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8 November 2016
Founder of West Suburban Investment Firm Sentenced to Five Years in Federal Prison in $3.7 Million Fraud SchemeRead the Press Release
CHICAGO — The founder of a Geneva investment firm has been sentenced to five years in federal prison for using client funds to purchase a yacht and luxury vehicle and to trade his own stocks.
STEPHEN C. BROWERE, the founder of Geneva-based Stephens Capital Management Inc., used the promise of lucrative and guaranteed returns to persuade several clients to purchase $1.66 million in promissory notes in Douglas Capital Corp., located in Lisle. Many of the investors pledged their life savings or funds from retirement plans. Browere did not tell investors that his relative was the president of Douglas Capital, and that Browere ran Douglas Capital’s day-to-day operations and had access to its lines of credit. Instead of investing the funds in the promissory notes, Browere used the money to perform trades within his own investment portfolio, and to cover personal purchases such as a yacht and a BMW automobile.
Browere, 57, of Geneva, pleaded guilty in June to one count of mail fraud. U.S. District Judge Matthew F. Kennelly on Friday sentenced Browere to 60 months in prison. Judge Kennelly also ordered Browere to pay $3.7 million in restitution to the victims.
“Each investor thought defendant was investing his or her money in safe, stable investments that would provide income well into retirement,” Assistant U.S. Attorney Patrick Otlewski argued in the government’s sentencing memorandum. “They did not agree to give defendant free reign to use the savings as his personal slush fund to support a lavish lifestyle.”
Browere’s scheme began no later than 2007 and continued until approximately February 2014. In addition to spending the victims' funds on himself, Browere concealed the fraud by using principal payments from some investors to make interest payments to others in a Ponzi-like fashion.
Browere also obtained the power of attorney on behalf of an elderly client who was infirm and suffering from dementia. The power of attorney gave Browere access to the client’s cash and property, which were valued at more than $2.1 million. Browere misappropriated some of this money to purchase four vacant lots in Lisle and to make interest payments to other clients. After the client died, Browere maintained control over the estate and continued to misuse the estate’s assets.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and E.C. Woodson, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois Secretary of State’s Office provided valuable assistance in the investigation.
The government is represented by Mr. Otlewski.
Florida Registered Broker Pleads Guilty to Securities Fraud for Participating in A $131 Million Market Manipulation SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Gerald Cocuzzo, a resident of Boca Raton, Florida and a broker registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc. (FINRA), pleaded guilty to securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The guilty plea was entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Cocuzzo faces up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings and facts presented at the plea hearings, between January 2009 and April 2015, the defendant, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The defendants’ fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between January 2015 and April 2015, a ForceField executive paid commission payments, or kickbacks, to Cocuzzo in exchange for his purchase of ForceField stock in his clients’ brokerage accounts. Cocuzzo did not disclose to his clients the kickbacks he was receiving for purchasing ForceField stock. Cocuzzo and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
GERALD COCUZZO
Age: 38
Residence: Delray Beach, FloridaE.D.N.Y. Docket No. 16-CR-234 (BMC)
Executive Office for Immigration Review Swears in Five Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of five new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held Nov. 4, 2016, at the U.S. Court of Appeals for the Federal Circuit, in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Kerri A. Calcador, Randall Wilson Duncan, Rico M. Sogocio, Karen M. Donoso Stevens, and Dean S. Tuckman to their new positions.
“I am pleased to preside over the investiture of these five appointees in my new role as chief immigration judge,” said Keller. “With these appointments, EOIR now has 296 immigration judges, setting a new all-time high for our immigration judge corps and further strengthening our efforts to address the agency’s pending caseload of more than 500,000.”
Biographical information follows.
Kerri A. Calcador, Immigration Judge, Los Angeles Immigration Court
Attorney General Loretta E. Lynch appointed Kerri A. Calcador to begin hearing cases in October 2016. Judge Calcador earned a Bachelor of Arts degree in 1994 from the University of San Diego and a Juris Doctor in 1997 from the University of San Diego School of Law. From 2007 to October 2016, she served as a senior attorney for the Office of the Chief Counsel, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in San Diego. From 2006 through 2007, she served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Southern District of California, Department of Justice (DOJ), in San Diego. From 2002 to October 2016, and previously from 1997 through 2001, she served as an assistant chief counsel for the Office of the Chief Counsel, ICE, DHS, in Los Angeles and San Diego. From 1999 through 2001, she served as an assistant district counsel for the Office of the District Counsel, former Immigration and Naturalization Service, DOJ, in Los Angeles, during which time she also served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Central District of California, DOJ. Judge Calcador is a member of the State Bar of California.
Randall Wilson Duncan, Immigration Judge, Stewart Immigration Court
Attorney General Loretta E. Lynch appointed Randall Wilson Duncan to begin hearing cases in October 2016. Judge Duncan earned a Bachelor of Arts degree in 1977 and a Master of Public Administration in 1985, both from the University of Georgia, and a Juris Doctor in 1995 from the John Marshall Law School. From 2007 to October 2016, he served in various capacities for the Office of the Principal Legal Advisor, Immigration and Customs Enforcement, Department of Homeland Security, including as a senior attorney, national security attorney, worksite enforcement attorney, special assistant U.S. attorney, and assistant chief counsel, in Atlanta. From 2003 through 2007, he served as a deputy director for the Prosecuting Attorney’s Council of Georgia, in Atlanta. From 2002 through 2003, he served as legal director for the Georgia Sentencing Commission, in Atlanta. From 2000 through 2002, he served as an assistant district attorney for the Coweta Judicial Circuit, in Newnan, Ga. From 1997 through 1999, he served as a public policy attorney for Applied Research Services, in Atlanta. Judge Duncan is a member of the State Bar of Georgia.
Rico M. Sogocio, Immigration Judge, Miami Immigration Court
Attorney General Loretta E. Lynch appointed Rico M. Sogocio to begin hearing cases in October 2016. Judge Sogocio earned a Bachelor of Arts degree in 1987 from Northwestern University and a Juris Doctor in 1992 from the Catholic University of America Columbus School of Law. From 2010 to October 2016, he served as a senior counsel for the Office of the General Counsel, Executive Office for Immigration Review, Department of Justice (DOJ), in Falls Church, Va. From 2002 through 2010, he held numerous positions in private practice, including: from 2008 through 2010 as principal and general counsel for Miami Media Labs LLC, in Miami; from 2005 through 2007 as an outside legal advisor for Nextream Broadband Inc., in Hallandale, Fla.; from 2004 through 2006 as principal and general counsel for IMProServices Inc., in Miami; and from 2002 through 2010 as of-counsel for Burgos & Sosa PA, in Miami. From 2001 through 2003, he served as a consultant for Plave Manten Consulting Group and as corporate counsel for PMC4 LLC, in Aventura, Fla. From 1999 through 2001, he served as a litigation associate for Gunster, Yoakley & Stewart PA, in Miami. From 1994 through 1999, he served in various capacities for the former Immigration and Naturalization Service, DOJ, including as an assistant district counsel and senior litigation counsel. From 1996 through 1998, he also served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Southern District of Florida, DOJ. From 2008 through 2010, he served as an adjunct professor on the faculty of the Miami-Dade College Law Center. Judge Sogocio is a member of the Florida and Pennsylvania Bars.
Karen M. Donoso Stevens, Immigration Judge, Arlington Immigration Court
Attorney General Loretta E. Lynch appointed Karen M. Donoso Stevens to begin hearing cases in October 2016. Judge Donoso Stevens earned a Bachelor of Arts degree in 1995 from the University of Illinois and a Juris Doctor in 1999 from the Michigan State University College of Law. From 2010 to October 2016, she served as a senior attorney for the Office of the Chief Counsel, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Arlington, Va. From 2007 through 2010, she served as an assistant chief counsel for the Office of the Chief Counsel, ICE, DHS, in Arlington, Va. From 2005 through 2006, she served as a staff attorney for the Children’s Project at the National Immigrant Justice Center, in Chicago. From 2001 through 2003, she served as juvenile diversion program director for the California Bar Foundation, Orange County, Calif. In 2001, she served as family services coordinator for the Children’s Bureau of Southern California, in Santa Ana, Calif. From 1999 through 2000, she served as an assistant state’s attorney for the Illinois State’s Attorney’s Office, in Cook County, Chicago. Judge Donoso Stevens is a member of the Illinois State Bar.
Dean S. Tuckman, Immigration Judge, El Paso Immigration Court
Attorney General Loretta E. Lynch appointed Dean S. Tuckman to begin hearing cases in October 2016. Judge Tuckman earned a Bachelor of Arts degree in 1986 from Tufts University and a Juris Doctor in 1992 from the University of Pittsburgh School of Law. From 1998 to October 2016, he served as an assistant U.S. attorney for the District of New Mexico, U.S. Attorney’s Office, Department of Justice, in Albuquerque, N.M. From 1995 through 1998, he served as a judicial law clerk for the Honorable James A. Parker, U.S. District Court, District of New Mexico. From 1992 through 1995, he served as a litigation associate for Latham & Watkins, in New York City. Judge Tuckman is a member of the Colorado, Connecticut, and District of Columbia Bars, the State Bar of New Mexico, and the New York State Bar.
East St. Louis Man Sentenced for Gun OffenseRead the Press Release
Elvinn Pawnell, 38, of East St. Louis, Illinois, was sentenced on November 8, 2016, in federal district court, in Benton, Illinois, following his recent plea of guilty to one count of Felon in Possession of a Firearm, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Pawnell was sentenced to 52 months of imprisonment, to be followed by a term of 3 years of supervised release, and was further ordered to pay a $100 special assessment and a $100 fine.
On November 3, 2015, police officers executed a traffic stop on a vehicle driven by Pawnell in East St. Louis for a traffic violation. A subsequent search of the vehicle revealed the presence of a firearm belonging to Pawnell in the vehicle. Pawnell was a previously convicted felon, which prohibited him from possessing any firearm.
The case was investigated by the Illinois State Police and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Dallas Man Sentenced to 20 Years in Federal Prison for Sex Trafficking a Developmentally Disabled Teenage GirlRead the Press Release
DALLAS — Damion Kentrell White, 24, of Dallas, was sentenced yesterday by U.S. District Judge David C. Godbey to 240 months in federal prison on felony convictions stemming from a plan to recruit a developmentally disabled teenage girl to engage in commercial sex acts, announced U.S. Attorney John Parker of the Northern District of Texas.
Damion White pleaded guilty to one count of using a facility of interstate commerce in aid or a racketeering enterprise and one count of illegal receipt of a firearm by a person under indictment.
His co-defendant brother, Kenneth Laray White, 27, was sentenced earlier this year to serve a total of 326 months in federal prison. Kenneth White pleaded guilty to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one count of being a felon in possession of a firearm.
Another defendant charged and convicted in the case, their cousin, Mecose Mendale Shorter, 32, also of Dallas, pleaded guilty in May to one count of use of a facility of interstate commerce in aid of a racketeering enterprise and is scheduled to be sentenced on November 28, 2016.
According to documents filed in the case, from approximately July 4, 2013, to July 22, 2013, Damion White, Kenneth White and Mecose Shorter engaged in an enterprise that promoted prostitution in various hotels in Dallas. In early July 2013, Damion and Kenneth White recruited a mentally challenged 18-year-old girl to work for them in the prostitution enterprise; Shorter was engaged in the unlawful activity of promoting prostitution of another female.
Damion and Kenneth knew the victim since she was 15 years old. When she was 18 years old, they devised a plan to recruit her to engage in commercial sex acts for them by taking advantage of her diminished mental capacity. In late June 2013, Damion White established a friendship with the victim, and then, in early July of 2013, he used false pretenses to convince her to leave her home with him.
Later that night, Kenneth and Damion White drove the victim to a motel in Dallas where Damion White had rented a room. Kenneth White used his cell phone to take provocative photos of the victim that they later used in advertisements they posted on backpage.com. They deprived her of food and prevented her from leaving the room to encourage her to engage in commercial sex acts for them. Kenneth White had sex with the victim, and the victim eventually engaged in commercial sex acts and provided the money she earned to Kenneth White. Kenneth and Damion White used the Internet and a cell phone to coordinate the victim’s commercial sex acts with potential customers.
Later, Kenneth and Damion White moved the victim to another motel in Dallas where they continued to compel her to engage in commercial acts during the latter part of July 2013. Officers with the Dallas Police Department rescued the victim from this motel on July 22, 2013.
Kenneth and Damion White were arrested on federal sex trafficking charges on February 25, 2014. Kenneth White was found at his girlfriend’s apartment, and during a protective sweep of the apartment, agents located a Romar/Cugir 7.62 caliber rifle, along with three extended magazines under the mattress in the master bedroom. Damion White admitted that he had possessed firearms recently, including the firearm that Kenneth White was caught with that day. Damion White further admitted that he had been under indictment for a felony marijuana case for quite some time.
The North Texas Trafficking Taskforce, including the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department, investigated. Assistant U.S. Attorney Cara Foos Pierce is prosecuting the case.
