designed to create the façade that the renewable identification number (or RIN, a serial number used to track renewable fuel credits) created and claimed by co-conspirators were legitimate. The paperwork included false invoices from Gen-X or SRC to shell entities, which purported to show sales of renewable fuel, false invoices from shell entities to Gen-X and SRC, which purported to show the purchase of feedstock and false bills of lading, which purported to show the transportation of fuel and feedstock by tanker truck.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency -Criminal Investigation Division, and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Megan Kistler and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Two Florida Men Sentenced to over Ten Years in Prison for Multi-State Biodiesel Fraud SchemeRead the Press Release
Fort Myers, FL — Yesterday, Thomas Davanzo, of Estero, Florida, and Robert Fedyna, of Naples, Florida, were sentenced to 121 months and 135 months in prison, respectively, for their participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida. Both defendants were also ordered to forfeit ill-gotten gains from the conspiracy of over $46 million and other items to the government, including gold coins, jewelry and Rolex watches, thoroughbred horses, vehicles and properties.
Davanzo and Fedyna operated several shell companies that were used to facilitate the scheme. As part of the scheme, Davanzo and Fedyna operated entities that purported to purchase renewable fuel, on which credits had been claimed and which was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia. They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again. This cycle was repeated multiple times.
“In their pursuit of personal gain, the defendants perpetrated a multi-state conspiracy that defrauded and undermined a federal program intended to further the energy independence of our nation,” said Assistant Attorney General Cruden. “Today’s sentence is a just punishment for these serious crimes against the American people.”
“We are proud to work with our federal law enforcement partners to identify and investigate individuals that manipulate and utilize federal government programs to line their pockets by fraud,” said Kim Lappin, IRS Criminal Investigation, Special Agent in Charge of the Tampa Field Office. “Today’s sentencings mark the successful result of an investigation that uncovered a complicated fraudulent scheme that generated tens of millions of dollars through false biodiesel tax credits. IRS-Criminal Investigation will continue to work with the United States Attorney’s Office to prosecute all those involved.”
In addition, both Davanzo and Fedyna laundered the proceeds of the scheme through various shell entities. Davanzo and Fedyna established bank accounts in the names of shell entities. Funds were cycled through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.
Davanzo and Fedyna also directed and participated in the generation of false paperwork designed to create the façade that the renewable identification number (or RIN, a serial number used to track biodiesel credits) created and claimed by co-conspirators were legitimate. The paperwork included false invoices from Gen-X or SRC to shell entities, which purported to show sales of renewable fuel, false invoices from shell entities to Gen-X and SRC, which purported to show the purchase of feedstock and false bills of lading, which purported to show the transportation of fuel and feedstock by tanker truck.
From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities. The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties. In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.
This case was investigated by the U.S. Secret Service, the Environmental Protection Agency -Criminal Investigation Division, and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Megan Kistler and Trial Attorney Adam Cullman of the Environment and Natural Resources Division of the Department of Justice.
Three Dubuque Men Sentenced to Federal Prison for Illegally Possessing GunsRead the Press Release
Camron Andrew Pete, Jr., 24, received a statutory maximum ten-year prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance. At sentencing, Pete admitted he fired shots at an occupied residence in Dubuque in December 2015. Chief Judge Linda R. Reade of the United States District Court found Pete fired the shots, which penetrated the residence, with a high-capacity magazine. Pete also admitted he obstructed justice by attempting to tamper with a grand jury witness.
Reginald Darnell Shaw, Jr., 25, received a 46-month prison term after his April 28, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance and following a misdemeanor conviction for a crime of domestic violence. At sentencing, Shaw admitted he came to Dubuque from Wisconsin to protect Pete and accompanied Pete to the Dubuque shooting with a loaded firearm.
Landon Nathanson-Love, 24, received a 57-month prison term after his April 25, 2016 guilty plea to possessing a firearm while an unlawful user of a controlled substance. At sentencing, Nathanson-Love admitted to selling Pete and Shaw the firearms that were later used in the shooting. Nathanson-Love had purchased the firearms by means of a fraudulently procured gun permit. Judge Reade found Nathanson-Love obstructed justice by working with a family member to delete a social media account and tampering with a grand jury witness. Judge Reade commended the courage of the witnesses in spite of the attempts to obstruct justice in the cases.
A special assessment of $100 was imposed in each case. All three defendants must also serve a three-year term of supervised release after their respective prison terms. There is no parole in the federal system. All three defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The cases were prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1011-LRR.
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Suffield Man Pleads Guilty to Federal Charges Stemming from Role in Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTIAN MEISSENN, also known as “Christian Nigohossian,” 44, of Suffield, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiracy and tax evasion charges stemming from his involvement in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2009 and July 2016, MEISSENN and others conspired to defraud investors through a stock “pump and dump” scheme. MEISSENN and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, most of which were essentially shell companies controlled by MEISSENN’s associates, included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Electric Motors Corporation (stock symbol “EMCO”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); and Fox Petroleum, Inc. (stock symbol “FXPT”). The conspirators then sold positions in those securities that were held by conspirators and their designees at the falsely inflated prices, thereby enriching the members of the conspiracy.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
Between 2011 and 2015, MEISSENN earned approximately $4.4 million through this scheme and diverted a large portion of the profits into the trust account of an attorney rather than a bank account in his own name. He then directed the attorney to withdraw cash for MEISSENN’s personal use, and to wire funds and issue checks for the benefit of MEISSENN and his family members. MEISSENN failed to report this income to the Internal Revenue Service during the 2011 through 2015 tax years, and failed to pay more than $1.5 million in federal income taxes.
MEISSENN pleaded guilty to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.
Judge Meyer scheduled sentencing for January 31, 2017. At sentencing, MEISSENN will be ordered to pay restitution to his victims, as well as back taxes, interest and penalties to the Internal Revenue Service.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. The matter is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Stromsburg Man Sentenced for Child EnticementRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 7, 2016, William H. Rich, 47, of Stromsburg, Nebraska, was sentenced for the crime of Using a Facility and Means of Interstate Commerce to Attempt to Persuade, Induce, and Entice a Minor to Engage in Sexual Activity. The Honorable Laurie Smith Camp, Chief United States District Court Judge, sentenced Rich to a 168-month term of imprisonment. There is no parole in the federal system. After his release from prison, Rich will begin a term of supervised release of 10 years.
In December, 2015, law enforcement, acting in an undercover capacity, received text communications from Rich in which he solicited a minor girl for sexual activity. Rich was subsequently arrested after traveling from Stromsburg, Nebraska to a hotel in La Vista, Nebraska, to drop off a phone for whom he believed to be the minor girl.
This case was investigated by the Federal Bureau of Investigation and La Vista Police Department.
Stetson Man Sentenced to Almost 6 Years for Cocaine and Oxycodone Trafficking ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John Williams, 40, of Stetson was sentenced today in U.S. District Court by Judge Jon D. Levy to 70 months in prison and three years of supervised release for conspiring to distribute and possess with the intent to distribute five or more kilograms of cocaine and oxycodone. He pled guilty on January 25, 2016.
According to court records, between about 2012 and November 2014, the defendant conspired with nine other people to distribute oxycodone and cocaine in the Dexter, Maine area. The drugs were acquired in Rhode Island and were distributed from his Stetson residence.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance from the Dexter Police Department and the Penobscot and Piscataquis County Sheriff’s Offices.
St. Thomas Man Pleads Guilty to Trafficking in FirearmsRead the Press Release
St. Thomas, USVI – On Tuesday, November 8, 2016, Mohammed Jubran, 27, of St. Thomas, Virgin Islands, pleaded guilty in District Court to trafficking in firearms, United States Attorney Ronald W. Sharpe announced. Sentencing is set for March 9, 2017.
