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3 November 2016
Investor Relations Professional and Registered Broker Plead Guilty to Securities Fraud for Participating in A $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, Jared Mitchell, an investor relations professional, and Maroof Miyana, a registered broker, 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 pleas were each entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Mitchell and Miyana each face up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty pleas were 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 defendants, 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 October 2014 and April 2015, a ForceField executive paid commission payments, or kickbacks, to Mitchell in exchange for the registered broker defendants’ purchasing ForceField stock in their clients’ brokerage accounts; Mitchell would distribute a portion of the kickbacks to the registered brokers, including Miyana, and keep a portion of the kickback for himself. The registered broker defendants did not disclose to their clients the kickbacks they were receiving for purchasing ForceField stock. Mitchell, Miyana, and their 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 Defendants:
JARED MITCHELL
Age: 34
Residence: New York, New YorkMAROOF MIYANA
Age: 36
Residence: Boca Raton, FloridaE.D.N.Y. Docket No. 16-CR-234 (BMC)
Hudson County Contractor Gets over A Year in Prison for Paying Bribes to Bayonne Official for Government-Funded ProjectsRead the Press Release
TRENTON, N.J. – A Bayonne, New Jersey, man was sentenced today to 15 months in prison for paying $65,000 in bribes to a Bayonne public official in return for the public official’s assistance in securing projects funded by the U.S. Department of Housing and Urban Development, U.S. Attorney Paul J. Fishman announced.
Joseph Arrigo, 47, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of paying bribes totaling approximately $65,000 to Anselmo Crisonino, 56, also of Bayonne, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD). Arrigo had also pleaded guilty to one count of theft and conversion of government funds in the amount of $40,000, and one count of submitting a false tax return for tax year 2011. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Arrigo was the owner of Shadow Contracting LLC, a general contracting company in Bayonne. The CBDCD was a government agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants of up to $20,000 to low-income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash payments from Arrigo in exchange for Crisonino’s help in attaining HUD grant funds. From September 2010 to February 2013, Arrigo made approximately $65,000 in cash payments to Crisonino in exchange for Crisonino’s assistance in awarding approximately $426,000 in HUD grant funds to Arrigo from the CBDCD.
In September 2011, Arrigo assisted another contractor by supplying a bid on behalf of Shadow Contracting that was higher than the contractor’s bid to enable the other contractor to obtain HUD grant funds from Bayonne. The contractor then submitted the two bids to the CBDCD and, as a result of his collusion with Arrigo, the contractor fraudulently obtained $20,000 in HUD grant funds from the CBDCD. In December 2011, Arrigo caused the same contractor to provide Arrigo with a bid that was higher than Arrigo’s bid for the purpose of obtaining HUD grant funds. Arrigo submitted the contractor’s bid along with his own to the CBDCD and, as a result, fraudulently obtained another $20,000 in HUD grant funds from the CBDCD.
Arrigo also admitted that he failed to report $151,993 in income on his U.S. Individual Tax Return, Form 1040, for tax year 2011.
In addition to the prison term, Judge Sheridan sentenced Arrigo to three years of supervised release.
Crisonino previously pleaded guilty to his role in the bribery scheme and other charges in February 2014 and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the U.S. Attorney's Special Prosecutions Division in Newark.
Defense counsel: Charles J. Uliano Esq., West Long Branch, New Jersey
Harrisburg Man Indicted on Federal Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Kevin Dwight Holland, age 23, Harrisburg, Pennsylvania, on November 2, 2016, on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Holland possessed with the intent to distribute more than 28 grams of crack cocaine and possessed a firearm in furtherance of or in relation to drug trafficking. Additionally, Holland was charged as a felon in possession of a firearm.
The investigation was conducted by the Susquehanna Township Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed innocent unless and until found guilty in court.
The maximum penalties under federal law include 40 years for possession with intent to distribute 28 grams and more of crack cocaine, 10 years' imprisonment for a felon in possession of a firearm, and life for possession of a firearm in furtherance of drug trafficking.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted for Possession of A Short-Barreled ShotgunRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Jerome King on November 2, 2016, for possession of a short-barreled shotgun.
According to United States Attorney Bruce D. Brandler, King, a 29-year-old resident of Harrisburg, was arrested after he was seen possessing a short-barreled shotgun that did not have an identifiable serial number. Possession of a short-barreled shotgun violates federal law if the firearm is not properly registered or if the firearm does not have an identifiable serial number, and as a convicted felon, King is prohibited from possessing any firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Harrisburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harmony Man Sentenced to a Year and a Day for Oxycodone ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Corey Pomerleau, 35, of Harmony, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to a year and a day in prison and three years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone. He was also fined $500. He pleaded guilty on January 25, 2016.
According to court records, in 2014, the defendant conspired with others to acquire oxycodone in Rhode Island and distribute it in the Dexter, Maine area.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office and the Piscataquis County Sheriff’s Office.
Fourth Member of Cincinnati Drug Trafficking Ring Receives Ten-Year SentenceRead the Press Release
CINCINNATI – Four defendants involved in a major cocaine and heroin trafficking ring in the Cincinnati area have been sentenced on related charges in U.S. District Court.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac, announced the sentences handed down by United States District Court Judge Timothy S. Black.
Christopher Whitfield, 42, of Cincinnati, Ohio was sentenced today to 120 months in prison after pleading guilty earlier this year to on one count of conspiracy to commit money laundering.
Tonia Whitfield, 41, of Cincinnati, Ohio was sentenced on December 14, 2015 to 12 months and one day in prison on three counts of money laundering.
Steven Griffin, 41, of Cincinnati, Ohio was sentenced on January 13, 2016 to 87 months in prison on one count each of possession with intent to distribute heroin and a felon in possession of a firearm.
Icierra Martin, 39, of Cincinnati, Ohio was sentenced on May 23, 2016 to three years of probation on two counts of money maundering.
A federal grand jury indicted the defendants in a 23-count indictment returned in April 2015. The indictment outlined that the group conspired to facilitate an illegal drug business, primarily cocaine and heroin.
As part of the conspiracy, the defendants operated “stash” houses to process, cut, package and store the drugs as well as firearms and money. In order to conceal the money generated from the drug sales, defendants would launder the profits by purchasing real and personal property and place assets in the names of other individuals.
Upon executing search warrants in this case, investigators seized more than $1 million in cash at the properties maintained by the narcotics trafficking organization.
Also included in forfeiture in this case are: seven firearms, three properties in Cincinnati, five vehicles including two luxury vehicles and a motorcycle, multiple pieces of jewelry, Gucci and Rolex watches, two ballistic vests, a number of “mink” fur coats and vests, 13 designer handbags and Beats headphones and ear buds.
“This is an important victory for the citizens of Cincinnati,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. We are committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
U.S. Attorney Glassman commended the cooperative investigation by local and federal law enforcement, including the IRS, FBI and Cincinnati Police Department, as well as Assistant United States Attorneys Karl Kadon and Jessica W. Knight, who represented the United States in this case.
Fourth Chicago woman sentenced for credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Chicago woman was sentenced today to five years of probation, with the first eight months to be served on home confinement, for credit card fraud, announced United States Attorney Carol Casto. Stephanie Stevenson previously pleaded guilty to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Stevenson admitted that she, along with three codefendants, Wynesha Wilson-Robinson, Christine Johnson, and Crystal Merritt, possessed over 100 counterfeit access devices. Stevenson, along with the other codefendants, drove from Chicago to attempt to use these credit cards. On June 5, 2015, they were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards. The four were arrested by law enforcement after store employees became suspicious of the multiple attempts to use the credit cards to complete a purchase.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This is the final sentencing as a result of this investigation. Wilson-Robinson was sentenced on August 11, 2016, to five months in federal prison, to be followed by five years of probation. Wilson-Robinson was further ordered to serve the first five months of her probation on home confinement. Johnson was sentenced on October 3, 2016, to six months of home confinement, to be followed by three years of probation. Merritt was sentenced on October 18, 2016, to five years of probation, with the first eight months to be served on home confinement.
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Former Veterans Hospital Nurse Pleads Guilty to Stealing MedicationRead the Press Release
RICHMOND, Va. – Allison Rulli, 34, of Mineral, pleaded guilty today to charges of obtaining controlled substances by misrepresentation, fraud, or deception.
According to the statement of facts filed with the plea agreement, Rulli was a registered nurse employed in the Spinal Cord Injury Ward at the Hunter Holmes McGuire Veterans Administration Medical Center in Richmond. From August 2015 to August 2016, Rulli fraudulently obtained 20 to 30 Oxycodone tablets from the medication dispensing cabinets for her own use. On occasion, Rulli removed the correct amount of Oxycodone prescribed for a patient but would only administer some of the tablets to the patient and would keep the remainder for herself. Rulli also fraudulently obtained eight to 10 Fentanyl patches, each 25-100 micrograms. Rulli used a scalpel to open the Fentanyl packaging and remove the patch, but would return the tampered packaging to the medication dispensing cabinet in order to hide the evidence. When confronted by law enforcement, Rulli admitted her wrongdoing.
Rulli waived indictment and pleaded guilty to a criminal information. Rulli faces a maximum penalty of four years in prison when sentenced on Feb. 4, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Richard J. Griffin, Acting Inspector General, Department of Veterans Affairs, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Jessica D. Aber is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-136.