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Covington Man Sentenced for Illegally Possessing a Firearm, Transporting Stolen FirearmsRead the Press Release
ROANOKE, VIRGINIA – A previously convicted felon, who under federal law is prohibited from possessing a firearm, was sentenced today for breaking into a federally licensed firearms dealer and stealing two dozen firearms with hopes of later selling them, United States Attorney John P. Fishwick Jr. announced.
David Christopher Martin, 40, of Covington, Va., previously pled guilty in the United States District Court for the Western District of Virginia in Roanoke to one count of being a previously convicted felon illegally in possession of a firearm and one count of transporting one or more stolen firearms in interstate commerce from Virginia to South Carolina. Today in District Court, Martin was sentenced to spend a total of 15 years in federal prison. In addition, Martin was ordered to pay $3,000 in restitution to the gun store owner, a fine of $500 and a $200 special assessment.
“Since becoming the United States Attorney it has been one of my top priorities to keep guns out of the hands of prohibited users,” U.S. Attorney Fishwick said today. “This defendant planned to not only possess firearms illegally but sell them to other prohibited users. I am thankful to the men and women who investigated this case and made our community safer by recovering many of these guns.”
According to evidence presented at previous hearings by United States Attorney Fishwick, Martin admitted that on or about April 4, 2016 he used a rock to break the glass of the front door of Mountain Top Hunting and Fishing, a federally licensed firearms dealer located in Covington, Va. After breaking the glass of the front door, Martin entered the store through the broken window. Martin admitted that prior to the burglary he “cased” the business, examining the layout, inventory and security. To make his escape easier, he disassembled part of a fence at the rear of the store. Additionally, Martin purchased a set of wire cutters to disable what he believed to be part of the alarm system.
Once inside the store, Martin used the wire cutters to break the glass of a display cabinet where handguns were on display. He took what he thought to be the most valuable handguns and put them into a red bag and left the store with 24 handguns. Martin later admitted he planned to sell the handguns for approximately $6,000 and split the money with his girlfriend.
Early on the morning of April 4, 2016, Martin got into a van with co-worker to travel to Florida for a pressure washing job at a paper mill, taking the guns with him in the red bag. At one point during the trip, the driver of the van told Martin if he had anything illegal in the van he needed to get rid of it. At a rest stop near Yemassee, South Carolina, Martin got out of the van and hid the guns in the nearby woods, taking a picture of a unique tree near where he hid the guns, which were later recovered by federal agents.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives offices in Roanoke, Virginia, Charleston, South Carolina and Jacksonville, Florida, the Covington Police Department, the Allegheny County Sheriff’s Office, the Bloomingdale, Georgia Police Department, Colleton County Sheriff’s Office in South Carolina and the Nassau County Florida Sheriff’s Office. United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Anthony P. Giorno prosecuted the case for the United States.
Colfax County Man Pleads Guilty to Assaulting Federal EmployeeRead the Press Release
ALBUQUERQUE – Cody Martinez, 30, of Raton, N.M., pled guilty last week in federal court in Albuquerque, N.M., to assaulting a federal employee. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 8th Judicial District Attorney Donald Gallegos, and Inspector in Charge Keith Fixel of the Phoenix Division of the U.S. Postal Inspection Service.
Martinez was arrested on Jan. 29, 2016, on a federal criminal complaint for assaulting a U.S. Postal Service (USPS) letter carrier. According to the criminal complaint, Martinez struck the victim in the back of the head with a brick while the victim was delivering mail in Colfax County, N.M., on Jan. 20, 2016. Martinez was apprehended shortly thereafter while attempting to flee from law enforcement officers. The victim sustained serious injuries as a result of the assault.
Martinez was indicted on Feb. 24, 2016, and was charged with assaulting a federal employee resulting in bodily injury. On Nov. 4, 2016, Martinez pled guilty to the indictment and admitted that on Jan. 20, 2016, he assaulted a federal employee, a mail carrier, by striking him in the head with a dangerous weapon, a brick, causing bodily injury.
At sentencing, Martinez faces a statutory maximum sentence of 20 years in prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
Martinez was arrested on Jan. 20, 2016 on local charges filed by the 8th Judicial District Attorney’s Office. Those charges were dismissed in favor of federal prosecution.
This case was investigated by the U.S. Postal Inspection Service and the Raton Police Department, with assistance from the 8th Judicial District Attorney’s Office. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Chaves County Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Abel Montoya, 53, of Lake Arthur, N.M., was sentenced today in Las Cruces, N.M., federal court to 33 months in prison for violating the federal firearms laws. Montoya will be on supervised release for three years after completing his prison sentence.
Montoya was arrested on Oct. 21, 2015, on a criminal complaint charging him with being a felon in possession of a firearm on Feb. 27, 2014. On that day, the Pecos Valley Drug Task Force (PVDTF) executed a search warrant at Montoya’s residence and seized two firearms.
Montoya was subsequently indicted on Jan. 20, 2016, and charged with being a felon in possession of a firearm. At the time, Montoya was prohibited from possessing firearms or ammunition because he previously had been convicted of cocaine trafficking and possession of methamphetamine.
On May 25, 2016, Montoya pled guilty to the indictment and admitted that on Feb. 27, 2014, he possessed two firearms, one of which had an obliterated serial number. Montoya acknowledged that he was prohibited from possessing firearms because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the PVDTF with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Randy M. Castellano prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Brooklyn, New York Man Sentenced to Twelve Years in Jail for Sex Trafficking and Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Diheim Young, age 32, of Brooklyn, New York was sentenced by Judge William K. Sessions, III, in federal court to twelve years in prison after pleading guilty to a conspiracy to distribute heroin and crack cocaine in Rutland, Vermont as well as a conspiracy to engage in sex trafficking women between Vermont and New York. Young pleaded guilty to sex trafficking five women between 2012 and 2015. Four of the women were Vermont residents at the time they were trafficked. Judge Sessions also sentenced Young to five years of supervised release after his prison sentence.
According to the public record, Young worked with a series of women who assisted him in the drug trade. These women sold drugs for him, transported him to meet drug customers in and around Rutland and transported him to New York City to pick up drugs from his source of supply. When the women were sufficiently addicted to be dependent upon him, Young turned their addictions against them as a means of controlling them. Young convinced some of the women to travel to New York City with him under false pretenses and, once there, forced them to prostitute themselves either by posting advertisements on a website called Backpage or by forcing them to walk what is known as “the track.” If the women refused to engage in prostitution, Young withheld drugs from those who were addicted knowing that they would get sick from withdrawal. Young would also hit the women or threaten to hit them if they refused to do as Young said or attempted to escape.
With some of the Vermont women, Young also confiscated their cell phones and identification documents as a means of isolating and controlling them once they were in New York. One of Young’s siblings made his apartment in Brooklyn, New York, available for use as part of the sex trafficking scheme. This residence was used as a location to photograph the women for the purpose of creating Backpage advertisements, which he used to advertise some of the women to potential sex buyers. Young also held the women at the Brooklyn apartment where he assaulted them physically and sexually if they refused to engage in commercial sex acts or tried to leave him. Young took the proceeds earned by the women for engaging in forced prostitution and threatened them that if they stopped providing him with these prostitution proceeds, he would harm them further.
The United States Attorney commends the investigative efforts of the Federal Bureau of Investigation, the Southern Vermont Drug Task Force, and the Rutland Police Department, who worked together in this investigation. This case represents the success of interagency work as part of the Department of Justice’s and the State of Vermont’s joint efforts combatting human trafficking.
The United States was represented in this case by Assistant U.S. Attorney Paul Van de Graaf. The defendant is represented by Assistant Federal Public Defender David McColgin.
Athens Man Sentenced to Twenty-Five Years in Federal Prison for Attempting to Kill an Undercover ATF Special AgentRead the Press Release
G. F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Steven Maurice McKinley, age 23, of Athens, Georgia, was sentenced today to serve twenty-five years in Federal prison for his attempt to kill an undercover United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent (hereinafter “the agent”) on September 30, 2014. The sentence was handed down by the Honorable C. Ashley Royal, Senior United States District Court Judge, in Athens, Georgia. McKinley previously entered a plea of guilty on August 12, 2016, to a Superseding Indictment charging him with Attempt to Kill a Federal Officer and Discharging a Firearm During and in Relation to a Federal Crime of Violence.
Had this case gone to trial, the evidence presented by the United States would have shown that in September 2014, the ATF conducted an operation utilizing undercover agents to target the illegal sale of firearms and narcotics in Athens, Georgia. During the course of this undercover operation, the agent agreed to purchase an AK 47 or SKS style assault rifle and a quantity of marijuana from McKinley for $800.00 in cash. Defendant McKinley directed the agent to a convenience store parking lot to complete the transaction. When the agent arrived, McKinley persuaded the agent to pull the undercover vehicle down a nearby dirt road adjacent to the convenience store.
Shortly after the agent stopped the undercover vehicle, Javonta Terrell Darden, carrying a duffel bag, appeared on foot and accompanied McKinley and the agent to a small wooded area. Darden then dropped the duffel bag which was supposed to contain the firearm and marijuana that the agent was going to purchase for $800. Instead, the duffel bag contained only sticks and several pieces of wood because, as the agent then realized, McKinley and Darden intended to rob the agent at gunpoint of the $800 in cash as well as the contents of the agent’s vehicle.
After Darden dropped the bag, he produced a silver colored .25 caliber handgun, racked the slide and, pointing it at the agent ordered the agent to get on the ground. Once the agent was on the ground, McKinley took $400.00 from the agent’s front pocket. McKinley then returned to the agent’s vehicle, rummaged through the interior console, and removed items from inside. During the course of the armed robbery, Darden instructed McKinley to “get it all,” while Darden held the agent at gunpoint.
At this time, the agent was able to draw a Glock 27, .40 caliber service handgun, and fire several shots at Darden. While the agent was shooting, Darden, wounded, closed the gap and made physical contact with the agent, struggling with him until Darden expired. A later forensic analysis of the firearm used by Darden revealed a primer strike on the chambered round, indicating that Darden had pulled the trigger but his weapon failed to fire.
McKinley, who was rummaging through the agent’s vehicle when the shots rang out, attacked the agent. During the course of this assault, McKinley struck the agent on the head with the agent’s service weapon and ultimately gained positive control of the agent’s firearm. The agent attempted to flee from the area by running away from McKinley in the direction of the convenience store. As the agent fled, McKinley took aim and shot him in the back, with the bullet entering the back side of the agent’s right shoulder, fragmenting as it traveled through his body and lodging in the agent’s jaw, breaking the jaw as it did so.
As a part of his plea agreement, McKinley admitted that on September 30, 2014, he and his accomplice, Darden, agreed to meet with the agent for the purported purpose of selling a firearm and a quantity of marijuana for $800 when, in reality, he and Darden had conspired to rob the agent at gunpoint. As part of the robbery McKinley admitted firing the agent’s service weapon at the agent in an attempt to kill the agent while the agent was engaged in and on account of the performance of the agent’s official duties.
Said United States Attorney Peterman, “It is only through bravery, perseverance and extremely good luck that the agent Mr. McKinley tried to kill is alive and has recovered after being shot in the back while unarmed and posing no threat whatsoever. As despicable as were Mr. McKinley’s actions that night, those of the agent in this case stand as a reminder of the courage and dedication of our law enforcement professionals, who unflinchingly face such perils every day yet unflaggingly continue to carry out their duty to serve and protect our communities.”
“Today’s sentence is a direct message to criminals that law enforcement is observant and it will not tolerate violent crime. Steven McKinley showed a complete and utter disregard for human life when he attempted to murder a federal agent,” said Assistant Special Agent in Charge John Schmidt. “As an agency and unified law enforcement community, we will not tolerate armed violent individuals continually terrorizing our neighborhoods and reducing the quality of life.”
The case was investigated by the Federal Bureau of Investigation in Athens and the Georgia Bureau of Investigation. Assistant United States Attorneys Danial E. Bennett and Tamara A. Jarrett prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Army Lieutenant Colonel Sentenced to 20 Years in Prison for Production of Child Pornography Through Social Media and Instant Messaging AppsRead the Press Release
ALEXANDRIA, Va. – Steven Jon Frederiksen, 42, of Stafford, was sentenced today to 240 months in prison and twenty years of supervised release for production of child pornography and attempted coercion and enticement of a minor using social media and instant messaging apps.
Frederiksen pleaded guilty on Aug. 2, 2016. According to court documents, in November 2015, the FBI received notification that Frederiksen, at the time an employee of the Defense Intelligence Agency (DIA), was utilizing his government-issued laptop to engage in the production of child pornography. Frederiksen admitted in connection with his plea agreement that he used online chat programs, including Kik, to entice at least four minor girls, ranging in age from 14 to 17, to produce child pornography via the internet, which he then organized and saved in an online cloud storage account. He attempted to do this with at least two other minor girls. The defendant also possessed additional images of child pornography and exchanged child pornography with other individuals online.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. The case was investigated by the Federal Bureau of Investigation with assistance from the Army Criminal Investigative Command in Fort Belvoir. Special Assistant U.S. Attorney James E. Burke IV and Criminal Division Trial Attorney Lauren Britsch, Child Exploitation and Obscenity Section (CEOS), prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-96.