According to the plea agreement, on October 15, 2015, Jubran sold an AK-47 to an individual. After the sale, Jubran offered to sell more firearms to the individual in the future. Jubran is not a federally licensed firearms dealer and is not licensed under Virgin Islands law to possess any firearms.
This case was a joint investigation by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Sigrid Tejo-Sprotte.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Harold Lee Parsons III, 40, entered his guilty plea to possession with intent to distribute methamphetamine.
On February 5, 2016, law enforcement executed a search warrant at Parsons’ residence on 2nd Avenue in St. Albans. Parsons was present in his residence during the search and he admitted that he opened a safe for law enforcement. Inside the safe were 12 baggies containing approximately 330 grams of methamphetamine. Parsons further admitted that he received the drugs from Joseph Cooper, a codefendant, and that he intended to distribute the methamphetamine.
Parsons faces up to 20 years in federal prison when he is sentenced on February 7, 2017.
Cooper previously pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when he is sentenced on January 19, 2017. Benjamin Childers, another individual implicated in this investigation, previously pleaded guilty to conspiracy to distribute methamphetamine and faces at least 10 years and up to life in prison when he is sentenced on January 4, 2017. Also as a result of this investigation, three other codefendants pleaded guilty last week to conspiracy to distribute methamphetamine. Morgan Light, Mark Cobb, and Shayne Shamblen each face up to 20 years in prison when they are sentenced on February 2, 2017.
The investigation of these cases was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations. Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Springfield Psychiatrist Ordered to Pay $908,000 in Civil SettlementRead the Press Release
SPRINGFIELD, Ill. – U.S. District Judge Sue E. Myerscough has entered judgment in favor of the government and against a Springfield psychiatrist, Duttala Obul Reddy, for $908,000, to settle allegations of false billing, as announced by U.S. Attorney Jim Lewis.
According to a complaint filed in September 2015, by the government, from January 2008 through February 2013, Reddy allegedly submitted bills for evaluation and management services provided at long-term care facilities that either had not been provided or had not been provided to the extent claimed. These services were provided to residents of central Illinois nursing homes, including Liberty Village, Pittsfield; Prairie Village, Rantoul; Mason City Nursing Home; Heritage Manor, Gillespie; Beverly Farm, Godfrey; and, North Church Rehabilitation, Jacksonville.
Under the terms of the settlement agreement, Reddy denies the allegations that he submitted or caused submission of false claims for payment under Medicare and Medicaid for medical services.
In addition to payment of $908,000, Reddy has agreed to his exclusion from participation in Medicare, Medicaid and all other federal health care programs for a period of 10 years. Following the 10-year period, Reddy may submit a written request for reinstatement to the Office of Inspector General for the U.S. Department of Health and Human Services. Reddy further agrees that the termination of his eligibility to participate in the Illinois Medical Assistance Program, which became effective Dec. 30, 2014, shall be permanent.
Assistant U.S. Attorneys Gregory M. Gilmore and Lillian N. Stewart of the Central District of Illinois represented the government. The U.S. Department of Health and Human Services, Office of Inspector General, and the Illinois State Police, Medicaid Fraud Control Unit, conducted the investigation.
Seven-Year Sentence for Columbus Man Who Brandished Firearm During Whitehall Sandwich Shop RobberyRead the Press Release
COLUMBUS, Ohio – Timothy G. Rogan, 25, of Columbus, was sentenced in U.S. District Court today to seven years in prison followed by five years of supervised release for robbing a sandwich shop with a rifle in Whitehall, Ohio on November 12, 2015. Store employees grabbed the rifle during the robbery and took it away from Rogan.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Whitehall Police Chief Mike Crispin announced the sentence handed down by Chief U.S. District Judge Edmund A. Sargus Jr.
Rogan pleaded guilty on June 14, 2016 to one count of robbery affecting interstate commerce and one count of brandishing a firearm during a crime of violence.
An ATF agent testified during the plea hearing that Rogan entered the Subway restaurant brandishing a rifle and demanded money. The initial victim grabbed the weapon and began struggling with the suspect. During the struggle a second employee hit the suspect with a tray and took the weapon from Rogan.
Whitehall detectives took fingerprints and DNA swabs from the rifle and processed them through a database maintained by the Ohio Bureau of Criminal Investigation, which matched the DNA to Rogan. Detectives arrested Rogan on January 5, 2016. He has been in custody since his arrest.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Timothy D. Prichard, who represented the United States in this case.
Scranton Man Guilty of Sex Trafficking of A MinorRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 28-year-old Scranton man pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton, to sex trafficking of a minor.
According to United States Attorney Bruce D. Brandler, the defendant, Mark Matis, admitted to assisting others in transporting and maintaining a minor for the purpose of having the minor engage in prostitution during February through May 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; providing drugs to the minor; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Matis was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons were charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Jimmy Cantelmo also pleaded guilty and was sentenced to 10 years in prison. Justin Strait pleaded guilty and is awaiting sentencing.
Judge Munley scheduled sentencing in the case for February 8, 2017. Matis faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Matis remains detained in prison pending sentencing.
“HSI is pleased that our joint investigation with PSP resulted in the defendant pleading guilty to conspiracy to commit sex trafficking of a minor,” said Marlon Miller, special agent in charge of HSI Philadelphia. “HSI is devoted to protecting children from predators.”
Assistant United States Attorney Francis P. Sempa is prosecuting the case.
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."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Rochester Man Sentenced for Role in Burglary Leading to Death of Elderly Medina Comic Book CollectorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.— Acting U.S. Attorney James P. Kennedy, Jr. announced today that Albert William Parsons, 47, of Rochester, NY, who was convicted of committing a violent crime in aid of racketeering, was sentenced today to 240 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, said that co-defendants Rico Vendetti and Arlene Combs hired three men, including Parsons, Donald Griffin, and Juan Javier, to travel from Rochester to the Medina, NY home of 78 year-old Homer Marciniak to steal Marciniak’s valuable comic book collection in exchange for $1,000 each.
In executing their plan, Parsons, along with Combs, Griffin, and Javier, drove from Rochester to Medina and during the early morning hours of July 4, 2010, and cut Homer Marciniak’s phone line. In the early morning hours of the following day, July 5, 2010, the co-defendants returned to Marciniak’s home. Wearing ski masks and gloves, Parsons, Griffin, and Javier forcibly entered, and during the course of the burglary, Marciniak, who had a serious heart condition, awoke and confronted the burglars. Griffin struck Marciniak in the face and then, along with Javier, bound his hands with bed linens. Javier then verbally threatened Marciniak with a BB gun in hand. Parsons, Griffin, and Javier ultimately located the comic book collection along with several strong boxes containing cash, coins, and other valuables. Parsons, Griffin, and Javier fled the scene with Combs and provided the comic books to her. Combs, in turn, together with co-defendant Terry Stewart took the comic books to Vendetti later in the day on July 5.
After the burglars fled his house, Marciniak freed himself and was taken to Medina Memorial Hospital for treatment of his facial injuries. However, after Marciniak was treated and released, he suffered a heart attack, was re-admitted to the hospital, and died shortly thereafter. Medical experts concluded that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.
Once Vendetti learned that the burglary resulted in Marciniak’s death, Vendetti disposed of the comic books.
Law enforcement officials within the Rochester Police Department identified the defendants during the course of separate investigation in October 2010. The defendants were arrested soon thereafter.
This burglary grew out of an organized shoplifting ring that stole hundreds of thousands of dollars in merchandise from retail stores such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops, and Wegmans. Vendetti, the former owner of Eastside Gold & Car Audio, formerly in Rochester, New York, along with co-defendant, Dayon Shaver, purchased the stolen merchandise for 25¢ on the dollar and then sold the stolen merchandise on eBay for about half of its retail value, primarily to out-of-state customers.