Former San Francisco Halfway House Resident Sentenced to 192 Months for Attempted Bank RobberyRead the Press Release
SAN JOSE – Daniel Asa Hitesman was sentenced yesterday to 16 years in prison for attempted bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
On July 26, 2016, after a three-day trial before the Honorable Lucy H. Koh, U.S. District Judge, Hitesman was convicted by a jury of a single count of attempted bank robbery. During the trial, evidence showed that on July 23, 2013, Hitesman left a halfway house in San Francisco and made his way to Cupertino where he went to the branch of a bank located on Stevens Creek Boulevard. Hitesman entered the bank carrying a large bag and wearing a hat and sunglasses to cover his face. He stood in line and, when his turn came, approached the bank teller and said he had “a bag full of guns.” Hitesman demanded money and told the teller that if he did not receive it he would “start shooting.” The teller refused Hitesman’s demands and pressed the alarm. Hitesman thereafter fled.
Although Hitesman concealed his face during the attempted robbery, the FBI obtained and distributed bank surveillance photos. Personnel from the halfway house at which Hitesman was staying recognized the defendant in the photos and contacted the FBI. This identification and additional evidence linked Hitesman to the offense.
The sentence was handed down by Judge Koh. In addition to the prison term, Judge Koh sentenced the defendant to a three-year period of supervised release. Hitesman is currently in custody and will begin serving the sentence immediately.
Assistant U.S. Attorneys Scott Simeon and Jeffrey Backhus are prosecuting the case with the assistance of Ryka Barghi, Lakisha Holliman, and Yolanda Singletary. The prosecution is the result of an investigation by the FBI and the Santa Clara County Sheriff’s Office.
Former Postal Employee Sentenced for Stealing Public MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jennifer Passeck, 27, of Sodus Point, NY, who was convicted of theft of public money, was sentenced to two years probation to include six months home detention by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck stole stamp revenues, post office box rental payments, and issued money orders to herself, all totaling $19,504.
The sentencing is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Former Organization Director Pleads Guilty to Federal Charge in Theft of Nearly $250,000 from EmployerRead the Press Release
WASHINGTON – Tamara Kukla, who worked as the “Director of Membership” for a Washington based non-profit organization, has pled guilty to a federal charge involving the embezzlement of nearly $250,000 from her employer, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Kukla, 47, of Plano, Texas, pled guilty on Nov. 2, 2016, in the U.S. District Court for the District of Columbia, to interstate transportation of stolen property. The Honorable James E. Boasberg scheduled sentencing for Feb. 24, 2017. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Kukla faces a likely range of 12 to 18 months in prison and a fine of up to $250,000. She also has agreed to pay $248,755 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Kukla’s employer provided her with a credit card to assist her with her duties and responsibilities as the “Director of Membership.” Kukla’s duties and responsibilities included, among others, formulating and executing marketing plans designed to maintain and increase her employer’s membership rolls. Beginning around October 2009 and continuing through about December 2011, Kukla devised and carried out a scheme to defraud her employer by embezzling funds through her corporate credit card. Kukla used the credit card for both legitimate and personal purchases, but provided false descriptions of the personal purchases as work-related expenses so that her employer would pay for them. These unauthorized purchases and expenses included, among others, personal expenses related to travel, transportation, hotel lodgings, retail purchases, meals, food, and entertainment.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Ebert commended the work of those who investigated the case from the National Capitol Region Fraud Task Force of the U.S. Secret Service’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Special Assistant U.S. Attorneys Vesna Harasic-Yaksic and Zia Faruqui, who handled forfeiture issues, Paralegal Specialists Krishawn Graham and Angela Lawrence, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who is prosecuting the case.
Former Mount Vernon Police Officer Sentenced for ExtortionRead the Press Release
COLUMBUS, Ohio – Matthew L. Dailey, 45, of Howard, Ohio, was sentenced in U.S. District Court to 72 months in prison for Hobbs Act extortion under color of official right.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, Dailey was a Detective Sergeant with the Mount Vernon Police Department. He investigated general crimes and narcotics crimes. In September 2015, Dailey asked an individual who had served as an informant for Dailey for approximately seven years to sell drugs for him.
Dailey provided the individual with marijuana, methamphetamine, bath salts and ecstasy pills to sell and split the profits. A portion of the drugs came from the police department’s property room, which Dailey supervised in his role as evidence custodian.
Investigators also observed Dailey meeting with a second confidential informant who sold large quantities of oxycodone pills to Dailey approximately five days a week for seven months. The second confidential informant told investigators that Daily had asked him to sell marijuana, methamphetamine, and cocaine for him. The investigation revealed that Dailey possessed a firearm during the drug trafficking offenses.
Dailey was placed on administrative leave in September 2015. During an inventory of the property room, police discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills. The inventory analysis also revealed that the methamphetamine, bath salts and hundreds of oxycodone pills were missing from the property room.
Further investigation revealed that Dailey created forged and falsified Mount Vernon Police Department evidence destruction orders. Investigators found multiple copies of the falsified letterhead in Dailey’s desk drawer and filing cabinet. Investigators concluded that Dailey’s actions during his criminal scheme affected nearly forty cases.
Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.
U.S. Attorney Glassman commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI) and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who represented the United States in this case.
Former Marine Corps Base Quantico Official Sentenced for FraudRead the Press Release
ALEXANDRIA, Va. – Rupert Granville Miller, 56, of Chester, was sentenced today to one year and one day in prison for engaging in a travel fraud scheme that cost the government over $197,000. Miller was also ordered to pay full restitution in the amount of $197,505.83.
“Miller’s fraud cost taxpayers nearly $200,000,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We take these crimes seriously and will investigate and prosecute individuals who engage in this activity. I want to thank our investigative partners at the Defense Criminal Investigative Service and the Naval Criminal Investigative Service for their terrific work on this case.”
According to court documents, from in or about January 2011 through November 2015, Miller was employed as a deputy inspector general with Training and Education Command and Training Command at Marine Corps Base Quantico. During this time, Miller used the Department of Defense electronic travel management system to submit travel claims for what he claimed to be official business. As part of his legitimate duties, Miller travelled to Marine Corps locations around the country to inspect their facilities and operations. However, Miller began adding illegitimate rendezvous to his official trips, claiming they were for official business, and then receiving reimbursements for the rendezvous. Miller also submitted claims to travel to various foreign locations including Japan, Germany, Singapore, and the Dominican Republic. In order to justify his claims for travel, Miller forged his supervisor’s signature and created false documents in order to have his travel approved.
“Due to his greed, Rupert Miller chose to commit criminal acts, which violated the public's trust and the very principles of the position he held as the Deputy Inspector General of the U.S. Marine Corps (USMC) Training and Education Command,” said DCIS Special Agent in Charge Robert E. Craig, Jr. “His actions are not reflective of those of active duty service members and civilian employees of the USMC who serve their country honorably and with great pride. Along with our law enforcement partners, DCIS will continue to aggressively pursue allegations of fraud and corruption impacting the Department of Defense.”
“Fraud drains money and resources from the nation's warfighters,” said Jeremy Gauthier, Special Agent in Charge of the NCIS Washington DC Field Office. “NCIS is committed to investigating fraud and helping hold accountable those who place their personal gain above the needs of the nation's military.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Jeremy Gauthier, Special Agent in Charge of the NCIS Washington, D.C. Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorneys Sean K. Price and Angelissa D. Savino prosecuted the case along with former Assistant U.S. Attorney Paul J. Nathanson.
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-71.
Former Dental Clinic Owners Indicted for $1 Million Health Care, Payroll Tax FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that Marshfield, Mo., husband and wife have been indicted by a federal grand jury for their roles in health care fraud and payroll tax fraud schemes that totaled more than $1 million.
Pamela Van Drie, 57, and her husband, Lorin G. Van Drie, 57, both of Marshfield, were charged in a 40-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Wednesday, Nov. 2, 2016. That indictment was unsealed and made public today upon the arrest and initial court appearance of Pamela Van Drie.
Pamela and Lorin Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Mo., (until it closed in October 2014) and Bolivar, Mo. (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
$885,748 Health Care Fraud Conspiracy
Today’s indictment alleges that Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. According to the indictment, this conspiracy consisted of a fraud scheme related to dentures and other dental services and a fraud scheme related to orthodontic appliances. Both fraud schemes involved fraudulent Medicaid claims and payments.
Pamela Van Drie and a dentist at the clinics arranged for All About Smiles to provide dentures and other dental services to adults who did not qualify for Medicaid reimbursement. They allegedly submitted claims to Medicaid for those dentures and other dental services, knowing that Medicaid’s requirements were not met.
The indictment alleges that Pamela Van Drie, through All About Smiles, submitted and received $720,048 on numerous claims for dentures and other dental services that lacked the required written referral from a physician.
Additionally, according to the indictment, Pamela Van Drie and a dentist at the clinics purchased Oroth-Tain orthodontic appliances (designed to straighten teeth without braces) for approximately $50 each, provided them to Medicaid pediatric beneficiaries and billed each such appliance to Medicaid as a speech aid prosthesis for approximately $695. They knew the Ortho-Tain appliances should have been billed to Medicaid as orthodontic services, the indictment says; they also knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received precertification, which required review by a dentist/orthodontist employed by Medicaid. They allegedly billed the Ortho-Tain appliances as speech aid prostheses in order to bypass the precertification requirement.
Between Oct. 6, 2010, and Aug. 19, 2015, Pamela Van Drie submitted and received payment for approximately 241 claims submitted for speech aid prosthesis. On each claim, All About Smiles was paid between $675 to $695, for an approximate total amount of $165,700.