Army Lieutenant Colonel Sentenced to 20 Years in Prison for Production of Child Pornography Through Social Media and Instant Messaging AppsRead the Press Release
A Stafford, Virginia, man who serves as a lieutenant colonel in the U.S. Army was sentenced today to serve 240 months in prison for production of child pornography and attempted coercion and enticement of a minor using social media and instant messaging apps.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Steven Jon Frederiksen, 42, was sentenced by U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia, who also ordered him to serve a 20 year term of supervised release. On Aug. 2, 2016, Frederiksen pleaded guilty to one count of production of child pornography and one count of attempted coercion and enticement of a minor.
In November 2015, the FBI received notification that Frederiksen, at the time an employee of the Defense Intelligence Agency (DIA), was utilizing his government-issued laptop to engage in the production of child pornography. Frederiksen admitted in connection with his plea agreement that he used online chat programs, including Kik, to entice at least four minor girls, ranging in age from 14 to 17, to produce child pornography via the internet, which he then organized and saved in an online cloud storage account. He attempted to do this with at least two other minor girls. The defendant also possessed additional images of child pornography and exchanged child pornography with other individuals online.
The FBI’s Washington Field Office investigated the case with assistance from the Army Criminal Investigative Command in Fort Belvoir. Trial Attorneys James E. Burke IV and Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Albuquerque Man Sentenced to Prison for Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Johnny Ramirez, 34, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for violating the federal drug trafficking laws. Ramirez will be on supervised release for four years following his prison sentence.
Ramirez and his co-defendant Larry Valadez, 34, also of Albuquerque, were charged on Dec. 1, 2015, with drug trafficking offenses in an eight-count indictment. Ramirez and Valadez were charged with conspiring to distribute methamphetamine and heroin in May 2015, and with distributing methamphetamine and heroin in May 2015 and June 2015. According to the indictment, all eight offenses occurred in Bernalillo County, N.M.
On Aug. 1, 2016, Ramirez pled guilty to two methamphetamine distribution counts and one heroin distribution count. In entering the guilty plea, Ramirez admitted that on May 19, 2015, he arranged for a co-conspirator to sell 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual who was working with the FBI. Ramirez also admitted that on June 16, 2015, he sold 14.71 grams of methamphetamine to the same individual working with the FBI. Ramirez acknowledged that the drug deals took place in Albuquerque.
On Sept. 9, 2016, Valadez pled guilty to distributing methamphetamine and heroin and to violating the terms of his supervised release in a prior conviction. In entering the guilty plea, Valadez admitted that on May 19, 2015, he sold 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual working with the FBI. Under the terms of his plea agreement, Valadez will be sentenced to 69 months in prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the New Mexico State Police. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
7 November 2016
“Coyote” Pleads Guilty to Conspiring to Defraud Immigrants Seeking to Enter the U.S. and Their Relatives in the United StatesRead the Press Release
FRESNO, Calif. — A man who previously posed as an immigrant smuggler (also known as a “coyote”) pleaded guilty today to a scheme to detain Mexican citizens seeking to enter the U.S. without documentation, and hold them in order to compel their relatives who were U.S. residents to pay money for their release, Acting United States Attorney Phillip A. Talbert announced.
Martin Carranza-Sanchez, 45, of Mexico, pleaded guilty today to conspiracy to commit wire fraud. According to his plea agreement, between January 2010 and January 21, 2016, Carranza-Sanchez posed as an undocumented‑immigrant smuggler who falsely promised undocumented immigrants and their U.S.‑resident relatives that that he would deliver the immigrants into the United States for a fee. Carranza-Sanchez directed the U.S. residents to wire the fee to various bank accounts in the Eastern District of California, which he and his co-conspirators ultimately collected.
According to court documents, in an effort to obtain payment, Carranza-Sanchez instructed the immigrants to go to a location in Mexico where his co-conspirators seized and detained them against their will. The co-conspirators telephoned the U.S. residents and told them that the immigrants would soon be delivered to the United States or that they had safely crossed the border, and instructed the U.S. residents to wire the payment. On multiple occasions, Carranza-Sanchez and his co-conspirators threatened to harm the immigrants unless the U.S. residents paid immediately.
According to the plea agreement, Carranza-Sanchez never intended to facilitate the undetected entry of these immigrants into the United States. In many instances, once the relatives wired the fee, Carranza-Sanchez instructed the immigrants to cross the border, and the immigrants were immediately apprehended by United States Border Patrol.
The investigation revealed that Carranza-Sanchez and his co-conspirators defrauded U.S. residents of approximately $95,000 as a result of their scheme. The plea agreement obligates him to repay that amount to the victims of his crimes.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Angela L. Scott is prosecuting the case.
Carranza-Sanchez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on February 6, 2017, at 10:00 a.m. Carranza-Sanchez faces a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
“2Fly” Gang Member Pleads Guilty to Bronx Murder in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAQUAN MCINTOSH, a/k/a “BJ,” pled guilty today to participating in a racketeering conspiracy in connection with his membership in the “2Fly YGz” (“2Fly”), a violent street gang that operated in and around the Eastchester Gardens public housing development (“ECG”) in the Bronx. As part of his guilty plea, MCINTOSH admitted to his participation in the murder of Donville Simpson on or about October 5, 2013 – Simpson’s 17th birthday – at ECG. MCINTOSH faces a maximum term of life in prison, and will be sentenced next year by United States District Judge Lewis A. Kaplan.
U.S. Attorney Preet Bharara said: “In today’s plea, Jaquan McIntosh admitted to killing a 17-year-old boy as part of his membership in 2Fly, a violent street gang, that has been terrorizing the Eastchester Gardens public housing development in the Bronx. Gang violence continues to threaten the safety and security of too many New Yorkers, particularly those in public housing. Thanks to the work of the NYPD, HSI, DEA and ATF, one more source of gang violence in the Bronx has been brought to justice.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
MCINTOSH was a member of 2Fly, a subset of the “Young Gunnaz,” or “YG” street gang, which operates throughout New York City. 2Fly is based in the Bronx, within and around ECG and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs has led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
As part of his involvement in 2Fly, MCINTOSH shot and killed Donville Simpson at ECG on or about October 5, 2013 – Simpson’s 17th birthday – during a shootout with a rival street gang.
MCINTOSH was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, 57 members and associates of 2Fly were charged in the Indictment with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. To date, 19 of these defendants have pled guilty.
* * *
Mr. Bharara praised the outstanding work of the NYPD’s Bronx Homicide Task Force, the NYPD’s 49th Precinct Detective Squad, the Bronx Gang Squad, HSI, DEA, and ATF.
He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
Wichita Man Sentenced for Armed Robbery at Park City Liquor StoreRead the Press Release
WICHITA, KAN. – A Wichita man who was shot while attempting to rob a Park City liquor store was sentenced Monday to seven years in federal prison, Acting U.S. Attorney Tom Beall said.
Michael Ray Phillips, 37, Wichita, Kan., pleaded guilty to one count of brandishing a firearm during a commercial robbery. In his plea, he admitted that on May 24, 2016, he and a co-defendant both brandished firearms when they tried to rob MGS Liquor Store at 6200 North Broadway in Park City.
An employee of the store produced a firearm and fired two rounds at the robbers, striking Phillips in the chest. Although he was injured, Phillips fled the store before police arrived. The employee of the store held the other robber at gunpoint until police responded. Phillips was arrested later when he sought treatment for the gunshot wound at a hospital in Kansas City.
Co-defendant Roland Donell Ross is set for sentencing Nov. 10.
Beall commended the Park City Police Department, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated and Assistant. U.S. Attorney Lanny Welch for their work on the case.
Waco Woman and Former DTS Medical Supply Company Employee Sentenced to Federal Prison in Connection with $4.5 Million Health Care Fraud SchemeRead the Press Release
Robin Renee Haigler, 60-year-old former customer recruiter in the Waco area for DTS Medical Supply Company in Devine, TX, was sentenced to 87 months in federal prison for her role in an estimated $4.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.
In addition to the prison term handed down this morning in Waco, United States District Judge Alia Moses ordered that Haigler pay joint and several restitution in the amount of $3,269,300.11 to the federal government; and, be placed on supervised release for a period of three years after completing her prison term. Judge Moses also allowed Haigler to remain on bond pending facility designation notification by the U.S. Bureau of Prisons.
On August 17, 2015, Haigler pleaded guilty to one count of conspiracy to commit Health Care Fraud.
On June 28, 2016, a jury convicted Haigler’s co-defendants, 55–year-old DTS Medical Supply Company owner Daniel Thomason Smith and 45-year-old DTS office manager Kathleen Marina Kelly-Tuorila, on multiple federal charges in connection with the same scheme.
Both Medicare and Medicaid reimburse qualified beneficiaries for the purchase of prescribed and necessary medical equipment, including powered wheelchairs, powered scooters and accessories. Medicare and Medicaid set different compensation rates for each of these devices.
Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit false and fraudulent benefit claims to Medicaid and Medicare seeking more than $4.5 million compensation by making claims for the higher-reimbursement powered wheelchairs. In fact, they were delivering less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith. In addition, the evidence showed that the powered wheelchairs the defendants billed Medicaid and Medicaid for were neither medically necessary nor prescribed by any physician.
Smith and Kelly-Tuorila, who remain in federal custody, await sentencing scheduled for 10:30am on November 18, 2016, in San Antonio.
This investigation was conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Greg Surovic and Special Assistant U.S. Attorney Rex Beasley are prosecuting this case on behalf of the government.
Vinton Man Pleads Guilty to Federal Fraud ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the guilty plea today of a man who was previously charged with stealing funds from the Social Security Administration.
Robert Wozniak, 48, of Vinton, Va., was previously charged with one count of theft of government property and one count of social security fraud. Today he pled guilty to that charge.
“Programs like Social Security are meant to be social safety nets for those in need,” United States Attorney Fishwick said today. “The Defendant fraudulently obtained his grandmother’s social security benefits and this prosecution brings him to justice for this theft.”
Wozniak admitted today that from July 2015 through April 2016 he stole Social Security Administration funds, namely retirement benefit payments, intended for Wozniak’s deceased grandmother, for which he was not entitled. The indictment specifically claims that Wozniak intentionally concealed his grandmother’s death in order to continue to receive and spend the retirement benefit payments made by the Social Security Admiration to his grandmother.
The defendant admitted today that he concealed the body of his dead grandmother, Betty Wozniak in a freezer and later a barrel for months after she died in order to continue receiving her Social Security payments. Investigators discovered the body after Wozniak’s landlord became suspicious about the barrel and a hole she noticed in the property Robert Wozniak was renting from her.
The investigation of the case was conducted by the Department of Health and Human Services, the Social Security Administration, the Bedford County Sheriff’s Office and the Virginia Medical Center. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.
Topeka Man Sentenced for Armed Robbery with Twin BrotherRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Monday to 43 months in federal prison for helping his twin brother rob a payday lender’s store, Acting U.S. Attorney Tom Beall said.
Lamar Ray Steele, 26, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery. In his plea, he admitted he was the driver in a June 4, 2014, robbery at Check Into Cash at 3711 S.W. Plaza Drive in Topeka. He waited in the car while his twin brother went into the store brandishing a firearm. The brothers fled after the robbery.
Co-defendant Charles Lamar Steele, 26, Topeka, is set for sentencing Dec. 12. Co-defendant Zennie Lee Vasser, 33, Topeka, Kan., was sentenced to 43 months in federal prison.
Beall commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Pleads Guilty to Conspiracy in Interstate Sex Trafficking CaseRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty Monday to conspiring to operate an interstate sex trafficking business, Acting U.S. Attorney Tom Beall said.
Barry M. Johnson, 40, Topeka, Kan., pleaded guilty to one count of conspiracy. In his plea, he admitted conspiring with co-defendants to run a Topeka-based prostitution business that operated in Kansas, Missouri and Nebraska. At times, as many as 20 females were working as prostitutes for the organization. The leader of the organization rented houses where some of the prostitutes were allowed to live. The organization used Web sites, social media and cell phones to advertise sexual services and to keep track of prostitutes.
Johnson admitted he recruited and groomed potential sex workers for the organization. Johnson would notify the leader of the conspiracy he had a female who was ready to work and they would negotiate how much he would be paid.
Sentencing is set for Feb. 6. Both parties have agreed to recommend a sentence of 46 months in federal prison.
Co-defendant Frank Boswell, 42, Topeka, Kan., and Michaela Hekekia, 36, Topeka, are set for trial Jan. 3. Co-defendants Rachel Flenniken, 34, Topeka, Kan., and Sean P. Hall, 47, Topeka, Kan., are awaiting sentencing. Shannon Nelson, 23, Topeka, Kan., is set for sentencing Jan. 23.
