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Thursday 15 September 2016
Biloxi Businessman Sentenced for Kickback Scheme with Mississippi Department of Corrections CommissionerRead the Press Release
Gulfport, Miss - Robert Simmons, 60, of Biloxi, was sentenced by U.S. District Judge Sul Ozerden to 87 months in prison followed by three years of supervised release for carrying out a complicated kickback scheme in which he paid money to the commissioner of the Mississippi Department of Corrections (MDOC) and to a Harrison County Supervisor in exchange for lucrative contracts with the state and county, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Donald Alway. Simmons was also ordered to pay a $10,000 fine.
By virtue of Simmons’ relationship with the commissioner and supervisor and the kickbacks which he paid to both, he was successful in securing and keeping contracts with both governmental entities. Specifically, from 2012 through August 2014, Simmons was paid $4,000 a month as a consultant for Sentinel Offender Services, L.L.C. (Sentinel). Since 2012, Sentinel was under contract with the Mississippi Department of Corrections (MDOC) to provide services to aid in the monitoring and managing of offenders sentenced to probation or parole. Simmons deposited a portion of his monthly pay, a kickback of $1400, directly into the bank account of Christopher Epps, the Commissioner of the MDOC, at bank branch locations along the Mississippi Gulf Coast.
AJA Management and Technical Services (AJA) provided construction management services to the MDOC for the construction of the $40,000,000 expansion to the East Mississippi Correctional Facility and a $40,000,000 expansion to the Walnut Grove Youth Correctional Facility. Throughout the eighteen month period of construction, Simmons received a monthly consulting fee from AJA of $10,000. Every month, a portion of Simmons’ consulting fee was paid to the Commissioner of the MDOC.
From approximately 2005 through 2011, Health Assurance L.L.C. contracted with the Harrison County Jail to provide inmate medical services. The owner of Health Assurance L.L.C. paid Simmons a consulting fee which, at the end of the contract, was as high as $10,000 a month. Throughout this period of time, Simmons made payments in the amount of $2,000 a month to a Harrison County Supervisor for assistance provided in securing the contract at the Harrison County Jail for inmate medical services.
Throughout the relevant time period, the Commissioner of the MDOC exercised influence in the awarding of contracts with the MDOC. In return for these contracts and in order to secure future contracts and favors, Simmons began paying Commissioner Epps.
In summary, Simmons paid bribes and kickbacks to a Harrison county supervisor and to the commissioner of the Mississippi Department of Corrections, and both Harrison County and the Mississippi Department of Corrections received more than $10,000 during each one year period beginning in 2008 and continuing through 2014.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jay Golden.
Beggs Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JACKIE LEON PARKER, JR., age 42, of Beggs, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1).
The charges arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in July, 2016.
The Indictment alleged that on or about May 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Bank Employee Sentenced for $213,000 TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for embezzling more than $213,000 from Bank of America.
Elisha Nicole Araiza, 36, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 21 months in federal prison without parole. The court also ordered Araiza to pay $213,090 in restitution to Bank of America.
On April 5, 2016, Araiza pleaded guilty to embezzlement by a bank employee.
Araiza was employed by Bank of America on May 17, 2004, and worked as a portfolio officer in the Special Assets Group on the Small Business Accounts Team. Her duties included contacting small business borrowers to arrange payments on past due loans, and in that regard she had authority to negotiate settlements, create payment plans, and forgive portions of the debts owed.
Araiza admitted that she had been experiencing overdrafts in her personal bank account for about a year when, in July 2011, she deposited a bank customer’s money order into her own account. Thereafter, the diversion of client checks to Araiza’s personal accounts continued until March 19, 2015, at which point the embezzlement was detected by Bank of America.
Bank of America found 121 diverted loan payment checks totaling $213,090 deposited into Araiza’s personal account over a period of approximately four years.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Secret Service.
Alpha Corporation Agrees to Plead Guilty in Price-Fixing and Bid-Rigging ConspiracyRead the Press Release
Alpha Corporation (Alpha) has agreed to plead guilty and to pay a $9 million criminal fine for its role in a price-fixing and bid-rigging conspiracy involving automotive access mechanisms for installation in cars manufactured and sold in the United States and elsewhere, the Justice Department announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Japan-based Alpha conspired from at least as early as 2002 until at least September 2011 to fix prices and rig bids for automotive access mechanisms sold to Nissan Motor Co. Ltd. and certain of its subsidiaries, including Nissan North America Inc. Access mechanisms consist of inside and outside door handles, tailgate or trunk handles, keys, lock sets (also called key sets), door locks and electrical and mechanical steering column locks.
“Alpha is the 46th corporation to be charged with participating in an anticompetitive scheme involving auto parts,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to uncovering each and every conspiracy to fix prices in the auto parts industry.”
“Crimes of this nature weaken the integrity of the bidding process and deny consumers the benefit of free and open competition in the marketplace,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “The FBI will continue to work with the Antitrust Division to ensure fair bidding practices are employed across all sectors of our economy.”
The Antitrust Division charges that Alpha and its co-conspirator engaged in meetings and conversations to discuss and agree upon the bids and price quotations to be submitted to Nissan for the sale of access mechanisms. As part of its plea, Alpha has agreed to cooperate in the Division’s ongoing investigation. The plea agreement is subject to court approval.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Alpha, 46 companies and 64 executives have been charged in the division’s investigation and have agreed to pay a total of more than $2.8 billion in criminal fines.
Alpha is being prosecuted by the Antitrust Division’s New York Office and the FBI’s New York Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s New York Field Office at 212-384-1000.