$194,751 Payroll Tax Fraud Conspiracy
In addition to the health care fraud conspiracy, Pamela and Lorin Van Drie are charged with participating in a conspiracy to defraud the government by failing to pay over the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the indictment says, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
According to the indictment, the Van Dries diverted substantial amount of money from their businesses during this period. They allegedly caused All About Smiles and PL Family Management Company to make thousands of dollars for their personal benefit while failing to pay over to the IRS payroll taxes withheld from their employees’ paychecks.
Rather than paying the payroll taxes due and owing, the indictment alleges, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), diamonds, several utility trailers, two golf carts, a motorcycle, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which Pamela Van Drie’s son used in pulling competitions throughout Missouri.
Additional Charges
In addition to the two conspiracy charges, Pamela Van Drie is charged with eight counts of health care fraud related to fraudulent claims for speech aid prosetheses, 10 counts of health care fraud related to fraudulent claims for dentures and other dental services and one count of theft of public money related to unemployment benefits that she was not entitled to receive. Lorin Van Drie is also charged with one count of theft of public money related to unemployment benefits that he was not entitled to receive and 18 counts of failure to pay over employment tax.
Today’s indictment also contains a forfeiture allegation, which would require Pamela Van Drie to forfeit to the government any property derived from the gross proceeds traceable to the alleged offenses, including at least $885,748.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Cindi S. Woolery and Special Assistant U.S. Attorney Shannon T. Kempf. It was investigated by the Department of Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Former Chief Financial Officer Pleads Guilty to EmbezzlementRead the Press Release
A former chief financial officer of a Clarkston, Michigan, credit union, pleaded guilty today to embezzling more than $18 million from his employer, U.S. Attorney Barbara McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Michael A. Lajoice, 37, pleaded guilty to one count of bank fraud before U.S. District Judge Gershwin A. Drain.
According to plea documents, LaJoice was employed by the Clarkston Brandon Community Credit Union (CBCCU), which was a federally insured financial institution. LaJoice began his employment as an Account Manager and later became CBCCU’s Chief Financial Officer in June 2015. As such, LaJoice was responsible for the accounting functions of CBCCU, which included producing CBCCU's financial statements, making general ledger entries and ACH transfers, tracking investments and reconciling CBCCU’s corporate account statements.
Between January 2003 and January 2016, Lajoice embezzled more than $18 million from CBCU. Over the years, Lajoice used a variety of methods to execute and cover up his embezzlement. In some instances, Lajoice issued cashier’s checks from various CBCCU accounts without authorization and deposited those funds into accounts at other financial institutions that he controlled. In other instances, Lajoice used Automated Clearing House (ACH) withdrawals to conduct unauthorized transfers from CBCCU’s accounts to his own personal accounts held at other financial institutions. To conceal the fraud, Lajoice created fictitious investments in certificates of deposit and bonds, and represented to auditors and bank examiners that the money he stole had in fact been invested in these vehicles.
Lajoice will be sentenced on March 21, 2017. He faces a statutory maximum term of 30 years’ imprisonment. The advisory sentencing guidelines contained in his plea agreement call for a term of imprisonment of between 121-151 months.
The case was investigated by the FBI, Oakland County Sheriff’s Department, and investigators from the Oakland County Prosecutor’s Office. Assistant United States Attorneys Abed Hammoud and John K. Neal are prosecuting the case. Assistant United States Attorney Philip Ross is handling the asset forfeiture proceeding
Fifteen Charged in Drug Trafficking Ring that Operated from Inside South Carolina PrisonsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina-------Acting United States Attorney Beth Drake, announced today that fifteen individuals, including South Carolina Department of Corrections (SCDC) inmates, have been charged federally for their roles in a wide-ranging drug trafficking conspiracy operating from behind prison walls. On September 14, 2016, a federal grand jury returned a twenty-one count sealed indictment alleging the defendants conspired to possess with intent to distribute and did distribute 50 grams or more of methamphetamine; used telephones and the U.S. Mail to facilitate a drug offense and conspired to launder drug money by conducting money transfers, cash withdrawals and purchases of and deposits onto pre-paid cash cards, all in violation of federal law. The indictment also alleges unlawful possession of a firearm and possession of a firearm in furtherance of a drug trafficking offense.
According to the indictment, five inmates capitalized on their access to cell phones to continue their criminal activities and to direct the criminal activities of nine “facilitators” outside of prison. Using contraband cellular telephones, the U.S. Mail and employing a network of suppliers, distributers and runners outside of prison, SCDC inmates brokered and managed the delivery and distribution of methamphetamine from California to the upstate of South Carolina and elsewhere in the state. The cellular telephones were often equipped with touch screens and internet access that enabled prisoners to coordinate drug transactions, confirm shipment and delivery and transfer drug proceeds.
The individuals charged are:
Nancy Phon, 40, of Fresno, California
Sok Bun a/k/a “Friday,” 27, an inmate at McCormick Correctional Institution
Paul Ray Davis a/k/a “Pop”, 39, an inmate at Ridgeland Correctional Institution
John Marlon Acosta, 24, an inmate at Perry Correctional Institution
James Robert Peterson, 28, an inmate at Lee Correctional Institution
Heather Nicole Rudicill, 29, of Cowpens, South Carolina
Beab Keo, a/k/a/ “Ma”, 52, of Boiling Springs, South Carolina
Terri Dianne Newman, 40, of Greer, South Carolina
Sokha Kao Aun, 47, of Wellford, South Carolina
Robert Earl Floyd, 55, of Piedmont, South Carolina
David Elijah Allen, 30, an inmate at Walden Correctional Institution
Jessica Lynn Gordon, 21, an inmate of Graham Correctional Institution
Samuel Travis Wiggins, a/k/a “Flash”, 37, an inmate at Broad River Correctional Institution
Melanie Renee Wiggins, 29, of West Columbia, South Carolina
Jonathan Brent Martin, 51, of Chesnee, South CarolinaThe indictment follows multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Service, Internal Revenue Service, Criminal Investigations, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Gaffney Police Department, Oconee County Sheriff’s Office, Union County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office and Homeland Security Investigations, Immigration and Customs Enforcement, Drug Enforcement Administration and the United States Marshals Service.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Federal and State Officials Promote Telephone Hotline for Reporting Election Fraud and Voting Rights AbusesRead the Press Release
In an effort to ensure that the November 8, 2016 elections are administered fairly in every city and town in Connecticut, Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael J. Brandi, Executive Director of the Connecticut State Elections Enforcement Commission, Denise Merrill, Connecticut Secretary of the State, and Kevin T. Kane, Connecticut Chief State’s Attorney, today announced that a telephone hotline will be available for use by anyone who witnesses or experiences voting irregularities on Election Day.
The hotline will be staffed by the Connecticut State Elections Enforcement Commission (SEEC) during polling hours on Election Day. Anyone with knowledge of election fraud or voting rights abuses is encouraged to call 1-866-733-2463 (1-866-SEEC-INFO) to report suspected violations. The number is toll-free statewide. Individuals also can call the SEEC at 860-256-2940. The SEEC staff will answer questions, advise on complaint procedures and, if appropriate, request the assistance of state criminal or federal law enforcement authorities in the investigation and possible prosecution of the matter.
Citizens can also send an email to [email protected] to communicate with the SEEC and the Secretary of the State’s office on Election Day.
The SEEC is the primary elections investigative and civil enforcement authority in Connecticut. The Secretary of the State’s office is charged with overseeing all elections in Connecticut, which includes advising and assisting local Registrars of Voters and Town Clerks on their statutory responsibilities regarding administration of elections.
Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
On Election Day, representatives of the U.S. Attorney’s Office and the FBI will be in direct contact with the SEEC, the Secretary of the State’s office and the office of the Chief State’s Attorney in order to receive any complaints of electoral corruption or civil rights violations. Assistant U.S. Attorney Susan Wines has been appointed to serve as the District Election Officer for the District of Connecticut. In that capacity, she is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The FBI in Connecticut and across the country will have special agents available to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office in New Haven can be reached directly at 203-777-6311, and the U.S. Attorney’s Office can be reached at 203-821-3700. In addition, complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington by calling 1-800-253-3931 or 202-307-2767, or by emailing [email protected].
Executive Director of Fairfield Non-profit Charged with Embezzling DOJ Funds Intended for Domestic Violence VictimsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Claudia Humphrey, 60, of American Canyon, charging her with theft of public money, obstruction of a federal audit, and falsifying records in a federal investigation, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey caused to be transferred over $270,000 in grant money that were to be used only for assisting victims of domestic violence into bank accounts that she controlled. Humphrey used over $50,000 of those victim funds on personal expenses such as travel, shopping, and payments to her family members, among other things.
According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of the OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and altered and falsified expense ledgers and time sheets.
This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant United States Attorney Todd A. Pickles is prosecuting the case.
If convicted, Humphrey faces a maximum statutory penalty of 10 years in prison on each of the counts of theft of public money, five years in prison for obstruction of a federal audit, and 20 years in prison on each of the counts of falsifying a record in a federal investigation. Additionally, Humphrey faces a fine of $250,000 or twice the gross loss or gain. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Election Day Hotlines to Be Operated by the United States Attorney's Office and the New Hampshire Attorney General's OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice and New Hampshire Attorney General Joseph Foster announced today that both the United States Attorney’s Office and the New Hampshire Attorney General’s Office will staff voting inquiry and complaint lines at their respective offices throughout the day and evening on Election Day, November 8, 2016.
The New Hampshire Attorney General’s toll free election line phone number is:
1-866-868-3703
(1-866-VOTER03)This phone line will be staffed from 7 am to 8 pm on Election Day. Inquiries and complaints may also be submitted via e-mail at [email protected]. Information regarding voting rights may be obtained by visiting the New Hampshire Attorney General's Office website at http://doj.nh.gov/site-map/voters.htm.