Beall commended the Topeka Police Department, Homeland Security Investigations, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Arrested in Austin for Misuse of Social Security Administration Information / BenefitsRead the Press Release
In Austin today, federal agents arrested three individuals based on allegations that they misused Social Security Information and/or Benefits announced United States Attorney Richard L. Durbin, Jr., and Resident Agent in Charge Ron Trevino, Social Security Administration Office of Inspector General-Office of Investigations.
On November 1, 2016 a federal grand jury returned three unrelated indictments alleging fraud involving Social Security Administration Benefits programs. The first indictment charges 58–year-old Carlos Jimenez Saldana of Austin with one count of felony theft of government money. The indictment alleges that from August 2006 to March 2014, Saldana stole $77,000 in Social Security Administration funds, to which he was not entitled.
The second indictment charges 60-year-old David Royce Davis (aka Maverick Garrett) of Austin with two counts of Social Security Fraud and two counts of Aggravated Identity Theft. The indictment alleges that in July 2015, Davis used the Social Security Number (SSN) of a deceased individual to renew his Texas driver’s license. The indictment further alleges that in September 2015, Davis used the SSN of the same deceased individual to apply for a Social Security Card.
The third indictment charges 36-year-old Lameka Alexander Lowe of Austin with one count of felony Theft of Government Funds and two counts of Supplemental Security Income (SSI) Benefits fraud. The indictment alleges that in 2012 and 2013, Lowe knowingly made false representations to the Social Security Administration. Specifically, she concealed from the agency that her son’s father was a member of the household and failed to report his financial earnings in order to continue receiving unauthorized SSI benefits on behalf of her son. Between December 2009 and June 2015, the indictment alleges that the defendant, as a result of her fraudulent scheme, stole more than $40,000 from the government.
Upon conviction, theft of government money calls for up to ten years in federal prison; Social Security Fraud, up to five years in federal prison; aggravated identity theft, a mandatory two years in federal prison; and, supplemental security income benefits fraud, up to five years in federal prison. All three were released on bond following their initial appearances before U.S. Magistrate Judge Andrew Austin in Austin. Arraignments are scheduled for November 18, 2016, before Judge Austin.
The Social Security Administration estimates billions of dollars of SSA Title II, Old Age, Survivors, and Disability Insurance (OASDI) and Title XVI, SSI Benefit Program Funds are lost yearly due to fraud nationwide. The Social Security Administration’s Office of Inspector General in partnership with the U.S. Attorney Offices nationwide continue to actively prosecute Theft of Government Funds related to fraud perpetrated on SSA Benefit Programs. Special Assistant United States Attorney Yvonne S. Gonzalez is prosecuting these cases on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
Ten-Year Sentence for Fentanyl Smuggler; In Another Courtroom, Guilty Plea to Smuggling Approximately 6,000 pills of FentanylRead the Press Release
Assistant U. S. Attorneys Sherri Hobson (619) 546-6986, Brandon Kimura (619) 546-9614, Kevin Mokhari (619) 546-8402 and Lara Stingley (619) 546-8403
NEWS RELEASE SUMMARY – November 7, 2016
SAN DIEGO – One fentanyl smuggler was sentenced in federal court today to 10 years in prison while another pleaded guilty in an unrelated case involving a deadly drug that has become an extremely dangerous public safety threat.
In the first case, Graciela Poteciano, of Chula Vista, was sentenced by U.S. District Judge Roger T. Benitez to 120 months in prison for attempting to smuggle more than 26 pounds of fentanyl, methamphetamine and heroin.
Also today, U.S. District Judge Cynthia Bashant accepted the guilty plea of another defendant, Jose Arturo Acevedo, who attempted to smuggle 5,857 pills containing fentanyl, 55 pounds of methamphetamine, 24 pounds of cocaine, and 12 pounds of heroin. The blue pills had markings and the physical dimension of oxycodone, but the Drug Enforcement Administration lab determined that they contained fentanyl.
Poteciano, 43, of Tijuana, Mexico, was convicted by a federal jury in July 2016 of three counts of smuggling into the United States approximately 26.59 pounds of fentanyl, 10 pounds of methamphetamine, and 6.57 pounds of heroin, following her jury trial in July 2016. Poteciano was charged with importation of controlled substances into the United States. in violation of Title 21, United States Code, Sections 952 and 960.
According to evidence presented at trial, Potenciano entered the San Ysidro Port of Entry on May 24, 2016, as the driver of a Chevy Avalanche. U.S. Customs and Border Protection officers discovered the drugs in a spare tire located in the under carriage. The seized methamphetamine had a retail value of up to 80,000; the seized heroin had a retail value of up to $78,840; the seized fentanyl had a retail value of up to $510,000.
In sentencing Poteciano today, Judge Benitez remarked about the dangers of the deadly fentanyl and how fentanyl was connected to multiple overdoses in the nation. When fentanyl, a Schedule II synthetic opioid painkiller, is produced in clandestine laboratories, it can be 100 times more potent than morphine. Exposure to even a trace amount of fentanyl through inhalation or absorption through the skin can be fatal.
According to his plea agreement, Acevedo entered the San Ysidro Port of Entry on July 19, 2016 in his vehicle, which contained 24 packages of drugs concealed in a speaker box lying on the floor of the vehicle behind the front seats near the passenger door. He is scheduled to be sentenced on January 30, 2016 before Judge Bashant.
“Fentanyl remains an extremely dangerous public safety threat,” said U.S. Attorney Laura Duffy. “I continue to be alarmed by the number of fentanyl seizures we are seeing at our borders, which can only mean more tragic deaths if users don’t wake up and take these warnings to heart.”
Last year, the Drug Enforcement Administration released a nationwide public health alert on Fentanyl, a Schedule II synthetic opioid painkiller. Fentanyl is anywhere from 25 to 50 times more potent than heroin. DEA investigations reveal that the Mexican drug cartels, including Sinaloa, are producing fentanyl from precursors sourced from China.
DEFENDANTS
Graciela Potenciano Age 43 Chula Vista, California Criminal Case: 16CR1285
Jose Arturo Acevedo Age 35 Tijuana, Mexico Criminal Case: 16CR1877
SUMMARY OF CHARGES
Importation of Controlled Substances (21 U.S.C. 952 and 960)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Customs and Border Protection
Homeland Security Investigations
Tacoma Man Sentenced to Nearly Four Years in Prison for Embezzling $2.3 Million from his EmployerRead the Press Release
A Tacoma, Washington man who stole more than $2.3 million from his employer over a five-year period was sentenced today in U.S. District Court in Seattle to 46 months in prison for wire fraud, announced U.S. Attorney Annette L. Hayes. TONI ANDERSSON, 37, was ordered to pay $2,294,761 to Expedited Solutions, a freight management company. At the sentencing hearing U.S. District Judge James L. Robart noted that ANDERSSON had been trusted within the company. “There are a lot of people out there who we trust to do the right thing and we need to say there is a serious consequence for doing the wrong thing,” Judge Robart said.
According to records filed in the case, between July 2010 and February 2016 in his role as accounting coordinator for a freight management company, ANDERSSON diverted $2.3 million from company accounts to his own bank account. ANDERSSON did this by a variety of means: creating false entries in accounting software so that payments made to himself appeared to be payments to vendors; creating of checks made out to himself and drawn on company bank accounts; using the signature stamp of the company owner to sign checks; and transferring funds between various company accounts to hide the embezzlement. In all there were more than 400 different fraudulent transactions over the five-year period. After an external audit uncovered the scheme, the audit revealed that ANDERSSON had also failed to forward company employee’s 401k payments to their retirement plans – a loss to the employees of more than $70,000. Those funds were later paid back by the company’s owner.
The embezzlement had a devastating impact on the company and its owner forcing him to layoff some employees, sell his home and draw on some of his retirement savings.
The financial investigation revealed that ANDERSSON used the funds for travel, to open a small coffee shop/café that ultimately failed, and for shopping sprees of as much as $2000 per day. ANDERSSON purchased and remodeled an expensive home and bought a boat and luxury car. He also paid to enroll in an online law school.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Statement by Attorney General Loretta E. Lynch on the Passing of Attorney General Janet RenoRead the Press Release
Attorney General Loretta E. Lynch today released the following statement on the passing of former Attorney General Janet Reno:
“With the passing of Janet Reno, the Department of Justice has lost one of the most effective, decisive and well-respected leaders in its proud history. From her years in state law enforcement to her long and eventful tenure as Attorney General, Janet Reno always strove, as she put it, to do her ‘level best.’ She led the department in a time of turmoil and change, confronting issues ranging from international and domestic terrorism to fair competition in the emerging technology sector. In meeting these challenges, she was guided by one simple test: to do what the law and the facts required. She accepted the results of that test regardless of which way the political winds were blowing. She never shied from criticism or shirked responsibility, earning her the affection of her subordinates, the respect of her critics, and the esteem of the American people. And of course, as the first woman to serve as attorney general, she was an inspiration and a trailblazer for so many women working in law enforcement and government -- including me. The United States is a stronger, safer and more just place because of Janet Reno’s leadership, and she will be dearly missed.”
Somerset County, New Jersey, Man Admits Role in Five Bank Robberies, One Attempted Bank RobberyRead the Press Release
NEWARK, N.J. – A Bound Brook, New Jersey, man today admitted robbing five banks and attempting to rob another between June 2014 and June 2015, U.S. Attorney Paul J. Fishman announced.
Luis Castaneda, 40, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with six counts of bank robbery and one count of brandishing a firearm in furtherance of one of the robberies.
According to documents filed in this case and statements made in court:
Castaneda admitted that between June 6, 2014 and June 12, 2015, he robbed or attempted to rob six banks, all in New Jersey:
Date
Financial Institution
Location
June 6, 2014
County Educators Federal Credit Union
Somerville
Dec. 3, 2014
Manville Area Federal Credit Union
Manville
March 19, 2015
Public Service Credit Union
Middlesex
May 9, 2015
Peapack-Gladstone Bank (Attempt)
Piscataway
May 9, 2015
Unity Bank
Whitehouse Station
June 12, 2015
Somerset Savings Bank
Somerset
Castaneda admitted that during each of the above robberies, he and others threatened to use force while demanding money from the bank employees. He also admitted that during the Somerset Savings Bank robbery on June 12, 2015, he brandished a firearm in order to intimidate one or more of the bank employees.
The bank robbery charges to which Castaneda pleaded guilty each carry a maximum penalty of 20 years in prison and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years to be served consecutively to any other sentence imposed. Sentencing is scheduled for Feb. 15, 2016.
U.S. Attorney Fishman credited special agents of the FBI Franklin Township Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Somerset County Prosecutor’s Office, the Middlesex County Prosecutor’s Office, and the Hunterdon County Prosecutor’s Office, as well as the Somerville, Manville, Piscataway, Readington Township, Middlesex Borough, and Bound Brook police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Azzarello Esq.
Six Men Charged in A Conspiracy with Stealing Cars and Loan Proceeds by Falsely Claiming Identity TheftRead the Press Release
Loss to area banks and auto dealers more than $1.2 Million
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the indictment and arrests of six men all charged in a conspiracy that resulted in a loss of approximately $1.2 million to banks and car lenders. The twenty count indictment was unsealed on October 25, 2016 during a hearing before United States Magistrate Judge Dave Whalin. A jury trial is scheduled in Louisville before Senior Judge Charles R. Simpson III, on December 19, 2016 at 9:30 am.
Today, defendant Christopher Peplinski, 42, (formerly from Orion, Michigan), was arraigned before Magistrate Judge Colin H. Lindsay and remains on bond charged with conspiracy to commit mail fraud and money laundering. Defendants Jamesy Havens, 41, Ronald Lovell, 34, of Louisville, and Jasen Coon, 38, of Miami, were previously arraigned and remain in federal custody charged with conspiracy to commit mail fraud and money laundering. Defendants David Farnsworth, 50, and Danny Coslow Jr. of Louisville, face the same charges and remain on bond pending the December trial in Louisville.
According to the indictment, the defendants opened bank accounts in Louisville, Kentucky, Michigan, and Florida, under company names designed to appear as legitimate businesses and car dealerships, such as 24/7 Motors, FTD Motors, Auto Advantage Company, Gulf Coast Holdings, VMCD Corp., and VMD Direct Processing. Then, over a two-year period, beginning in June 2013, until June 2015, the defendants allegedly carried out several schemes to defraud banks and auto dealerships of more than $1.2 million.
These schemes included purchasing vehicles with no intention of repaying the loans by reporting the transactions were made by someone else who had stolen their identification; applying for and receiving loans from banks, then using fraudulent car purchase invoices from their “businesses” (previously listed) to give the impression that cars were being purchased - when instead - no car was purchased and the loan proceeds were deposited for their own personal use. Another alleged scheme involved the defendant’s obtaining multiple car loans for the same car to make it look as if the vehicle had been sold multiple times when in fact the defendants still possessed the car. Also, the defendants are charged with creating false documents to make it appear that bank liens on vehicles had been paid in full, when the liens had not been paid.