Alpha Corporation Information
Accountant Convicted of Embezzling More than $3 Million from Houston CompanyRead the Press Release
HOUSTON – An accountant from Georgia has admitted he committed wire fraud and stole more than $3 million from Houston company Airis International Holdings, announced U.S. Attorney Kenneth Magidson.
Daniel Nathan West, 50, of Duluth, Georgia, was previously employed as the treasurer and chief financial officer for Airis International Holdings. In this role, he was to manage Airis finances during construction projects, control the company’s monetary assets, administer payments and payroll, among other things.
In 2005, West resigned from Airis to start his accounting firm - Westtree Financial. Shortly thereafter, Airis contracted with Westtree Financial to provide accounting services to Airis. Although West no longer worked directly for Airis, through his company he continued to have signature authority on Airis’ bank accounts and authority to transfer funds on behalf of Airis.
From 2005 to 2012, West embezzled $3,616,563.45 from Airis, admitting he used the monies to purchase a luxury home in Georgia, a beach house in Florida, an office building in Georgia and luxury vehicles.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 5, 2016. At that time, he faces up to 20 years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
7th Street Gang Associate Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 7th Street Gang associate Joseph Whitely, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012. Defendant Whitely, as a 7th Street Gang associate, sold heroin on behalf of the gang.
Regarding violence, Whitely served as the getaway driver for 7th Street Gang member Efrain Hidalgo, who had moments earlier participated with others in the murder of rival 10th Street Gang member Eric Morrow on August 11, 2009. In doing so, Whitely assisted Hidalgo to avoid capture by the Buffalo Police Department.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted. The prosecution of the 10th Street gang, meanwhile, involved 44 defendants, all of whom were convicted.The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie Patterson.
Wednesday 14 September 2016
Wilkes-Barre Man Charged with Federal Crack Cocaine Trafficking Offense in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton for crack cocaine trafficking.
According to United States Attorney Peter Smith, the Indictment charges Jahkel Lamar, age 29, of Wilkes-Barre, with possession with intent to distribute crack cocaine.
The charges stem from an investigation in which the Scranton Police Department allegedly found Lamar to be in possession of approximately 127 grams of crack cocaine at a bus terminal in Scranton.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Scranton Police Department, Special Investigations Division. Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes Barre Man Indicted on Marijuana Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton on marijuana trafficking and firearms offenses.
According to United States Attorney Peter Smith, the Indictment charges Christian Rosado, age 26, with charges that stemmed from a joint investigation of the Federal Bureau of Investigation (FBI) and the Hazelton Police Department in connection with a shooting incident in Hazleton in July 2016.
The investigation was conducted by the FBI, working in conjunction with the Hazelton Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
Rosado faces a minimum of 10 years and up to a lifetime term of incarceration as well as fines totaling $1,750,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Venezuelan Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – Alejandro Marva-Romero, 32, of Venezuela, pleaded guilty today in federal court on St. Croix to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On November 13, 2015, Marva-Romero and other co-defendants, who were on a boat, retrieved a load of cocaine mid-sea from another boat. They transported the drugs to St. Croix and offloaded them at a beach called Knight’s Bay. Law enforcement tracked the boat returning to St. Croix and apprehended Marva-Romero and two co-defendants on the beach in close proximity to the suitcases. The suitcases contained 87 kilograms of cocaine.
Marva-Romero faces up to life imprisonment for the offense and a fine of up to $10,000,000. A sentencing date has been set for January 13, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
United States Settles False Claims Act Allegations Against Compound Pharmacy Owners for $7.75 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Andy Miller, Tracy Miller, and the Healthmark Investment Trust have agreed to pay to the government $7.75 million to resolve allegations that they violated the False Claims Act.
The United States contends that QMedRx, a compound pharmacy in Maitland, Florida, knowingly billed federal healthcare programs for services that were not reimbursable. Specifically, the government contends that from January 1, 2013, until January 22, 2014, QMedRx submitted to federal healthcare programs, compounded prescriptions that were tainted within the meaning of the Anti-Kickback Statute. Because Healthmark Investment Trust was a partial owner of QMedRx, the government sought penalties and fines from the owners who participated in the fraud. The government is still pursuing penalties and fines from other owners and participants within QMedRx.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Those who violate the Anti-Kickback Statute to generate business will be held accountable.”
This case was developed through an initiative to track and prosecute compound pharmacies that submitted millions of dollars in improper claims to the TRICARE program. The government estimates that up to $2 billion of tainted and unnecessary compound prescriptions were submitted and paid by the government. In the Middle District of Florida, the government has recovered almost $60 million in fines and penalties over the past 18 months.
“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
USP Canaan Inmates Charged in Assault of Prisoner with A Dangerous WeaponRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Indictment was returned by a federal grand jury in Scranton on September 13, charging federal prison inmates, Miguel Grado, age 26 and Rafael Torres-Villanueva, age 43.
According to United States Attorney Peter Smith, Grado and Torres-Villanueva were charged with assaulting a third inmate on June 4, 2016, with a dangerous weapon, a “shank,” at the U.S. Bureau of Prisons Canaan facility in Waymart, PA.
If convicted, Grado and Torres-Villanueva could be imprisoned for a maximum sentence of up to ten years and a fine in the amount of $250,000.
The investigation was conducted by the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney’s Office to Host September 20th Event for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict,” to be followed by a panel discussion, at 6:30 p.m. on Tuesday, September 20, 2016. The event will be held at Augustana University’s Kresge Recital Hall, located at 2120 S. Grange Avenue in Sioux Falls.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, an individual in recovery from opiate addiction, as well as staff from Face It TOGETHER and Keystone Treatment Center.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
Two Men Plead Guilty for Their Roles in Identity Trafficking SchemeRead the Press Release
Two individuals each pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to their respective roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Francisco Matos-Beltre, 42, a U.S. citizen formerly of Philadelphia, and Alejandro Tello-Rojas, aka Joel Ocasio-Cancel, aka William Davila, 36, a Mexican citizen formerly of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Matos-Beltre, an identity document supplier, and Tello-Rojas, an identity document broker, were charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, eight defendants have pleaded guilty and six individuals remain fugitives.
