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2 November 2016
Statement by Attorney General Loretta E. Lynch on Fatal Shooting of Police Officers in Des Moines, IowaRead the Press Release
Attorney General Loretta E. Lynch today released the following statement regarding this morning’s shooting in Des Moines, Iowa:
“Good morning, everyone. Before we begin today, I want to take a moment to address the senseless attacks that claimed the lives of two police officers early this morning in Des Moines, Iowa. A suspect is in custody, and the Department of Justice has offered any and all assistance to our state and local counterparts as they investigate these appalling attacks. We will continue to monitor the situation, and our U.S. Attorney’s Office in the Southern District of Iowa will remain in regular contact with local authorities.
Violence has no place in the United States of America. It degrades our communities, and it demeans our values. And when that violence is coldly and deliberately directed at those who risk their lives to enforce the law and to keep us safe, it is especially intolerable. This tragic incident is yet another reminder of the tremendous dangers that law enforcement officers face each and every day. The men and women in law enforcement deserve our gratitude and our respect. And more than that, they deserve our support, which is why the Department of Justice is committed to doing everything we can to give police officers the tools, training, and equipment they need to do their jobs safely and effectively. And we are determined to hold to account anyone who targets police officers simply because they have the courage and the selflessness to wear the badge each and every day.
I know that this is a time of particular tension and mistrust between law enforcement and many communities. I know that while we do not yet know what led the perpetrator to commit these awful crimes, many will be nevertheless be tempted to read a message or motive into this assault. But let me be clear: there is no message in murder. Violence creates nothing; it only destroys. And the path to the more just and peaceful society that we desire for ourselves and for our children is paved not with hatred and malice, but with compassion, and understanding, and the hard work of cooperation. Let those be our watchwords in the days to come.
I ask that you keep the families and loved ones of the brave officers we lost this morning in your thoughts and prayers.”
Springdale Man Sentenced to Six Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Richard Blaine Gamblin, age 22, of Springdale, was sentenced to 72 months in federal prison and ten (10) years of supervised release on one count of Knowing Receipt of Child Pornography. The sentencing hearing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to the Plea Agreement, in April of 2016, the National Center for Missing and Exploited Children notified Homeland Security Investigations (HSI) and the Internet Crimes Against Children Taskforce (ICAC) that an individual residing in Northwest Arkansas uploaded images of child pornography to an online storage account. A federal search warrant was executed at the home of Richard Gamblin. During the execution of the warrant, law enforcement seized multiple digital devices that contained child pornography. At that time, Gamblin admitted to owning the seized equipment and to using it to download child pornography. A subsequent forensic examination of his computer revealed in excess of 100 videos of minors engaged in sexually explicit conduct.
Gamblin was indicted by a federal grand jury in May, 2016 and pleaded guilty to the charge in July, 2016.
The investigation was led by Homeland Security Investigations, the Internet Crimes Against Children Taskforce and the Springdale Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Six Individuals Indicted for Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On October 13, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against six defendants charged with conspiracy import controlled substances from the Dominican Republic into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Department of Homeland Security Investigations is in charge of the investigation with collaboration from the Caribbean Corridor Strike Force and the Police of Puerto Rico.
The indictment, which was unsealed yesterday, alleges that from about January 2013 through in or about May 2013, defendants Erick Mosquea-Polanco; Juan José De La Cruz-Morales; Kevin De Morla-Santana; Rudy Contreras-Severino; José Morales-Soto; and Sandy Hernández-Mieses conspired to intentionally and knowingly import and attempt to import from the Dominican Republic into the United States more than five kilograms of cocaine.
The indictment alleges that the defendants knowingly and unlawfully conspired to launder over one million dollars which were the product of drug trafficking.
During the arrest of Sandy Hernández yesterday, HSI Agents found over $30,000 U.S. cash, three weapons (two Glock and one Beretta pistols), and more than one thousand seven hundred kilograms of cocaine. Of the six persons in the indictment three were arrested and 3 are awaiting extradition from the Dominican Republic.
Assistant U.S. Attorney Desiree Laborde is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Supervisor of the Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Schuele Boys Gang Member Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that Demario James, 34, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, James conspired with co-defendant Michael Robertson and other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant purchased cocaine from Michael Robertson and then broke down the cocaine for distribution to customers.The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
James is one of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 22 of the defendants have been convicted.
Today’s plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.Sentencing is scheduled for March 16, 2017 at 12:30 p.m. before Judge Arcara.
Richard Byrd Pleads Guilty to Leading Major Baltimore Drug Distribution OrganizationRead the Press Release
Baltimore, Maryland –Richard Byrd, a/k/a Robert Smith, age 43, a Jamaican national residing in Maryland and Arizona, pleaded guilty today to conspiracy to distribute and possess with intent to distribute cocaine and marijuana, and to conspiracy to launder drug proceeds.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration, Washington Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Frank L. Milstead, Director of the Arizona Department of Public Safety; Chief Jeri Williams of the Phoenix, Arizona Police Department; and Chief Sean Duggan of the Chandler, Arizona Police Department.
“Richard Byrd ran a major drug distribution ring that generated millions of dollars in proceeds,” said U.S. Attorney Rod J. Rosenstein.
“This is one of the largest and most prolific drug organizations that has been dismantled in Baltimore in recent memory”, stated Special Agent in Charge Karl C. Colder. “This investigation and guilty plea is a prime example of how DEA, with our federal and local partners in HIDTA (High Impact Drug Trafficking Area), continues to target and dismantle large scale, complex trafficking organizations that operate in Baltimore, the surrounding metropolitan area, and throughout the nation.”
According to his plea agreement and court documents, from 2009 through April 2014, Richard Byrd was the leader and organizer a drug distribution network which provided for the acquisition, transportation and distribution of cocaine and marijuana. The sale of marijuana and cocaine generated proceeds in the millions of dollars. These proceeds were counted and packaged in and around Baltimore. Byrd used couriers to transport the proceeds to the Atlanta, Georgia area, then others to transport the money from Atlanta to cities in Nevada, Texas, Arizona, and California, where the cash was used to purchase additional quantities of drugs.
Byrd also acquired a financial interest in a business in order to launder drug proceeds, finance commercial ventures, and pay other bills and expenses. At his direction, several million dollars in cash were deposited into the bank accounts maintained by the business. Many of these transactions involve deposits in excess of $10,000. In addition, Byrd used bank accounts in the name of an alias, Robert Smith, to conduct financial transactions intended to launder drug proceeds, including paying personal bills and expenses.
The conspirators used freight companies to ship drugs obtained in Arizona, California and elsewhere to distribution points in Baltimore, and other east coast destinations. Rasan Byrd supervised the Arizona-based activities of organization. Under the direction of Richard Byrd, Rasan coordinated the acquisition of large quantities of marijuana and cocaine from Mexican sources of supply and supervised several workers who weighed and packaged the drugs in a way to avoid detection by law enforcement. On April 22, 2013, law enforcement officers in Arizona seized 16 kilograms of cocaine and over 600 pounds of marijuana which were about to be shipped to Byrd’s Baltimore-based distributors.
The Baltimore distributors included Jerome Castle, Joseph Byrd, and Harold Byrd. Castle supervised the Baltimore operation, taking delivery of the drugs, selling them, and collecting and counting proceeds from the drug sales. On April 22, 2013, law enforcement officers in Maryland seized approximately 350 pounds of marijuana and over 10 kilograms of cocaine from businesses and residences utilized by Castle, Joseph Byrd, and Harold Byrd. In addition, almost $58,000 in currency and jewelry valued at more than $400,000 were recovered at the residence of Jerome Castle. The money and jewelry were also proceeds from illegal drug sales.
In addition, over $1 million was seized in Arizona from Richard Byrd in early 2011. In July 2012, an additional of $372,000 was seized from a residence in Arizona occupied by Richard and Rasan Byrd. These money seizures were proceeds from east coast drug sales intended for use in acquiring additional quantities of marijuana and cocaine.
During the course of this conspiracy more than 150 kilograms of cocaine and 20,000 kilograms of marijuana were acquired and distributed by Richard Byrd and his associates.
Byrd and the government have agreed that if the Court accepts the plea agreement Byrd will be sentenced to 26 years in prison and will be required to pay a money judgment of $20 million dollars, as well as forfeit his interest in two properties, three businesses, and 10 vehicles, and forfeit $1,609,411.51 in cash seized during the investigation. U.S. District Judge Richard D. Bennett has scheduled sentencing for February 9, 2017, at 3:00 p.m.
Brothers Rasan Byrd, age 41, of Houston, Texas, Harold Alexander Byrd, age 27, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 35, of Owings Mills, Maryland, previously pleaded guilty to their roles in the conspiracy. Rasan was sentenced to 14 years in prison and Harold and Joseph were each sentenced to 10 years in prison.
Jerome Adolfo Castle, a/k/a Dontwon Burris, age 37, a Jamaican citizen residing in Pikesville, Maryland, previously pleaded guilty to his role in the conspiracy and was sentenced to 14 years in prison. Castle was also ordered to forfeit $57,997 in cash, his interest in seven Baltimore properties, jewelry valued at more than $411,000, 98 pairs of men’s shoes, two laptop computers and an I-Pad, seven firearms and ammunition, as well as six vehicles, including a 2009 Jaguar XF Premium.
Maurice Jones, age 62, and Richard Drummond, age 40, both of Baltimore, also pleaded guilty to their roles in the conspiracy and were sentenced to seven years in prison and two years in prison, respectively.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation, HSI-Baltimore, Arizona Department of Public Safety, Phoenix Police Department, and Chandler, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Raleigh County felon sentenced to federal prison for gun crimeRead the Press Release
BECKLEY, W.Va. – A convicted felon from Sophia was sentenced today to three years and one month in federal prison for a gun crime, announced United States Attorney Carol Casto. Gene A. James, 46, previously pleaded guilty to being a felon in possession of a firearm.
James admitted that on February 23, 2016, while in Sophia, he possessed a Leinad model DD derringer pistol. James was prohibited from possessing any firearm under federal law because of a 2014 conviction in United States District Court for the Southern District of West Virginia for distribution of oxycodone.
The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. United States District Judge Irene C. Berger imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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New London Man Sentenced to 3 Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN EVERETT, 29, of New London, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 36 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration and into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers, including EVERETT, in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging EVERETT, Jackson and 11 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
EVERETT has been detained since his arrest on June 17, 2015. On July 25, 2016, he pleaded guilty to one count of use of a telephone to facilitate the commission of a drug trafficking felony.
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). When he is sentenced, he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Moscow Man Sentenced in Two Federal CasesRead the Press Release
COEUR D’ALENE – William Douglas Brown, 72, of Moscow, Idaho, was sentenced yesterday by Senior U.S. District Judge Edward J. Lodge to two years probation for unlawful possession of firearms and ammunition and making a false statement, U.S. Attorney Wendy J. Olson announced. Brown pleaded guilty in both cases on August 23, 2016.