If convicted of the charges at trial, each defendant could be sentenced to no more than 20 years for conspiracy to commit mail fraud, no more than 10 years for each count of money laundering by engaging in monetary transactions over $10,000, and no more than 20 years per count of money laundering transactions designed to conceal the proceeds of fraud. In addition, defendant Havens is charged with a single count of identity theft which carries an additional sentence of no less than two years in prison. All defendants are subject to forfeiture of any property derived from the alleged offenses, could be required to pay fines, and could be ordered to serve a term of supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd. It is being investigated by the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, United States Secret Service and Louisville Metro Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Sebring Resident Sentenced to Prison for Unlawfully Dealing Firearms on FacebookRead the Press Release
A Sebring resident was sentenced to federal prison, for dealing firearms without a license and making a false statement to a licensed firearms dealer.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Brandt Schenken, Special Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
Bryan Grover Marley, 60, of Sebring, Florida, previously pled guilty to one count of dealing firearms without a license, in violation of Title 18, United States Code, Section 922(a)(1)(A); and one count of making a false statement to a firearms dealer, in violation of Title 18, United States Code, Section 922(a)(6). United States District Court Judge Robin L. Rosenberg sentenced Marley to one year and one day of imprisonment, to be followed by one year of supervised release. In addition, Marley agreed to forfeit 17 firearms that had been seized by ATF during the investigation.
According to filed documents and statements made in court, between July 2015 and April 2016, Marley advertised the sale of firearms through multiple Facebook postings. Marley did not have a federal firearms license and unlawfully sold over 170 firearms, including small handguns and AR-15 assault rifles. Marley acquired firearms from licensed firearms dealers and sold them for a profit to people who responded to his listings on Facebook. When Marley bought the firearms from a licensed dealer he falsely indicated on firearms transaction forms that he was the actual buyer, when in fact he was making the purchases on the behalf of his customers. On multiple occasions, Marley sold firearms to individuals who were prohibited from possessing firearms because they were either a convicted felon or had a prior conviction for domestic violence. Four prohibited persons have been indicted for unlawfully possessing the purchased firearms.
Mr. Ferrer commended the investigative efforts of ATF. The case was prosecuted by Assistant U.S. Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
San Fernando Valley Man Who Admitted Murdering TSA Officer During 2013 Shooting Spree at LAX Sentenced to Life plus 60 YearsRead the Press Release
LOS ANGELES – A Sun Valley man who admitted a host of criminal charges related to a 2013 shooting spree at Los Angeles International Airport in which he murdered Transportation Security Administration Officer Gerardo Hernandez was sentenced today to spend the rest of his life in federal prison.
Paul Anthony Ciancia, 26, who pleaded guilty to first-degree murder in the fatal shooting of TSA Officer Hernandez on November 1, 2013, was sentenced by United States District Judge Philip S. Gutierrez.
Judge Gutierrez sentenced Ciancia to life in prison, plus an additional 60 years. There is no parole in the federal prison system.
“Today, justice was done on behalf of fallen TSA Officer Gerardo Hernandez, his wounded colleagues, and all those who were terrorized by the wanton violence perpetrated by this defendant,” said Attorney General Loretta E. Lynch. “This sentence reflects appropriate punishment for a heinous crime. It ensures that the defendant can never again harm or murder innocent Americans. And it sends a clear message that the Department of Justice will not tolerate calculated attacks on our nation’s law enforcement officers, and that those who do commit such crimes will be held accountable.”
“The crimes that led to today’s sentence were vicious, horrific and senseless,” said United States Attorney Eileen M. Decker. “After planning a mass murder, this defendant murdered a highly respected law enforcement officer, seriously wounded two other federal officers and a civilian, and terrified hundreds of people who feared for their lives. Those who target law enforcement and our nation’s critical infrastructure will be held accountable. As a result of today’s sentence, Mr. Ciancia will never again have a chance to harm other innocent people.”
According to court documents, in early 2013, Ciancia purchased a semiautomatic rifle, 500 rounds of ammunition and 10 magazines for the rifle. On the morning of November 1, 2013, Ciancia modified two pieces of luggage and zip-tied them together to conceal his loaded rifle.
Later that morning, Ciancia entered Terminal Three at LAX, removed the loaded rifle from his modified luggage and fired at and killed Officer Hernandez, who was checking passengers’ travel documents as part of his duties as a TSA Officer. Ciancia admitted that he then went upstairs to a TSA checkpoint, where he fired his weapon at TSA Officers Tony Leroy Grigsby and James Maurice Speer, as well at a civilian, Brian Ludmer. These three victims sustained serious injuries and required surgery, but they survived the attack.
“The defendant will spend the rest of his life behind bars for targeting airport officers with premeditated murder, but a just sentence cannot replace the loss of Officer Hernandez, nor remove the suffering of his victims, and his victims' families, friends and colleagues,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The collaborative efforts by first responders and investigators on the day of the shooting and thoughout this investigation are commendable and aided prosecutors in ensuring that Mr. Ciancia can never again pose a threat.”
“We are grateful to the FBI and the Department of Justice for their hard work in obtaining justice for Mr. Hernandez, his family, co-workers, and the men and women of DHS,” said Secretary Jeh C. Johnson of the Department of Homeland Security.
Appearing before Judge Gutierrez two months ago, Ciancia pleaded guilty to one count of murder of a federal officer; two counts of attempted murder of a federal officer; four counts of violence at an international airport; one count of discharging of a firearm during a crime of violence causing death; and three counts of discharging a firearm during a crime of violence.
During today’s sentencing hearing, Judge Gutierrez sentenced Ciancia to life in prison for the first-degree murder charge. Judge Gutierrez also imposed life sentences for the two additional charges based on the killing of Officer Hernandez – violence at an international airport that resulted in death and using a firearm to murder and cause death.
The additional 60-year prison term was imposed in relation to the three counts of using a firearm during a crime of violence.
This case is the product of an investigation by members of the Los Angeles Joint Terrorism Task Force (JTTF), which is led by the Federal Bureau of Investigation and includes agents and officers from 45 other local, state and federal agencies.
The following agencies provided considerable assistance during the investigation: the Los Angeles Airport Police; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; the Transportation Security Administration; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the United States Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the United States Marshals Service; the United States Postal Inspection Service; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorney Patrick R. Fitzgerald, who is chief of the National Security Division; Assistant United States Attorneys Melissa Mills of the Terrorism and Export Crimes Section; Joanna M. Curtis of the Violent and Organized Crime Section; and DOJ Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section.
Pool Cue Maker Sentenced for Helping to Smuggle Elephant IvoryRead the Press Release
LOS ANGELES – A North Hollywood man was sentenced this morning on federal charges related to the attempted illegal exportation from the United States to Taiwan of protected African elephant ivory.
Cesar Ernesto Gutierrez, 75, was sentenced by United States District Judge John F. Walter to two years of probation, which will include four months of home confinement. Judge Walter ordered Gutierrez to immediately pay a criminal fine of $10,000.
Gutierrez pleaded guilty on August 29, 2016 to aiding and abetting the attempted smuggling of African elephant ivory.
According to court documents, Gutierrez is a well-known maker of custom pool cues who operates Ginacue in North Hollywood. Gutierrez manufactured and sold two Taiwanese nationals approximately 41 sections of custom pool cues containing inlays of protected elephant ivory. The two individuals Huang Ching Liu and Wen Shou Wei Chen were subsequently arrested at Los Angeles International Airport when agents with U.S. Customs and Border Protection and U.S. Fish and Wildlife Service discovered the pool cues in their luggage. Liu and Chen were indicted separately. The seized pool cues were purchased from Gutierrez for approximately $75,000 to $85,000.
“The protection of our endangered wildlife is an ongoing international concern, particularly with the devastating impact on African elephants caused by illegal ivory trafficking,” said United States Attorney Eileen M. Decker. “Illegal trafficking of any part of a protected species creates a demand that can lead to the extinction of these vulnerable populations.”
This case was investigated by the United States Fish and Wildlife Service, with assistance from United States Customs and Border Protection. The case was prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
Ohio Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
Aaron Travis Daniels, aka Harun Muhammad, aka Abu Yusef, 20, of Columbus, Ohio, was arrested today for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The arrest was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF).
JTTF agents arrested Daniels as he attempted to leave Columbus with an alleged eventual destination of Libya, for the purpose of joining ISIL. The criminal complaint against him also alleges that Daniels sent $250 in January 2016 to an ISIL operative and had communicated his commitment to violent overseas jihad.
The complaint alleges that Daniels set up email addresses and a social media account using aliases and expressed his interest in violent jihad and traveling overseas in various communications.
The complaint also alleges that Daniels wired money to an intermediary for Abu Isa Al-Amriki, a now-deceased ISIL member, recruiter and external attack planner. Daniels allegedly told an undercover FBI employee that he wanted to travel to Trinidad as the beginning of his trip to Libya, where Daniels said Al-Amriki had suggested he go to support jihad. On Nov. 5, Daniels bought an airline ticket to travel from Columbus to Houston, Texas, and on to Trinidad. The flight was scheduled to leave Columbus today.
JTTF officers arrested Daniels at the airport, before boarding his flight. Daniels appeared before U.S. Magistrate Judge Terence P. Kemp who ordered him held without bond.
If convicted of attempting to provide material support to a foreign terrorist organization, Daniels faces a maximum sentence of 20 years in prison. Congress prescribes the maximum potential sentences and it is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. A federal criminal complaint merely contains allegations and the defendant is presumed innocent unless proven guilty in a court of law.
The Southern Ohio JTTF is made up of officers and agents from the FBI, the U.S. Marshals Service, the Columbus Division of Police, Franklin County Sheriff’s Office, the Ohio State Highway Patrol, the Ohio State University Police Department, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, the Westerville Police Department and the Columbus Division of Fire.
Acting Assistant Attorney General McCord and U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Assistant U.S. Attorney Jessica W. Knight of the Southern District of Ohio, Special Assistant U.S. Attorney Joseph Gibson of the Franklin County Prosecutor’s office, and Trial Attorneys Michael Dittoe and Taryn M. Meeks of the National Security Division’s Counterterrorism Section.
Ocala Sex Trafficker Sentenced to 20 Years in PrisonRead the Press Release
GAINESVILLE, FLORIDA – Corey Lawayne Mosley, 40, of Ocala, has been sentenced to 20 years in prison for sex trafficking by coercion. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During his guilty plea, Mosley admitted that, between September 2010 and March 2012, he was involved in a sex trafficking scheme using a woman who was addicted to cocaine. Mosley transported the victim to various locations within the Northern District of Florida, including hotels and area truck stops, for commercial sex. Mosley coerced the victim both with physical violence and nonphysical means. He also provided her with cocaine and then forced her to pay for it by performing sex acts for money. Mosley collected the proceeds from the victim’s commercial sexual activity.
“Human trafficking is modern day slavery, and tragically, it occurs in the Northern District of Florida, as well as throughout the nation,” said United States Attorney Canova. “This horrific crime is often hidden in plain sight because traffickers use coercion tactics to keep their victims silent. I am proud of the hard work of all those who are fighting human trafficking, including prosecutors, law enforcement agencies, local coalitions, and community members.”
“Sex trafficking is a violation of its victims’ civil rights, and infringes upon the protected liberties guaranteed to all Americans,” said Charles P. Spencer, Special Agent in Charge of the FBI’s Jacksonville Division. “This type of illegal activity demonstrates a very real risk to our local communities, and stopping it remains one of the highest criminal investigative priorities for the FBI.”
“FDLE, along with our partners, will continue to aggressively investigate human trafficking cases,” said FDLE Jacksonville Special Agent in Charge Dennis Bustle. “These crimes have devastating impacts on their victims, and we must remain vigilant to identify and investigate these criminals.”
This case resulted from investigations by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]New Haven Man Sentenced to 11 Years in Federal Prison for Role in Fraudulent Oxycodone Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEJANDRINO DeJESUS, also known as “Baby Boo,” 38, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 132 months of imprisonment, followed by three years of supervised release, for his role in a scheme to obtain oxycodone through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
DeJESUS, Julian Cintron and David Thompson, all of New Haven, were key members of the organization who recruited and transported runners to fill fraudulent prescriptions. The investigation, which included controlled purchases of narcotics, revealed that DeJESUS distributed oxycodone, as well as heroin and cocaine.
A total of 11 individuals were charged as a result of the investigation.
DeJESUS has been detained since his arrest on September 10, 2015. On August 5, 2016, he pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
Cintron and Thompson pleaded guilty and await sentencing.
DeJESUS’s criminal history includes multiple felony firearms-related convictions.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Mine Inspector Admits Falsifying Mine Safety Inspection ReportsRead the Press Release
DALLAS — A Eustace, Texas, man who worked as an inspector for the U.S. Department of Labor’s (DOL) Mine Safety and Health Administration (MSHA) appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge David L. Horan to a federal offense related to his purposefully falsifying mine safety inspection reports with the intent to deceive the MSHA, announced U.S. Attorney John Parker of the Northern District of Texas.