According to admissions made in connection with today’s pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, the defendants admitted. The defendants acknowledged that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.
The defendants also admitted that they sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreements. At the time of his arrest, Tello-Rojas had assumed the identity of Ocasio-Cancel, a Puerto Rican U.S. citizen.
The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the HSI San Juan Office and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Tulsa Teacher Sentenced to 13 Years for Receiving Child PornographyRead the Press Release
TULSA, Okla.—A Union Public Schools teacher was sentenced today to serve 13 years in federal prison for receiving child pornography followed by 20 years of supervised release, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
James Russell Wilson, 32, of Tulsa, was indicted by a grand jury in April 2016, and pleaded guilty on June 14, 2016.
According to court documents, from October 2014 to about December 2014, Wilson found the public profile of a 12 year-old girl on Instagram and began sending messages to her username on Kik, an online-messaging program. In the course of “chatting” with the child over several months, Wilson requested increasingly more revealing and ultimately sexual photos of her and enticed the child to expose herself and perform sexual acts on herself. Wilson sent her pictures in which he exposed himself and engaged in masturbation. Wilson convinced the 12 year-old girl to send, and Wilson received, photos of her engaging in sexually explicit conduct, including the lascivious exhibition of her genitalia through her underwear or other clothing, and both simulated and actual masturbation.
United States Immigration Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and the Royal Canadian Mounted Police were the investigating agencies. Assistant United States Attorneys Andrew J. Hofland and Allen J. Litchfield prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and internet safety education, please visit www.justice.gov/psc.
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Three Hartford Men Charged with Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONALD PEREZ, 28, BYRON RIVERA, 26, and MARCUS TYSON, 30, all of Hartford, have been arrested and charged by criminal complaints with possession with intent to distribute, and distribution of, one kilogram or more of heroin.
As alleged is court documents and statements made in court, on September 13, 2016, members of the FBI’s Northern Connecticut Violent Crimes Task Force, including the Hartford and East Hartford Police Departments, executed a state search warrant at an apartment at 50 Forest Street in Hartford. PEREZ, RIVERA and TYSON were encountered in living room of the apartment. A search of the apartment revealed approximately 50,000 bags of heroin, approximately 300 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, and two handguns.
PEREZ, RIVERA and TYSON appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were ordered detained.
The charge of possession with intent to distribute, and distribution of, one kilogram or more of heroin carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department. The FBI Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Texas Syndicate Gang Member Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A member of the Texas-based prison and street gang known as the Texas Syndicate has been ordered to federal prison for narcotics trafficking, announced U.S. Attorney Kenneth Magidson. Juan Matias Trevino, 29, of Brownsville, pleaded guilty Feb. 2, 2016, to possession with intent to distribute one kilogram of methamphetamine.
Today, U.S. District Judge Rolando Olvera handed Trevino a 262-month prison sentence to be immediately followed by five years of supervised release. As part of the sentence, Judge Olvera found Trevino was a career-offender and a leader-organizer in the drug trafficking scheme.
Trevino was arrested Oct. 25, 2015, after organizing the shipment of one kilogram of methamphetamine from a Brownsville bus station to the Philadelphia, Pennsylvania, metropolitan area. The narcotics were to be distributed thereafter in the northeast. Law enforcement had been conducting surveillance on Trevino for weeks and observed activities consistent with narcotics trafficking. He was arrested and the narcotics were seized prior to departure from Brownsville.
Trevino will remain in custody.
The Drug Enforcement Administration and the Cameron County Sheriff’s Department Special Investigations Unit conducted the joint investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Terry Resident Pleads Guilty to Bankruptcy FraudRead the Press Release
Jackson, Miss - Kenneth Bowman, Jr., 63, of Terry, Mississippi, pled guilty on September 13, 2016, before U.S. District Judge Tom S. Lee, to one count of bankruptcy fraud, announced U. S. Attorney Gregory K. Davis, Acting U. S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Donald Alway.
Bowman, as the officer and representative of Piggly Wiggly of Crystal Springs, Inc., a debtor in Chapter 11 bankruptcy in the Southern District of Mississippi, embezzled approximately $101,733.55 from the bankruptcy estate. Bowman appropriated to his own use estate funds belonging to the debtor, specifically making checks payable to cash and using the cash to satisfy his personal debts, and reducing assets available to creditors.
Bowman will be sentenced on December 15, 2016 at 9:00 a.m. by U.S. District Judge Tom S. Lee and faces a maximum penalty of five years in prison and a $250,000 fine.
The Office of the U. S. Trustee and the U.S. Bankruptcy Court for the Southern District of Mississippi referred the matter to the U. S. Attorney for prosecution. The case was investigated by the FBI and the U.S. Trustee. It was prosecuted by Assistant U.S. Attorney Mary Helen Wall and Trial Attorney Sammye S. Tharp with the Office of the U.S. Trustee.
Tahlequah Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that TERESA CHAGOLLA, age 54, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and a DRUG FORFEITURE.
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Information alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma, the defendant, TERESA CHAGOLLA, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment, up to a $1,000,000 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Pleads Guilty to Drug Conspiracy, ForfeitureRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that GARY WAYNE WILDER, age 36, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and a DRUG FORFEITURE.