According to the plea agreements, Brown aided co-defendant Matt Eugene Ruck in unlawful possessing firearms because Brown knew Ruck was prohibited from possessing firearms due to Ruck’s prior felony conviction. Although Brown knew that Ruck was prohibited from possessing firearms and ammunition, Brown agreed to purchase the firearms and stored them at their office space. Brown and Ruck both possessed the firearms with either able to use them. In Brown’s second case, he was charged with making a false statement. At the time of the false statement, Brown knew that because of Ruck’s conviction for fraud and theft, Ruck was debarred from government contracting. In April 2015, Brown assisted Ruck in obtaining government contracts when he made an application to receive government contracts wherein Brown represented, with Ruck’s assistance, that neither he nor Ruck was debarred. Ruck, through Brown’s company, obtained 12 government contracts.
The cases were investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), General Services Administration – Office of Inspector General, Department of Homeland Security, and U.S. Secret Service (USSS).
Moscow Man Sentenced in Three Federal CasesRead the Press Release
COEUR D’ALENE – Matt Eugene Ruck, 49, of Moscow, Idaho, was sentenced yesterday in United States District Court to 60 months in prison followed by 3 years supervised release for wire fraud and theft of government money, unlawful possession of firearms and making a false statement, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Ruck to pay $206,081.35 in restitution. In Ruck’s first case, a jury found him guilty of wire fraud and theft of government money in March of this year. In his second and third cases, Ruck pleaded guilty on August 23, 2016, to unlawful possession of firearms and making a false statement.
In Ruck’s wire fraud and theft of government money conviction, Ruck had contracted with the government to provide services for which he overbilled. Ruck stole approximately $345,000 through these transactions. In Ruck’s second case, he was charged with unlawful possession of firearms and ammunition. Ruck was a prohibited person at the time he possessed the firearms. In Ruck’s third case, Ruck was charged with making a false statement on a government document. Ruck was debarred from government contracting. In order to get government contracts, Ruck and his co-defendant William Douglas Brown made a false statement on the application that allowed Ruck to bid on government contracts. Ruck obtained 12 government contracts after he was debarred.
These cases were investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Department of Homeland Security, General Services Administration – Office of Inspector General, and the U.S. Secret Service (USSS).
Military Men Charged with Human SmugglingRead the Press Release
CORPUS CHRISTI, Texas – Two active duty Army soldiers have been charged with smuggling two illegal aliens through a Border Patrol (BP) checkpoint, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement's Homeland Security Investigations (HSI).
Marco Antonio Nava Jr., 19, and Joseph Edmond Cleveland, 25, both of El Paso, made their appearances today before U.S. Magistrate Judge B. Janice Ellington.
The indictment charges both men with one count of conspiring to transport aliens and one count of transporting an alien.
The indictment alleges Nava and Cleveland smuggled two Illegal aliens through the BP checkpoint in Falfurrias on June 19, 2016. On that date, at approximately 4:00 p.m., Nava drove a vehicle to the checkpoint with Cleveland as his passenger. A BP agent conducted an immigration inspection on the vehicle, at which time the agent discovered two additional passengers in the back. A brief investigation revealed those individuals were illegal aliens.
If convicted, Nava and Cleveland face up to 10 years in federal prison.
HSI conducted the investigation. Assistant U.S. Attorney Jeffrey S. Miller is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Mexican National Charged with Assaulting a Federal OfficerRead the Press Release
BROWNSVILLE, Texas – A 24-year-old Mexican female has been charged with physically assaulting a Border Patrol (BP) agent who was attempting to restrain her, announced U.S. Attorney Kenneth Magidson.
Maribel Tejeda-Fomperosa is set to make her initial appearance before U.S. Magistrate Judge Ignacio Torteya this morning.
“In the last few months, we have seen the amount of incidents of aggression against our agents rise,” said Chief Patrol Agent Manuel Padilla Jr. “Assaults against our agents are unacceptable and will not be tolerated. Our agency is working with state and federal prosecutors to ensure the safety our agents while in the field and in operational settings.”
According to the criminal complaint, Tejeda-Fomperosa physically assaulted a BP agent and also spit on a second agent. On Oct. 24, 2016, BP agents arrested Tejeda-Fromperosa after she allegedly made an illegal entry into the United States by wading across the Rio Grande River near Brownsville. The criminal complaint alleges Tejeda-Fromperosa became become physically and verbally aggressive after being placed in a holding cell following her arrest. As a result, she physically assaulted a BP agent attempting to restrain her and spat at a second agent.
If convicted, Tejeda-Fromperosa faces a possible sentence of up to eight years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney Angel Castro is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Methamphetamine Distributors Plead GuiltyRead the Press Release
LUBBOCK, Texas — Two Littlefield, Texas, men, Juan Carlos Lara-Ochoa and Jose Alberto Cibrian, pleaded guilty this morning before U.S. Magistrate Judge D. Gordon Bryant Jr. to their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Lara-Ochoa, 24, admitted that on June 1, 2016, he possessed with intent to distribute 50 grams or more of methamphetamine. He faces a statutory sentence of not less than 10 years and up to life in federal prison and a $10 million fine. Cibrian, 41, admitted that on March 4, 2016, he possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine. He faces a maximum statutory sentence of 20 years in federal prison and a $1 million fine. Judge Bryant ordered a presentence investigation report for each defendant with sentencing dates to be set after the completion of those reports.
Three additional defendants charged in the case, Jonathan Lovato, 33, Arleen Theres Keithley, 36, and Crystal Ann Alaniz, 32, are scheduled to enter guilty pleas on Monday, November 7, 2016.
According to documents filed in court, on June 1, 2016, officers with the Lubbock Police Department learned that Lara-Ochoa would be delivering about two pounds of methamphetamine to Christopher Paul Andrade in Lubbock. Law enforcement set up surveillance and followed Lara-Ochoa from Littlefield, Texas to the La Michoacana grocery on Clovis Highway in Lubbock. Lara-Ochoa parked in the grocery store’s parking lot, and a short time later, Andrade arrived and parked next to him. Andrade got into the front passenger seat of Lara-Ochoa’s vehicle, stayed for less than one minute, and then exited that vehicle, returning to his. Law enforcement followed Andrade as he drove out of the parking lot, and after a brief pursuit, detained Andrade and found approximately 444 grams of methamphetamine that he had attempted to discard during the pursuit. Andrade pleaded guilty in August 2016 to one count of possession with intent to distribute methamphetamine. He is scheduled to be sentenced on December 2, 2016, by Senior U.S. District Judge Sam R. Cummings.
Law enforcement observed Lara-Ochoa depart the parking lot and return to Littlefield, where they arrested him. They obtained a search warrant for his vehicle and located a hidden compartment under the front passenger’s seat that contained two separate packages of methamphetamine, weighing a total of 2,230 grams. One of those was packaged exactly the same as the methamphetamine Andrade had discarded. Officers also obtained a search warrant for Lara-Ochoa’s storage unit and found an additional 1,782 grams of methamphetamine and five firearms.
On March 4, 2016, officers with the Littlefield Police Department learned of a suspicious vehicle at a nearby RV park. Upon arrival, officers found Jose Alberto Cibrian passed out in the driver’s seat of that vehicle, with the engine running and the gear shift in the drive position. After removing him from the vehicle, officers found a plastic bag containing methamphetamine in the center console, a methamphetamine pipe, a digital scale and a firearm in a bag in the backseat. Cibrian admitted he had recently purchased the methamphetamine and the firearm.
The case is being investigated by the Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Massachusetts Man Pleads Guilty to Drug Conspiracy and Firearms ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Juan Alexis Diaz Pena, age 26, formerly of Methuen, Massachusetts, pleaded guilty to conspiracy to distribute, and to possess with the intent to distribute, quantities of heroin, fentanyl and oxycodone and unlawful possession of a firearm in furtherance of the drug trafficking conspiracy. The plea of guilty took place just before Pena’s trial was scheduled to begin.
According to documents that were filed in court and statements in the plea proceeding, from approximately the spring of 2014 through January of 2016, Pena and his co-defendant, Martin Gonzalez Diaz, conspired to distribute quantities of heroin, fentanyl and oxycodone in the Lawrence, Massachusetts area to individuals in Massachusetts who then sold the drugs to New Hampshire-based customers for redistribution in Rochester, New Hampshire. Gonzalez Diaz, 34, also formerly of Methuen, pleaded guilty to the drug conspiracy charge on August 17, 2016, and is scheduled to be sentenced on November 21, 2016.
As part of the investigation, DEA agents searched an apartment connected to Pena and located quantities of cocaine and heroin, as well as items associated with drug trafficking. A loaded semi-automatic handgun was recovered under a mattress in a bedroom in close proximity to where the drugs were located.
Pena is scheduled to be sentenced on February 17, 2017.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin and fentanyl in New Hampshire by continuing to target drug trafficking organizations who are responsible for bringing those drugs into our state.” said United States Attorney Emily Gray Rice.
The investigation was conducted by the United States Drug Enforcement Administration, Tactical Diversion Unit, Portsmouth, New Hampshire; the Rochester, New Hampshire Police Department and the Haverhill, Massachusetts Police Department. Assistant United States Attorneys Jennifer Cole Davis and Seth Aframe are prosecuting the case.
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Manhattan U.S. Attorney Announces Arrest of Individual Who Compromised Thousands of University Email Accounts and Stole Private and Confidential InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of JONATHAN POWELL for obtaining unauthorized access to email accounts maintained by a New York City area university, using his work computer, and causing over $5,000 of loss in the process. POWELL went on to compromise social media and other online accounts linked to the university email accounts, and mined those linked accounts for the users’ login credentials and other private and confidential information. POWELL also attempted to access email accounts at more than 75 other universities around the country. At the time of the alleged offense, POWELL was employed by a private business at its branch office located in Phoenix, Arizona. POWELL was arrested this morning, and is expected to be arraigned in federal court in Phoenix later today before a U.S. Magistrate Judge.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Jonathan Powell targeted dozens of universities around the country, successfully hacking into student email accounts hosted on at least two universities’ servers and accessing the social media, email, and other online accounts of many of those students. Powell allegedly stole students’ personal information and searched their photos for potentially embarrassing content. This case should serve as a wakeup call for universities and educational institutions around the country. There is no greater threat to our security and personal privacy than the cyber threat, and hackers must be identified, stopped, and punished.”
FBI Assistant Director William F. Sweeney Jr. said: “Sitting at a computer more than 2,000 miles away, Jonathan Powell allegedly attempted unauthorized access to more than 2,000 university email accounts. Powell used password reset tools to basically pick the lock of thousands of personal spaces and look around at what was stored there. Cybercrime victims can be large companies or individual users who have their network or accounts accessed illegally, even if there is no theft. The FBI takes seriously any allegations of intrusions, and we will continue to hold accountable those who pose a threat in cyberspace.”