Nathan Edward Welch, 35, pleaded guilty to an Information charging one count of making a false statement in an official writing. He faces a maximum statutory penalty of one year in federal prison and a $100,000 fine. According to the plea agreement, Welch agrees to resign/retire from MSHA within five calendar days of the date he enters his plea, and he agrees to not seek any future employment with the U.S. government. Sentencing is set for March 8, 2017, before Judge Horan.
According to documents filed in his case, from approximately June to July 2016, Welch stated in a MSHA report that he had completed an onsite inspection from July 6, 2016, to July 11, 2016, for the Dead River Ranch Materials Riesel Sand and Gravel Plant when he knew he had not conducted any such inspection and had never traveled to or met any representative of the Dead River Ranch Materials Mining Operation for an inspection.
In addition, Welch falsified at least three other inspection reports that claimed he performed inspections on the following dates at the following locations:
July 12, 2016 Big Sandy Sand Company North Pit and Mining Operation
Hawkins, TexasJune 1, 2016 Cedar Creek Stone Mine
Groesbeck, TexasJune 23, 2016- Trinity Lightweight Expanded Shale and Clay Plant
June 30, 2016 Streetman, TexasIn completing these falsified inspection reports, Welch used previously completed reports to create the falsified reports and hand-copied the field notes for these four locations from inspection reports that had been completed earlier in the year.
The case is being investigated by the DOL Office of Inspector General (OIG). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Medical Device Maker Biocompatibles Pleads Guilty to Misbranding and Agrees to Pay $36 Million to Resolve Criminal Liability and False Claims Act AllegationsRead the Press Release
Pennsylvania-based medical device manufacturer Biocompatibles Inc., a subsidiary of BTG plc, pleaded guilty today to misbranding its embolic device LC Bead and will pay more than $36 million to resolve criminal and civil liability arising out of its illegal conduct, the Justice Department announced today. LC Bead is used to treat liver cancer, among other diseases.
Under the terms of the plea agreement before the U.S. District Court for the District of Columbia, Biocompatibles pleaded guilty to a misdemeanor charge in connection with the company’s misbranding of LC Bead, in violation of the Food, Drug and Cosmetic Act. LC Bead was cleared by the U.S. Food and Drug Administration (FDA) as an embolization device that can be placed in blood vessels to block or reduce blood flow to certain types of tumors and arteriovenous malformations. LC Bead has never been cleared or approved by FDA as a drug-device combination product or for use as a drug-delivery device or “drug-eluting” bead.
As part of the criminal resolution, Biocompatibles will pay an $8.75 million criminal fine for the misbranding of LC Bead and a criminal forfeiture of $2.25 million. The FDA sought assurances in 2004 that Biocompatibles would not use FDA clearance for the device for embolization to market the device for drug delivery, according to a statement of offense to which the company agreed. Biocompatibles told the FDA that “under no circumstance” would the company use the embolization clearance to market the device for drug delivery. However, two years later, Biocompatibles began marketing LC Bead for drug delivery through the company it hired to carry out its sales and distribution in the United States. According to the statement of offense, the distribution company told its sales representatives that LC Bead was “[a] drug-delivery device” and trained its sales representatives to “aggressively penetrate the chemoembolization market.” Sales representatives subsequently told health care providers that the device increased the level of chemotherapy delivered to a liver tumor and resulted in “better tumor response rates,” despite the lack of FDA clearance or approval for that use and despite the absence at that time of statistically significant evidence to support such claims.
“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
“This company is being held criminally and civilly responsible for misbranding a medical device and marketing it for the treatment of seriously ill cancer patients,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Working with the FDA and other law enforcement partners, we are committed to holding companies accountable for violating the integrity of the FDA approval process.”
In addition, Biocompatibles will pay $25 million to resolve civil allegations under the False Claims Act that the company caused false claims to be submitted to government healthcare programs for procedures in which LC Bead was loaded with chemotherapy drugs and used as a drug-delivery device. When LC Bead was combined with prescription drugs for use as a drug-eluting bead, it constituted a new combination drug-device product that was not approved or cleared by the FDA and not covered by Medicare and other federal health care programs. The federal share of the civil settlement is approximately $23.6 million, and the state Medicaid share of the civil settlement is approximately $1.4 million.
As part of the civil settlement, the government alleged that when LC Bead entered the U.S. market in 2005, Biocompatibles intended for LC Bead to be used as a drug-delivery device in combination with chemotherapy drugs, despite the lack of FDA approval as a drug-device combination product. In December 2009, Biocompatibles filed an application with FDA for approval of LC Bead as a drug-eluting bead combination product. However, FDA informed the company that it was not accepting the application because clinical studies did not provide adequate evidence of a therapeutic benefit. Nonetheless, Biocompatibles’ distributor routinely advised healthcare providers that LC Bead provided “better” or “superior” therapy for certain types of cancer when, in fact, there was insufficient clinical evidence to support these claims.
“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas. “The FDA approval process and clinical studies serve to ensure that patients receive devices that meet those standards. We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”
“U.S. consumers rely on the FDA to ensure that there is a reasonable assurance of safety and effectiveness for the approved uses of medical devices,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “When manufacturers ignore FDA’s regulatory authority, they undermine these important assurances.”
The civil settlement with Biocompatibles resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Western District of Texas and is captioned United States ex rel. Ryan Bliss v. Biocompatibles, Inc., et al. As part of today’s resolution, Bliss will receive approximately $5.1 million from the civil settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Biocompatibles was the result of a coordinated effort among the U.S. Attorney’s Offices for the District of Columbia and the Western District of Texas, and the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel, HHS’ Office of Counsel to the Inspector General and the Department of Defense’s Defense Criminal Investigative Service. The criminal investigation was conducted by the FDA’s Office of Criminal Investigations.
Except for the conduct admitted in connection with the criminal plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information on the Commercial Litigation Branch’s Fraud Section, visit https://www.justice.gov/civil/fraud-section.
Medical Device Maker Biocompatibles Pleads Guilty to Misbranding and Agrees to Pay $36 Million to Resolve Criminal Liability and False Claims Act AllegationsRead the Press Release
WASHINGTON – Pennsylvania-based medical device manufacturer Biocompatibles Inc., a subsidiary of BTG plc, pleaded guilty today to misbranding its embolic device LC Bead and will pay more than $36 million to resolve criminal and civil liability arising out of its illegal conduct, the Justice Department announced today. LC Bead is used to treat liver cancer, among other diseases.
Under the terms of the plea agreement before the U.S. District Court for the District of Columbia, Biocompatibles pleaded guilty to a misdemeanor charge in connection with the company’s misbranding of LC Bead, in violation of the Food, Drug and Cosmetic Act. LC Bead was cleared by the U.S. Food and Drug Administration (FDA) as an embolization device that can be placed in blood vessels to block or reduce blood flow to certain types of tumors and arteriovenous malformations. LC Bead has never been cleared or approved by FDA as a drug-device combination product or for use as a drug-delivery device or “drug-eluting” bead.
As part of the criminal resolution, Biocompatibles will pay an $8.75 million criminal fine for the misbranding of LC Bead and a criminal forfeiture of $2.25 million. The FDA sought assurances in 2004 that Biocompatibles would not use FDA clearance for the device for embolization to market the device for drug delivery, according to a statement of offense to which the company agreed. Biocompatibles told the FDA that “under no circumstance” would the company use the embolization clearance to market the device for drug delivery. However, two years later, Biocompatibles began marketing LC Bead for drug delivery through the company it hired to carry out its sales and distribution in the United States. According to the statement of offense, the distribution company told its sales representatives that LC Bead was “[a] drug-delivery device” and trained its sales representatives to “aggressively penetrate the chemoembolization market.” Sales representatives subsequently told health care providers that the device increased the level of chemotherapy delivered to a liver tumor and resulted in “better tumor response rates,” despite the lack of FDA clearance or approval for that use and despite the absence at that time of statistically significant evidence to support such claims.
“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
“This company is being held criminally and civilly responsible for misbranding a medical device and marketing it for the treatment of seriously ill cancer patients,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Working with the FDA and other law enforcement partners, we are committed to holding companies accountable for violating the integrity of the FDA approval process.”
In addition, Biocompatibles will pay $25 million to resolve civil allegations under the False Claims Act that the company caused false claims to be submitted to government healthcare programs for procedures in which LC Bead was loaded with chemotherapy drugs and used as a drug-delivery device. When LC Bead was combined with prescription drugs for use as a drug-eluting bead, it constituted a new combination drug-device product that was not approved or cleared by the FDA and not covered by Medicare and other federal health care programs. The federal share of the civil settlement is approximately $23.6 million, and the state Medicaid share of the civil settlement is approximately $1.4 million.
As part of the civil settlement, the government alleged that when LC Bead entered the U.S. market in 2005, Biocompatibles intended for LC Bead to be used as a drug-delivery device in combination with chemotherapy drugs, despite the lack of FDA approval as a drug-device combination product. In December 2009, Biocompatibles filed an application with FDA for approval of LC Bead as a drug-eluting bead combination product. However, FDA informed the company that it was not accepting the application because clinical studies did not provide adequate evidence of a therapeutic benefit. Nonetheless, Biocompatibles’ distributor routinely advised healthcare providers that LC Bead provided “better” or “superior” therapy for certain types of cancer when, in fact, there was insufficient clinical evidence to support these claims.
“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas. “The FDA approval process and clinical studies serve to ensure that patients receive devices that meet those standards. We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”
“U.S. consumers rely on the FDA to ensure that there is a reasonable assurance of safety and effectiveness for the approved uses of medical devices,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “When manufacturers ignore FDA’s regulatory authority, they undermine these important assurances.”
The civil settlement with Biocompatibles resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Western District of Texas and is captioned United States ex rel. Ryan Bliss v. Biocompatibles, Inc., et al. As part of today’s resolution, Bliss will receive approximately $5.1 million from the civil settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement with Biocompatibles was the result of a coordinated effort among the U.S. Attorney’s Offices for the District of Columbia and the Western District of Texas, and the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel, HHS’ Office of Counsel to the Inspector General and the Department of Defense’s Defense Criminal Investigative Service. The criminal investigation was conducted by the FDA’s Office of Criminal Investigations.
Except for the conduct admitted in connection with the criminal plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information on the Commercial Litigation Branch’s Fraud Section, visit https://www.justice.gov/civil/fraud-section.
Medford Man Pleads Guilty to Threatening the President of the United StatesRead the Press Release
MEDFORD, Ore. – On Monday, November 7, 2016, John Martin Roos, 62, of Medford, plead guilty in United States District Court to threatening to kill the President of the United States. In separate counts, Roos also pled guilty to threatening to shoot FBI agents and possession of an unregistered explosive device.
Roos admitted in court to using racially inflammatory language in a Twitter post in which he threatened to kill President Barack Obama. In a Facebook post, Roos threatened to “snipe” FBI agents “with hunting rifles.”
Roos was arrested last April while parking his truck outside a Veterans Administration (VA) facility in White City, Oregon. The arresting agent found a loaded semi-automatic pistol underneath the driver side floor mat. A search of Roos’ apartment uncovered more firearms and several pipe bombs.
Based on his guilty pleas, Roos faces up to ten years in federal prison. Sentencing is scheduled for March 16, 2017 before United States District Court Judge Michael McShane in Medford. Roos was ordered to remain in custody pending his sentencing.
This case was investigated by the FBI, VA Police Service, Oregon State Police, and Medford Police Department. The case is being prosecuted by William “Bud” Fitzgerald, Assistant United States Attorney for the District of Oregon
Meade County Kentucky, Convicted Sex Offender, on the Kentucky Sex Offender Registry, Guilty of Transporting and Possessing Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Meade County, Kentucky, convicted sex offender, on the Kentucky Sex Offender Registry, pleaded guilty in United States District Court today, before District Judge David J. Hale, to charges of transporting and possessing child pornography announced United States Attorney John E. Kuhn, Jr.
Travis Tucker, 30, was charged by grand jury indictment on February 17, 2016. According to information in the plea agreement, Kentucky State Police received several Cybertip reports concerning uploading of child pornographic images (that is, images of children engaging in sexually explicit conduct), to a Google plus account from an email address of [email protected]. The uploads occurred on four separate occasions in October of 2014. Investigative efforts led to Tucker as the user of the email account used to upload the images.
Law enforcement officials executed a state search warrant on Tucker’s residence in Meade County, Kentucky, on January 14, 2015. During the search, they seized numerous digital items. Later, forensic review of the digital items revealed thousand so images of child pornography. The images had been acquired using the Internet.
Prior to October of 2014, Tucker had been convicted of a child pornography offense. He was on the Kentucky Sex Offender Registry at the time of the offenses in the Indictment.
At the time of sentencing, the United States has agreed to dismiss Count 1 of the indictment (transporting child pornography), and agree that a sentence of 15 years in prison followed by a lifetime of supervised release is appropriate. A sentencing date has not been scheduled.