Also convicted in connection with this case:
• Rico Vendetti was convicted of racketeering and was sentenced to 240 months.
• Arlene Combs was convicted of racketeering and was sentenced to 240 months.
• Donald Griffin was convicted of committing a violent crime in aid of racketeering: murder, and was sentenced to 240 months.
• Terry Stewart was convicted of racketeering and was sentenced to 55 months.
• Dayon Shaver was convicted of conspiring to traffic in stolen goods across state lines and was sentenced to 46 months.
• Brandon Meade was convicted of conspiring to traffic in stolen goods across state lines and was sentenced to time-served after serving nine months.
• Juan Javier, who was 17 at the time of the burglary, was prosecuted as an adult in Orleans County and sentenced to seven years in state prison.The sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Richard Allen, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli. Special assistance was provided by Orleans County District Attorney Joseph Cardone.
Roanoke Man Sentencing on Sex Trafficking, Methamphetamine, and Gun ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who used force and the threat of force to intimidate women and force them to engage in sex trafficking, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on federal drug, gun, and sex trafficking charges, United States Attorney John P. Fishwick said.
Brandon Scott Thomas, a.k.a. “Gambino,” 25, of Roanoke, previously pled guilty to one count of conspiring to possess with the intent to distribute at least 50 grams of methamphetamine, two counts of sex trafficking by fraud, force or coercion, one count of conspiring to commit sex trafficking by fraud, force or coercion, and one count of possession of a firearm in furtherance of a drug-trafficking crime. Today in District Court, Thomas was sentenced to 27 years in federal prison.
“Brandon Thomas preyed on the drug addictions of young women and used physical abuse and intimidation to force them to engage in sex trafficking” United States Attorney Fishwick said today. “We are proud of the work law enforcement did to bring this defendant to justice and hopefully bring these victims of sex-trafficking to a brighter future.”
“Human trafficking is one of the most heinous crimes we investigate. Brandon Thomas enslaved women in his prostitution scheme by exploiting their vulnerabilities,” said Special Agent in Charge Clark E. Settles for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington Field Office. “Our HSI special agents and law enforcement partners will continue to fight the good fight, rescuing victims and putting traffickers behind bars.”
According to evidence presented at previous hearings by Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn, Thomas conspired with others, including co-defendant Josh Voress, from at least July 2015 until his arrest in March 2016 to distribute heroin, methamphetamine, and other drugs, and he periodically possessed firearms in connection with his drug trafficking.
Thomas admitted that he ran a prostitution business involving multiple women that operated out of hotels in Roanoke and Charlottesville. To promote the business, Thomas posted prostitution advertisements on the website backpage.com. Thomas admitted that several of the women who worked for him engaged in prostitution as a result of his fraud, force, and/or coercion. Thomas admitted that he prostituted women identified as V1, V3, and V4 in Roanoke and elsewhere in the Western District of Virginia, and admitted that he beat and threatened to beat the women, and took advantage of their drug dependencies, to compel their prostitution services. Evidence was presented that Thomas targeted disenfranchised, drug-addicted women and exploited their heroin additions by withholding drugs and having them go dope-sick until they performed a sufficient number of prostitution services. Although the circumstances varied, women under the control of Thomas were induced or compelled into performing multiple prostitution encounters a day. If they did not work to his satisfaction, he would threaten them and in some instances physically harm them.
Thomas admitted that beginning in September 2015 and continuing through February 2016, he was physically abusive to V4 on a regular basis. He admitted to slapping, punching, and choking her. On at least one occasion, Thomas admitted he held a knife to the throat of V4. On a separate occasion, Thomas used a taser on V4 and also beat V4 while she was pregnant. Many of these actions took place in front of other victims.
In addition, Thomas’ methamphetamine source, co-defendant Josh Voress, 40, of Beverly Hills, California, pled guilty in October to one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. Voress admitted to being one of the sources of methamphetamine for a conspiracy that operated in Roanoke that included Thomas and co-defendant Tyler Johnson.
At the time of Voress’ indictment by a federal grand jury in the Western District of Virginai in Roanoke, he was also under investigation by federal authorities in Pennsylvania. As part of his plea agreement in the Western District of Virginia, Voress agreed to plead guilty to additional methamphetamine charges out of the Eastern District of Pennsylvania, and to have those charges consolidated with the federal charges in Roanoke.
According to evidence presented previously by Assistant United States Attorney Rottenborn, Voress met drug customers via the website Tumblr. Voress admitted that from November 20015 and February 2016 he sold pounds of crystal methamphetamine to Johnson via USPS or FexEx. Voress came to Roanoke to meet Johnson and sell him crystal methamphetamine and/or collect payment from Johnson at least twice.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Roanoke City Police Department, the Roanoke County Police Department, the Salem Police Department, and the Virginia State Police. Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn prosecuted the case for the United States.
Rio Rancho Man Pleads Guilty to Federal Child Sexual Exploitation ChargeRead the Press Release
ALBUQUERQUE – Joe Medina, 37, of Rio Rancho, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to enticing a child to travel in interstate commerce for the purpose of engaging in sexual activity. Under the terms of his plea agreement, Medina will be sentenced to eight years in prison followed by 15 years of supervised release.
Medina was arrested in Indianapolis, Ind., on July 20, 2015, on a federal arrest warrant issued on a criminal complaint filed by the FBI in the U.S. District Court for the District of New Mexico. The criminal complaint charged Medina with kidnapping and transporting a minor in interstate commerce for the purpose of engaging in sexual activity.
According to the criminal complaint, on July 9, 2015, the victim’s mother filed a missing person’s report to the Rio Rancho Police Department (RRPD) asserting that the victim was missing. According to the complaint, after the mother learned that Medina and the victim had been communicating with each other, the victim terminated communications with Medina. The mother reported that on July 7, 2015, Medina called the victim and threatened to kidnap her and kill her mother if he was denied contact with the victim.
The RRPD’s investigation revealed that Medina took the victim to Denver, Colo., where they boarded a bus. On July 12, 2015, Medina was arrested on a New Mexico state warrant when Medina and the victim were found on a bus that had stopped in Indianapolis.
During a July 13, 2015, interview with the FBI, the victim stated that on July 9, 2015, Medina arrived outside her home and the victim agreed to go with him out of fear. The victim also told the FBI that Medina took her from Albuquerque to Denver where they abandoned Medina’s car and boarded a bus. After departing Denver, Medina and the victim were eventually located in Indianapolis.
Medina was indicted on Aug. 11, 2015, and was charged with transporting a minor with intent to engage in criminal sexual activity between July 9, 2015 and July 12, 2015, and coercing and enticing a minor to produce visual depictions of sexually explicit conduct.
During yesterday’s proceedings, Medina pled guilty to a felony information charging him with coercion or enticement. In entering the guilty plea, Medina admitted that from July 9, 2015 through July 12, 2015, he enticed the 16-years-old victim to leave Sandoval County, N.M., with the intent to travel to New York, where Medina intended to engage in sexual activity. Medina remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Rio Rancho Police Department, Corrales Police Department, the Denver Police Department and the New Mexico Regional Computer Forensic Laboratory, with assistance from the 13th Judicial District Attorney’s Office, the U.S. Marshals Service, the Indiana State Police and the FBI in Indianapolis. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
The case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Ringleader of Tampa Credit Card Fraud and Identity Theft Ring Sentenced to More Than 16 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Michel Lermos-Hernandez (40, Tampa) to 16 years and 7 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft. The Court also ordered him to pay $714,383.51 in restitution to his victims. Lermos-Hernandez pleaded guilty on March 2, 2016.