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Information alleged that on or about October, 2015, within the Eastern District of Oklahoma, the defendant, GARY WAYNE WILDER, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 5 years or more than 40 years imprisonment, up to a $10,000,000 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
SunTrust Bank Manager Pleads Guilty to Counterfeit SchemeRead the Press Release
RICHMOND, Va. – Patrice A. Callaham, 42, of Richmond, pleaded guilty today to charges of bank fraud related to cashing counterfeit or otherwise fraudulent checks totaling over $55,000 while a Branch Manager at SunTrust Bank on Azalea Avenue in Richmond.
According to the statement of facts filed with the plea agreement, beginning in April 2016, Callaham agreed to funnel forged or counterfeited checks through her Azalea Avenue branch in exchange for a share of the proceeds. Check cashers would arrive at Callaham’s branch, and request to speak with her. Callaham, alerted to their arrival by a co-conspirator, would then open a SunTrust account for the check casher, cash the counterfeit check they offered, and keep $500 of the proceeds for herself. Callaham’s status as Bank Manager allowed her to personally open the accounts and cash the checks for their entire face value without running standard validation protocols. Callaham cashed counterfeit or otherwise fraudulent checks for 15 separate check cashers over the space of approximately four weeks before her activities were discovered. Callaham’s actions resulted in a loss to SunTrust Bank of over $55,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. Magistrate Judge David J. Novak. Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case. This case was investigated by the Richmond Police Department and the United States Secret Service as members of the Metro-Richmond Identity Theft Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-109.
St. Lucie County Resident Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
A St. Lucie County resident pled guilty yesterday to distributing and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Michael Joseph Roth, 46, of Port St. Lucie, Florida, pled guilty before Chief U.S. Magistrate Judge Frank J. Lynch Jr., in Fort Pierce, Florida to the charges of distribution and possession of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1) and 2252 (a)(4)(B) and (b)(2). Roth faces a mandatory minimum of five years’ up to a twenty-year maximum term of imprisonment and a lifetime of supervised release. In addition, Roth will be required to register as a sex offender.
According to Court records, including a stipulated factual basis in support of Roth’s guilty plea, on March 7, 2016, an undercover investigator (UC) with the Swiss Federal Police, utilizing a peer to peer file (P2P) sharing network established contact with user “Lindamom76”. “Lindamom76” shared material in four encrypted folders with the Swiss UC, by providing his password during a chat conversation. As a result, the Swiss UC was able to download picture and video files depicting child pornography. Law enforcement traced the internet protocol (IP) address of “Lindamom76” to Roth in Port Saint Lucie, Florida.
On May 20, 2016, law enforcement officers executed a federal search warrant at Roth’s residence and seized a laptop computer and a tower PC, containing the P2P software. During an interview, Roth admitted that he used the P2P software and user name “Lindamom76.”
A forensic examination of the computer revealed Roth’s communications with the Swiss UC on March 7, 2016. Additional chats were found wherein Roth, using an assumed identify of a mother of two teenage daughters, requested child pornography depicting incest, young girls, and pregnant teens. In discovered chats with other P2P users, Roth discussed password requests in order to distribute, receive and trade images of child pornography.
Mr. Ferrer commended the investigative efforts of the FBI, MCSO and the Swiss Federal Police for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
South Portland Man Sentenced to 3 Years for Ecstacy and Firearms OffensesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Isaac Allen, 23, of South Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 3 years in prison and 3 years of supervised release for possessing with intent to distribute ecstacy (3,4 methylenedioxymethamphetamine (MDMA)) and for illegally possessing firearms. Allen pled guilty to these offenses on March 17, 2016.
According to court records and evidence introduced at the plea hearing, Allen bought ecstasy from European suppliers, paid for it with “Bitcoin,” and had it shipped to the United States where he sold it to customers, one of whom was cooperating with federal investigators. Bitcoin is a digital currency that is not backed by any country’s central bank. On December 2, 2015, Allen’s residence was searched and agents seized, among other things, distributable quantities of ecstasy, a handgun and four loaded magazines. While the search was ongoing, Allen was arrested after being stopped in a vehicle a short distance from his residence. Agents seized a loaded handgun from the vehicle’s glove compartment.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the South Portland Police Department.
Smith County Man Sentenced for Drug ViolationsRead the Press Release
TYLER, Texas – A 23-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Maldonado Barragan was found guilty by a jury on Feb. 10, 2016, of conspiracy to possess with intent to distribute methamphetamine, aiding and abetting, possession with intent to distribute methamphetamine, possession of a firearm while illegally in the United States, and possession of a firearm during a drug trafficking crime. Barragan was sentenced to 248 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 13, 2016.
According to information presented in court, the Defendant supplied methamphetamine for several months in the spring of 2014. An eight-ounce seizure occurred in Palestine, Texas on Mar. 31, 2014 which was later tied to the Defendant. Additionally, a four-pound seizure occurred on May 12, 2014 in Tyler, Texas. The Defendant’s fingerprints were later found on the packaging. Barragan was indicted by a federal grand jury on Oct. 28, 2015.
Barragan was also ordered to forfeit $50,000 cash and a vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the Anderson County Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Ryan Locker.
Sex Offender Sentenced to 10-Year Prison TermRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on August 29, 2016, Michael E. Fisher was sentenced to 10 years in federal prison by Chief United States District Court Judge Christina Reiss.
In February and March, 2015, Fisher contacted several Burlington area middle school girls, aged 12-14, through Facebook. The girls reported the contacts to their parents and to the Burlington Police Department. Fisher was a registered sex offender at the time, based upon a prior Vermont felony conviction. In response, Vermont’s Internet Crimes Against Children Task Force (“ICAC”) initiated an investigation. ICAC official and South Burlington Police Sergeant Andrew Chaulk made undercover contact with Fisher on Facebook, posing as a 13-year-old middle school student. Over the course of three days, Fisher sent a multitude of Facebook messages to the purported student, pressing her to have sex with him. He urged her to meet him at Dorset Street Park in South Burlington at Noon on April 3, 3015, to have sex in a public restroom. Upon arrival at the park on April 3 at Noon, he was arrested by a U.S. Secret Service agent assisting in the investigation, and Sgt. Chaulk.