The United States Attorney’s election line phone number is:
(603) 230-2503
This phone line will also be staffed from 7 am to 8 pm on Election Day. Inquiries and complaints may also be submitted through the United States Attorney’s Web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link. A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights can also be found on the United States Attorney’s Web site, www.justice.gov/usao-nh.
The state and federal election lines are available to all individuals who may have questions regarding their voting rights or who want to file complaints with the New Hampshire Attorney General or the United States Attorney regarding their right to vote or any other election law violation.
For further information, please contact Assistant Attorney General Brian W. Buonamano at the New Hampshire Attorney General’s office at (603) 271-3650, or Assistant United States Attorney Mark S. Zuckerman at (603) 230-2579.
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Eagle Pass Drug Trafficker Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio, Luis Felipe Rodriguez (aka “Vaquero”), a 40-year-old former Eagle Pass resident and associate of the Los Zetas Drug Trafficking Organization, was sentenced yesterday afternoon to mandatory life in federal prison for his leadership role in cocaine trafficking and money laundering conspiracies announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
On September 3, 2015, a jury convicted Rodriguez of one count of conspiracy to possess cocaine with intent to distribute; one count of bulk cash smuggling; and, one count of conspiracy to commit money laundering.
During the trial, evidence was presented that Rodriguez and other co-conspirators transported from Piedras Negras, Mexico, into the United States over 25 kilograms of cocaine concealed in hidden compartments inside vehicles. Once the vehicles crossed through immigration checkpoints the cocaine was delivered to San Antonio, Houston and Waco, Texas. At that point, drug proceeds, totaling approximately $1.1 million dollars were loaded into the vehicle and Rodriguez and his co-conspirators transported the money back to Mexico.
Evidence was also presented at trial that revealed Rodriguez had two prior WDTX felony criminal convictions namely, in 2004 for possession with intent to distribute marijuana in Maverick County; and, in 2005 (while on bond for the previously mentioned offense) for conspiracy to possess with intent to distribute 100 kilograms or more of marijuana in Maverick County.
Rodriguez was arrested in Eagle Pass on January 16, 2014. He has remained in federal custody ever since.
This joint investigation was conducted by the DEA and HSI together with the U.S. Border Patrol, Texas Department of Public Safety-Criminal Investigations Division and the Eagle Pass Police Department.
Dallas Man Who Committed the Armed Robberies of Two Convenience Stores in One Day is Sentenced to 384 Months in Federal Prison on Felony OffensesRead the Press Release
DALLAS — A Dallas man, Marcus Fulbright, 25, of Dallas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to serve a total of 384 months in federal prison, following his guilty plea to felony offenses stemming from his armed robbery of two 7-Eleven stores in the Dallas area in 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulbright pleaded guilty in April 2016 to two counts of using, carrying, or brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on October 9, 2013, Fulbright entered the 7-Eleven located at 757 E. Beltline Road in DeSoto, Texas, at approximately 4:15 a.m. with the express intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk, and demanded money. Fulbright took money from the cash register and fled.
That same morning, just a few minutes later, at approximately 4:30 a.m., Fulbright entered the 7-Eleven located at 640 Pleasant Run in Lancaster, Texas, with the specific intent to rob it. Fulbright brandished a semi-automatic handgun, pointed it at the store clerk and demanded money from the cash register. As the clerk struggled to open the cash register, another individual in the store rushed at Fulbright, and Fulbright then pointed his handgun at this individual and discharged a single shot at him.
The case was investigated by the Federal Bureau of Investigation and the Dallas, DeSoto and Lancaster Police Departments.
Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.
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Dallas Drug Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Santiago Veliz, 29, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to 140 months in federal prison following his guilty plea in May 2016 to a felony Information charging one count of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Veliz’s co-conspirator, Iran Zavala, also 29 and from Dallas, was sentenced by Judge Boyle in August 2016 to 235 months in federal prison after he pleaded guilty in April 2016 to the same offense.
According to documents filed in the case, beginning in approximately June 2015, Veliz, Zavala and others agreed to distribute methamphetamine. On approximately June 29, 2015, Zavala negotiated the sale of two kilograms of methamphetamine for $32,000 to a person he later learned was an undercover law enforcement officer.
A few days later, on July 2, 2015, Veliz and Zavala traveled to a gas station on N. Beltline Road in Grand Prairie, Texas, to distribute more than 50 grams of methamphetamine to a person Veliz believed to be one of Zavala’s customers. They had both the methamphetamine and a handgun belonging to Zavala in their pickup truck. However, prior to the drug transaction being completed, law enforcement in marked patrol cars attempted to pull over their vehicle. Rather than stop, Zavala fled in the truck at a high rate of speed, and during the chase, Zavala threw the methamphetamine out of the driver’s side window. The firearm was thrown out of the passenger side window.
At Zavala’s sentencing hearing, testimony was presented that Zavala intentionally drove his pickup truck at a high rate of speed toward an officer with the Grand Prairie Police Department who was attempting to lay a spike strip in the road to deflate the tires on Zavala’s fleeing vehicle. Zavala is charged in a pending Dallas County case with Aggravated Assault of a Public Servant.
The pursuit ended when Zavala drove his truck into Mountain Creek Lake where it collided with a sailboat near the boat ramp. Both Zavala and Veliz were arrested. The firearm, a 9-milimeter semi-automatic pistol, was recovered and ordered forfeited to the government.
The Drug Enforcement Administration and the Grand Prairie Police Department investigated the case. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.
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Clinton Township Trustee Indicted on Eight Counts of BriberyRead the Press Release
An elected Trustee of Clinton Township was indicted by a grand jury yesterday on eight counts of bribery in exchange for corruptly influencing his decisions on township business, U.S. Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Dean Reynolds, 49, of Clinton Township, was charged with engaging in a pattern of corrupt activity, including demanding and accepting money and other things of value, in exchange for official acts as a trustee. The indictment of Reynolds is part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County.
The indictment charges that Reynolds accepted bribes from representatives of two companies having business with Clinton Township, and that Reynolds accepted bribes from an undercover FBI agent. In connection with one company, Reynolds accepted bribes between 2009 and 2013 amounting to $9,000 in cash and a $7,000 check. Between 2012 and 2015, Reynolds demanded and accepted bribes amounting to over $50,000 in cash, along with other things of value, from a second company. In 2016, Reynolds accepted a total of $7,000 in cash bribes from an undercover FBI agent on three separate occasions. Reynolds also accepted an additional $10,000 in cash bribes from a representative of one of the companies after that individual began cooperating with the FBI.
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Reynolds faces a maximum of ten years in prison and a fine of up to $250,000 on each of the eight counts of the indictment.
An indictment is only a charge and is not evidence of guilt.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222.
Clearwater Man Sentenced for Possessing over 50,000 Images of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. today sentenced Jonathan William Lauman (27, Clearwater) to eight years in federal prison for possessing and transporting child pornography. As part of his sentence, he was ordered to serve a 15-year term of supervision and register as a sex offender following his release from prison. The Court also ordered him to pay restitution to several victims. Lauman pleaded guilty in February 2016.
According to court documents, Lauman downloaded and possessed more than 1,500 videos and over 50,000 images of young children, including infants, engaged in sexual acts with adults. The videos depicted, in part, sadistic and masochistic sexual abuse of children and infants. Lauman hoarded and transported these videos and images on his personal laptop.
“Downloading sexually explicit images and videos of young children creates lifelong scars for victims and enables perpetrators around the globe to continuously exploit those same innocent youths,” said Susan L. McCormick, special agent in charge of Homeland Security Investigations (“HSI”) Tampa. “HSI special agents will continue to work with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (“CEOS”), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chief Executive Officer and Manager of Fraudulent Business Opportunity Seller Sentenced to PrisonRead the Press Release
The CEO and a senior manager of a Long Island, New York, company that fraudulently sold vending machine business opportunities were sentenced to prison, the Justice Department announced today. Both defendants worked at Multivend LLC, dba Vendstar, based in Deer Park, New York. Before closing in July 2010, Vendstar made approximately $10 to $12 million in sales per year.
The sentences were imposed Thursday by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York. The two defendants sentenced on Thursday were among six defendants who were found guilty after a six-week jury trial before Judge Azrack last fall.
- Edward Morris “Ned” Weaver, 43, of Perrysburg, Ohio, was sentenced to serve 60 months in prison. Weaver was the president and chief executive officer of Vendstar from 2004 to 2010. Weaver was convicted of conspiracy, mail fraud, wire fraud, and making a false statement to a federal law enforcement agent.
- Lawrence A. Kaplan, 58, of Brooklyn, New York, was sentenced to serve 54 months in prison. Kaplan was Vendstar’s technical support manager, whose primary job was to suppress the large number of complaints Vendstar received. Kaplan was convicted of conspiracy, mail fraud, wire fraud and making a false statement.
“Ned Weaver, Lawrence Kaplan and their co-conspirators stole millions of dollars from people who had the misfortune to trust them and believe their lies,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute fraud and hold accountable those who scam everyday Americans out of their hard-earned money.”
“The U.S. Postal Inspection Service will continue to work with our partners to ensure that our citizens are protected from these types of predatory schemes,” said Inspector in Charge Antonio J. Gomez of U.S. Postal Inspection Service, Miami Division, which led the investigation. “It is an essential part of our core mission as Postal Inspectors that the U.S. mail isn’t used in furtherance of these fraudulent schemes that often target hard-working individuals.”