This case is being prosecuted by Assistant United States Attorneys Jo Lawless and is being investigated by Kentucky State Police and the Federal Bureau of Investigation (FBI).
Maquoketa Man Pleads Guilty to Conspiring to Distribute Heroin and Fentanyl Analogue Resulting in Death and Serious Bodily InjuriesRead the Press Release
A man who conspired to distribute a mixture containing heroin and a drug called furanylfentanyl to one individual who died and two others who were seriously injured pled guilty today in federal court in Cedar Rapids.
Joshua Allen Manning, age 22, from Maquoketa, Iowa, was convicted of one count of conspiracy to distribute heroin and furanylfentanyl resulting in death and serious bodily injury.
At the plea hearing, Manning admitted he agreed to distribute the substances during March 2016. Manning admitted two individuals suffered serious bodily injury and another died after using the substances on March 3, 2016. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is illegal to distribute them just as it is to distribute substances such as cocaine, heroin, and marijuana. Furanylfentanyl is a powerful synthetic opioid, and is an analogue of fentanyl.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Manning remains in custody of the United States Marshal pending sentencing. Manning faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case is being investigated by the Dubuque Drug Task Force, Maquoketa Police Department, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-01031-LTS.
Follow us on Twitter @USAO_NDIA.
Manhattan United States Attorney Announces Superseding Indictment Charging Turkish and Iranian National with Conspiring to Evade U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Mohammad Zarrab et al. S2 Indictment.pdf Preet Bharara, the United States Attorney for the Southern District of New York, announced today the filing of a superseding indictment charging MOHAMMAD ZARRAB, a/k/a “Can Sarraf,” a/k/a “Kartalsmd,” with using the U.S. financial system to conduct hundreds of millions of dollars’ worth of transactions on behalf of the Government of Iran and other Iranian entities, which were barred by United States sanctions; laundering funds in connection with those illegal transactions; and defrauding several financial institutions by concealing the true nature of these transactions. The superseding indictment further alleges that MOHAMMAD ZARRAB’s co-defendants – REZA ZARRAB, a/k/a “Riza Sarraf,” CAMELIA JAMSHIDY, a/k/a “Kamelia Jamshidy,” and HOSSEIN NAJAFZADEH, who previously were charged in this case with the same offenses – participated in financial transactions for the benefit of Mahan Air, an Iranian Airline sanctioned for providing services for the Iranian Qods Force and Hizballah. The case is assigned to United States District Judge Richard M. Berman.REZA ZARRAB was arrested on March 19, 2016, and is scheduled to begin trial on January 23, 2017, before Judge Berman. MOHAMMAD ZARRAB, JAMSHIDY, and NAJAFZADEH remain at large.
According to the allegations contained in the superseding indictment[1] filed today in Manhattan federal court:
Beginning in or about 1979, the president has repeatedly found that the situation in Iran constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with the threat. Pursuant to these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities pursuant to the International Emergency Economic Powers Act (the “IEEPA”). This sanctions regime prohibits, among other things, financial transactions involving the United States or United States persons that were intended for the Government or Iran or Iranian entities.
Between at least in or about 2010 and in or about 2015, REZA ZARRAB, MOHAMMAD ZARRAB, JAMSHIDY, and NAJAFZADEH conspired to conduct international financial transactions on behalf of and for the benefit of, among others, Iranian business, the Iranian government, and entities owned or controlled by the Iranian government. Among the beneficiaries of the defendants’ scheme were:
- Mahan Air, an Iranian airline designated by the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”), as a Specially Designated National (“SDN”) pursuant to Executive Order 13224 for providing financial, material, and technological support to the Islamic Revolutionary Guard Corps-Qods Force (“IRGC-QF”), and providing transportation services to Hizballah, a Lebanon-based designated Foreign Terrorist Organization, including by transporting personnel, weapons and goods on behalf of Hizballah and omitting from Mahan Air cargo manifests secret weapons shipments bound for Hizballah;
- Bank Mellat, an Iranian government-owned bank designated as a SDN under the Iranian Transactions and Sanctions Regulations, the Iranian Financial Sanctions Regulations, and the Weapons of Mass Destruction Proliferators Sanctions Regulations; Mellat Exchange, an Iranian money services business owned and controlled by Bank Mellat;
- the National Iranian Oil Company (“NIOC”), identified by OFAC as an agent or affiliate of Iran’s Islamic Revolutionary Guard Corp; the Naftiran Intertrade Company Ltd., Naftiran Intertrade Company Sarl, and Hong Kong Intertrade Company, companies located in the United Kingdom, Switzerland, and Hong Kong that were acting on behalf of NIOC; and
- the MAPNA Group, an Iranian construction and power plant company.
REZA ZARRAB, MOHAMMAD ZARRAB, JAMSHIDY, NAJAFZADEH, and their co-conspirators used an international network of companies located in Iran, Turkey, the United Arab Emirates (“UAE”), and elsewhere to conceal from U.S. banks, OFAC, and others that the transactions were on behalf of and for the benefit of Iranian entities. This network of companies includes Royal Holding A.S., a holding company in Turkey; Durak Doviz Exchange, a money services business in Turkey; Flash Doviz Exchange, a money services business in Turkey; Al Nafees Exchange, a money services business in the UAE; Royal Emerald Investments, a company located in the UAE; Asi Kiymetli Madenler Turizm Otom, a company located in Turkey; ECB Kuyumculuk Ic Vedis Sanayi Ticaret Limited Sirketi, a company located in Turkey; Gunes General Trading LLC, a company located in the UAE; Hanedan General Trading LLC, a company in the UAE, and others. As a result of this scheme, the co-conspirators induced U.S. banks unknowingly to process international financial transactions in violation of the IEEPA.
Mahan Air provided transportation, funds transfers, and personnel travel services to the IRGC-QF, including by, among other things, providing travel services to IRGC-QF personnel flown to and from Iran and Syria for military training, aiding the covert travel of suspected IRGC-QF officers into and out of Iraq by bypassing normal security procedures, and facilitating IRGC-QF arms shipments. In addition, Mahan Air also provided services for Hizballah, transporting personnel, weapons, and goods on behalf of Hizballah. MOHAMMAD ZARRAB and his co-conspirators facilitated financial transactions through U.S. banking institutions that concealed that the transactions were for the benefit of Mahan Air. MOHAMMAD ZARRAB and his co-conspirators used their network of corporate entities in Turkey and UAE to conceal that Mahan Air was the true beneficiary of these transactions.
* * *
REZA ZARRAB, 33, is a resident of Turkey and dual citizen of Turkey and Iran. MOHAMMAD ZARRAB, 38, is REZA ZARRAB’s brother, and is a resident of Turkey and dual citizen of Turkey and Iran. JAMSHIDY, 29, is a resident of Turkey and dual citizen of Turkey and Iran. NAJAFZADEH, 65, is a resident of Iran and the UAE and a citizen of Iran. Each defendant is charged with conspiracies to defraud the United States, to violate the IEEPA, to commit bank fraud, and to commit money laundering. The conspiracy to defraud the United States count carries a maximum term of five years in prison. The conspiracy to violate the IEEPA and money laundering conspiracy counts each carry a maximum term of 20 years in prison. The bank fraud conspiracy count carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, and David Denton, and Special Assistant United States Attorney Dean Sovolos, are in charge of the prosecution, with assistance from Trial Attorney Elizabeth Cannon of the Counterintelligence and Export Control Section. Assistant United States Attorney Jaimie Nawaday is principally responsible for the forfeiture aspects of the case.
The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the superseding indictment, and the description of the superseding indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation. This press release focuses on the allegations set forth in the superseding indictment that are new and were not previously alleged in prior indictments in this case.
Mammoth Lakes Doctor Sentenced to Probation for Removing Archeological ResourcesRead the Press Release
FRESNO, Calif. — Jonathan Cornelius Bourne, 59, of Mammoth Lakes, was sentenced Monday to two years of probation, a $40,000 fine, and $249,372 in restitution for felony violations of the Archeological Resources Protection Act, Acting U.S. Attorney Phillip A. Talbert announced. Additionally, Bourne is banned from entering federal public lands for recreational purposes while on probation.
On August 15, 2016, Bourne pleaded guilty to unauthorized transportation of archeological resources and unauthorized excavation, removal, damage, or defacement of archeological resources. According to court documents, Bourne had been collecting artifacts and archeological resources since 1994. He documented each item and has voluntarily turned over to the government an estimated 20,000 archeological items that he had collected from public lands.
According to the plea agreement, on October 14, 2010, Bourne altered a small prehistoric site, cremation site, and burial cairns in the Humboldt-Toiyabe National Forest in Nevada. He removed glass trade beads and transported them to his home in Mammoth Lakes. On January 10, 2011, Bourne altered a large prehistoric site in Death Valley National Park and removed a tool made from a bighorn sheep horn and three incised stone tablets, which were later found in Bourne’s home.
In sentencing Bourne, U.S. District Judge Lawrence J. O’Neill stated that the damage caused by Bourne could not be undone no matter what sentence was imposed. He further stated that this case highlighted the importance of educating others as to the significance of the sacred Native American cultural resources and the protection of the Native American cultural sites.
Death Valley National Park Superintendent Mike Reynolds said, “Death Valley is the homeland of the Timbisha Shoshone Tribe. Dr. Bourne didn't just steal their heritage; he stole from all Americans when he removed these artifacts from the park. I'm relieved that he has been sentenced and is paying restitution to help us curate the artifacts. I hope this will help deter other people from desecrating important cultural resources that help tell our nation's history. However, we've permanently lost information that could have been learned if the artifacts had never been moved.”
This case was the product of an investigation by the United States Forest Service, the National Park Service, and the Bureau of Land Management. Assistant United States Attorney Laurel J. Montoya prosecuted the case.
Long Beach Lobbyist Who Admitted Failing to Report Taxable Income from Illegal Marijuana Stores Sentenced to Year and a Day in PrisonRead the Press Release
LOS ANGELES – A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, was sentenced today to one year and one day in federal prison for failing to report to the IRS more than $750,000 in income he received over a six-year period.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm and a one-time candidate for the Long Beach City Council, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered the defendant to pay $210,661 in restitution to the Internal Revenue Service to cover his back taxes.
Kemp pleaded guilty in July to subscribing to a false tax return for the year 2012. On his federal tax return for that year, Kemp reported that he had no taxable income, when his business took in approximately $180,000.
“For years, this defendant engaged in criminal conduct designed to conceal his receipt of three-quarters of a million dollars – much of which was cash paid by illegal marijuana businesses,” said United States Attorney Eileen M. Decker. “Failure to fully report income on federal tax returns is a felony offense that can bring prison as well as significant monetary penalties.”
In a plea agreement filed in court, Kemp admitted receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.
“For six consecutive years, Mr. Kemp, a well-educated professional with a successful business, elected to circumvent the law and cheat on his taxes,” stated Acting Special Agent in Charge for IRS Criminal Investigation, Anthony J. Orlando. “As the punishment handed down today reflects, no matter what your career or circle of influence, all of us are obligated to comply with our nation’s tax laws.”
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Las Vegas Man Sentenced to Nearly Six Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today by U.S. District Judge James C. Mahan to serve 70 months in prison and a lifetime of supervised release following his guilty plea for receiving child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The sexual abuse of young victims is deplorable and they are re-victimized each time an image or video file is shared. We are committed to protecting the most vulnerable in our communities,” said U.S. Attorney Bogden. “The defendant is required under the Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and to keep his registration current where he resides, is an employee or a student.”
Shane Richard Gordon, 36, pleaded guilty on Aug. 5, 2016, to one count of receiving child pornography.
According to court records, on June 1, 2014, a Special Agent for the U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) launched a file sharing program that permitted access to the BitTorrent peer-to-peer network and identified a computer offering files known to be associated with child pornography images and videos for sharing purposes. The ICE-HSI Special Agent downloaded 50 image files and one video file containing child pornography. On July 31, 2014, law enforcement executed a search warrant on Gordon’s residence. Forensic evaluation of the seized digital items revealed child pornography. During an interview, Gordon admitted to downloading and receiving child pornography.
The case was investigated by ICE-HSI, and prosecuted by Assistant U.S. Attorneys Lisa Cartier-Giroux and Elham Roohani.
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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LRGP Member Sentenced on Rico and Drug ChargesRead 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 Gregory Scott, 33, of Buffalo, NY, who was convicted of RICO conspiracy and conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine, was sentenced to 92 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, stated that Scott assisted his cousin Dewayne Gray and other members of the LRGP Gang in dealing crack cocaine within the gang’s territory in the streets surrounding the Broadway Market area. The LRGP Gang, in addition to cocaine distribution, also engaged in multiple acts a violence to protect their territory, including numerous shootings and murders as part of the racketeering activity.
Scott is one of 19 defendants, including Dewayne Gray, convicted in this case.