According to the allegations contained in the Complaint[1]:
From at least in or about October 2015 up to and including at least in or about September 2016, POWELL obtained unauthorized access to email accounts hosted by at least two United States-based educational institutions, including one which has its primary campus in New York, New York (“University-1”). POWELL obtained unauthorized access to these accounts by accessing password reset utilities maintained by the email servers at the victim institutions, which are designed to allow authorized users to reset forgotten passwords to accounts. POWELL utilized the password reset utilities to change the email account passwords of students and others affiliated with those educational institutions. Once POWELL gained access to the compromised email accounts (the “Compromised Accounts”), he obtained unauthorized access to other password-protected email, social media, and online accounts to which the Compromised Accounts were registered, including, but not limited to, Apple iCloud, Facebook, Google, LinkedIn, and Yahoo! accounts. Specifically, using the Compromised Accounts, POWELL requested password resets for linked accounts hosted by those websites (the “Linked Accounts”), resulting in password reset emails being sent to the Compromised Accounts, which allowed POWELL to change the passwords for the Linked Accounts. POWELL then logged into the Linked Accounts and searched within the Linked Accounts, gaining access to private and confidential content stored in the Linked Accounts. In one instance, POWELL searched a University-1 student’s linked Gmail account for digital photographs, and for the terms “password,” “naked,” “cum” and “horny.”
An analysis of University-1 password reset utility logs and other data revealed that POWELL accessed the University-1 password reset utility approximately 18,640 different times between approximately October 2015 and September 2016. During that timeframe, POWELL attempted approximately 18,600 password changes in connection with approximately 2,054 unique University-1 email accounts, and succeeded in making 1,378 password changes in connection with approximately 1,035 unique University-1 email accounts. (The number of successful password changes is greater than the number of compromised University-1 email accounts because certain University-1 email accounts were compromised more than once.)
In or about September 2016, POWELL repeatedly accessed the password reset utility of a second university located in Pennsylvania (“University-2”), in a similar fashion to University‑1. During that timeframe, POWELL attempted to change the email passwords for approximately 220 University-2 email accounts, and successfully changed the email passwords for approximately 15 University-2 email accounts. Following the unauthorized access of those University-2 email accounts, a number of Facebook accounts linked to the compromised University-2 email accounts were also compromised.
The FBI obtained and analyzed the device (the “Device”) assigned to POWELL at his place of employment in Phoenix, Arizona (the “Company”), which POWELL utilized in the above-described scheme. The FBI also obtained from the Company a network backup of certain files on the Device, created on or about September 30, 2016 (the “Device Backup”), which the FBI also analyzed. The Device and Device Backup contain, among other things, a number of documents listing University-1 email account usernames and passwords. Certain documents found on the Device also contain credentials – i.e., usernames and passwords – for logging into various internet service provider (“ISP”) accounts appearing to belong to the same University‑1 email account users.
A review of the Device’s web browser history, covering the period from July 5, 2016, to October 3, 2016, revealed that POWELL accessed student directories and login portals associated with more than 75 other colleges and universities (the “Other Universities”) across the United States. An analysis of the Device Backup demonstrated that the Device Backup contains several documents with filenames that refer to certain of the Other Universities. Those documents contain what appear to be login credentials for a variety of password-protected accounts linked to email accounts at certain of the Other Universities.
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POWELL, 29, of Phoenix, Arizona, is charged with one count of fraud in connection with computers, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Timothy Howard are in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manatee County Probationer Pleads Guilty to Possessing FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Pedro Garcia (34, Manatee County) has pleaded guilty to knowingly possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been scheduled for January 26, 2017.
According to court documents, on November 9, 2015, law enforcement officers conducted a compliance search at Garcia’s residence, pursuant to the terms of his probation. Inside the home, the officers found a loaded 9mm pistol, various types of 9mm and .45 caliber ammunition, and drug paraphernalia. As a previously convicted felon, Garcia was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Department of Corrections Probation & Parole Field Service Office, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Man Who Allegedly Left Destructive Device at Nederland Police Department Indicted by Federal Grand JuryRead the Press Release
DENVER – David Michael Ansberry, age 64, originally from California, was indicted late yesterday by a federal grand jury in Denver, charging him in a one count indictment with Use and Attempted Use of Weapon of Mass Destruction, the U.S. Attorney’s Office and the FBI announced. Ansberry, who was arrested in Chicago, has not yet been transported to Colorado, and therefore no initial court date in Denver has yet been set (EDITOR’S NOTE: We will notify you once a court date has been set).
According to the indictment, on October 11, 2016, Ansberry, a/k/a Jessie Howard, acting without lawful authority, did knowingly use and attempt to use a weapon of mass destruction, namely a destructive device, against a person and property within the United States. If convicted, Ansberry faces any term of years or life in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI, the Boulder County Sheriff’s Office, the Nederland Police Department, and ATF. Substantial assistance was provided by the Boulder County District Attorney’s Office. Ansberry is being prosecuted by Colorado Assistant U.S. Attorney Gregory Holloway and Trial Attorney Mara Kohn with the Counter Terrorism Section of the National Security Division.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Man Sentenced to 25 Years in Prison for Six Convenience Store Robberies During 2015Read the Press Release
LAS VEGAS, Nev. – A Las Vegas man who pleaded guilty to robbing six convenience stores in the Las Vegas area during November and December 2015, was sentenced today to 25 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Paul Daniel Loisel, 24, was sentenced this afternoon by U.S. District Judge Andrew P. Gordon. Loisel pleaded guilty on Aug. 10 to five counts of interference with commerce by robbery and one count of discharge of a firearm during and in relation to a crime of violence.
“It is simply unacceptable for persons to think they can walk into a convenience store and threaten the employees and customers with a gun in order to obtain what typically is a very small amount of cash,” said U.S. Attorney Bogden. “We will continue to assist our local authorities in their efforts to deter and end this type of violent crime by prosecuting these cases using federal laws with lengthy, mandatory penalties.”
According to the plea agreement, between Nov. 22 and Dec. 16, 2015, Loisel used a handgun to rob six convenience stores in Las Vegas. In most of the robberies, Loisel entered the stores with a .45 caliber handgun in his hand and pointed it at employees and told them he wanted to make a withdrawal or to put all the money in his bag. In one of the robberies, the defendant attempted to open the cash registers himself because the cashier was outside with her boyfriend. The boyfriend observed that the defendant was attempting to rob the business and when the defendant left the store, the boyfriend pointed a shotgun at the defendant and the defendant shot the boyfriend in the chest, critically wounding him.
Over the last five years, 106 persons have been charged federally with using firearms to commit commercial robberies in southern Nevada. Following are links to the news releases for some of those cases.
https://www.justice.gov/usao-nv/pr/las-vegas-cinched-hoodie-robber-sentenced-life-prison
https://www.justice.gov/usao-nv/pr/femal-getaway-driver-convicted-robberies-13-banks-and-stores-las-vegas-area-during-2012
https://www.justice.gov/usao-nv/pr/man-sentenced-over-14-years-prison-six-armed-robberies
https://www.justice.gov/usao-nv/pr/men-sentenced-prison-kidnapping-conspiracy-and-thefts-delivery-drivers-and-warehouses
https://www.justice.gov/usao-nv/pr/last-30-minutes-or-less-robbers-gets-16-years-prison
https://www.justice.gov/usao-nv/pr/man-sentenced-over-11-years-federal-prison-robbing-local-jewelry-store-stolen-handgun
https://www.justice.gov/usao-nv/pr/man-who-robbed-las-vegas-mini-mart-convicted-jury
This case was investigated by the FBI, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department as part of the Safe Streets Task Force and Project Safe Neighborhoods program.
The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
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Long Island Man Gets More Than Five Years in Prison for Role in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Hicksville, New York, man was sentenced today to 63 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Ijaz Butt, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Butt was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, including Butt, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required Butt and other conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Butt admitted that he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted they knew the cards would be used fraudulently at businesses.
In addition to the prison term, Judge Thompson sentenced Butt to three years of supervised release and fined him $3,000.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark; postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, Newark Division; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing. He also thanked the U.S. Social Security Administration for its assistance.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering 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: Kenneth W. Kayser Esq., East Hanover, New Jersey
Little Rock Man Sentenced to Prison for Role in Stealing USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Wednesday that United States District Court Judge James M. Moody Jr., sentenced Reuben Nims, 52, of Little Rock, to prison for his role in the widespread scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Nims, who pleaded guilty to conspiring to commit wire fraud on March 8, 2016, to 21 months’ imprisonment, to be followed by three years of supervised release. He was also ordered to pay restitution of $182,728.65.
Nims is the second defendant sentenced who was charged with involvement in a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas. Kattie Jordan was sentenced to 63 months in federal prison on March 15, 2016. Gladys Waits, Tonique Hatton, Christopher Nichols, Waymon Weeams, James Franklin, Francine Leon, Maria Nelson, Alexis Young, and Erica Warren have all pleaded guilty to conspiring to defraud USDA feeding programs and are awaiting sentencing. Jacqueline Mills, Dortha Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before Judge Moody.
The USDA feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Nims was a sponsor for a feeding program through his organization called "Blessed Thru Success." Nims had one approved feeding site on Rodney Parham Road in Little Rock, where he claimed as many as 300 children were fed each day. No children were ever actually fed there. Nims was recruited by Anthony Waits. Waits’ wife, Gladys Waits, worked for DHS and approved Nims’ application. Nims paid Anthony Waits approximately 50% of the $182,728.65 Nims received in the scheme.
Previous charges filed in the overall investigation detail alleged fraud involving more than $11 million in USDA feeding program funds.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Lawrence County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Lawrence County, Pennsylvania pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Sean J. Barner, 38, formerly of New Bedford, Pennsylvania pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on March 28, 2015, Barner unlawfully possessed computer graphics files containing photographs and videos depicting minors engaged in sexually explicit conduct.
Judge Hornak scheduled sentencing for Feb. 22, 2017, at 9:30am. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Barner.
Lapwai Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
COEUR D’ALENE – Solomon Elias Wheeler, 36, of Lapwai, Idaho, was sentenced today in United States District Court to nine months in prison, to be followed by three months home confinement, for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Wheeler to serve five years supervised release following his prison sentence. Wheeler pleaded guilty to the charge on August 23, 2016.
According to statements made in court, Wheeler had a 2010 Nez Perce Tribal Court conviction for having sexual contact with a minor under sixteen. As a result of this conviction, Wheeler was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). In August 2015, Wheeler failed to complete his sex offender registration. Wheeler remained unregistered until May 2016, when he was arrested on a federal warrant. Wheeler has remained in jail since his arrest.
The case was investigated by the United States Marshals Service.
Kootenai Tribal Member SentencedRead the Press Release
COEUR D’ALENE – Nathaniel Johnson Boychief, 30, of Bonners Ferry, Idaho, was sentenced today in United States District Court to 18 months in prison followed by 3 years supervised release for possession with intent to distribute heroin and oxycodone, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Boychief to pay a $600 fine. Boychief pleaded guilty to the charge on August 23, 2016.