Vendstar sold business opportunities for plastic bulk vending machines that, for 25 cents, dispensed loose candy and nuts. Vendstar advertised nationwide in newspapers and on the Internet. Vendstar promised to provide everything its customers would need to be successful, including the machines, candy, assistance in finding profitable locations and ongoing customer support. Vendstar sales representatives – with Weaver’s and Kaplan’s knowledge and approval – misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines and the level of location assistance that customers would receive from locating companies recommended by Vendstar. Vendstar referred customers to locating companies that did not find profitable locations and regularly changed their names to stay ahead of constant complaints. Vendstar sales representatives also falsely claimed to operate their own profitable vending routes, according to evidence introduced during the trial.
Twenty-two individuals have been charged with fraud in connection with Vendstar, including Vendstar managers, Vendstar sales representatives and the operators of locating companies recommended by Vendstar. In addition to the two defendants who were sentenced on Thursday, three defendants were sentenced last year and 16 other defendants are awaiting sentencing.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch.
The Consumer Protection Branch (CPB) handles criminal as well as civil cases. During the last 10 years, the CPB has convicted approximately 150 individuals of fraudulently selling business opportunities.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
CPA Pleads Guilty to Bank Fraud for Providing Inflated Tax Retruns to Client to Use to Defraud LendersRead the Press Release
Barry Horrow, 68, of Glenn Mills, pled guilty today to 4 counts of bank fraud, announced United States Attorney Zane David Memeger.
As part of his guilty plea, Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and Chester Counties, admitted that he committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation ("CFMC") and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false tax returns, false audit reports, and other false information. Horrow admitted that he repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests.
Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 41 – 51 months’ imprisonment. Horrow also agreed, as part of his plea, to make restitution of over $2,965,000.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Brunswick County Man Sentenced for Distribution of Crack, Heroin, & FirearmsRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced JARVIS ALONZO DAVIS, 37, from Longwood, N.C., to 165 months in prison and 3 years of supervised release for distribution of a quantity of cocaine base (crack) and possession of a firearm by a convicted felon. DAVIS pled guilty to the charges on May 11, 2016.
In June 2015, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and detectives with the Brunswick County
Sheriff’s Office received information that DAVIS was involved in the distribution of narcotics. Between June 2015 and October 2015, agents made 11 controlled buys consisting of crack, heroin and 3 firearms.
DAVIS was arrested by agents on October 20, 2015, and subsequently provided agents with an unprotected statement. DAVIS admitted that he was on supervision with the United States Probation Office and that he could not legally possess a firearm. DAVIS admitted to selling the confidential informant over 2 ounces of cocaine base and three firearms. DAVIS reported that he purchased the firearms in Longwood, North Carolina.
Based on the investigation, DAVIS is responsible for the distribution of 80.36 grams of cocaine base, .128 gram of heroin, and 3 firearms. DAVIS also possessed a firearm in connection with the offense and made a credible threat to use violence.
The case was investigated by the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Bridgeport Man Charged with Selling Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DARRYCK NORRIS, 23, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According the complaint, at approximately 8:49 p.m. on October 27, 2016, Milford Police and emergency medical personnel responded to a residence in Milford and found an unresponsive 37-year-old male slumped over in the downstairs living area of the residence. Emergency personnel attempted lifesaving measures and administered two doses of the opiate antidote Narcan (Naloxone), which had no effect. The victim was declared deceased at the scene. Officers searched the immediate area and seized four empty baggies and one full baggy that contained suspected heroin. Each of the bags was stamped with the same brand stamp.
Officers also seized the victim’s iPhone. The complaint alleges that text messages contained on the victim’s iPhone revealed that the victim had ordered heroin from NORRIS earlier that day. Witness interviews and further cellphone analysis revealed that the victim had purchased heroin from NORRIS for several months prior to the victim’s overdose.
On November 1, 2016, members of the DEA and Milford Police Department conducted a controlled purchase of heroin from NORRIS in Bridgeport. The heroin bags purchased were stamped with the same stamp that was found on the bags seized from the overdose victim’s residence.
NORRIS appeared today before U.S. Magistrate Judge Sarah A. L. Merriam and was released into a residential drug treatment program.
The charge of possession with intent to distribute, and distribution of, heroin, carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Milford and Bridgeport Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Black Diamond Dog Kennel Owner Sentenced for Making False StatementsRead the Press Release
CEDAR RAPIDS, IA – A northwest Iowa man who owed a monetary penalty to the United States for numerous violations of animal welfare regulations at his kennel was sentenced today to 3 years’ probation for lying to the government about his assets and income.
Gerhard (“Gary”) Felts, age 61, from Kingsley, Iowa, was sentenced after a July 13, 2016 guilty plea to one count of making false statements to the United States.
A plea agreement and sentencing records show that Felts has operated Black Diamond Kennel since 1998. In 2010, he obtained his Class A license from the United States Department of Agriculture (USDA). The USDA conducted 17 inspections since then, finding Felts had 51 noncompliant items, including inadequate veterinary care, as well as inadequate housing, cleaning, sanitation and housekeeping. As a result of these violations, USDA obtained an $18,938 administrative penalty against Felts.
Felts failed to pay this administrative penalty and the United States obtained a civil judgment against him in order to collect the penalty. During the collection process, defendant lied to the government about his bank accounts and his income from a workers’ compensation settlement. Specifically, Felts failed to disclose a checking account he opened in April 2011, a savings account opened in April 2013, and his receipt of $25,000 worth of worker’s compensation payments in April 2013. Once defendant received his workers’ compensation settlement, he used the money to expand his kennel rather than paying his administrative penalty. Felts currently owes $13,382.70 on his administrative penalty.
Felts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Felts was sentenced to 3 years’ probation with a special condition that requires him to stay current on monthly payments to USDA. The court also ordered that, should he not be debarred from serving as a federally licensed dealer under the Animal Welfare Act, Felts must comply with all applicable federal, state, and local regulations and laws regarding his license and care of animals including but not limited to the Animal Welfare Act. A special assessment of $100 was also imposed.
“The United States takes very seriously its obligation to collect debts from those who violate the Animal Welfare Act. False statements in that process will not be tolerated,” stated United States Attorney Kevin W. Techau. “The Animal Welfare Act’s purpose is to protect animals and those who violate it and are ordered to pay penalties will not be allowed to avoid those consequences by lying to the government. We strongly recommend that the Animal and Plant Health Inspection Service debar Mr. Felts from operating as a federally licensed dog breeder and dealer. Mr. Felts was penalized because of more than a dozen violations of animal welfare regulations and then lied to avoid the repercussions of his actions. His failure to care for his animals and this conviction demonstrate that he should be debarred in order to safeguard the welfare of his animals.”
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by U.S. Department of Agriculture. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-cr-49.
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Bergen County, New Jersey, Man Gets Three Years in Prison for Embezzling Millions of Dollars from North Jersey BusinessRead the Press Release
TRENTON, N.J. – The former chief financial officer of a Bergen County business was sentenced today to 36 months in prison for embezzling millions of dollars and evading taxes, U.S. Attorney Paul J. Fishman announced.
Gomidas Garabed Hartounian, 52, of Franklin Lakes, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a superseding information charging him with one count of wire fraud and one count of tax evasion. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From April 2007 through April 2014, Hartounian was the CFO for “Company A,” a for-profit company with its principal place of business in Englewood, New Jersey. Hartounian is also the sole owner of MGB LLC, a company registered to his residence. Hartounian fraudulently designated MGB as a vendor in Company A’s accounting system without disclosing that he controlled MGB. He directed Company A employees to issue checks to MGB for freight services that MGB supposedly provided Company A. When asked for the MGB invoices, he claimed that he was maintaining them in his office.
Because Hartounian didn’t have sole signatory power, he forged the signatures of the chief executive officer or the chief operating officer before depositing the checks into bank accounts that he controlled. Hartounian also had checks issued directly from Company A bank accounts to pay for his personal expenses, including real estate taxes to the Borough of Franklin Lakes for $6,562 in August 2011.
Hartounian also admitted that he filed a false federal tax return, Form 1040, for the calendar year 2012 in which he knowingly did not report $1.29 million in income that he received as the sole owner of MGB. Instead, Hartounian falsely understated his income for 2012 as $133,290.
In addition to the prison term, Judge Sheridan sentenced Hartounian to three years of supervised release. Hartounian must also pay restitution of $4,117,463, which includes $3.5 million to the victim company and $617,463 to the IRS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’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’s 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Alan Silber Esq., Roseland, New Jersey
Baltimore Man Ordered to Pay $1 Million in Restitution for Obstructing Firefighters’ Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, today to pay $1 million in restitution, to serve 250 hours of community service and three years of supervised release, after giving him credit for time served (five weeks), for impeding firefighters by puncturing a firehose during the civil disturbance in Baltimore on April 27, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the information presented to the court at Butler’s plea hearing and today’s sentencing, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler admitted that he punctured the hose twice using a knife. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, pleaded guilty to the arson of a Baltimore food market and admitted that he participated in the looting of a liquor store and assaulted the store’s owner. Green was sentenced to 70 months in federal prison. Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store and was sentenced to five years in federal prison. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in federal prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who prosecuted the case.
Attorney Pleads Guilty to Bribing a Federal Agent, Fraud and EvasionRead the Press Release
Charles T. Busse, 57, of Birmingham, Michigan, pleaded guilty today to charges of bribery, conspiracy to defraud the United States, tax evasion and failure to report cash payments of more than $10,000, announced U.S. Attorney Barbara L. McQuade.