In March, 2016, Fisher was convicted after a jury trial in Burlington of attempting to persuade, induce, entice or coerce a minor to engage in illegal sex, using a facility of interstate commerce.
Under the U.S. Sentencing Guidelines, based upon the offense and his recidivism, Fisher’s imprisonment range was 151-188 months. The federal statute under which he was convicted provided for a mandatory minimum 10 years of imprisonment. At a sentencing hearing on August 29, Chief Judge Reiss imposed the 10-year term, to be followed by 10 years of supervised release.
Fisher has been in custody since his 2015 arrest. The United States Attorney thanked the Burlington Police Department, the South Burlington Police Department, ICAC, and the U.S. Secret Service for their work on the case. Fisher was represented by Federal Public Defender Michael Desautels. The United States was represented by Assistant U.S. Attorneys William Darrow and Kunal Pasricha.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Gerald Sentell, 45, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Sentell is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 35, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sentell, Mendiola and 14 co-defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
During today’s proceedings, Sentell pled guilty to conspiracy, possession of methamphetamine with intent to distribute and use of a communication device to facilitate a drug trafficking crime. In entering the guilty plea, Sentell admitted to conspiring with his co-defendants to distribute methamphetamine in Chaves County and using a communication device, a telephone, to further commission that crime from June 2015 through July 31, 2015. Sentell further admitted that on July 17, 2015, he possessed 58.5 grams of methamphetamine and distributed it to a co-defendant.
At sentencing, Sentell faces a statutory minimum penalty of ten years and a maximum of life in prison. Sentell remains in federal custody pending a sentencing hearing which has yet to be scheduled.
To date, six other defendants charged in the federal indictment have entered guilty pleas. The remaining defendants have entered not guilty pleas to the indictment. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Riverside ‘Prepper’ Who Stockpiled Arsenal near College Campus Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
LOS ANGELES – A Riverside man and self-proclaimed “Doomsday Prepper” who possessed an arsenal of weapons and thousands of rounds of ammunition has pleaded guilty in federal court to being a felon in possession of firearms and ammunition.
Hector Mariscal, 41, pleaded guilty Monday in United States District Court and admitted that he unlawfully possessed semi-automatic firearms, shotguns, rifles, a receiver for an AR-15 machine gun, and various types of ammunition. Mariscal also admitted in court that he was not legally allowed to possess these items because he previously sustained felony convictions for burglary – and being a felon in possession of a firearm.
According to court documents, law enforcement officers executed a federal search warrant at Mariscal’s residence near Riverside City College in June. During the search, law enforcement seized firearms, thousands of rounds of ammunition, tasers, silencers, body armor and a flare launcher.
According to an affidavit filed in the case, on the date of the search, Mariscal admitted that he was a convicted felon who illegally possessed multiple firearms and thousands of rounds of ammunition. Mariscal repeatedly described himself as a “Doomsday Prepper,” who in connection with his preparation also collected knives and other dangerous items, including a flare launcher. According to the affidavit, Mariscal told investigators that he regularly goes to the swap meet to obtain firearms and other dangerous weapons, stating, “You’d be surprised what you can find at a swap meet.”
“This defendant’s continued affinity for guns has earned him a second felony conviction, this time for illegally possessing firearms,” said United States Attorney Eileen M. Decker. “The defendant flagrantly violated laws designed to protect the public by keeping firearms away from convicted felons, and now he faces a substantial period of time in a federal prison.”
The case against Mariscal is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Mr. Mariscal previously admitted to a felony conviction for the same conduct,” said ATF Special Agent in Charge Eric D. Harden. “ATF works with our partner agencies to identify and prosecute those that choose to repeatedly circumvent regulations designed to protect our communities from gun violence.”
Mariscal pleaded guilty before United States District Judge Manuel Real, who is scheduled to sentence the defendant on November 21. At the time of sentencing, Mariscal faces a statutory maximum sentence of 10 years in federal prison.
The Riverside Police Department and the Los Angeles Police Department provided substantial assistance in the investigation.
This case is being prosecuted by Assistant United States Attorney Reema El-Amamy.
Repeat Federal Offender Sentenced for Decade Long Embezzlement Scheme that Netted over $1.3 Million DollarsRead the Press Release
BOSTON – A former officer of a Woburn company was sentenced today in U.S. District Court in Boston for embezzling over $1.3 million dollars from her employer over a ten-year period.
Dawnmarie Prince, 47, of Fitchburg, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution of $1,381,664. In June 2016, Prince pleaded guilty to eight counts of bank fraud and one count of aggravated identity theft.
Between 2000 and 2015, Prince worked as an office manager of a small, life science technology firm. As office manager, Prince had access to the firm’s electronic accounting program, which the company relied on to track purchase orders and vendor invoices, as well as to print company checks. From at least 2005 to May 2015, Prince used her position as office manager to create and steal hundreds of the company’s checks, which she made payable to herself or to her son. Prince then forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts.
To conceal her criminal conduct and avoid detection, Prince intercepted bank statements and removed all copies of the negotiated checks. She also falsified entries into the accounting program to make it appear as if the checks had been used to satisfy legitimate vendors payments, when in fact, no such invoices were due and Prince had deposited the checks into her personal bank accounts. Over the course of the fraud, Prince embezzled over $1.3 million dollars, which she used to fund trips to casinos, annual vacations, car purchases, and other personal and entertainment expenses such as trips to car shows across the country.