According to the plea agreement, Boychief admitted to possession with intent to distribute heroin and oxycodone. These controlled substances were found in a locked safe in his bedroom during the execution of a search warrant. Later, after Boychief was arrested, the officers found heroin and oxycodone pills sewn into his underwear.
The case was investigated by Kootenai Tribal Police, Bonner County Sheriff’s Department, Bonners Ferry Police Department, and Federal Bureau of Investigation (FBI).
Justice Department Sues DIRECTV for Orchestrating Information Sharing Agreements with Three CompetitorsRead the Press Release
Unlawful Information Sharing Contributed to Blackout that Deprived Many Fans of Opportunity to Watch Los Angeles Dodgers on TV for Last 3 Seasons
The Department of Justice sued DIRECTV and its corporate successor, AT&T Inc., today for acting as the ringleader of a series of unlawful information exchanges between DIRECTV and three of its competitors – Cox Communications Inc., Charter Communications Inc. and AT&T – during the companies’ negotiations to carry SportsNet LA, which holds the exclusive rights to telecast almost all live Dodgers games in the Los Angeles area.
The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that DIRECTV unlawfully exchanged competitively-sensitive information with Cox, Charter and AT&T during the companies’ negotiations for the right to telecast the Dodgers Channel. Specifically, the complaint alleges that DIRECTV and each of these competitors agreed to and did exchange non-public information about their companies’ ongoing negotiations to telecast the Dodgers Channel, as well as their companies’ future plans to carry – or not carry – the channel. The complaint also alleges that the companies engaged in this conduct in order unlawfully to obtain bargaining leverage and to reduce the risk that they would lose subscribers if they decided not to carry the channel but a competitor chose to do so. The complaint further alleges that the information learned through these unlawful agreements was a material factor in the companies’ decisions not to carry the Dodgers Channel. The Dodgers Channel is still not carried by DIRECTV, Cox or AT&T.
“As the complaint explains, Dodgers fans were denied a fair competitive process when DIRECTV orchestrated a series of information exchanges with direct competitors that ultimately made consumers less likely to be able to watch their hometown team,” said Deputy Assistant Attorney General Jonathan Sallet of the Justice Department’s Antitrust Division. “Competition, not collusion, best serves consumers and that is especially true when, as with pay-television providers, consumers have only a handful of choices in the marketplace.”
DIRECTV is a subsidiary of AT&T Inc., a Delaware corporation with headquarters in Dallas. As of 2014, DIRECTV had approximately 1.25 million video subscribers in the Los Angeles area. AT&T is a Delaware corporation with headquarters located in Dallas. As of 2014, AT&T had approximately 400,000 video subscribers in the Los Angeles area.
DIRECTV ComplaintJustice Department Announces Pilot Program to Provide Military Communities Across the Country with Dedicated Legal SupportRead the Press Release
The Department of Justice today announced a new program, the Servicemembers Civil Relief Act Enforcement Support Pilot Program, to support enforcement efforts related to protecting the rights of current and former military personnel as part of the department’s Servicemembers and Veterans Initiative. The Servicemembers Civil Relief Act (SCRA) is a federal law that provides wide-ranging financial and housing protections and benefits for military members as they enter active duty.
With the support of the Executive Office for United States Attorneys and the Civil Rights Division, the new pilot program funds Assistant U.S. Attorney and trial attorney positions to assist the department’s litigating components with SCRA enforcement, and also designates military judge advocates currently serving as legal assistance attorneys to serve as Special Assistant U.S. Attorneys to support the department’s enforcement efforts related to the SCRA. U.S. Attorneys throughout the country will also be appointing Initiative Liaisons to work with local military and veteran communities.
“The men and women who bravely defend our country deserve more than just our respect – they deserve our unyielding support,” said Attorney General Loretta E. Lynch. “The pilot program we are announcing today will enhance our ability to safeguard the economic and legal rights of our servicemembers, our veterans and their families. In the days ahead, the Department of Justice will continue working tirelessly to ensure that our laws protect those who protect us.”
“Servicemembers sacrifice a lot to protect our freedom and our security, and in turn our laws protect them and their families from unscrupulous financial predators,” said Principal Deputy Associate Attorney General Bill Baer. “The SCRA Enforcement Support Pilot adds significant legal resources designed to stop these predators. Whether a servicemember has a financial or housing related issue, the Department of Justice will investigate complaints promptly and vigorously take enforcement action against wrongdoers.”
The pilot provides full-time support for SCRA enforcement efforts through the end of Fiscal Year 2018 and funds Assistant U.S. Attorneys in districts with major military installations and additional trial attorneys in the Civil Rights Division, for a terminal period. The Assistant U.S. Attorneys will principally be responsible for coordinating with Staff Judge Advocate’s Offices on military installations and bringing claims in coordination with the Civil Rights Division against those who target servicemembers.
The pilot also allows military judge advocates (JAG) who are serving as legal assistance attorneys to be designated as Special Assistant U.S. Attorneys for the purpose of assisting with SCRA litigation. The Servicemembers and Veterans Initiative will coordinate the assignment of these JAG officers with U.S. Attorney’s Offices throughout the country. U.S. Attorney’s Offices in the Western District of Washington and the Eastern District of North Carolina are the first districts adding these valuable military legal resources.
In addition to the funding, it was announced that the Servicemembers and Veterans Initiative has become a permanent component within the Office of the Associate Attorney General and will be led by Director Silas V. Darden. The department created the Servicemembers and Veterans Initiative in December 2014 with a mission to support the department in its efforts to protect those who protect us all. Please visit www.servicemembers.gov for more information about the initiative.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Keith R. Hardin, 58, of Kansas City, was found guilty of being a felon in possession of a firearm. Hardin was in possession of a Cobra .380-caliber semi-automatic handgun on Jan. 15, 2016.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hardin has prior felony convictions for armed criminal action, stealing a motor vehicle, sodomy, robbery and burglary.
Hardin was stopped by Kansas City police officers at approximately 3:22 a.m. on Jan. 15, 2016, who saw him walking in the street near 35th Street and S. Benton Avenue. Officers arrested Hardin on outstanding warrants. While searching him during the arrest, they found a loaded Cobra .380-caliber semi-automatic handgun on his left hip.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 15 minutes before returning the guilty verdict to U.S. Chief District Judge Greg Kays, ending a trial that began Monday, Oct. 31, 2016.
Under federal statutes, Hardin is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce A. Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Former Temple Police Officer of Revealing an Ongoing InvestigationRead the Press Release
This afternoon, a jury in Austin convicted 24–year-old former Temple police officer Erick French of lying the federal authorities about divulging the existence of an ongoing investigation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher B. Combs, San Antonio Division.
Jurors convicted the Copperas Cove, TX, resident of one count of making a false statement to federal investigators. Jurors found that, on March 21, 2016, French provided false information to FBI agents in an attempt to hide the fact that he had previously sent a text message alerting an individual to an ongoing investigation being conducted by the Temple Police Department’s Special Investigations Unit. The jury acquitted French of a second false statement charge alleging that he provided false information about the matter when questioned by the FBI on March 16, 2016.
French faces up to five years in federal prison and a maximum $250,000 fine.
French, who remains on a $25,000 bond, is scheduled to be sentenced on January 20, 2017, before United States District Judge Sam Sparks.
This conviction resulted from an investigation conducted by the FBI, Drug Enforcement Administration (DEA) and the Temple Police Department.
Assistant United States Attorneys Dan Guess and Matt Harding are prosecuting this case on behalf of the Government.
Identity Thieves Arrested for Stealing Money from Bank Accounts and Filing False Tax ReturnsRead the Press Release
HOUSTON – Six people have been taken into custody following the return of a 32-count indictment alleging wire fraud and conspiracy to commit wire fraud, theft of public money and conspiracy to do so as well as aggravated identity theft, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye Turner of the FBI and Special Agent in Charge D. Richard Goss of the IRS - Criminal Investigation (CI).
James Michael Curtis Johnson, 31, Donald Ray Perry, 26, Enitra Shante Pickett, 28, and D’angela Devonne Domio, 26, all of Houston; Joshua Jacquez Britton, 28, of Richmond; and Joseph Edward Johnson, 44, of Katy, were taken into custody today. They are expected to make their initial appearances before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
A federal grand jury returned the indictment Oct. 26, 2016, which was unsealed upon the arrests today. That indictment alleges two schemes - a conspiracy to steal money from bank accounts and a conspiracy involving the filing of false tax returns and aggravated identity theft.
James Johnson, Joseph Johnson, Pickett and Joshua Britton allegedly conspired with themselves and others to steal money from bank accounts by posing as accountholders, creating fake bank accounts online and then transferring money from victim bank accounts or home equity lines of credit. According to the indictment, these four defendants stole money before the fraud could be detected and the funds frozen.
All six are charged with conspiring to file false tax returns and claiming refunds to which they were not entitled. The indictment alleges that once the fraudulent refunds were paid, the conspirators drained the money before it could be frozen. As part of this conspiracy, the indictment also alleges they each engaged in aggravated identity theft by using victims' identification without authorization to commit these offenses.
The charges of wire fraud and conspiracy to commit wire fraud each carries a maximum penalty of 20 years in federal prison, while a conviction for theft of public money is punishable by a maximum of 10 years imprisonment. Each defendant also faces a maximum of five years in federal prison upon conviction of the conspiracy. Each conviction also carries a possible $250,000 fine.
The FBI Houston Cyber Task Force and IRS-CI conducted the investigation with the assistance of the Houston Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Michael Chu is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Hartford Man Sentenced to 28 Months in Prison for Illegally Possessing AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS SANCHEZ, 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 28 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, in September 2015, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
On eight occasions in November and December 2015, Jose “Jo Jo” Gonzalez sold crack cocaine and powder cocaine to an individual working with law enforcement. On November 16, 2015, SANCHEZ assisted Gonzalez during one of these transactions at an apartment building on Babcock Street in Hartford. Approximately 10 minutes after the transaction, SANCHEZ exited the building and drove away. Hartford Police subsequently stopped the vehicle. A search of the vehicle revealed approximately nine grams of cocaine, two loaded firearms that were lawfully registered to another occupant of the car, several rounds of additional ammunition, a handgun magazine and $1,100 in cash, including approximately $600 in funds that investigators had just used to purchase drugs from Gonzalez.
SANCHEZ has prior felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
SANCHEZ has been detained since his arrest on December 21, 2015. On June 20, 2016, he pleaded guilty to one count of possession of ammunition by a previously convicted felon.
Gonzalez also pleaded guilty and, on July 21, 2016, was sentenced to 87 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Greenbrier County business owner pleads guilty for failing to pay employment taxesRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man pleaded guilty today to a federal tax crime, announced United States Attorney Carol Casto. Brandon J. Black, 32, of Rainelle, entered his guilty plea for failing to pay employment taxes.