Joining in the announcement was Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigations, Giovanni Tiano, Special Agent in Charge of the Detroit, Michigan office of the Department of Homeland Security – Office of Inspector General and Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Charles T. Busse pleaded guilty before U.S. District Judge Avern Cohn in Detroit.
According to court records, Busse admitted to paying bribes to a Special Agent with U.S. Immigration and Customs Enforcement – Homeland Security Investigations to obtain numerous deferrals of deportation and other immigration benefits for his clients. Attorney Busse maintains law offices in Rochester Hills and Dearborn.
Busse also admitted to conspiring to obstruct the lawful function of the U.S. Department of Homeland Security by dishonest means. In addition, Busse pleaded guilty to criminal tax evasion and violating the federal law that requires an attorney to report any cash payments of more than $10,000. The crimes are alleged to have occurred between 2009 and 2015. The four charged crimes carry maximum penalties of between five and fifteen years.
A sentencing date will be set by the court.
U.S. Attorney McQuade commended the outstanding work of the Office of Inspector General of the U.S Department of Homeland Security, the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into potential corruption activities involving a federal law enforcement official.
Aryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
WASHINGTON – A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, methamphetamine production and trafficking and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Donald Alway of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Criminal enterprises like the ABM hold communities hostage with fear and violence, but they can be hard to prosecute because they stretch across jurisdictions,” said Assistant Attorney General Caldwell. “This case demonstrates our commitment to targeting the leadership and structure of these gangs, building on the successful racketeering prosecutions of the AB in Texas, Oklahoma and now Mississippi. We will not stop until these gangs are dismantled and their members are behind bars.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs like the Aryan Brotherhood of Mississippi,” said Special Agent in Charge Azzam. “The sentencing of this gang member should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners, to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
“The substantial sentence imposed today sends a strong message to the defendant and to other violent gangs that they will be held accountable for their criminal activities,” said Special Agent in Charge Hester. “ATF will utilize every available resource to combat violent crime. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our local communities.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Donald Alway. “Recognizing and neutralizing these organizations is vitally important, and thanks to the joint efforts of our local, state and federal law enforcement partners, Mississippi is much safer.”
“This verdict and the culmination of this case, again, are another example of the outstanding teamwork of federal, state and local law enforcement,” said Director Dowdy. “The dismantling of this organization represents the continuing commitment in law enforcement to protecting the public safety for all Mississippians.”
Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, a member of ABM, was sentenced yesterday to serve an additional 120 months for attempted murder by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Owens was found guilty by a federal grand jury of engaging in a racketeering conspiracy, murder, kidnapping and attempted murder.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Owens and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, Owens and other ABM leaders ordered others to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. Owens and Eric Glenn Parker beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, in a separate incident, Owens ordered the stabbing of a gang member for threatening to rape a child. The gang member was stabbed five times.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of ABM, which resulted in the conviction of 42 members and associates of the gang. Parker, 35, of Richton, Mississippi, was convicted along with Owens of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Parker’s sentencing has not yet been scheduled.
The DEA, ATF, FBI and the MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Aryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, methamphetamine production and trafficking and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Fire and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Donald Alway of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Criminal enterprises like the ABM hold communities hostage with fear and violence, but they can be hard to prosecute because they stretch across jurisdictions,” said Assistant Attorney General Caldwell. “This case demonstrates our commitment to targeting the leadership and structure of these gangs, building on the successful racketeering prosecutions of the AB in Texas, Oklahoma and now Mississippi. We will not stop until these gangs are dismantled and their members are behind bars.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“Our neighborhoods deserve to exist without fear and intimidation inflicted by violent drug gangs like the Aryan Brotherhood of Mississippi,” said Special Agent in Charge Azzam. “The sentencing of this gang member should be a warning to others who prey on the weak and defenseless through their drug trafficking and violent acts. We will continue to work with all of our law enforcement partners, to relentlessly pursue these violent criminals and drug traffickers plaguing our communities.”
“The substantial sentence imposed today sends a strong message to the defendant and to other violent gangs that they will be held accountable for their criminal activities,” said Special Agent in Charge Hester. “ATF will utilize every available resource to combat violent crime. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our local communities.”
“The convictions in these cases reflect a major disruption of a large organization that incubates in our prison systems and spills over to our streets," said Special Agent in Charge Donald Alway. “Recognizing and neutralizing these organizations is vitally important, and thanks to the joint efforts of our local, state and federal law enforcement partners, Mississippi is much safer.”
“This verdict and case conclusion is another example of the outstanding teamwork in Mississippi among federal, state and local law enforcement,” said Director Dowdy. “The dismantling of this organization represents the continuing commitment in law enforcement to protecting the public safety of all Mississippians.”
Frank George Owens Jr., 44, aka State Raised, of D’Iberville, Mississippi, a member of ABM, was sentenced yesterday to serve an additional 120 months for attempted murder by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Owens was found guilty by a federal grand jury of engaging in a racketeering conspiracy, murder, kidnapping and attempted murder.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Owens and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, Owens and other ABM leaders ordered others to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. Owens and Eric Glenn Parker beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, in a separate incident, Owens ordered the stabbing of a gang member for threatening to rape a child. The gang member was stabbed five times.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of ABM, which resulted in the conviction of 42 members and associates of the gang. Parker, 35, of Richton, Mississippi, was convicted along with Owens of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. Parker’s sentencing has not yet been scheduled.
The DEA, ATF, FBI and the MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Albuquerque Man Pleads Guilty to Bank Robbery Spree in August 2016Read the Press Release
ALBUQUERQUE – Christopher James Baum, 36, of Albuquerque, N.M., pled guilty today in federal court to six bank robbery charges. Under the terms of his plea agreement, Baum will be sentenced within the range of 20 to 30 years in prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Baum was arrested in Aug. 2016, on a criminal complaint charging him with robbing four banks and attempting to rob a fifth bank in Bernalillo County, N.M., between Aug. 16, 2016 and Aug. 24, 2016. According to the complaint, Baum committed the bank robberies by entering Albuquerque-area banks and demanding money from bank tellers.
During today’s proceedings, Baum pled guilty to a felony information charging him with six counts of bank robbery and attempted bank robbery. In entering the guilty plea, Baum admitted the following criminal conduct:
- Robbing the Bank of the West branch located at 5901 Menaul Blvd. NE on Aug. 16, 2016;
- Robbing the Bank of the West branch located at 2101 Eubank Blvd. NE on Aug. 19, 2016;
- Attempting to rob the Bank of Albuquerque branch located at 4201 Wyoming Blvd. NE on Aug. 23, 2016;
- Robbing the Nusenda Credit Union branch located at 7517 Montgomery Blvd. NE on Aug. 23, 2016;
- Robbing the Wells Fargo Bank branch located at 4700 Tramway Blvd. NE on Aug. 24, 2016; and
- Robbing the Bank of the West branch located at 780 Juan Tabo Blvd. NE on Aug. 30, 2016.
Baum also admitted brandishing a pistol at the bank teller when he committed the Aug. 30, 2016 bank robbery. Baum remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Joseph Spindle is prosecuting the case.
Baum, whose criminal history includes three prior bank robbery convictions, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Alabama Resident Sentenced to Prison for Operating Stolen Identity Refund Fraud SchemeRead the Press Release
Used Stolen Identities to File Returns Fraudulently Claiming More Than $400,000 in Tax Refunds
A Montgomery County, Alabama resident was sentenced to 61 months in prison for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to information provided in court, James Vernon Battle used stolen personal identification information to prepare and file at least 335 false federal income tax returns for tax years 2013 and 2014 that fraudulently claimed more than $400,000 in tax refunds. Battle obtained stolen personal identification information from Wendy Huff, who worked at two loan companies in Montgomery, Alabama. Battle directed the Internal Revenue Service (IRS) to issue the requested refunds via prepaid debit cards and U.S. Treasury checks. The prepaid debit cards and checks were sent to various addresses controlled by Battle, as well as Huff’s personal residence. Battle brought several checks to Huff’s workplace, where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself.
Battle also attempted to obstruct justice by threatening and intimidating a witness. Evidence introduced in court showed that right after Battle was released on bond, he stalked the witness and threatened that he had “a bullet for the person that messed up his million dollar plan.” U.S. District Court Judge William Keith Watkins found that the evidence of obstruction warranted an increased prison sentence.
Battle pleaded guilty in April to wire fraud and aggravated identity theft. In addition to the prison term imposed, Battle was ordered to serve three years of supervised release and to pay $102,322 in restitution to the IRS. Huff pleaded guilty in March to conspiracy to commit wire fraud and aggravated identity theft, and was sentenced in July to 48 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
2 November 2016
Westminster Woman Ordered Held Without Bond Following Indictment and Arrest for the Distribution and Possession of Child PornographyRead the Press Release
DENVER – Sharee Ewudzi-Acquah, age 47, of Westminster, Colorado, who faces child pornography related charges, was ordered held without bond this week by U.S. Magistrate Judge Kristen L. Mix following a contested detention hearing. Ewudzi-Acquah, was indicted by a federal grand jury on October 18, 2016. She was arrested by the FBI on October 20, 2016, which is when she was advised of her rights and the charges pending against her. The detention hearing was held on October 31.
According to the Indictment, Ewudzi-Acquah faces two counts of distribution of child pornography and one count of possession of child pornography. The first count focuses on the time period between September 8, 2015 and October 28, 2015. The second count focuses on the time period between January 20, 2016 and March 13, 2016. Both counts charge that the defendant knowingly distributed child pornography by any means, including computer. The third count states that on July 28, 2016, the date federal authorities executed search warrants, she knowingly possessed child pornography.