According to court documents, Lermos-Hernandez ran a credit card fraud ring in which conspirators obtained credit card numbers by placing key loggers on credit card terminals that intercepted and stored swiped credit and debit account information at the International Mall in Tampa, including one at the Haagen-Dazs ice cream store. Lermos-Hernandez and others then created counterfeit credit cards using the stolen account numbers. Lermos-Hernandez obtained blank credit card stock, embossing machines, and magnetic stripe re-encoders from his co-defendant, Viviana Reyes. He also sold stolen account numbers to Reyes and others.
After making the counterfeit cards, Lermos-Hernandez provided them to his co-conspirators, including his sister, Norma Cabezas-Hernandez, his girlfriend, Danay-Crespo Rodriguez, and at least two other individuals, including Lazaro Rodriguez and Abel Osorio-Cuok, who used the cards to purchase electronics and gift cards at Tampa area retailers. The conspirators then took these items to Reyes, who paid them in cash for the fraudulently obtained merchandise. Reyes then sold the items at a discounted price.
On February 7, 2013, a search warrant was executed at Lermos-Hernandez’s residence. Agents recovered $14,515 in cash, a laptop computer, a credit card embosser, a magnet stripe reader/encoder, a key logger, and multiple counterfeit credit cards and re-encoded gift cards. Also pursuant to his arrest, agents seized a Mercedes-Benz sedan that Lermos-Hernandez had purchased for over $130,000.
The total actual loss identified to date is more than $700,000 and the scheme victimized more than 35 federally insured financial institutions, and over 1,000 individuals, whose account information was compromised.
Reyes was convicted at trial and was later sentenced to 12 years in prison. Crespo-Rodriguez pleaded guilty and was sentenced to seven years in prison. Cabezas-Hernandez pleaded guilty and was sentenced to five years in prison. Lazaro Rodriguez was sentenced to 37 months’ incarceration. Osoria-Cuok, who was only involved in the conspiracy for approximately three weeks, was sentenced to a term of five years’ probation.
This case was investigated by the Tampa Police Department, the Florida Department of Law Enforcement, and the U.S. Secret Service (USSS), all of which are members of the USSS’s Credit Card Fraud and Identity Theft Task Force. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Reno Man Sentenced to Five Years in Prison for Possession of Child PornographyRead the Press Release
RENO, Nev. – A Reno man has been sentenced to five years in prison, lifetime supervised release, and ordered to pay $1,500 in restitution for his guilty plea to receiving child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Today’s sentencing is an example of proven partnerships among a service provider, a nonprofit organization, and law enforcement,” said U.S. Attorney Bogden. “The defendant abused the use of free public internet connections to commit these heinous crimes against the most vulnerable in our communities. We will continue to use all available resources to identify individuals who commit crimes against our children.”
Phillip Bradley Sanderson, 26, was sentenced on Monday, Nov. 7, by U.S. District Judge Miranda M. Du. Sanderson pleaded guilty on May 16, 2016, to one count of receipt of child pornography. He was indicted by a grand jury on May 6, 2015.
According to court records, in August 2014, the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Google, Inc., which reported that one of its users was emailing images of suspected child pornography. NCMEC referred the matter to law enforcement, and the images were confirmed to depict child pornography and Sanderson was identified as the email user. On March 3, 2015, Nevada Internet Crimes Against Children Task Force agents and officers executed a search warrant at Sanderson’s residence. A forensic examination of seven digital devices found at the residence revealed approximately 32 images on Sanderson’s laptop and cellular phone of infants and children engaged in sexually explicit conduct, and information that Sanderson had used specific search terms to locate and receive child pornography. During an interview, Sanderson admitted to searching for and downloading child pornography files on the internet using free WI-FI at the Washoe County Public Library and a local casino. He also admitted that he emailed child pornography files to himself so he could save the files on his other electronic devices, and that he had been searching for and downloading child pornography for many years.
The case was investigated by the FBI, and prosecuted by Assistant U.S. Attorney Shannon Bryant.
The NCMEC’s CyberTipline provides the public and electronic service providers with the ability to report suspected child sexual exploitation. More than 12.7 million reports of suspected child sexual exploitation have been made to the CyberTipline between 1998 and June 2016. The public and electronic service providers are encouraged to report information at www.cybertipline.com or by calling the 24-hour hotline at 1-800-843-5678.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Puerto Rican resident sentenced to more than 21 years in prison for assaulting officers, other offensesRead the Press Release
A Puerto Rican man was sentenced to more than 21 years in prison for assaulting federal officers, failing to register as a sex offender and a firearms offense, law enforcement officials said.
Luis Cruz-Ramos, 30, pleaded guilty earlier this year to one count each of assaulting federal officers, brandishing a firearm in furtherance of crime of violence and failing to register as a sex offender.
Ramos was wanted on an arrest warrant when he was assaulted two special deputy U.S. Marshals on April 1, and brandished a firearm to do so, according to the indictment. Ramos also failed to register as a sex offender between 2013 and 2016 after traveling to Ohio, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the U.S. Marshals Service, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Ohio State Highway Patrol.
Pimps Face up to Life in Federal Prison After Pleading Guilty to Their Roles in a Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Four individuals, with ties to the Polywood Crips street gang in Fort Worth, Texas, have pleaded guilty to their respective roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Audry Lane, a/k/a “Spud,” 29, pleaded guilty before U.S. District Judge Reed C. O’Connor to one count of conspiracy to commit sex trafficking of children. Yesterday, Deon Bonner, a/k/a “Spanish Fly,” 26, pleaded guilty to the same offense and Chad Johnson, a/k/a “Ocho Hood Fame,” 24, pleaded guilty to one count of sex trafficking of children. In late October, Stanley Johnson, a/k/a “Pee Wee,” 24, pleaded guilty to one count of conspiracy to commit sex trafficking of children. Upon conviction, each count carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
Two defendants, Diwone Nobles, a/k/a “Pooh,” 32, and Katelyn Micelle Ward, a/k/a “KD,” 24, are set for trial.
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane and Alvin Lane, a/k/a “Spank,” acted as pimps for the girls and women they trafficked. The instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the member of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, sisters Serrah Arnold and/or Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
Alvin Lane pleaded guilty last month to one count of conspiracy to commit sex trafficking of children. Serrah and Jessica Arnold each pleaded guilty last month to one count of use of a facility of interstate commerce in aid of a racketeering enterprise.
For instance, on approximately June 1, 2013, 17-year-old Jane Doe 4 was introduced to Audry Lane, Serrah and Jessica Arnold, and Alvin Lane by a family friend of the Arnolds, defendant Katelyn Ward. Ward asked the Lanes and Arnolds to teach Jane Doe 4 how to engage in commercial sex acts. Serrah and Jessica Arnold explained to Jane Doe 4 about Backpage.com and how to talk to commercial sex customers. Ward, along with Audry Lane, and later Alvin Lane, acted as Jane Doe 4’s pimp at various times between 2013 and 2015. Audry Lane knew she was age 17 when he began facilitating her commercial sex acts, and he kept the proceeds she earned. Various member of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Deon Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
While Stanley Johnson was causing Jane Doe 2 to engage in commercial sex acts at a Fort Worth motel, Bonner was causing Jane Doe 1 to engage in commercial sex acts in another nearby room. After several days, Bonner left the hotel, and then Chad Johnson caused Jane Doe 1 to engage in commercial sex acts. Next, Nobles began causing Jane Doe 1 to engage in commercial sex acts. Chad Johnson and Nobles eventually took both Jane Doe 1 and Jane Doe 2 to another hotel in Fort Worth where Chad Johnson continued to cause Jane Doe 2 to engage in commercial sex acts.
According to the complaint filed in the case, an adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, Alvin Lane, and Serrah Arnold. Nobles frequently assaulted her when she made him angry or did not follow his instructions; he also raped her. Nobles kept the money she earned and the contact phone number used in the Backpage.com ad for her services was used by Nobles. In one trip to Austin, this adult female victim made enough money for Nobles to buy a Chevy sedan that he painted bright orange – “Poly Orange” in reference to their neighborhood Polytechnic Heights – that he still owns.