Black owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia. The business initially began as Professional Security Services and then started operating as CLB Security in 2014. Black admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Social Security and Medicare taxes that were withheld from the wages of employees. Black further admitted that between January 2010 and June 2015, he withheld over $400,000 from employee paychecks and failed to pay over the money to the IRS. He also admitted that he failed to pay over more than $230,000 to account for his share of additional taxes as an employer. Black admitted that the total tax loss for his criminal conduct is over $630,000, and he also admitted that he owes that same amount to the IRS as restitution.
Black faces up to five years in federal prison and a fine of up to $250,000 when he is sentenced on February 8, 2017.
This case was investigated by agents of the IRS – Criminal Investigation Division, the FBI, and the West Virginia Office of the Insurance Commissioner – Fraud Unit. Assistant United States Attorney Eric Bacaj is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Former U.S. Postal Carrier Charged with Delaying and Detaining MailRead the Press Release
A former postal carrier was charged with delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Chris Cave, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was charged by Indictment with four counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). If convicted, Caddle faces a maximum statutory sentence of five years in prison as to each count. Caddle made his initial appearance this morning in front of U.S. Magistrate Judge Lurana S. Snow in Fort Lauderdale.
According to the court record, including the Indictment, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail. On August 19, 2016, postal agents found five garbage bags of deliverable mail outside Caddle’s home. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the discarded mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney Randy Katz.
An Indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Treasurer of Patterson Volunteer Fire Department Pleads Guilty to Fraud and Tax Charges Arising from His Embezzlement of More Than $1.1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Thomas P. DiNapoli, New York State Comptroller, and George Beach, Superintendent, New York State Police, announced that ALBERT MELIN, the former treasurer of the Patterson Fire Department in Patterson, New York (“PFD”), pled guilty today to wire fraud and false subscription to tax returns before Magistrate Judge Judith C. McCarthy in connection with his embezzlement of more than $1.1 million from the PFD.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, Albert Melin betrayed the trust placed in him by the Patterson Fire Department, embezzling over a million dollars of fire department funds. Melin took money that was supposed to be used for fighting fires and other department needs, and instead used it to keep his own private businesses afloat and pay his personal bills. Thanks to our law enforcement partners at IRS-CI, FBI, the State Comptroller’s Office and the State Police, Melin’s betrayal was uncovered and his million-dollar embezzlement scheme put to an end.”
Special Agent in Charge Shantelle P. Kitchen said: “The public expects that individuals who hold positions of fiscal responsibility in publicly funded organizations will be held accountable when they take what they are supposed to protect. Melin took advantage of his position as treasurer of the Patterson Fire Department, committing tax fraud in conjunction with his embezzlement. While the people of Patterson were impacted by the theft of resources from their fire department, perhaps they will find some consolation in that his scheme was uncovered, investigated, and prosecuted.”
Assistant-Director-in-Charge William F. Sweeney said: “Melin’s scheme, and other related frauds, have a devastating impact on public entities directly and the citizens they serve indirectly. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist.”
Comptroller Thomas P. DiNapoli said: “Former treasurer Albert Melin was so brash that he wrote $1.1 million in fire department checks to his chiropractic and another business to support his opulent lifestyle. Luckily, our $5.7 million investigation of nearby Mahopac Fire Department prompted the Patterson fire commissioners to examine their books and expose these thefts. I thank U.S. Attorney for the Southern District Preet Bharara, the New York State Police, the Internal Revenue Service and the Federal Bureau of Investigation for their diligent work on this case.”
State Police Superintendent George Beach said: “This arrest should serve as a reminder that those who choose to abuse their position will be held accountable for their actions. This former treasurer took money from the fire department where he was a trusted leader, then used it for personal gain. I want to thank our partners for working to put this defendant behind bars, making sure he will no longer be able to take advantage of those who put their trust in him.”
According to the allegations contained in the Information filed against MELIN and statements made in related court filings and proceedings:
MELIN was first elected treasurer of the PFD in 2013. From December 2013 to October 2015, MELIN embezzled PFD funds under his control by writing checks to the two businesses he owned, 211 Medical, P.C. (“211 Medical”) and N.A.S. Management Co., Inc. (“N.A.S.”). MELIN then deposited the checks to bank accounts held by 211 Medical or N.A.S. MELIN also charged expenses of 211 Medical and N.A.S. to the PFD’s debit card.
MELIN embezzled more than $1.1 million by writing more than 130 fraudulent checks. He used the money to support 211 Medical and N.A.S., to make payments on his home mortgage loan, and to pay personal expenses, including the costs of family vacations. MELIN failed to report this income on his personal tax return for 2014 and falsely reported some of the embezzled funds as revenue on the corporate tax return for 211 Medical in an effort to disguise its source.
MELIN, 46, of Patterson, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of subscribing to false tax returns, which carries a maximum sentence of three years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the court.
In pleading guilty, MELIN agreed to forfeit to the United States a sum of money no less than $1,151,000.
MELIN is scheduled to be sentenced by U.S. District Court Judge Nelson S. Roman on February 3, 2017.
Mr. Bharara praised the outstanding investigative work of the IRS, the FBI, the New York State Comptroller, and the New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former Suffolk County Police Chief Sentenced to 46 Months in Prison for Assault and Obstruction of JusticeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, James Burke, the former Chief of Department for the Suffolk County Police Department (SCPD), was sentenced to 46 months in prison and three years of supervised release by United States District Judge Leonard D. Wexler. Previously, on February 26, 2016, Burke pleaded guilty to a civil rights violation and conspiracy to obstruct justice.
The civil rights violation related to Burke’s assault of a Smithtown man who had been arrested for breaking into Burke’s SCPD-issued vehicle and stealing his property on December 14, 2012. Following that assault, over almost three years, Burke and other Suffolk County law enforcement authorities took actions to obstruct the federal civil rights investigation into the assault. Burke was arrested and arraigned on December 9, 2015, and he has been in federal custody since that date.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“During his tenure as the highest ranking uniformed officer in the Suffolk County Police Department, James Burke considered himself untouchable. He abused his authority by brazenly assaulting a handcuffed prisoner, he pressured subordinates to lie to cover up his criminal acts, and he attempted to thwart the civil rights investigation into his conduct,” stated United States Attorney Capers. “With today’s sentence, Burke learned that no one is above the law and that the consequences for such egregious behavior are severe.”
FBI Assistant Director-in-Charge Sweeney stated, “Burke’s abuse of power and efforts to obstruct justice not only threatened to undermine the integrity of a federal investigation, but also the reputation of all the Suffolk County police officers who value the laws they are sworn to uphold. As evidenced by today’s sentence, Burke, and others, are reminded that this type of behavior won’t go unpunished.”
On December 14, 2012, New York State Probation Department and SCPD officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV were his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s Fourth Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then punched and kicked Loeb in the head and body.
Subsequently, Burke and others pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree to a false version of events that would conceal the assault. In October 2013, one of those detectives testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorneys Lara Treinis Gatz and John J. Durham are in charge of the prosecution, assisted by EDNY Investigator William Hessle.
The Defendant:
JAMES BURKE
Age: 52
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627 (LDW)
Former Police Officer Pleads Guilty to Violating Civil Rights of Detained ManRead the Press Release
NICHOLAS HOGAN, 36, a former Tukwila and Snoqualmie Police Officer pleaded guilty today in U.S. District Court in Seattle to Deprivation of Rights Under Color of Law for an attack on a handcuffed man at a Seattle hospital, announced U.S. Attorney Annette L. Hayes. Under the terms of his plea agreement he is prohibited from seeking employment as a police officer or security guard for fifteen years. U.S. District Judge John C. Coughenour is scheduled to sentence HOGAN on January 27, 2017.
“This defendant betrayed the trust we place in police officers to use only necessary and appropriate force,” said U. S. Attorney Annette L. Hayes. “Hogan pepper-sprayed a person who was already detained in handcuffs and restraints – and said he did so simply because the man ‘got mouthy.’ Law enforcement officers are given broad powers to protect and serve the public – as most honorably do. When these powers are misused, those responsible will be held to account.”
According to the plea agreement, on May 20, 2011, HOGAN responded to a report of a fight on Pacific Highway South in Tukwila. A man was taken into custody on a misdemeanor warrant, but because of his injuries the King County Jail instructed HOGAN to take the man to Harborview. HOGAN admits in his plea agreement that the man was handcuffed and refusing to get out of the patrol car. HOGAN physically removed the man from the car and when the man grabbed HOGAN’s arm, HOGAN pulled away and repeatedly struck the man in the head with his knee.
Taking the man into the Harborview emergency room, HOGAN repeatedly shoved the man until he fell and then HOGAN dropped on top of him restraining him with a knee in his back. The man was placed on the gurney in four point restraints so that he could not move his arms or legs. While the man was in a treatment area and surrounded by a curtain, HOGAN remained alone with him. HOGAN used pepper spray on the restrained man. In the plea agreement HOGAN admits he knew that the spray was not necessary or reasonable under the circumstances.
HOGAN faces up to a year in prison and a $100,000 fine. Under the terms of the plea agreement HOGAN surrenders any law enforcement commission and agrees not to seek reinstatement of any law enforcement commission, or seek a new law enforcement commission, or seek employment in any law enforcement agency or law enforcement related employment, including, but not limited to any city, county, state, or federal policing or corrections positions, or that of a private security guard, or any position that requires the carrying of a firearm, for a period of 15 years.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Bruce Miyake for the Western District of Washington and Trial Attorenys Rose Gibson and Jared Fishman of the Civil Rights Division for the Department of Justice.
Former Napa Winemaker Charged with Mislabeling WineRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted former winemaker Jeffry Hill for mail fraud and wire fraud in connection with his operation of a Napa Valley- based wine company, announced United States Attorney Brian J. Stretch and Alcohol and Tobacco Tax and Trade Bureau (“TTB”) Assistant Administrator for Field Operations Tom Crone. The indictment was unsealed this morning.
Hill, 38, formerly of Napa, Calif., now of Clovis, Calif., ran Hill Wine Company (“HWC”). HWC was in the business of making and selling wine and wine inputs, such as pre-fermented grape juice, among other things. HWC operated a winery and tasting room in Napa County, Calif., on the Silverado Trail, and used winemaking equipment at other facilities, owned by others, in Napa County and Sonoma County, Calif. According to the indictment, Hill defrauded HWC’s customers by misrepresenting the geographic origin and grape varietal of the wine and wine products that he sold, thus causing customers to pay more than they would have otherwise, or to buy products that they would not have otherwise.