In 2001, Prince was convicted in federal court in Boston of mail fraud for defrauding a previous employer and sentenced to three years of probation and ordered to pay restitution. Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan. Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan. As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account. Prince’s recent fraud came to light after Prince provided false and incomplete financial information to the U.S. Attorney’s Office’s Financial Litigation Unit, which was responsible for collecting the outstanding restitution payments on the 2001 case.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. The case was prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Economic Crimes Unit.
Providence Felon Sentenced on Drug, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 40, of Providence, was sentenced today to 72 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Duopu to serve 4 years supervised release upon completion of his prison term. Duopu pleaded guilty on June 24, 2016, to one count of possession with the intent to distribute 28 grams or more of crack cocaine, one count of distribution of 28 grams or more of crack cocaine, three counts of distribution of crack cocaine, and one count of being a felon in possession of a firearm.
According to court records and information presented to the court, in October and November 2015, an ATF Task Force investigation of Duopu’s drug trafficking activities included at least four purchases of crack cocaine by an ATF undercover Task Force agent. The purchases ranged in amounts of between 8 and 52 grams, for between $375 and $3,200.
On November 12, 2015, Duopu was arrested by ATF Task Force agents as he left his Providence residence to meet with an undercover agent for a previously arranged delivery of crack cocaine. Agents seized nearly 54 grams of crack cocaine and $538 in cash from Duopu. A court authorized search of Duopu’s residence which immediately followed his arrest resulted in the seizure of more than 67 grams of crack cocaine, nearly $20,300 dollars in cash and a loaded semi-automatic firearm.
During the course of the investigation, law enforcement seized from Duopu more than 200 grams of crack cocaine and nearly $21,000 in cash.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
The Pawtucket Police Department and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force is comprised of agents and officers from ATF; the Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
DAYTON – Chase A. Crump, 27, of Dayton, was sentenced in U.S. District Court to 48 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, who are all members of the Community Initiative to Reduce Gun Violence (CIRGV) announced the sentence handed down September 13 by U.S. District Judge Walter H. Rice.
According to court documents, Dayton Police officers approached Crump as he was sitting in a parked car at 1819 West Third Street on March 2, 2016. The officers saw Crump holding a plastic bag containing illegal drugs. One of the officers saw a pistol protruding from between the driver’s seat and the middle console and told Crump he was under arrest. Crump fought with the officers, who subdued and arrested him. Officers seized a 9mm handgun, 53 grams of a heroin/fentanyl mixture, five grams of cocaine, a scale, multiple cell phones and cash.
Crump’s criminal history includes prior felony convictions in Montgomery County Common Pleas court for trafficking in heroin, possession of heroin, and possession of cocaine. Crump was released from prison just a month before this offense.
Crump has been in custody since his arrest. He pleaded guilty on June 9, 2016 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.
Acting U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Peabody Man Sentenced to Prison on Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man was sentenced today in U.S. District Court in Boston for receipt and possession of child pornography.
Patrick Lynch, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and 10 years of supervised release. Upon release, Lynch must register as a sex offender. In June 2016, Lynch pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Beginning in May 2013, Lynch began receiving emails containing images and videos of children as young as one-year-old being sexually exploited. On Dec. 12, 2014, during the execution of a search warrant at his residence, Lynch admitted to law enforcement officers that he received emails containing pictures of elementary school-aged children naked, posing, and engaging in sexual acts. He admitted to viewing images of child pornography on a website and to viewing child pornography on his laptop while at a Boy Scout camp in New Mexico. Lynch also communicated online with children and exchanged sexually explicit images. Prior to law enforcement executing the search warrant, Lynch deleted the application and cleared his phone’s Internet history.
A further investigation revealed that Lynch had been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case was prosecuted by Assistant U.S. Attorney Suzanne Jacobus of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Panama City Man Charged with Committing Federal Child Pornography CrimesRead the Press Release
PANAMA CITY, FLORIDA – David Michael Hobby Rossner, 35, of Panama City, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment charging him with production, receipt, distribution, and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, in December 2015, Rossner persuaded a minor to engage in sexually explicit conduct for the purpose of producing child pornography. The indictment further alleges that, during various dates in 2015 and 2016, Rossner received, distributed, and possessed child pornography. The trial is scheduled for November 21, 2016, at 8:15 a.m.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Bay County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Christopher J. Thielemann.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
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]Owner of Illinois Home Health Company Admits Paying Illegal Kickbacks to 20 Medical Directors for Referrals of Medicare PatientsRead the Press Release
CHICAGO — The owner of a home health care company headquartered in Lemont admitted in federal court today that he paid illegal kickbacks to procure referrals of elderly patients on Medicare.
ROMY MACASAET JR. paid kickbacks to medical directors to obtain referrals of Medicare beneficiaries to his company, Home Bound Healthcare Inc., which was one of the largest home health care and hospice companies in Illinois. Macasaet acknowledged in a plea agreement that he retained and paid Medical Directors a monthly fee solely for the purpose of obtaining patient referrals, and not for medical services. Macasaet also acknowledged that he used Medical Director agreements as a way to conceal the payment of kickbacks.
Between approximately December 2006 and September 2014, Macasaet paid $789,327 in bribe payments to approximately 20 medical directors, according to the plea agreement. As a result of the payments, Home Bound improperly sought and received Medicare reimbursements totaling several million dollars.
Macasaet, 47, of Homewood, pleaded guilty to one count of violating the Anti-Kickback Statute. The conviction is punishable by up to five years in prison. U.S. District Judge Samuel Der-Yeghiayan set sentencing for Feb. 15, 2017, at 10:30 a.m.