The sentencing is the result of an investigation by: the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict, New York Field Office and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Kern County Man Sentenced to 15 Years in Prison for Receipt and Distribution of Child Pornography Relating to Online Sextortion SchemeRead the Press Release
FRESNO, Calif. — An Arvin man was sentenced today to 15 years in prison for child pornography offenses related to the online sextortion of female minors, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California.
Brian Caputo, 27, pleaded guilty to receipt and distribution of child pornography on May 16, 2016. U.S. District Judge Lawrence J. O'Neill sentenced Caputo and also ordered him to serve 15 years of supervised release.
According to admissions made in connection with his guilty plea, between December 2008 and February 2014, Caputo received on his cell phone and by email at least one image of a minor engaging in sexually explicit conduct and distributed one or more of such images to another minor in order to coerce the minor to produce additional child pornography.
The FBI investigated the case with assistance from the El Paso Police Department and the FBI’s Violent Crimes Against Children Task Force. Assistant U.S. Attorney Michael Tierney and former Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department to Monitor Polls in Shelby County on Election DayRead the Press Release
Memphis, TN – The Justice Department announced today that it will monitor the election on Tuesday, November 8, 2016, in Shelby County, Tennessee, to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Department personnel will monitor polling place activities. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931. In addition, individuals may also report such complaints by fax to 202-307-3961, by email to [email protected] and via complaint form on the Department’s website: www.justice.gov/crt/votercomplaint.
Visit www.usdoj.gov/crt/voting for more information about the Voting Rights Act and other federal voting laws.
Justice Department to Monitor Polls in 28 States on Election DayRead the Press Release
The Justice Department announced today that its Civil Rights Division plans to deploy more than 500 personnel to 67 jurisdictions in 28 states for the Nov. 8, 2016, general election.
Although state and local governments have primary responsibility for administering elections, the Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act of 1965, the department has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters.
“The bedrock of our democracy is the right to vote, and the Department of Justice works tirelessly to uphold that right not only on Election Day, but every day,” said Attorney General Loretta E. Lynch. “We enforce federal statutes related to voting through a range of activities – including filing our own litigation when the facts warrant, submitting statements of interest in private lawsuits to help explain our understanding of these laws, and providing guidance to election officials and the general public about what these laws mean and what they require. On Election Day itself, lawyers in the Civil Rights Division’s Voting Section will staff a hotline starting in the early hours of the morning, and just as we have sent election monitors in prior elections, we will continue to have a robust election monitors program in place on election day. As always, our personnel will perform these duties impartially, with one goal in mind: to see to it that every eligible voter can participate in our elections to the full extent that federal law provides. The department is deeply committed to the fair and unbiased application of our voting rights laws and we will work tirelessly to ensure that every eligible person that wants to do so is able to cast a ballot.”
Leading up to and throughout Election Day, Civil Rights Division staff members will be available by telephone to receive complaints related to possible violations of the federal voting rights laws (Toll free at 1-800-253-3931 or 202-307-2767 or TTY 202-305-0082). In addition, individuals may also report such complaints by fax to 202-307-3961, by email to [email protected] and by a complaint form on the department’s website: www.justice.gov/crt/votercomplaint.
Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section at 202-514-1412. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
As always, complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. They should also be reported to the department after local authorities have been contacted.
On Election Day, the Civil Rights Division will monitor the election on the ground in 67 jurisdictions for compliance with the federal voting rights laws:
- Bethel Census Area, Alaska;
- Dillingham Census Area, Alaska;
- Kusilvak Census Area, Alaska;
- Yukon-Koyukuk Census Area, Alaska;
- Maricopa County, Arizona;
- Navajo County, Arizona;
- Alameda County, California;
- Napa County, California;
- Siskiyou County, California;
- East Hartford, Connecticut;
- Farmington, Connecticut;
- Hartford, Connecticut;
- Middletown, Connecticut;
- New Britain, Connecticut;
- Newington, Connecticut;
- West Hartford, Connecticut;
- Hillsborough County, Florida;
- Lee County, Florida;
- Miami-Dade County, Florida;
- Orange County, Florida;
- Palm Beach County, Florida;
- Fulton County, Georgia;
- Gwinnett County, Georgia;
- Hancock County, Georgia;
- Chicago, Illinois;
- Cook County, Illinois;
- Finney County, Kansas;
- Orleans Parish, Louisiana;
- Quincy, Massachusetts;
- Dearborn Heights, Michigan;
- Detroit, Michigan;
- Hamtramck, Michigan;
- St. Louis, Missouri;
- Douglas County, Nebraska;
- Mineral County, Nevada;
- Washoe County, Nevada;
- Middlesex County, New Jersey;
- Cibola County, New Mexico;
- Kings County, New York;
- Orange County, New York;
- Queens County, New York;
- Cumberland County, North Carolina;
- Forsyth County, North Carolina;
- Mecklenburg County, North Carolina;
- Robeson County, North Carolina;
- Wake County, North Carolina;
- Benson County, North Dakota;
- Rolette County, North Dakota;
- Cuyahoga County, Ohio;
- Franklin County, Ohio;
- Hamilton County, Ohio;
- Allegheny County, Pennsylvania;
- Lehigh County, Pennsylvania;
- Philadelphia County, Pennsylvania;
- Pawtucket, Rhode Island;
- Providence, Rhode Island;
- Bennett County, South Dakota;
- Jackson County, South Dakota;
- Oglala Lakota County, South Dakota;
- Shelby County, Tennessee;
- Dallas County, Texas;
- Harris County, Texas;
- Waller County, Texas;
- San Juan County, Utah;
- Fairfax County, Virginia;
- Prince William County, Virginia, and
- Milwaukee, Wisconsin.
The department will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the minority language provisions of the Voting Rights Act; whether jurisdictions permit voters to receive assistance by a person of his or her choice if the voter is blind, has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act. To assist in these inquiries, the department has deployed personnel who speak Spanish and a variety of Asian and Native American languages. Department personnel will also maintain contact with local election officials.
Last month, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process. More information about the Voting Rights Act and other federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.
Justice Department to Monitor Polls in 28 States on Election DayRead the Press Release
Contact Person: Public Affairs Office (202) 514-2007
WASHINGTON – The Justice Department announced today that its Civil Rights Division plans to deploy more than 500 personnel to 67 jurisdictions in 28 states for the Nov. 8, 2016, general election.
Although state and local governments have primary responsibility for administering elections, the Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act of 1965, the department has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters.
“The bedrock of our democracy is the right to vote, and the Department of Justice works tirelessly to uphold that right not only on Election Day, but every day,” said Attorney General Loretta E. Lynch. “We enforce federal statutes related to voting through a range of activities – including filing our own litigation when the facts warrant, submitting statements of interest in private lawsuits to help explain our understanding of these laws, and providing guidance to election officials and the general public about what these laws mean and what they require. On Election Day itself, lawyers in the Civil Rights Division’s Voting Section will staff a hotline starting in the early hours of the morning, and just as we have sent election monitors in prior elections, we will continue to have a robust election monitors program in place on election day. As always, our personnel will perform these duties impartially, with one goal in mind: to see to it that every eligible voter can participate in our elections to the full extent that federal law provides. The department is deeply committed to the fair and unbiased application of our voting rights laws and we will work tirelessly to ensure that every eligible person that wants to do so is able to cast a ballot.”
Leading up to and throughout Election Day, Civil Rights Division staff members will be available by telephone to receive complaints related to possible violations of the federal voting rights laws (Toll free at 1-800-253-3931 or 202-307-2767 or TTY 202-305-0082). In addition, individuals may also report such complaints by fax to 202-307-3961, by email to [email protected] and by a complaint form on the department’s website: www.justice.gov/crt/votercomplaint.
Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section at 202-514-1412. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
As always, complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. They should also be reported to the department after local authorities have been contacted.
On Election Day, the Civil Rights Division will monitor the election on the ground in 67 jurisdictions for compliance with the federal voting rights laws:
- Bethel Census Area, Alaska;
- Dillingham Census Area, Alaska;
- Kusilvak Census Area, Alaska;
- Yukon-Koyukuk Census Area, Alaska;
- Maricopa County, Arizona;
- Navajo County, Arizona;
- Alameda County, California;
- Napa County, California;
- Siskiyou County, California;
- East Hartford, Connecticut;
- Farmington, Connecticut;
- Hartford, Connecticut;
- Middletown, Connecticut;
- New Britain, Connecticut;
- Newington, Connecticut;
- West Hartford, Connecticut;
- Hillsborough County, Florida;
- Lee County, Florida;
- Miami-Dade County, Florida;
- Orange County, Florida;
- Palm Beach County, Florida;
- Fulton County, Georgia;
- Gwinnett County, Georgia;
- Hancock County, Georgia;
- Chicago, Illinois;
- Cook County, Illinois;
- Finney County, Kansas;
- Orleans Parish, Louisiana;
- Quincy, Massachusetts;
- Dearborn Heights, Michigan;
- Detroit, Michigan;
- Hamtramck, Michigan;
- St. Louis, Missouri;
- Douglas County, Nebraska;
- Mineral County, Nevada;
- Washoe County, Nevada;
- Middlesex County, New Jersey;
- Cibola County, New Mexico;
- Kings County, New York;
- Orange County, New York;
- Queens County, New York;
- Cumberland County, North Carolina;
- Forsyth County, North Carolina;
- Mecklenburg County, North Carolina;
- Robeson County, North Carolina;
- Wake County, North Carolina;
- Benson County, North Dakota;
- Rolette County, North Dakota;
- Cuyahoga County, Ohio;
- Franklin County, Ohio;
- Hamilton County, Ohio;
- Allegheny County, Pennsylvania;
- Lehigh County, Pennsylvania;
- Philadelphia County, Pennsylvania;
- Pawtucket, Rhode Island;
- Providence, Rhode Island;
- Bennett County, South Dakota;
- Jackson County, South Dakota;
- Oglala Lakota County, South Dakota;
- Shelby County, Tennessee;
- Dallas County, Texas;
- Harris County, Texas;
- Waller County, Texas;
- San Juan County, Utah;
- Fairfax County, Virginia;
- Prince William County, Virginia, and
- Milwaukee, Wisconsin.
The department will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the minority language provisions of the Voting Rights Act; whether jurisdictions permit voters to receive assistance by a person of his or her choice if the voter is blind, has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act. To assist in these inquiries, the department has deployed personnel who speak Spanish and a variety of Asian and Native American languages. Department personnel will also maintain contact with local election officials.
Last month, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process. More information about the Voting Rights Act and other federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.
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Justice Department Files Brief to Address Automatic Suspensions of Driver’s Licenses for Failure to Pay Court DebtRead the Press Release
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.
Jefferson Parish Man Charged with Conspiracy to Commit Financial Aid FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BOBBY R. LOWE, age 66, a resident of Harvey, was charged today in a Bill of Information with one count of conspiracy to commit mail fraud.
According to the Bill of Information, LOWE owned and operated a printing company in Harvey. In early 2013, LOWE conspired with student applicants to produce fraudulent high school transcripts and diplomas, as well as fraudulent GED certificates and transcripts, which were sent to the Office of Admissions at Delgado Community College in New Orleans. LOWE also provided his co-conspirators with envelopes with return addresses for the Department of Education and the Louisiana Community & Technical College System in Baton Rouge. LOWE instructed his co-conspirators to mail the documents from Baton Rouge, so the documents would look more legitimate. The purpose of the scheme was to obtain federal financial aid from the United States Department of Education and Delgado Community College.
If convicted, LOWE faces up to five years imprisonment and/or a fine of $250,000. LOWE also faces three years of supervised release following any term of imprisonment, and a $100 special assessment fee.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the United States Department of Education, Office of Inspector General and the United States Secret Service for investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Independent Producer Sentenced to 18 Months in Prison for Stealing Money Generated by Film that Should Have Gone to Partner CompanyRead the Press Release
LOS ANGELES – An independent film producer was sentenced today to 18 months in federal prison for interstate transportation of stolen property related to the theft of nearly $1.5 million that should have gone to his partner in a film production deal.
Julio Caro, 57, of Calabasas, was sentenced today by United States District Judge George H. King for transporting money to New Jersey that had been stolen from an investment company called Yucaipa Corporate Initiatives Fund I, LP.
When he pleaded guilty, Caro admitted that he stole $1,487,529 from Yucaipa over the course of five years
“This defendant stole nearly $1.5 million from a trusted business partner,” said United States Attorney Eileen M. Decker. “He then furthered his criminal activity by moving the money across the country, making it more difficult for the partner to recoup its losses.”
Caro used his company, Broken Rose Productions, Inc., to enter into a limited liability agreement with Yucaipa in early 2005. The resulting LLC, which was called R-Caro Productions, LLC produced several films, including “Homie Spumoni,” which was distributed by Warner Brothers Entertainment. When Warner Brothers sent distribution proceeds to R-Caro, the money should have gone to Yucaipa, which had provided much of the financing for the film. Instead, “Caro stole these funds and used these funds to pay for his personal expenses, including, but not limited to, his mortgage and car lease payments,” according to the court documents.
The case against Caro was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.