When an adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
When an adult female victim engaged in commercial sex acts at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received.
A minor female victim engaged in commercial sex acts at the direction of Audry Lane, Alvin Lane, Serrah Arnold and Jessica Arnold. Alvin Lane would have his girlfriend/bottom girl, Jessica Arnold post photos of her in ads that she placed on Backpage.com. The minor female victim would give all the money she earned to Jessica or Serrah Arnold, who would then give the money to Audry Lane or Alvin Lane.
Some of the six pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contained photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends were females observed in Backpage.com ads for commercial sex.
Nobles, Bonner, Chad Johnson, Stanley Johnson, and Audry Lane had several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, ICE HSI and the Fort Worth Police Department are investigating. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Oregon Woman Pleads Guilty to a Tax Fraud ConspiracyRead the Press Release
Claimed Refunds in Excess of $1 Million
A resident of Portland, Oregon pleaded guilty today to conspiring to file fraudulent income tax returns with the Internal Revenue Service (IRS) claiming refunds in excess of $1 million, theft of government funds and filing a false claim for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the plea agreement, Lori Nicholson, 53, admitted that she conspired with other individuals to prepare and file more than 227 fraudulent income tax returns during 2010. The false information on the tax returns included fictitious wage and withholding information, and fraudulent refundable credits. Nicholson also admitted that she assisted her co-defendants to prepare and file false income tax returns, including her daughter, Jasmine Mason, Brandon Leath and Shawntina Ware. Nicholson further admitted that she shared identities and refunds with her co-defendants.
Sentencing is scheduled for Feb. 22, 2017. Nicholson faces a statutory maximum sentence of 10 years in prison for the conspiracy and theft of government funds counts, five years in prison for the false claims count, and a period of supervised release and monetary penalties. In addition, she agreed to pay $429,269 in restitution to the IRS. Co-defendants Mason, Leath, Ware and White pleaded guilty to similar charges. U.S. District Judge Robert E. Jones sentenced White, Mason, and Leath to 37, 32, and 24 months in prison, respectively. Ware is scheduled to be sentenced in February 2017.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
November 2016 ElectionsRead the Press Release
LAS VEGAS, Nev. – United States Attorney Daniel G. Bogden announced that Assistant United States Attorney (AUSA) Carla Higginbotham is leading the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for today’s general elections. AUSA Higginbotham has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” stated U.S. Attorney Bogden. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
Today there will be command posts in Reno and Las Vegas staffed by members of the Nevada Election Integrity Task Force, which includes the FBI, Nevada Secretary of State’s Office and U.S. Attorney’s Office. They will assist with the investigation of any complaints of election fraud or voting rights abuses, and will ensure that such complaints are directed to the appropriate authorities.
Complaints may be filed by a number of ways:
- By completing the Election Law Violation Form on the Nevada Secretary of State’s website: http://nvsos.gov/sos/elections/election-information/resources/report-potential-election-law-violation;
- By calling the NV Secretary of State at (775) 684-5718;
- By calling the FBI in Las Vegas at (702) 385-1281 and asking for FBI Special Agent Michael B. Elliott.
- Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by telephone at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php
- By contacting our United States Attorney’s Office Points of Contact. In southern Nevada, AUSA Nick Dickinson can be reached at (702) 388-6336. In northern Nevada, AUSA Carla Higginbotham can be reached by contacting (775) 784-5438.
We are pleased to again be a part of this most important effort to ensure the 2016 election is administered fairly. The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.
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Non-Indian Man from Albuquerque Sentenced for Burglarizing Two Isleta Pueblo HomesRead the Press Release
ALBUQUERQUE – Roman I. Trujillo, 29, a non-Indian man residing in Albuquerque, N.M., was sentenced today in federal court to 23 months in prison for burglarizing two homes in Isleta Pueblo, N.M. Trujillo will be on supervised release for one year after completing his prison sentenced
Trujillo and his co-defendant, Danielle Bercier, 35, a non-Indian woman who also resides in Albuquerque, were arrested on Jan. 29, 2015, and charged in a criminal complaint with burglary offenses. According to the complaint, on Jan. 29, 2015, officers of the Isleta Pueblo Tribal Police Department responded to calls regarding burglaries at two residences in the Pueblo. At the second residence that was burglarized, officers came upon Trujillo who was fleeing from the residence in a vehicle in which Bercier was a passenger. Trujillo led the officers on a chase which ended when Trujillo crashed his vehicle.
Trujillo and Bercier were subsequently charged in a four-count indictment filed on Feb. 25, 2015. The indictment charged both Trujillo and Bercier with two counts of burglary of a dwelling. It also charged Trujillo alone with driving a vehicle in a manner that endangered the life of another person and receiving stolen property, the truck he was driving, on Jan. 28, 2014, in Indian Country in Valencia County, N.M.
On Nov. 18, 2015, Trujillo pled guilty to the two burglary counts and admitted that on Jan. 29, 2015, he forced his way into two homes in Isleta Pueblo while Bercier stayed outside as his lookout. Trujillo admitted that in the first home he stole property worth $1,500.00, and at the second home he stole two cellphones. Trujillo acknowledged that he knew or should have known that the truck he was driving as he attempted to evade arrest was a stolen vehicle.
On March 29, 2016, Bercier pled guilty to one count of burglary and admitted that Trujillo forced himself into a home in Isleta Pueblo and removed $1,500 worth of property while Bercier remained outside as a lookout. Bercier was sentenced on Aug. 17, 2016, to three years of probation.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Navajo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Patrick Wadsworth, 47, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced today in federal court to 27 months in prison followed by three years of supervised release for his conviction on an assault charge.
Wadsworth was arrested on Jan. 22, 2016, on an indictment charging him with assaulting a woman resulting in serious bodily injury on Nov. 6, 2014, in San Juan County, N.M.
On June 27, 2016, Wadsworth pled guilty to the indictment and admitted that on Nov. 6, 2014, he assaulted the victim by striking her and causing bruising to her face, arms and knees. Wadsworth further admitted that the crime took place as his residence on the Navajo Indian Reservation in San Juan County.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the Shiprock Police Department. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mother Sentenced to 120 Months in Prison, Son Sentenced to 30 Months in Prison for Involvement in $9.5 Million Pharmacy FraudRead the Press Release
A mother and son based in Miami were sentenced today to 120 months and 30 months in prison, respectively, for their roles in spearheading a $9.5 million health care fraud conspiracy that targeted Medicare Part D.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Niurka Fernandez, 54, and Roberto Alvarez, 26, each pleaded guilty on Aug. 31 to one count of conspiracy to commit health care fraud. In addition to imposing today’s prison sentences, U.S. District Judge Federico A. Moreno of the Southern District of Florida ordered Fernandez to pay $9.5 million in restitution and to forfeit the same amount. Judge Moreno also ordered Alvarez t to pay $1.5 million in restitution and to forfeit the same amount.
As part of her guilty plea, Fernandez admitted that she co-owned and operated several pharmacies in the Miami area, including Calan Pharmacy & Discount Service LLC (Calan Pharmacy) and Bertyann Corp., doing business as Best Pharmacy, for the purpose of submitting false and fraudulent claims through Medicare Part D. Fernandez was an organizer and leader of the Medicare fraud scheme that paid Medicare beneficiaries and patient recruiters for prescriptions that were medically unnecessary, according to the plea agreement. Fernandez further acknowledged that she directed her co-conspirators at Calan Pharmacy and Best Pharmacy to make kickback payments and write and cash checks for the purpose of facilitating kickback payments and concealing fraud proceeds. Fernandez is also linked to several other Medicare fraud schemes.