Macasaet and Home Bound also agreed to pay the United States $6.8 million to resolve civil false claim and anti-kickback allegations, per the terms of a settlement agreement announced today. The agreement settles claims that Home Bound and its subsidiaries violated the federal False Claims Act and Anti-Kickback Statute by obtaining referrals through illegal kickbacks that served as financial inducements for false certifications of eligibility for home health services, and by improperly submitting those false claims to Medicare for reimbursement.
As part of the civil settlement, Macasaet agreed to immediately resign his employment with Home Bound and refrain from seeking future employment with the company. Macasaet further agreed to divest his ownership interest in Home Bound within 120 days of formal entry of the agreement. The settlement was reached by the Justice Department on behalf of the Office of the Inspector General of the U.S. Department of Health and Human Services.
Contemporaneous to the settlement agreement, Home Bound and the HHS Inspector General’s Office entered into a corporate integrity agreement to promote compliance with the directives of Medicare, Medicaid and other federal health care programs. As part of the integrity agreement, Home Bound must establish a compliance program to develop and implement policies, procedures and practices designed to ensure compliance with the requirements of federal health care programs.
The plea agreement and civil settlement were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Substantial investigative assistance was provided by the U.S. Department of Labor Office of Inspector General, and the Chicago Field Office of the U.S. Department of State Diplomatic Security Service.
The government is represented in the criminal case by Assistant U.S. Attorney Sunil Harjani, and in the civil case by Assistant U.S. Attorney David R. Lidow.
Plea Agreement
Osceola Man Found Guilty of Meth Distribution Following First Trial in Operation Blynd JustusRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Shepard, Assistant Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a federal jury found James Edward Watson, Jr., 30, of Osceola, guilty of distribution of methamphetamine following a two-day trial. Due to the nature of the charge and his past criminal history, Watson will serve a minimum of 10 years in federal prison.
Following approximately 20 minutes of deliberation the jury returned its verdict to Chief United States District Judge Brian Miller on Tuesday, September 13. Judge Miller will sentence Watson at a later date.
Watson was the first defendant indicted in Operation Blynd Justus to go to federal trial. On August 11, 2015, Watson and 69 other defendants were arrested in a wide-sweeping roundup in Northeast Arkansas as part of a major operation aimed at curbing drug trafficking and gun violence in Blytheville and Mississippi County. Blynd Justus targeted violent and repeat drug and gun offenders and resulted in 40 separate federal indictments. Following the initial roundup, four additional defendants have been indicted on drug charges in the overall case, and federal law enforcement remains active in the area.
"A coordinated effort from multiple law enforcement agencies successfully removed dozens of violent and dangerous drug dealers from the streets of Mississippi County 13 months ago, but the work of protecting these communities continues," Thyer said. "Mr. Watson was a repeat offender who had committed violent acts in the past. Just as the other defendants arrested in Blynd Justus will learn, Mr. Watson now knows that his criminal actions only led to prison time."
"Our resolve has not faltered in our efforts to disrupt violent gang activity and dismantle illegal sales of firearms and drugs in our state," Assistant Special Agent in Charge Shepard said. "We are determined to fight for our community and work hand-in-hand with federal, state and local agencies to achieve this goal."
Watson is a convicted felon who on August 29, 2014, sold three ounces of methamphetamine (approximately 84 grams) to a confidential informant for $3,000. Watson met the informant in Blytheville to purchase and then sell the methamphetamine. Additionally, as detailed in the trial, Watson sold the informant four ounces of counterfeit methamphetamine in a separate transaction in September 2014. The jury found that Watson sold more than 5 grams of actual methamphetamine in the August 29th transaction.
The statutory penalty for distribution of more than 5 grams of actual methamphetamine, a violation of 21 U.S.C. § 841(b)(1)(B), with an enhancement for being previously convicted of a drug felony, is not less than 10 years and not more than life, not more than an $8 million fine, or both, and not less than 8 years of supervised release. Watson’s actual sentence will be determined at a later date.
While Watson is the first defendant indicted in the Blynd Justus operation to go to trial, he is not the first defendant to be convicted. To date, 25 defendants have pleaded guilty. Eight have been sentenced—all to prison time (including James Walton–120 months, Markese Durden–120 months, John Franklin–87 months, Darius Goodman–87 months, Juan Pineda–60 months, Dexter Anderson–48 months, Jarvis Reed–30 months, and Harmanjeet Khatrao–5 months). The others who pleaded guilty are awaiting sentencing. Another three defendants (Derrick Palmore, Andrew Armstrong, and Vincent Talley) are scheduled to change their pleas to guilty on September 16, 2016. The remaining defendants have trials scheduled.
Northeast Arkansas saw an immediate impact as a result of Blynd Justus. According to Blytheville Police Chief Ross Thompson, violent crime went down in six key areas charted by law enforcement. In the six months following the August 2015 takedown Blytheville saw incidents of aggravated assault, robbery, larceny, motor vehicle theft, rape, and murder all decrease as compared to the six months prior, in some cases dramatically. There were seven homicides in Blytheville in the six months prior to Blynd Justus. Following the takedown, there were zero murders in the next seven months.
"The goal of Blynd Justus was to help an ailing community combat drugs and violence, remove dangerous people from the streets, and help the great citizens of Northeast Arkansas sleep a little easier at night," Thyer said. "While we will never eradicate all crime, Blynd Justus serves as a continuing reminder to criminals that you will spend time in prison if you choose to poison and terrorize these communities."
Assistant United States Attorney Benecia Moore prosecuted the case against Watson. The overall Blynd Justus investigation was conducted by the FBI, in partnership with the 2nd Judicial District Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys.