During the detention hearing, Assistant U.S. Attorney (AUSA) Valeria Spencer argued that Ewudzi-Acquah was a danger to the community and therefore should be held without bond. In support of her position, AUSA Spencer argued that the defendant traded child pornography with multiple users using a specific cellular telephone App that has the ability for users to trade high volumes of child pornography anonymously. During an investigation into an individual in San Antonio, Texas, agents found evidence of child pornography trading with an individual whose IP address resolved to Westminster, Colorado. Further investigation revealed very graphic sex chats, during which Ewudzi-Acquah sent images and videos of child pornography to the subject in San Antonio. The Westminster IP address also came up during a separate investigation being conducted into a child pornography target in Miami, Florida.
Following the forensic analysis on Ewudzi-Acquah’s phones, agents determined the defendant was using cloud storage, foreign emails, and foreign cloud storage – in both New Zealand and in Russia. During one chat found on one of her devices, the defendant claimed to have molested a relative. In total she had three phones with child pornography on them. Evidence shows that the defendant, who had a long-term job at the University of Colorado, traded child pornography and chatted about child pornography while at work.
If convicted of distribution of child pornography, the defendant faces not less than 5 years, and up to 20 years in federal prison, as well as up to a $250,000 fine per count for each of the two counts. If convicted of possession of child pornography, the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Waterbury Man Who Sold Heroin to Overdose Victim Sentenced to 3 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that REGINALD MILES, JR., also known as “Rocky,” 26, of Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing heroin to a Woodbridge man who died from an overdose a short time later.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on November 19, 2015, a 22-year-old male died from an apparent heroin overdose at a residence in Woodbridge. The investigation revealed that shortly before the victim’s overdose, the victim and two other individuals purchased heroin from MILES in Waterbury.
According to the State of Connecticut Chief Medical Examiner, the victim’s death was determined to be acute intoxication due to the combined effects of heroin and Alprazolam (a generic form of Xanax).
MILES has been detained since his arrest on January 22, 2016. On May 19, he pleaded guilty to one count of distribution of heroin.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Middlebury, Waterbury and Woodbridge Police Departments. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Utah Man Pleads Guilty to Bank Fraud and Bankruptcy FraudRead the Press Release
COEUR D’ALENE – Cortney S. Valentine, 39, of Liberty, Utah, pleaded guilty yesterday to bank fraud and false declaration under penalty of perjury and concealment of assets in connection with a bankruptcy case, U.S. Attorney Wendy J. Olson announced. Valentine was indicted by a federal grand jury in Coeur d'Alene on February 18, 2015.
According to the plea agreement, Valentine defrauded U.S. Bank when he made material false statements which were relied upon by U.S. Bank and caused U.S. Bank to lend him $362,000. In the midst of the Valentine’s ever increasing debt and when creditors were attempting to foreclose on various properties, Valentine decided to keep the creditors at bay by filing bankruptcy. Valentine and his wife filed for relief under bankruptcy separately and in different states. In November 2011, Valentine contracted to sell a home to a third party for $1,150,000. Valentine should have reported to the bankruptcy court any proceeds from the sale of the asset. Instead, he used the money to support himself. Valentine made numerous false statements on the bankruptcy filings and concealed the funds from the bankruptcy court that he received from the third party purchaser.
Valentine’s wife, Nicolette P. Valentine, 37, of Liberty, Utah, pleaded guilty to bank fraud, concealment of assets in connection with a bankruptcy case and false statements under oath, on June 23, 2016. She is scheduled to be sentenced on December 6, 2016, before Senior U.S. District Judge Edward J. Lodge.
The charge of bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000, and up to five years of supervised release. The charge of false declaration under penalty of perjury in relation to a bankruptcy case is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of concealment of assets in connection with a bankruptcy case is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for February 28, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI).
United States Attorney's Office for the Eastern District of Missouri has Established a Hotline for Handling Election Fraud and Voting Rights CallsRead the Press Release
St. Louis, MO - United States Attorney Richard Callahan today announced that on Election Day, the United States Attorney’s Office will have a hotline for citizens to call on election day regarding complaints of possible election fraud, voter intimidation and any other forms of election abuses. Hotline calls will be answered by Assistant United States Attorneys from the time the polls open at 6 a.m. until the polls close at 7 p.m. The hotline number is 314-539-7733.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input. Federal law also protects voters from acts of intimidation and harassment.
In addition to the United States Attorney’s Office, the St. Louis FBI will also have special agents available to receive allegations of election fraud and other election abuses on election day. The St. Louis FBI field office can be reached by the public at 314-589-2500.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Callahan said, "Ensuring free and fair elections depends in large part on the cooperation and vigilance of the American people. It is imperative that those who have specific information about discrimination or election fraud report that information to the local election authority, my office, the FBI or the Civil Rights Division."
U.S. Attorney’s Office Presents Anti-Drug Program to StudentsRead the Press Release
Gulfport, Miss - The United States Attorney’s Office for the Southern District of Mississippi has begun a pilot school education program entitled "Pills, Needles & Designer Drugs" with presentations at Biloxi High School November 2-3, 2016 and St. Patrick’s Catholic High School scheduled for November 29th. The program was first presented at Jeff Davis Elementary School in Biloxi on October 27th.
The forty-five (45) minute program includes a frank discussion and presentation about the greatest drug threats in our community: opiates and designer drugs (sometimes called "bath salts" and "spice"), a short movie produced by the U.S. Attorney’s Office in Birmingham, and a discussion that will include medical personnel from area emergency rooms.
School superintendents that would like further information about the program or who are interested in the U.S. Attorney’s Office bringing the presentation to their schools, can call the U.S. Attorney’s Office at (228) 563-1560 and ask to speak to Melissa Dunn. Medical personnel that wish to donate their time sharing experiences dealing with these dangerous drugs in an emergency setting are also encouraged to contact the U.S. Attorney’s Office.
U.S. Attorney Stanton Announces Five New AppointmentsRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III has announced the promotion of five attorneys and support staff members to new positions within the U.S. Attorney’s Office.
"Each of these individuals has displayed an exceptional work ethic and unwavering dedication toward the U.S. Attorney’s Office and its mission," said U.S. Attorney Stanton. "I am confident that the experience and diligence they bring to their new leadership positions will continue to make them assets to the office and community."
Among those promoted to new positions are:
• Assistant U.S. Attorney Carroll Andre
Mr. Andre has been promoted to deputy criminal chief. With three decades of experience as an AUSA, Mr. Andre is a veteran prosecutor who primarily handles white-collar cases. In his new role, Mr. Andre will assist the office’s criminal chief with overseeing the criminal division’s execution of day-to-day responsibilities. In the absence of the criminal chief and senior litigation counsel, he will also review pleadings and handle any criminal division inquiries.
• Assistant U.S. Attorney Beth Boswell
Ms. Boswell has been promoted to chief of the Organized Crime Drug Enforcement Task Force (OCDETF) Unit. Ms. Boswell has been with the U.S. Attorney’s Office for five years, primarily prosecuting firearm and drug cases. With respect to her new role, Ms. Boswell will oversee OCDETF and other narcotics-related cases throughout West Tennessee. She will also act as a liaison between the office and fellow federal, state and local law enforcement agencies involved in conducting drug investigations.
• Assistant U.S. Attorney Keenan Carter
Mr. Carter has been promoted to deputy civil chief. He came to the U.S. Attorney’s Office as a seasoned civil litigator, and served as a criminal prosecutor for the office’s Firearms Unit for three years. Mr. Carter returned to civil litigation when he transferred to the office’s Civil Division in 2015. As deputy civil chief, Mr. Carter will take on an additional role in overall case management, as well as new administrative duties within the civil division.
• Marian Peete
Ms. Peete, formerly the lead legal assistant for the Violent Crimes Unit, has been promoted to supervisory legal assistant. With respect to her new position, Ms. Peete will coordinate training and management for the legal staff. She will also maintain and build upon the professional relationship between support staff, attorneys, management and the federal court system.
• LaRita Bearden
Formerly the office’s supervisory legal assistant, Ms. Bearden has been promoted to victim witness specialist. Under this role, Bearden will provide a variety of notifications, case updates and assistance services to victims and witnesses of federal crimes who have suffered physical, financial, and/or emotional trauma. Her sympathetic manner is a plus to this position. The 10-year veteran will also help coordinate community outreach efforts with partnering agencies.
Two Texas Men Sentenced to Combined 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Rosalio Laredo-Garcia, age 21 of Hutchins, Texas, was sentenced today to 57 months in federal prison followed by three (3) years of supervised release and ordered to pay a $1,900 fine on one count of Possession with Intent to Distribute Methamphetamine. Co-Defendant, Hado Zepeda-Garcia, age 25 of Wilmer, Texas was sentenced yesterday to 63 months in federal prison followed by three (3) years of supervised release and ordered to pay a $4,900 fine on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court documents, in February of 2016, Drug Enforcement Administration (DEA) investigators received information that Hado Zepeda-Garcia planned to travel from Wilmer, Texas, to the Western District of Arkansas with several pounds of methamphetamine. On February 6, 2016, agents conducting surveillance in the Western District of Arkansas observed Zepeda-Garcia and Laredo-Garcia driving northbound on Interstate 49 in Zepeda-Garcia’s vehicle. Once the vehicle pulled into the parking lot of a local business, agents with the DEA made contact with them. Hado Zepeda-Garcia consented to the search of his vehicle, and during the search, agents located 2,897 grams of methamphetamine packaged in three separate plastic tubs that were hidden inside of an air compressor.