As part of his guilty plea, Alvarez admitted that he participated in the Medicare fraud conspiracy at Best Pharmacy. Among other things, Alvarez admitted he wrote checks from Best Pharmacy to money launderers in order to obtain cash to pay the kickbacks to the Medicare beneficiaries.
In her plea documents, Fernandez admitted that she caused at least $9.5 million in losses to Medicare, while Alvarez conceded he caused a loss of at least $1.5 million. In total, Medicare paid at least $9.5 million in overpayments as a result of the health care fraud scheme.
The FBI, U.S. Secret Service and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller prosecuted the case.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Media Advisory - Project Safe Neighborhoods Press Conference on Thursday, November 10, 2016 at 10:00 a.mRead the Press Release
Contact Information:
Ken Shetter, OSP – 817-502-7110 or 817-707-7824 (cell)
Lt. Kirk Driver, PSN Chair, FWPD – 817-996-0356 (cell)
Kathy Colvin, OUSA – 214-659-8600
SSA Scott Ragsdale, ATF – 469-227-4322
Announcing an award of $500,000, one of seven nationally, to One Safe Place for the implementation of the Project Safe Neighborhoods Initiative in two designated areas in Fort Worth, Texas.
A press conference is scheduled for Thursday, November 10th, at 10:00AM in the auditorium of One Safe Place located at 1100 Hemphill Street in Fort Worth. Details of how the multidisciplinary PSN Task Force works together, the outreach programs, and the results of the past PSN initiative will be available at the press conference. Members of the PSN Task Force representing 17 agencies participate in the operation of the PSN Project.
Participants in the Press Conference:
The Honorable John Parker, U.S. Attorney for the Northern District of Texas,
Bill Temple, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms
and Explosives, Chief Joel Fitzgerald, Fort Worth Chief of Police, Ken Shetter,
President, One Safe Place and other invited guests.
PrProject Safe Neighborhoods (PSN), a program of the Department of Justice, is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs and using data-driven targeted enforcement to address many of the causes of these crimes, such as family violence and repeat/returning offenders. The goal is to create safer neighborhoods by involving the communities in these efforts and identifying needed resources that include prevention and outreach, as well as, enforcement to sustain this reduction in crime.
Interview opportunities will be available
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Maryland man pleads guilty to unlawful cigarette smugglingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amir Mohamed Alsaidi, 38, of Baltimore, Maryland, pled guilty in federal court today to unlawful cigarette smuggling, United States Attorney William J. Ihlenfeld, II, announced.
Alsaidi participated in a cigarette smuggling operation designed to transport large quantities of cigarettes across state lines for redistribution and sale. He pled guilty to one count of “Conspiracy to Traffic in Contraband Cigarettes” and faces up to five years in prison and a fine of up to $250,000.
Assistant U.S. Attorneys Michael D. Stein and Shawn M. Adkins prosecuted the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Virginia Office of Attorney General, the Alcohol and Tobacco Tax and Trade Bureau, the West Virginia State Police, the New York Department of Taxation and Finance, the Federal Bureau of Investigation, and the Internal Revenue Service led the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Mars Hill Woman Sentenced to Six Years for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Leda Giggey, 45, of Mars Hill, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to six years in prison and three years of supervised release for conspiring to distribute bath salts. The defendant pled guilty to the charge on March 7, 2016.
According to court records, between about January 2012 and June 2014, Giggey conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Giggey ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
MS-13 Member Sentenced to over Twenty-Seven Years Imprisonment for Gang-Related Murder and Other CrimesRead the Press Release
SAN FRANCISCO – Defendant Jaime Balam (a/k/a “Tweety”) was sentenced today to 330 months’ imprisonment announced United States Attorney Brian J. Stretch and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge following a guilty plea entered August 16, 2016, in which Balam acknowledged committing numerous crimes including conspiracy to commit murder, racketeering, and illegal use and possession of firearms.
Balam, 27, is a native and citizen of Mexico. According to his guilty plea, since 2008, he was a member of La Mara Salvatrucha, or “MS-13,” a transnational criminal gang operating in various Central American countries and in numerous states across the United States. In his plea agreement, Balam acknowledged that as a member of MS-13, he conspired with other gang members to conduct of the affairs of MS-13 through a pattern of racketeering activity that included murder, attempted murder, and other acts of violence. For example, Balam acknowledged that in order to maintain and increase his position as an MS-13 gang member, he would kill members of rival gangs and those believed to be members of rival gangs.
Described in Balam’s plea agreement are the events of February 19, 2009. On that day, Balam was riding in a stolen car with other gang members “hunting” for rival gang members in parts of San Francisco and Daly City. When his coconspirators spotted a car parked near the Daly City BART station, Balam and another gang member exited the car, approached the suspected rival gang members from behind, and opened fire at the people seated inside the car. The gun fire killed one person and gravely wounded two others. Balam admitted he did not know the victims in the car; other court documents make clear that the victims were not gang members, but rather four friends on a regular Thursday evening outing for dinner and drinks.
Balam was indicted on August 21, 2012, and charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); conspiracy to commit murder in aid of racketeering activity, in violation of 18 U.S.C. § 1959(a)(5); conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, in violation of 18 U.S.C. § 1959(a)(6); murder in aid of racketeering activity, in violation of 18 U.S.C. § 1959(a)(1); attempted murder in aid of racketeering activity, in violation of 18 U.S.C. § 1959(a)(5) (three counts); carrying and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A); causing death in the commission of a violation of 18 U.S.C. § 924(c), in violation of 18 U.S.C. § 924(j); and being an alien unlawfully in possession of a firearm or ammunition, in violation of 18 U.S.C. § 922(g)(5). In February of 2015, Balam was extradited from Mexico and brought to the United States to face the charges in the indictment. Pursuant to his plea agreement, Balam pleaded guilty to all but one of the murder in aid of racketeering charges.
In addition to the prison term, Judge Alsup sentenced Balam to five years of supervised release and to pay $21,650 in restitution to the murder victim’s father.
Assistant U.S. Attorney Andrew M. Scoble is prosecuting the case with the assistance of Lance Libatique and Kevin Costello. The prosecution is the result of an investigation by Homeland Security Investigations, the San Francisco Police Department, and the Daly City Police Department.
Lubbock Women Plead Guilty to Roles in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Two women from Lubbock, Texas, Crystal Ann Alaniz and Arleen Theres Keithley, appeared yesterday afternoon before U.S. Magistrate Judge D. Gordon Bryant Jr., and pleaded guilty to their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Alaniz, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting; she faces a statutory sentence of not less than five years or more than 40 years in federal prison and a $5 million fine. Keithley, 36, pleaded guilty to one count of possession with intent to distribute methamphetamine and aiding and abetting; she faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Bryant ordered a presentence investigation report for each defendant with sentencing dates to be set after the completion of those reports.
Co-defendant Jonathan Lovato, 33, of Lubbock, also pleaded guilty yesterday. Last week, co-defendants Juan Carlos Lara-Ochoa, 24, and Jose Alberto Cibrian, 41, pleaded guilty to their roles in the conspiracy.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking. Two additional plastic bags, containing suspected methamphetamine were found in Keithley’s bra. Two bundles of money, totaling nearly $2,000 were found in Keithley’s purse along with a digital scale that contained drug residue. Keithley also had $2,500 in small bills on her person.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The case is being investigated by the Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Lubbock Man Involved in Police Pursuit in Which Another Motorist was Struck and Killed Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Jonathan Lovato, 33, appeared yesterday afternoon before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to federal offenses stemming from his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lovato pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting, and one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a statutory penalty of not less than five years or more than 40 years in federal prison and a $5 million fine on the drug conviction and not less than five years and up to life and a $250,000 fine on the firearm conviction. Judge Bryant ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
On March 17, 2016, officers with the Lubbock Police Department conducted an undercover narcotics purchase from a hotel room in Lubbock and were watching the room to monitor traffic to and from the location while a search warrant was obtained. During this surveillance, officers saw the main target of the investigation, Lovato, arrive in a silver sedan and begin to take items from the hotel room. Lovato attempted to leave the hotel in his vehicle, and when officers tried to detain him, he sped away. He evaded officers for several blocks, driving in excess of the speed limit, against oncoming traffic, and through several traffic-controlled intersections without observing the traffic signals. Lovato’s vehicle was stopped when he struck several other vehicles as he drove against oncoming traffic into a busy street intersection. One of the individuals in a vehicle he struck sustained life-threatening injuries and later died.