Federal regulations establish “American Viticultural Areas,” or AVAs, which are geographically delineated regions with particular wine growing characteristics. The Napa Valley AVA is one such AVA in California. Under federal regulations, wine can only be labeled as originating from a particular AVA if not less than 85% of the liquid volume of the wine is derived from grapes grown within the boundaries of the AVA. Napa Valley wine is seen as premium wine and often sells at a higher price than wine from other parts of California, and grapes grown in the Napa Valley AVA are generally more expensive than those grown in other parts of California. According to the indictment, Hill allegedly grew or purchased grapes, pre-fermented grape juice or wine grown outside of the Napa Valley then sold bulk grape juice, bulk wine, or bottled wine made from these non-Napa Valley grapes while representing these products to have been made from Napa Valley AVA grapes. Similarly, Hill allegedly misrepresented as cabernet sauvignon wine that was made from other varietals of grapes. According to the indictment, customers paid over $1,500,000 for fraudulently mislabeled wine, grape juice, or wine products.
Hill also allegedly took steps to conceal and hide his scheme to defraud. Among the things Hill allegedly did to hide his conduct was alter or create false bills of lading and other records; maintain false records of inventory so as to misstate the geographic origin or varietal of grapes, wine, or grape juice in his company’s inventory; falsely state to his company’s employees that grapes grown outside of Napa Valley were grown in Napa Valley; move grapes or wine between his company’s three facilities to obscure the origin of the grapes; and instruct employees who picked grapes to mislabel the origin and varietal of grapes that they picked. According to the indictment, Hill instructed grape growers outside of the Napa Valley AVA never to tell anyone that he, through his company, had bought grapes from them. In all, Hill has been charged in the indictment with four counts of mail fraud, in violation of 18 U.S.C. § 1341; and four counts of wire fraud, in violation of 18 U.S.C. § 1343.
Hill was arrested today in Clovis, Calif., and made his initial appearance in federal court in the Eastern District of California, in Fresno, Calif. He was released on conditions. His next appearance is scheduled to be at 9:30 a.m. on November 16, 2016, before the Honorable Laurel Beeler, United States Magistrate Judge, at 450 Golden Gate Avenue, San Francisco, Calif., for an initial appearance in the Northern District of California.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum statutory penalty for a count of violating 18 U.S.C. § 1341 or 18 U.S.C. § 1343 is twenty years’ imprisonment and $250,000 or twice the amount gained or lost as a result of the scheme. The court may also order that the defendant pay restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Denise Oki, Bridget Kilkenny, and Jessica Meegan. The prosecution is the result of an investigation by the TTB and the Internal Revenue Service-Criminal Investigation.
Former Employee of Environmental Consulting Firm Sentenced to Bank FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that NAVIS FRANCES LEFEVER SABLAN, age 30, was sentenced today by Chief Judge Frances Tydingco-Gatewood of the District Court of Guam to serve eight months in federal prison, three years of supervised release, and ordered to pay $25,145.65 in restitution and a $100 special assessment fee. Defendant SABLAN pled guilty on November 17, 2015, to Bank Fraud in violation of Title 18, United States Code, Section 1344.
SABLAN admitted that from February 2014 to December 2014, she embezzled over $25,000 from her employer Allied Pacific Environmental Consulting (APEC). APEC hired her as its bookkeeper and she was responsible for preparing checks drawn on the company’s checking accounts maintained at First Hawaiian Bank. SABLAN forged the signatures of the company owner and other authorized personnel on 42 company checks that totaled $25,645.65. She wrote payroll checks for herself and checks ostensibly for petty cash, and used the stolen funds for her personal benefit.
Alicia A.G. Limtiaco stated, “The U.S. Attorney’s Office and its law enforcement partners are committed to investigating and prosecuting individuals who victimize and perpetrate fraud against members of our community, including businesses and financial institutions.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Marivic David.
Former Correctional Officer Sentenced for Smuggling Drugs into Federal PrisonRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Anthony Jermaine Creech, age 39, of Varnville, SC, was sentenced in federal court in Charleston, South Carolina, for providing marijuana to inmates at Estill Federal Correction Institution (FCI). United States District Judge Richard M. Gergel of Charleston sentenced Creech to six months imprisonment to be followed by six months home confinement and one year of supervised release.
Evidence presented at the change of plea hearing established that on January 8, 2015, Creech, while working as a correctional officer at Estill F.C.I., delivered one ounce of marijuana to an inmate at the prison. When confronted by authorities, Creech admitted to smuggling in marijuana and other contraband to inmates in exchange for money.
The case was investigated by agents of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Five More Individuals Indicted for Their Roles in Capacitors Price-Fixing ConspiracyRead the Press Release
Grand Jury Has Now Indicted Six Individuals in Worldwide Conspiracy
A federal grand jury returned a superseding indictment today charging a total of six executives from four different companies for conspiring to fix prices of electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed in U.S. District Court in San Francisco, charges the following individuals for conspiring to suppress and eliminate competition by fixing the prices of electrolytic capacitors:
- Tomohide Date, an executive of NEC TOKIN, who is charged with conspiring from in or about November 2001 until in or about December 2011;
- Satoru Miyashita, an executive of Company C, who is charged with conspiring from in or about January 2003 until in or about September 2012;
- Yasutoshi Ohno, an executive of Company A, who is charged with conspiring from in or about April 2000 until in or about September 2012;
- Masanobu Shiozaki, an executive of Company B, who is charged with conspiring from in or about November 2001 until in or about December 2011;
- Kiyoaki Shirotori, also an executive of Company C, who is charged with conspiring from in or about April 2006 until in or about December 2011; and
- Takuro Isawa, a former employee of Company A, who is charged with conspiring from in or about August 2002 until at least March 18, 2010. Isawa was previously indicted by a federal grand jury on March 12, 2015.
“The Antitrust Division will not hesitate to charge foreign nationals who participate in conspiracies that cheat American consumers,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “These executives participated in a long-running conspiracy to fix the prices of electrolytic capacitors, which are necessary components in scores of electronic products purchased by American consumers.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
The division has charged a total of five companies and six individuals for their participation in the same worldwide conspiracy. NEC TOKIN Corporation and Hitachi Chemical Co. previously pleaded guilty and paid criminal fines of $13.8 million and $3.8 million, respectively. On August 22, the division also filed informations charging Rubycon Corporation, Elna Co. Ltd. and Holy Stone Holdings Co. Ltd. with participating in the conspiracy. All five companies are cooperating with the division’s ongoing investigation.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges today result from an ongoing federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.
Superseding Indictment
Federal Jury Convicts El Paso Duo for an Estimated $2 Million Ponzi SchemeRead the Press Release
Two El Paso men face federal prison terms and restitution after a jury convicted them today of carrying out an estimated $2 million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas Lindquist, El Paso Division.
Jurors convicted 59–year-old Clarence Counterman, owner of an income tax return preparation business known as Taxrite, and 52–year-old Robert Loya of one count of conspiracy to commit wire fraud. Jurors also convicted Counterman and Loya of 14 and 13 substantive counts, respectively, of wire fraud. Jurors acquitted Loya of two substantive wire fraud charges; Counterman, one substantive wire fraud charge.
Evidence presented during trial revealed that from December 2008 to October 2013, the defendants conspired to convince others, including Counterman’s tax preparation clients, into investing into their solar energy related companies, including Renewable Energy Consultant, Inc. (Nevada); EP Solar Technologies, Inc. (Nevada); LITTCE, Inc. (Texas); and, Eco Global Corporation (Texas) by promising high rates of return. Contrary to the agreements with the victim investors, a significant amount of money was converted for personal use by Counterman, Loya and a third defendant, 54-year-old Leopoldo Parra of El Paso. The defendants also paid some returns to earlier investors from monies paid in by newer investors rather than from profits earned by these companies in an effort to avoid detection of their scheme and to lull investors into a false sense of security. Testimony during trial revealed that more than 50 investors lost more than a combined $2.1 million as a result of the defendants’ fraudulent scheme.
Counterman and Loya face up to 20 years in federal prison for each count of conviction and restitution to their victims. Both remain on bond pending sentencing scheduled for February 2, 2017, before United States District Judge David Briones.
Parra, who pleaded guilty to the conspiracy charge and one substantive wire fraud charge on August 10, 2016, faces up to 20 years in federal prison for each charge. Parra is scheduled for sentencing on November 30, 2016, before Judge Briones.
This conviction resulted from an investigation conducted by HSI and FBI. Assistant United States Attorneys Steve Spitzer and Chris Skillern are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Dallas Man for Making False Statements and Providing False Testimony Under Oath in his Bankruptcy CaseRead the Press Release
DALLAS — A federal grand jury in Dallas returned a seven-count indictment yesterday charging Gary Michael Beach of Dallas with various offenses stemming from his filing a petition for voluntary bankruptcy in early December 2011, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Beach, 65, with five counts of making false statements under penalty of perjury and two counts of providing false testimony under oath. If convicted, each count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Beach is scheduled to make his initial appearance in federal court Friday afternoon, before U.S. Magistrate Judge Irma C. Ramirez, at 1:00 p.m.
According to the indictment, Beach filed a petition for voluntary bankruptcy in the Northern District of Texas on December 2, 2011.
On approximately September 13, 2010, Beach, Beach’s father, and Beach’s son formed the Beach 2010 Trust. From approximately December 2009 through July 2011, Beach received approximately $177,500 from the Beach 2010 Trust and two other family trusts. On August 29, 2011, a final civil judgment in Harris County, Texas, was entered against Beach personally that required him to pay an award of $812,000 plus post-judgment interest.
On November 29, 2011, Beach and his co-trustee son caused the Beach 2010 Trust to spend $857,500 of Beach 2010 Trust funds to purchase property (Beach’s personal residence) on Beverly Drive in Dallas. Then, from December 13, 2011, through April 30, 2012, Beach and his son caused the Beach 2010 Trust to spend an additional $35,901 for renovation work on the residence, bringing the total spent on the residence to approximately $893,401.
In late October 2009, Black Horse Resources, LLC was formed; it was owned/managed by Beach’s brother-in-law. On April 1, 2011, Black Horse entered into a partnership agreement with the Beach 2010 Trust, and on June 29, 2011, Beach caused the Beach 2010 Trust to assign its interest in the partnership agreement to the newly-formed Beach Petroleum, LLC. Beach caused the “Articles of Organization” for Beach Petroleum to be filed with the Nevada Secretary of State’s office.
From approximately April 2011 through at least May 23, 2012, Beach fraudulently concealed from the bankruptcy court, the United States Trustee, and creditors his connection to Beach Petroleum and his receipt of Black Horse consulting fees through Beach Petroleum. From April 2011 through May 3, 2012, Beach received a total of approximately $210,000 from Black Horse – all paid directly to Beach or indirectly to Beach through Beach Petroleum.
The five false statement counts charged relate to documents Beach submitted in his bankruptcy case in which he fraudulently concealed material information concerning income received that he knew he was legally obligated to disclose. The two false testimony under oath counts allege that Beach falsely testified under oath when he continued to conceal these consulting fees at his creditors’ hearing in January 2012, and again at his bankruptcy deposition in April 2012.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Beach is the 21st defendant to have been charged as part of that initiative; 16 have been convicted, one resulted in a mistrial, and four are pending trial.