After waiving their Miranda rights, both Zepeda-Garcia and Laredo-Garcia admitted to agents that they planned to distribute the methamphetamine found in the vehicle in the Western District of Arkansas. Both defendants were indicted on March 18, 2016 and both entered a guilty plea in July, 2016.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kimberly D. Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Men Sentenced to Prison on Wire Fraud Conspiracy Charges for Attempting to Steal More Than $1.3 Million Through Unauthorized Wire TransfersRead the Press Release
CHARLOTTE, N.C. – Jamel Ski Yates, a/k/a “Goo,” 43, of Charlotte, was sentenced yesterday by U.S. District Judge Robert J. Conrad, Jr. to 36 months in prison on federal wire fraud conspiracy charges for attempting to steal more than $1.3 million through unauthorized wire transfers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Yates was also ordered to serve two years under court supervision upon completion of his prison term and to pay $251,146 as restitution.
Yates’ co-defendant, Anthony Shawn Wilkerson, 46, of East Point, Georgia, was also sentenced today, to a year and a day in prison followed by two years of supervised release and was ordered to pay $251,146 as restitution. Wilkerson pleaded guilty to wire fraud conspiracy and wire fraud charges for his role in the conspiracy.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making todays’ announcement.
Five additional defendants who conspired with Yates to execute the wire fraud scheme have been sentenced to date:
- Shaka Stayman was sentenced to 84 months in prison, after pleading guilty to wire fraud conspiracy and wire fraud charges.
- Dural Samuels was sentenced to 28 months in prison and was ordered to pay restitution of $252,730 after pleading guilty to wire fraud conspiracy and wire fraud charges.
- Barry Shade was sentenced to 12 months in prison and was ordered to pay restitution of $251,147 after pleading guilty to wire fraud conspiracy charges.
- Abiola O. Oginni was sentenced to one year and a day in prison after pleading guilty to wire fraud conspiracy charges.
- Dwayne A. Reynolds was sentenced to three years of probation and was ordered to pay restitution in the amount of $20,037 after pleading guilty to wire fraud conspiracy.
According to filed court documents and statements made in court, from about January 2010 through in or about January 2011, Yates and his co-conspirators engaged in a wire fraud scheme by unlawfully accessing multiple customer accounts maintained by a financial services company located in Charlotte. Court records show that Yates was the insider who stole personally identifiable information (PII) of approximately 90 customers of the victim company, and provided that information to Samuels. According to court records, using that information, Samuels used his network of co-conspirators, which included Stayman, Shade, Oginni, Wilkerson and Reynolds, to withdraw funds from the compromised victim company accounts and then deposit the stolen funds into the co-conspirators’ own bank accounts or the bank accounts of other individuals (also known as “money mule accounts”).
According to court records, the co-conspirators attempted to withdraw more than $1.3 million from the compromised customer accounts by executing multiple wire transfers ranging from $6,000 to $48,000. They then deposited the stolen funds into the money mule accounts and retrieved it through multiple cash withdrawals. According to court records, the co-conspirators were able to steal more over $300,000 through their wire fraud scheme.
Yates and Wilkerson will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility to begin serving their prison terms. All federal sentences are served without the possibility of parole.
The investigation was led by the FBI. Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Twice-Convicted Drug Dealer Charged with Selling Heroin and Fentanyl Resulting in Death, Possessing AmmoRead the Press Release
PITTSBURGH – Henry T. Little-Proctor aka Bundles, of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh with violations of the federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The five-count Superseding Indictment charged Little-Proctor, 26, with conspiracy to distribute and possession with intent to distribute heroin and fentanyl, from October 2015 to July 20, 2016, resulting in the death of a person. The Superseding Indictment further alleges that on July 13, 2016, Little-Proctor possessed with intent to distribute and distributed fentanyl resulting in the death of a person. On July 18, 2016, he also possessed with intent to distribute and distributed heroin. Further, on July 20, 2016, Little-Proctor possessed with intent to distribute heroin. Finally, the Superseding Indictment alleges that from May 14, 2016, to July 20, 2016, Little-Proctor possessed .233 Rem caliber Full Metal Jacket ammunition and .22 caliber ammunition, after having been convicted of multiple crimes punishable by more than one year in prison. Those cases include two prior convictions for heroin dealing.
The law provides for a maximum potential sentence of not less than 20 years and up to life in prison, a fine of $8,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office conducted the investigation leading to the Superseding Indictment in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tonawanda Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Perry, 28, of Tonawanda, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to 60 months in prison and by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on April 10, 2015, members of the Tonawanda Police Department and the Drug Enforcement Administration executed a search warrant at the defendant’s apartment. Police recovered approximately 48 grams of crack cocaine and approximately 28 grams of cocaine.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, and the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold
Three defendants plead guilty to roles in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – Three defendants pleaded guilty today to federal drug crimes for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Morgan Light, 24, of Charleston and Las Vegas, Mark Cobb, 30, of St. Albans, and Shayne Shamblen, 47, of St. Albans, each pleaded guilty to conspiracy to distribute methamphetamine.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several mail packages that contained methamphetamine, other drugs, or drug proceeds. Since January 2014, several pounds of methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Light, Cobb, and Shamblen each admitted that they worked with Joseph Cooper, a codefendant, to arrange for the shipment and transport of methamphetamine to West Virginia.
Light’s handwriting was found on at least one package that contained over 100 grams of crystal methamphetamine. Shamblen admitted that he arranged for the shipment of that same package and intended to distribute the methamphetamine contained in the package. Cobb lived with Light and Cooper in Nevada for a short time, and also helped with the packaging and distribution of methamphetamine. Cobb’s fingerprint was found on a package containing approximately 3 grams of crystal methamphetamine that was sent to an individual in St. Albans. The methamphetamine from both of the packages was laboratory tested and found to be over 90% pure.
Light, Cobb, and Shamblen each face up to 20 years in federal prison when they are sentenced on February 2, 2017. Cooper previously pleaded guilty to possession with intent to distribute methamphetamine and faces a minimum of 5 years and up to 40 years in prison when he is sentenced on January 19, 2017. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, previously pleaded guilty to conspiracy to distribute methamphetamine and faces at least 10 years and up to life in prison when he is sentenced on January 4, 2017.
Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Three Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
Officers Falsified Reports and Tampered with Witnesses to Cover Up Beating
Three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence.
According to the indictment, former Major Daniel Davis, 40, of Loranger, Louisiana; former Captain John Sanders, 31, of Marksville, Louisiana; and former Captain James Savoy, 38, of Marksville, beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that they had used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth former supervisory correctional officer, Captain Scotty Kennedy, 48, of Beebe, Arkansas, pleaded guilty on Tuesday for his role in the incident.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Baton Rouge Division and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
Davis et al IndictmentThree Former Supervisory Correctional Officers Charged with Beating Handcuffed and Shackled Inmate at Angola State PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, announced that three former supervisory correctional officers at Louisiana State Penitentiary in Angola, Louisiana, were indicted today for beating a handcuffed and shackled inmate, and conspiring to cover up their misconduct by falsifying official records, committing perjury and tampering with witnesses as well as physical evidence. Earlier this week, a fourth former supervisory officer pled guilty for his role in the crimes.
Former Major DANIEL DAVIS, age 40, of Loranger, Louisiana, former Captain JOHN SANDERS, age 31, of Marksville, Louisiana, and former Captain JAMES SAVOY, age 38, of Marksville, Louisiana, were charged in a multi-count indictment by a federal Grand Jury sitting in the Middle District of Louisiana. According to the indictment, Major DANIEL DAVIS, Captain JOHN SANDERS and Captain JAMES SAVOY beat an inmate, who suffered bodily injury as a result. The defendants then created a false cover story, asserting that the officers used reasonable force to get the inmate under control after he had gotten out of his cell and fought with officers. To corroborate that false cover story, members of the conspiracy instructed subordinates to clean up the inmate’s blood before internal investigators could document it, falsified official prison reports and records, ordered subordinates to lie to internal affairs investigators and lied under oath in a federal civil proceeding arising out of the incident.
A fourth defendant, former Captain SCOTTY KENNEDY, age 48, of Beebe, Arkansas, pled guilty on Tuesday, November 1, 2016, for his role in the incident.
U.S. Attorney Green stated: “It is a sad day whenever a member of law enforcement engages in wrongdoing. In addition to the direct harm caused to a victim, such wrongdoing taints the vast majority of officers who fulfill their mission with honesty and integrity. Today’s indictment reinforces that no one is above the law.”
This case is being investigated by the Baton Rouge Office of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr. of the Middle District of Louisiana and Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section.
NOTE: An indictment is an accusation by the Grand Jury. Each defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Tampa Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Melissa Hayes has pleaded guilty to conspiracy to commit theft of government property. She faces a maximum penalty of five years in federal prison.
According to the plea agreement, Hayes conspired with others to commit stolen identity refund fraud by depositing United States Treasury checks in the names of others into a business bank account that had been established for her restaurant/food business. Hayes then withdrew the funds the same day or the following day, spent the money on point-of-purchase items, or transferred the money to her personal bank account. The Treasury checks were fraudulently endorsed with the name of the intended recipient (the victim) and the name of Hayes’s business prior to being deposited. Four of the persons named on the Treasury checks deposited into Hayes’s account were deceased.
Between January and June 2012, Hayes deposited 22 fraudulent government and tax refund checks, totaling more than $160,000, into her business bank account. She used these fraudulently obtained funds for her personal use and shared them with her co-conspirators.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.