As officers approached Lovato’s vehicle, they discovered he had a 9mm caliber pistol in his waistband. A package containing a substance, later verified as 118.13 grams of methamphetamine, was found in the glove box and five cell phones were found throughout the vehicle. Lovato admitted he possessed the firearm and admitted to selling methamphetamine.
The case is being investigated by the Lubbock Police Department, the Texas Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Lead Defendant in Case Targeting Synthetic Drugs Pleads Guilty to Smuggling, Drug Trafficking and Money Laundering ChargesRead the Press Release
SANTA ANA, California – The lead defendant in an indictment that outlined a wide-reaching conspiracy to smuggle, manufacture and distribute more than $12 million worth of synthetic, or analogue, drugs has pleaded guilty in federal court.
Sean Libbert, 41, of Newport Beach, pleaded guilty yesterday afternoon to a series of charges related to a scheme to distribute drugs commonly called “spice” or “bath salts.” Some of the drugs in this case nearly killed a victim who ingested them, according to the 16-count indictment filed in June 2014 that was the first in this district involving drug analogues.
Libbert pleaded guilty to four felony offenses: conspiracy to manufacture, possess with intent to distribute, and distribute controlled substance analogues; conspiracy to smuggle controlled substance analogues into the United States using false statements and fraudulent documents; being a felon in possession of firearms and ammunition; and money laundering.
As part of a plea agreement with the government, Libbert has agreed to serve at least six years in federal prison, and the government has agreed to recommend a sentence of not greater than 20 years. Libbert is scheduled to be sentenced by United States District Judge Cormac J. Carney on March 20, 2017.
“The investigation in this case revealed that this defendant controlled an organization that was one of the largest importers and distributors of dangerous, synthetic drugs in the nation,” said United States Attorney Eileen M. Decker. “Over the course of only 16 months, this organization smuggled well over 600 pounds of chemicals into the U.S., knowing that the drugs would be used to manufacture synthetic marijuana or ‘spice’ that was smoked or taken orally. As the indictment in this cases references, these synthetic drugs poses serious health risks to its users.”
Previously in this case, two other defendants pleaded guilty, including a Chinese national who sold Libbert and his associates synthetic drugs that were smuggled into the United States. Another three defendants charged in a separate case pleaded guilty to conspiring with Libbert to manufacture and distribute controlled substance analogues. These other five defendants are expected to be sentenced by Judge Carney next year.
The nearly three-year investigation into the analogue drug ring was conducted by the Los Angeles HIDTA (High-Intensity Drug Trafficking Area) Southern California Drug Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration and IRS Criminal Investigation.
“The packaging and names associated with analogue drugs might lead some impressionable users to believe these substances are benign, but the reality is they can cause serious health complications and even death,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Couple that with the fact synthetic drugs are often marketed to young people and you have a prescription for disaster. For that reason, HSI is continuing to work closely with its federal and local law enforcement counterparts to target this emerging side of the illicit drug trade.”
As part of the scheme, Libbert incorporated a series of companies, opened up a series of bank accounts and private mailboxes, and used various websites to sell more than $12 million worth of chemicals and analogue substances to people across the United States, including other distributors and individual users.
Libbert and his co-conspirators also manufactured their own synthetic marijuana, which they marketed and sold under the brand “Da Kine Blend.” When he pleaded guilty, Libbert admitted that over a 7½-month period in 2011 he distributed at least 4 kilograms of synthetic cannabinoids, which he knew would be used to manufacture at least 100 kilograms of synthetic marijuana for human consumption.
“Ingesting any synthetic cannabinoid or cathinone is like playing a game of Russian roulette – it can kill you in an instant,” said DEA Special Agent in Charge Steve Comer. “Dismantling the highest level drug manufacturing and distribution organizations in the interest of public health and safety is what DEA is all about, and we’ll continue to target these organizations no matter what facade they operate behind.”
In July 2012, HIDTA investigators executed a series of federal search warrants and seized several luxury vehicles, hundreds of pounds of analogues and firearms –including a rifle, a shotgun, two pistols, and approximately 700 rounds of ammunition, all of which Libbert was prohibited from possessing as a result of three prior felony convictions, including a 2002 drug trafficking conviction.
In addition to the drug and firearms charges, Libbert also pleaded guilty to one count of money laundering. Investigators have seized more than $1.1 million in assets connected to the case, including more than $700,000 in profits from the sale of Libbert’s former San Juan Capistrano home.
“This is an important victory for the American public in federal synthetic drug law enforcement,” stated Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. “Not only is Libbert being held accountable for his crime, but he has agreed to the forfeiture of the proceeds associated with his illegal activity through the mechanism of asset forfeiture. IRS Criminal Investigation will continue to financially disrupt and dismantle significant drug trafficking organizations through the seizure and forfeiture of assets associated with the crime."
The case is being prosecuted by Assistant United States Attorney Carol A. Chen of the Organized Crime Drug Enforcement Task Force Section.
Las Cruces Woman Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Marlene C. Sandoval, 39, of Las Cruces, N.M., was sentenced today in federal court to 60 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Sandoval and her co-defendant David S. Thompson, 29, were arrested in Nov. 2015, on a criminal complaint charging them with methamphetamine trafficking charges on Oct. 16, 2015, in Doña Ana County, N.M. Sandoval and Thompson were arrested after law enforcement officers found crystal methamphetamine inside the vehicle Sandoval and Thompson were driving during a routine traffic stop. Sandoval and Thompson were subsequently indicted on Feb. 17, 2016, and charged with conspiracy and possession of methamphetamine with intent to distribute.
On April 19, 2016, Sandoval and Thompson each entered a guilty plea to a conspiracy to possess methamphetamine with intent to distribute charge. They admitted being pulled over for speeding on Oct. 16, 2015, by New Mexico Department of Transportation officers. After obtaining consent from Sandoval and Thompson to search their vehicle, the officers found 499 grams of methamphetamine in a shoe in the vehicle. Sandoval and Thompson also admitted that they intended to distribute the methamphetamine in Las Cruces.
Thompson was sentenced on Sept. 26, 2016, to 36 months in prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA, the New Mexico Department of Transportation Police, the Las Cruces Police Department and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Justice Department Files Brief to Address Automatic Suspensions of Driver's Licenses for Failure to Pay Court DebtRead the Press Release
WASHINGTON – The Justice Department filed a statement of interest today in the U.S. District Court for the Western District of Virginia addressing the constitutionality of state policies that automatically suspend the driver’s licenses of those who fail to pay court fines or fees. The statement of interest was filed in Stinnie et al. v. Holcomb, a class action brought by four individuals whose driver’s licenses were suspended because they could not afford to pay fines, fees and costs assessed by Virginia courts.
The statement of interest advances the United States’ position that suspending a driver’s license is unconstitutional if it is done without providing due process and without assessing whether the individual’s failure to pay was willful or the result of an inability to pay. As the Supreme Court has affirmed, the Constitution prohibits punishing a person because of his or her poverty. The United States’ brief explains that the defendant’s alleged “practice of automatically suspending the driver’s license of any person who fails to pay outstanding court debt—without inquiring into ability to pay—violates that constitutional principle.” Without taking into account an individual’s ability to pay, the practice results in indigent defendants having their driver’s licenses suspended because they cannot afford fines and fees, while defendants who can afford to pay do not. The brief argues that, if the facts as alleged by plaintiffs are true, such practice violates the due process and equal protection clauses of the 14th Amendment.