The U.S. Postal Inspection Service is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Eight Sentenced in Interstate Human Trafficking ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Eight defendants, all of whom resided illegally in the United States, have been sentenced in an interstate human trafficking case. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants and sentences are:
- Edegardo Osorno Rodriguez, 38, Santa Rosa Beach, Florida, 60 months in prison;
- Mauro Gonzalez-Lira, 25, McComb, Mississippi, 60 months in prison;
- Jose Juan Ruiz Prudencio, 41, Montgomery, Alabama, 48 months in prison;
- Romon Tobon, 46, Starkville, Mississippi, 42 months in prison;
- Antonio Flores-Esparza, 32, Pensacola, Florida, 24 months in prison;
- Jose Alvaro Trujillo-Santiz, 46, Panama City Beach, Florida, 18 months in prison;
- Emerson Corvera, 21, Montgomery, Alabama, 9 months in prison; and
- Rosa Mirtha Cruz Vidal, 35, Santa Rosa Beach, Florida, 8.5 months in prison.
Between February and May 2016, seven defendants pled guilty to engaging in a conspiracy during 2014 and 2015, to transport, harbor, and market undocumented female immigrants for prostitution in Florida, Alabama, Mississippi, and Louisiana. Thereafter, the defendants wired the prostitution proceeds outside the United States.
In addition to conspiracy, the following defendants also pled guilty to:
- Enticing individuals to travel in interstate commerce to engage in prostitution
(Rodriguez, Flores-Esparza, Gonzalez-Lira, and Prudencio);
- Transporting individuals in interstate commerce to engage in prostitution
(Rodriguez, Flores-Esparza, Prudencio, Tobon, and Corvera); and
- Illegal entry by a deported alien (Tobon).
In May 2016, Cruz Vidal pled guilty to fraud and misuse of a falsely made permanent resident alien card.
Upon completion of their sentences, each defendant will be turned over to the Department of Homeland Security for deportation. Cruz Vidal has already been deported from the United States. Lazaro Juarez-Juarez, 34, of Atlanta, Georgia, who was also indicted in this case, has not been apprehended.
United States Attorney Canova stated, “Combatting human trafficking is a priority of the Department of Justice and my office, and the trafficking of women for commercial sex is a significant part of the human trafficking problem that our country faces. In this particular case, dozens of women were brought into the United States illegally and exploited by the defendants to engage in prostitution in several states for the defendants’ profit. This office will continue to partner with our federal, state, and local law enforcement agencies to investigate and vigorously prosecute the trafficking of vulnerable victims for sex.”
“Human trafficking is a violation of its victims’ civil rights, and infringes upon the protected liberties guaranteed to all Americans,” said Charles P. Spencer, Special Agent in Charge of the FBI’s Jacksonville Division. “This type of illegal activity demonstrates a very real risk to our local communities, and stopping it remains one of the highest criminal investigative priorities for the FBI.”
“Human trafficking is an abomination, and this criminal organization has devastated the lives of so many women,” said Susan L. McCormick, special agent in charge of HSI Tampa. “These sentencings are the result of the hard work of our special agents and show the importance HSI places on investigating human trafficking crimes.”
This case resulted from a 15-month investigation into human trafficking activities in the Northern District of Florida by the Federal Bureau of Investigation and the United States Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Stephen M. Kunz. It is a follow-up prosecution to a previous kidnapping case prosecuted in federal court in Panama City.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]East St. Louis Man Pleads Guilty to Kidnapping ChargesRead the Press Release
St. Louis, MO – Damarcus Boyd, aka Mez, pled guilty to charges involving a September 2015 kidnapping.
According to court documents, in September 2015, co-defendant Ortega Mitchell, aka Munk Milano, and the victim agreed that the victim would travel to St. Louis from San Diego, California, in connection with a marijuana transaction. Unknown to the victim, Mitchell, Boyd and co-defendant Darius Rose planned to kidnap the victim and hold him for ransom.
On September 25, the victim flew from San Diego, California, to St. Louis where he was picked up by Boyd and Mitchell and taken to a house in Illinois. When they entered the house, the victim was confronted by Rose with an assault rifle. Rose threatened to blow the victim’s brains out and ordered him onto the floor. The kidnappers rifled through the victim’s pockets and took his cell phone and wallet. Boyd bound the victim’s hands and feet with duct tape, and the kidnappers kept him captive in a bedroom of the house.
On September 26, Rose made various ransom calls to the victim’s father demanding $100,000 and marijuana. Rose, sometimes accompanied by Boyd, left the house in Illinois and traveled to the Glenfield Apartments in Overland, Missouri, to make the ransom calls. The victim’s family contacted law enforcement, and the Federal Bureau of Investigation (FBI) became involved.
Finally, on September 30, Rose, Mitchell and Boyd drove the victim from Illinois to the area of Columbia and Hampton in the City of St. Louis. The kidnappers told the victim to get out of the vehicle and drove away, leaving the victim in the street. The victim walked to a nearby gas station and called his father to inform him he had been freed.
Boyd, East St. Louis, Illinois, pled guilty to one count of conspiracy to kidnap before United States District Ronnie L. White. Sentencing has been set for February 8, 2017.
Co-defendant Ortega Mitchell pled guilty to the same charge in October and awaits sentencing. Co-defendant Darius Rose is awaiting trial.
The conspiracy charge carries a maximum penalty of life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.
The charges set forth in an indictment are merely accusations, and defendant Rose is presumed innocent until and unless proven guilty.
Danbury Resident Sentenced to Prison for Stealing from InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEXANDER BERGEN, 23, of Danbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for stealing more than $280,000 from individuals who invested in his internet business.
According to court documents and statements made in court, BERGEN operated CT Wholesale, a company that sold electronic equipment and other items by buying the product for a cheaper price and then reselling those products to the customer at a higher price. Beginning in approximately 2013, BERGEN began to accept investment funds from investors who were promised a return on their investments. BERGEN represented to the investors that he would use their investment funds solely to purchase products for resale to his customers and that the investors would receive their principal investment back with a profit in a specified period of time. In some cases, BERGEN entered into written investment agreements with investors in which he expressly represented that the investment funds provided by the investor would be used solely to purchase products.
BERGEN received a total of more than $300,000 from approximately 10 investors. Despite representing to the investors that all of their funds would be used solely to purchase products for resale by CT Wholesale, BERGEN did not use these funds solely to purchase products. In 2013, BERGEN used approximately $150,000 of the investors’ money to pay for his personal credit card bills which included personal expenses for fine dining, travel, and to shop at high-end retail stores.
BERGEN returned less than $40,000 in funds to his investors.
Judge Bryant ordered BERGEN to pay restitution in the amount of $282,609.71.
On August 3, 2015, BERGEN pleaded guilty to one count of interstate transportation of money obtained by fraud. He has been detained since March 7, 2016, after he violated the conditions of his release pending sentencing and his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Bethel and Greenwich Police Departments. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Creator of Software to Facilitate Privacy Invasion and Online Extortion Sentenced to Federal Prison for Conspiracy to Commit Computer FraudRead the Press Release
DENVER – Brandon Bourret, age 41, of Colorado Springs, Colorado, was sentenced yesterday by U.S. District Court Judge Wiley Y. Daniel to serve 29 months in federal prison, followed by 3 years on supervised release after previously pleading guilty to conspiracy to commit computer fraud and abuse, access device fraud, identification document fraud and wire fraud, the U.S. Attorney’s Office and the Denver Division of the FBI announced. Further, the Judge ordered the forfeiture of $49,153 cash plus a substantial amount of computer equipment. Bourret, who appeared at the sentencing hearing free on bond, was ordered to report to a Bureau of Prisons facility within 15 days of designation.
Co-defendant Athanasios Andrianakis previously was sentenced to serve 5 years on probation with the first 15 months in house confinement. While in house confinement Andrianakis is to work for no pay for the victim, Photobucket, as in-kind restitution. Further, Andrianakis was ordered to work 150 hours of community service. He also paid $35,000 to Photobucket, and forfeited cash proceeds of $14,962.22 plus a substantial amount of computer equipment.
Bourret and co-defendant Andrianakis were charged and arrested after breaching the computer services of Colorado-based Photobucket, a company that operates an image and video hosting website. According to court documents, including the stipulated facts contained in the plea agreement, in 2008 Bourret began selling a software application called “PhotoFucket.” The purpose of PhotoFucket was to allow its users to gain access illegally to the private or password protected photo albums of Photobucket’s customers without those customers’ knowledge or consent. As its name suggests, PhotoFucket’s users were primarily interested in finding and stealing nude or sexually-explicit images from those private and password protected albums.
Between July 12, 2012 and August 2, 2013, in response to increased security at Photobucket, Bourret and his co-defendant conspired to find and sell sophisticated ways to continue penetrating the password protections despite Photobucket’s attempts to block the intrusions. The co-conspirators also discussed ways to increase PhotoFucket sales and distribute money from the enterprise among the co-conspirators. Bourret promoted PhotoFucket on his websites, Photofucket.com and PhatThumbs.Photofucket.com, and he published private images that he illegally obtained on the PhatThumbs website.
Bourret also found a way to connect registration email addresses to stolen private images, and he sold those email addresses to PhotoFucket customers knowing that this posed a substantial risk of facilitating online extortion. He dismissed this risk in the interest of profits, saying in one email “I decided to go a little crazy and let PF output an email address for every rip it does . . . It’s better to burn out than to fade away.” Victims of the PhotoFucket scheme reported being extorted and harassed online with their private images.
On July 1, 2014, a search warrant was executed at Bourret’s residence in Colorado Springs, where he hosted the PhotoFucket.com website on a server in his bedroom. Over 9 terabytes of illicit data were seized from that server and the other storage devices recovered in Bourret’s house. Agents determined that the defendant recorded 18,557 instances of his targeting accounts with the PhotoFucket application, and he possessed at least 722 passwords that were associated with other Photobucket.com accountholders.
Photobucket first became aware of the PhotoFucket application in 2013. It immediately contacted the FBI and worked aggressively with law enforcement to fix the exploits, strengthen the security of their product, and bring the two individuals responsible for the violations to justice. The conspiracy ended and PhotoFucket was no longer capable of accessing private Photobucket.com content after July 31, 2013.
Victims of the breach were previously contacted by the government and Photobucket through email messages to their Photobucket.com registration email addresses. None of those victims submitted a restitution request to the court. However, to address the interests raised by some of those victims, the government and the co-defendants, with the assistance of Photobucket, entered into Consent Agreements that created a victims’ assistance fund. The fund is available for identified victims – ie, those who previously received a notification – to obtain services to mitigate the impact of the public disclosure of their private images. These services are to be paid for by the co-defendants according to the terms of the Consent Agreements. More information about the victims’ assistance fund can be found on the U.S. Department of Justice website at http://www.justice.gov/usao-co/photobucket-case.
“Bourret and Andrianakis enriched themselves by preying on people who believed their personal pictures of loved ones and private moments were safe and secure,” said FBI Acting Special Agent in Charge Calvin Shivers, of the Denver Division. “The FBI’s Denver Cyber Task Force investigated the network intrusion perpetrated by the men, who accessed victim accounts without authorization. We thank our law enforcement partners and the US Attorney’s Office for helping bring them to justice.”
This investigation was conducted by the Denver Division of the FBI. This case is being prosecuted by Assistant U.S. Attorney David Tonini.
Columbus Man Pleads Guilty to Dog-Fighting ConspiracyRead the Press Release
COLUMBUS, Ohio – Charles A. Granberry, 40, of Columbus pleaded guilty in U.S. District Court to conspiring to participate in a dog-fighting ring in central Ohio, and to illegally possessing a firearm.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Anthony Mohatt, Special Agent in Charge, Midwest Region, U.S. Department of Agriculture Office of Inspector General, Columbus Police Chief Kim Jacobs, Franklin County Prosecuting Attorney Ron O’Brien, and Capital Area Humane Society Executive Director Rachel D.K. Finney announced the plea entered today before U.S. Magistrate Judge Kimberly A. Jolson.
According to court documents, an undercover law enforcement officer met with Granberry and others over a two-week period at two houses in Columbus in March 2016. The officer saw evidence indicating that the house was used to train, fight and sell dogs, including at least 20 fighting dogs in the rear yard of one house that were chained to heavy automobile axles buried in the ground.
Officers executed search warrants on April 5, 2016 at five Columbus houses. Agents seized evidence including more than 40 dogs along with cages, treadmills, heavy chains and collars and other items. Agents found canine blood on the floor and walls of the basement of one home indicating that the area was used as a dog fighting pit. Officers arrested Granberry and seized firearms and documents connected to the dog fighting operation. Granberry has been in custody since his arrest.
Conspiracy is punishable by up to five years in prison and a fine of up to $250,000. Granberry is charged with being a felon in possession of a firearm, punishable by up to ten years in prison and a $250,000 fine. U.S. District Judge James L. Graham will schedule a hearing to sentence Granberry.
U.S. Attorney Glassman commended the ongoing investigation by the USDA-OIG, Columbus Police and the Humane Society, as well as Assistant U.S. Attorneys J. Michael Marous and Jessica Knight, and Franklin County Assistant Prosecutor Heather Robinson, who are representing the United States in this case.
Chicago Man Charged with Sex Trafficking for Engaging in Prostitution with a MinorRead the Press Release
CHICAGO — A criminal complaint unsealed in federal court today charges a Chicago man with sex trafficking for allegedly engaging in paid sexual acts with an underage girl.
WILLIAM WHITLEY paid the minor to engage in sex acts with him on multiple occasions last year, according to the complaint. Whitley paid the girl between $60 and $150 for each of the sexual encounters, the complaint states. Whitley also took nude photographs of the girl and sent the pictures to her via text message, the complaint states.
Whitley, 60, was arrested Tuesday afternoon. He made an initial appearance today before U.S. Magistrate Judge Maria Valdez, who ordered him to remain in federal custody. Judge Valdez scheduled a detention hearing for Nov. 7, 2016, at 11:00 a.m.
The two-count complaint charges Whitley with sex trafficking and production of child pornography.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. The Carol Stream Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Sarah Streicker, Elizabeth Pozolo and Michelle Petersen.
According to the charges, a woman identified in the complaint as “Individual A” introduced the girl to Whitley. The victim was 14 years old when Whitley paid her to engage in sex acts with him, according to the complaint.
The complaint also describes how Individual A introduced another female victim to Whitley. This other victim was 16 years old when she encountered Whitley at a party hosted by Individual A, according to the complaint. Individual A’s party was attended by older men and young runaway girls, the complaint states. Whitley paid the 16-year-old girl to engage in sex acts, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The sex trafficking count is punishable by a statutory minimum sentence of ten years in prison, and a maximum of life. Production of child pornography carries a minimum sentence of 15 years, and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, 7 days a week.
Charter School Administrator Pleads Guilty to Federal Program TheftRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Sean Moore, age 43, of New Castle, Del., pleaded guilty to three counts of federal program theft before U.S. District Judge Richard G. Andrews. Moore is scheduled to be sentenced on March 2, 2017.
According to court records and statements made in open court, between July 1, 2011 and January 31, 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school.
Moore accomplished this embezzlement in a number of ways. First, Moore charged personal expenses to an unauthorized credit card he opened in the name of the school. Moore also abused the State of Delaware’s voucher program, by which charter schools are permitted to submit qualified expenses for reimbursement, and the State of Delaware’s procurement card system, by which the State of Delaware issues credit cards to charter school administrators to purchase necessary school supplies. In addition, Moore stole money from the school’s fundraising account, which consisted of money collected from parents of school students, local sponsors, and an after-school program. Moore also took money from the school’s construction loan account.
Moore used the embezzled money for personal expenses such as retail purchases, home improvement purchases, electronics, auto loan payments, auto services and accessories, federal tax payments, groceries, entertainment, food, gas, travel, gifts and collectibles, shoes, hotels, jewelry, train tickets, and video games.
During this time, the Family Foundations Academy received significant federal funding, which provides the basis for the federal program theft charges. The maximum penalty for each count is ten years in prison followed by a three years of supervised release and a fine of $250,000.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts. Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
Charlotte Identity Thief Sent to Prison for 75 MonthsRead the Press Release
NEW BERN - United States Attorney John Stuart Bruce announced that today in federal court United States District Judge Louise W. Flanagan sentenced MAURICE ANTHONY DRUMMOND, 30, of Charlotte, to serve a total of 75 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. DRUMMOND was also ordered to make restitution of $86,691.56 to his victims, and to forfeit certain equipment used in the scheme.
At sentencing the Government argued that the defendant was involved in a scheme from 2013 to 2016 to obtain and use stolen credit card information to facilitate a scheme to acquire and sell large quantities of diesel fuel for resale. After acquiring stolen credit card information, DRUMMOND encoded the information onto used gift and credit cards. DRUMMOND then took the cards to various gas stations located throughout North Carolina, where he would use them to make large fuel purchases. DRUMMOND pumped the fuel into large storage containers held under a shell on the back of pickup trucks. DRUMMOND later resold the fuel at truck stops and other locations for a profit.
In 2014, DRUMMOND was captured by local authorities in Granville County in possession of hundreds of stolen credit cards and a machine used for re-encoding such cards. DRUMMOND was captured again in 2015 by local authorities in Charlotte as he continued to carry out the scheme while on release from state custody.
DRUMMOND pleaded guilty on March 16, 2016 to Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft.
Investigation of DRUMMOND’s case was conducted by the United States Secret Service, with the assistance of the Granville County Sheriff’s Office, and the Gastonia Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Catonsville Man Charged with Making Threats by Telephone and EmailRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Stephen Charles Williams-Hill, age 32, of Catonsville, Maryland, today for allegedly using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive, and communicating in interstate commerce, a threat to kidnap or injure another person.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department, as part of the FBI Joint Violent Crimes Task Force; and Chief Chris Magnus of the Tucson Police Department.
According to the affidavit, from July through October 2016, Williams-Hill, using the name Gio Calle, made numerous threats to the victim and her family. The affidavit alleges that Williams-Hill called, emailed and left messages, for the victim, her mother and her sibling. In those calls and emails Williams-Hill allegedly threatened to blow up the building where the mother worked, blow up the family’s residence, kill, maim and torture the victim and the members her family. Williams-Hill claimed to have a semiautomatic weapon, that he threatened to use to kill the family and individuals at the mother’s work place. According to the affidavit, on several occasions Williams-Hill stated that he’d been wanting to kill someone since he was six years old.
If convicted, Williams-Hill faces a maximum sentence of 10 years in prison for using a telephone and emails to threaten to kill, intimidate, or injure the victims and their residence by means of an explosive; and a maximum of five years in prison for communicating in interstate commerce, a threat to kidnap or injure another person. Williams-Hill had an initial appearance this afternoon in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for November 3, 2016 at 2:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City and Baltimore County Police Departments and the Tucson, Arizona Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney John W. Sippel, Jr. who is prosecuting the case.
Businessman Pleads Guilty to Role in Health Benefit Plans SchemeRead the Press Release
In San Antonio, Samuel Mullen, former Chief Financial Officer of the Mullen Pension & Benefits Group, LLC. (Mullen Group), pleaded guilty to a federal conspiracy charge for his role in a bribery and kickback scheme which victimized several local school districts, a municipality, and their constituents regarding health care benefit plans announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs.
Appearing before United States Magistrate Judge John W. Primomo yesterday afternoon, the Mission, TX, resident pleaded guilty to one count of conspiracy to commit honest services wire fraud. By pleading guilty, Mullen admitted that from March 2007 until June 2014, he and others devised a scheme to defraud various school districts and the Bexar Metropolitan Water District (BexarMet) through the use of bribes, kickbacks and concealment of material information. According to court records, the defendant, and the Mullen Group, were in competition with other business entities to provide health insurance benefit plans and products to local school districts and municipalities. Those entities included San Antonio ISD, Edgewood ISD, South San Antonio ISD and BexarMet. Mullen, admittedly, paid an independent consultant hired by the school districts and BexarMet over $80,000 for help in securing contracts with those entities on behalf of insurance companies with whom the Mullen Group had a financial interest. By providing bribes and kickbacks which allowed the Mullen Group to corruptly obtain insurance contracts, the defendant personally profited by receiving commissions on those insurance contracts.
Mullen faces up to five years in federal prison. He remains on bond pending sentencing scheduled for January 25, 2017, before U.S. District Judge Xavier Rodriguez in San Antonio.
This investigation is being conducted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Mark Roomberg and Joseph Blackwell are prosecuting this case on behalf of the government.
Buffalo 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 Franklin Richards, 34, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to 130 months in prison by U.S. District Judge Lawrence J. Vilardo.
According to Assistant U.S. Attorney George C. Burgasser, who handled the case, between July 2011 and March 2012, Franklin Richards supplied cocaine to the LRGP Gang which operates in the area of Lombard, Rother, Gibson and Playter Streets. The defendant purchased cocaine for redistribution from co-defendant Earl Brown.
On one occasion, co-conspirator Wilfred Wylie, who was traveling to Houston, Texas to purchase cocaine from Earl Brown for Franklin Richards, was searched by security at the Buffalo Niagara International Airport and found with $112,000 in U.S. currency, money he was going to use to pay for the cocaine. On other occasions, Richards used a variety of methods to transport cocaine from Houston, Texas to Buffalo. Once he received the cocaine, Richards would repackage it for distribution in the Buffalo area.
Co-defendants Brown and Wylie have been convicted. Wylie was sentenced, Brown is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.