In Stinnie v. Holcomb, the plaintiffs allege that their driver’s licenses were indefinitely suspended because they did not pay court fines and costs that they could not afford. They further allege that 900,000 people in Virginia, or one in six drivers, have had their licenses suspended for failure to pay court debt. The department’s statement of interest in this case rests on a fundamental principle, developed in a long line of Supreme Court cases, “that conditioning access or outcomes in the justice system solely on a person’s ability to pay violates the Fourteenth Amendment.” The brief also explains that a driver’s license is a constitutionally protected interest under clear Supreme Court precedent and that it cannot be suspended under the circumstances permitted in Virginia without adequate notice and a meaningful opportunity to be heard first.
“People depend on driver’s licenses to get to work, access health care and provide for their families – and so when their license is suspended for reasons that do not relate to public safety, it unnecessarily disrupts lives and harms communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This brief advances the department’s robust efforts to prevent unlawful practices that punish poverty at every stage of the justice system and that trap vulnerable residents in cycles of debt from court fines and fees.”
“The Constitution prohibits punishing a person for their poverty,” said Director Lisa Foster of the Office for Access to Justice. “Yet suspending a person’s driver’s license when they are unable to pay court debt does just that. And it’s also counterproductive. How can a person pay their fines and fees if they lose their job because they can’t drive to work?”
“Driver’s licenses permit individuals to work and contribute to society in positive ways,” said U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia. “It makes no sense to suspend this privilege because a person is poor.”
In recent years, the department has taken several steps to address the unequal treatment of the poor in the justice system. In March 2015, the Civil Rights Division addressed a range of harmful practices in the enforcement of fines and fees, including the suspension of driver’s licenses to coerce payment, in its investigation of Ferguson, Missouri. In March 2016, the division and the Office for Access to Justice sent a Dear Colleague Letter to state courts clarifying the constitutional limits on coercing payment of court debt, including through license suspensions.
Plaintiffs in Stinnie v. Holcomb filed their complaint in federal court in July. The defendant is the commissioner of the Virginia Department of Motor Vehicles. In October, the state’s Office of the Attorney General filed a motion to dismiss the case. In its filing, the United States does not take a position on the factual accuracy of the plaintiffs’ claims, but instead addresses the appropriate legal framework for analyzing their claims.
Japanese Auto Parts Company Agrees to Plead Guilty to Antitrust Conspiracy Involving Steel TubesRead the Press Release
Company Agrees to Pay $7.2 Million Criminal Fine
Usui Kokusai Sangyo Kaisha Ltd. (Usui), an automotive parts manufacturer based in Shimizu, Japan, has agreed to plead guilty and pay a $7.2 million criminal fine for its role in a criminal conspiracy involving automotive steel tubes sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Southern District of Ohio, Usui participated in a conspiracy to fix prices, allocate customers and rig bids for automotive steel tubes sold to automobile manufacturers in the United States and elsewhere. Maruyasu Industries Co. Ltd., Maruyasu’s wholly-owned U.S. subsidiary, Curtis-Maruyasu America Inc. (CMA), and sales executives, Tadao Hirade, Kazunori Kobayashi, Satoru Murai and Yoshihiro Shigematsu, were previously indicted on June 15, for their alleged participation in the conspiracy. In addition to Usui’s agreement to pay a $7.2 million criminal fine, the manufacturer has agreed to cooperate with the department’s ongoing investigation. The plea agreement is subject to court approval.
“Despite having prosecuted scores of corporate and individual conspirators in this investigation, the Antitrust Division continues to vigilantly pursue those responsible who have not yet been held accountable,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “This investigation is not completed, and the division will continue to prosecute automotive parts manufacturers and executives that sought to maximize their profits through anticompetitive means.”
“Bid rigging, price fixing and other schemes hurt consumers and undermine our economic system,” said Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office. “The FBI, the Department of Justice and our partners will continue to work to protect consumers and root out corporate fraud.”
“The Department of Commerce Office of Inspector General is proud to work with the Department of Justice and the FBI in protecting the U.S. economy from illegal pricing tactics such as those uncovered in this investigation,” said Special Agent in Charge Duane Townsend of the Commerce’s Office of Inspector General. “We will continue our cooperative efforts to bring those who violate our laws to justice and deter future attempts to undermine fair market practices.”
Automotive steel tubes are used in fuel distribution, braking and other automotive systems and are sometimes divided into two categories – chassis tubes and engine parts. Chassis tubes, such as brake and fuel tubes, tend to be located in the body of a vehicle while engine parts, such as fuel injection rails, oil level tubes and oil strainer tubes, are associated with the function of a vehicle’s engine.
According to the charges, Usui and its co-conspirators participated in meetings, conversations and communications in which they agreed to customer allocations as well as bids, prices and price adjustments to be submitted to customers in the United States and elsewhere. Usui and its co-conspirators employed measures to conceal their conduct, including meeting surreptitiously and adopting means and methods of communication designed to avoid detection. Usui’s involvement in the conspiracy lasted from at least as early as December 2003 until at least as late as July 9, 2011.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Usui, 47 companies and 65 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.9 billion in criminal fines.
These charges were brought by the Antitrust Division’s Chicago Office and the Department of Commerce’s Denver Field Office, with the assistance of the FBI’s Cincinnati Field Office, the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Southern District of Ohio. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cincinnati Field Office at 513-421-4310.
Indictment: Traffic Stop in Kansas Uncovered 117 Pounds of CocaineRead the Press Release
WICHITA, KAN. – Two people were indicted Tuesday on federal charges they had 117 pounds of cocaine hidden in their car when they were stopped for a traffic violation in Wabaunsee County, Acting U.S. Attorney Tom Beall said.
Marco Antonio Aispuro, 48, and Maria Janeth Moreno-Cento, 39, were charged with one count of possession with intent to distribute cocaine. In addition, Moreno-Centeno was charged with one count of unlawfully re-entering the United States after being deported.
Documents filed in the case allege Moreno-Centro was driving and Aispuro was in the passenger seat on Oct. 21, 2016, when the Kansas Highway Patrol pulled them over on I-70 eastbound near mile marker 333 in Wabaunsee County. Troopers found 117 pounds of cocaine in the driver’s side rear quarter panel and the spare tire.
Upon conviction, the drug charge carries a penalty of not less than 10 years in federal prison and a fine up to $10 million. The immigration charge carries a penalty up to two years and a fine up to $250,000. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER GRAND JURY INDICTMENTS
Osmar A. Marroquin, 42, a citizen of Guatemala, is charged with one count of unlawfully re-entering the United States after being deported. He was found Oct. 24, 2016, in Butler County, Kan.
If convicted, he faces a penalty up to two years and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Gonzalo Montoya-Perez, 45, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found Oct. 27, 2016, in Reno County, Kan.
If convicted, he faces a penalty up to two years and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
INTERPOL Washington Meets Indonesian CounterpartsRead the Press Release
USNCB Acting Director Salzgaber (left) and NCB-Indonesia Secretary Yahya.The INTERPOL Washington—U.S. National Central Bureau (USNCB)--delegation to the 85th INTERPOL General Assembly (GA) met with the senior leadership of the National Central Bureau (NCB)-INTERPOL Indonesia on November 8th, 2016. USNCB Acting Director Wayne Salzgaber recognized the Secretary of NCB-Indonesia, Brigjen Pol Drs. M. Naufal Yahya, M.Sc.(Eng), for the continued collaboration and partnership between the two organizations. Salzgaber also thanked the Secretary for the Indonesian’s hospitality in hosting the GA.