Operators of Atlanta Stores Sentenced for Stealing Millions of Dollars in an Extensive Food Stamp Fraud SchemeRead the Press Release
ATLANTA – Local grocery store operators Rodney Byrd and Reginald Byrd have been sentenced for conspiring to commit food stamp fraud. The defendants utilized a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants brazenly stole millions of dollars from government programs designed to help the poor and needy,” said U. S. Attorney John Horn. “Their sentences show that people who line their pockets with money from government programs will go to prison.”
“The prosecution of these individuals sends a strong message that we will not tolerate fraudulent abuse of our federally funded Food and Nutrition Service programs. Rodney Byrd and his brother, Reginald Byrd, created and managed businesses for the sole purpose of profiting financially from the benefits of families that needed assistance from the Supplemental Nutrition Assistance Program (SNAP) as well as the Georgia Women, Infants, and Children (WIC) program. We will continue to maintain our aggressive approach to investigate those that are trying to fraudulently take advantage of such programs. We would like to thank the U.S. Attorney’s Office, the Internal Revenue Service, the Georgia Department of Public Health as well as the Georgia Department of Human Services, Office of Inspector General for assisting us with this investigation,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
“Americans expect and deserve a government that ensures their tax dollars are managed efficiently and with integrity”, said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The SNAP and WIC programs cannot succeed without strong public confidence, so good stewardship of tax dollars is one of our most important objectives. Today’s sentencing of Rodney and Reginald Byrd is critical to preserving benefits for the vast majority of participants who play by the rules and need help to ensure their families have access to adequate and nutritious food.”
According to U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated several metropolitan Atlanta area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. This scheme resulted in an estimated loss to the government of $5,747,817.18.
U.S. District Judge Leigh Martin May sentenced Rodney Byrd, 41, of Atlanta, Georgia to four years in prison and Reginald Byrd, 40 of Atlanta, Georgia to one year and one day in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $5,747,817.18. The defendants were convicted of conspiracy to commit WIC and SNAP fraud on July 17, 2015, when they pled guilty to these charges.
This case was investigated by the United States Department of Agriculture, Office of the Inspector General and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
North Carolina Tax Return Preparer Sentenced to PrisonRead the Press Release
A Durham, North Carolina, tax return preparer was sentenced today to 12 months and one day in prison for aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to documents filed with the court, Reyna Nembiu Montes, operated “Su Manu Amiga,” a tax return preparation business in Durham. Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds. She further admitted that she failed to disclose the existence of her tax return preparation business on her personal income tax returns.
Montes pleaded guilty on June 26. In addition to serving her prison sentence, Montes was ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).
Principal Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON – A Durham, North Carolina, tax return preparer was sentenced today to 12 months and one day in prison for aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to documents filed with the court, Reyna Nembiu Montes, operated “Su Manu Amiga,” a tax return preparation business in Durham. Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds. She further admitted that she failed to disclose the existence of her tax return preparation business on her personal income tax returns.
Montes pleaded guilty on June 26. In addition to serving her prison sentence, Montes was ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).
Principal Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New Hampshire Man Sentenced to 15 Years for Armed Bank RobberiesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joseph Richards, 47, of Manchester, New Hampshire, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 15 years in prison and five years of supervised release for armed bank robbery. The charges arose from the August 3, 2015 armed bank robbery of Norway Savings Bank (NSB) in Freeport, Maine; the August 14, 2015 armed bank robbery of Franklin Savings Bank (FSB) in Franklin, New Hampshire; the September 4, 2015 armed bank robbery of University Credit Union (UCU) in Portland; and the September 12, 2015 armed bank robbery of TD Bank (TDB) in Lewiston, Maine.
According to court records, the defendant used a pellet gun in each robbery and absconded with $5,854 from NSB, $13,240 from FSB, $12,308 from UCU and $9,888 from TDB. At the time of the robberies, the defendant was on federal supervised release for a 2003 federal bank robbery conviction in New Hampshire, for which he received a 12½ year sentence.
On July 28, 2016, one of Richards’ co-conspirators, Neil West, Sr., of Portland, Maine, was found guilty following a jury trial in U.S. District Court of armed bank robbery and conspiracy to commit bank robbery arising out of the UCU and TDB robberies. West served as the getaway driver for both robberies. The TD Bank robbery resulted in a high-speed chase which culminated in Saco. Following the chase, West and Richards were arrested.
Before imposing sentence, Chief Judge Torresen stated the seriousness of these offenses is impossible to overstate. People’s lives were put at risk. The emotional harm that the tellers suffered will last a lifetime.
The joint investigation was conducted by the Franklin (New Hampshire), Manchester (New Hampshire), Freeport, Portland, Lewiston, Old Orchard Beach and Saco (Maine) Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments.
Nebraska Man Sentenced to 35 Years in Prison for Being Part of a Child Exploitation EnterpriseRead the Press Release
A Fairbury, Nebraska man was sentenced today to 35 years’ in federal prison for his participation in a child exploitation enterprise, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Sentenced was Brandon L. Hennerberg, age 31. Hennerberg was sentenced by U.S. District Court Judge Richard G. Kopf in Lincoln, Nebraska. He was originally charged, along with five co-defendants, in the Eastern District of Michigan in a 28-count indictment with the crimes of child exploitation enterprise, numerous counts of conspiracy to produce child pornography, conspiracy to receive and access with intent to view child pornography, and aiding and abetting online enticement. Hennerberg pleaded guilty to one count of child exploitation enterprise, carrying a 20-year mandatory minimum sentence, on June 21, 2016.
The investigation determined that from at least January of 2014 to February of 2016, Hennerberg was a member of a group of individuals that worked together online to entice minor females to produce child pornography. The group members created fraudulent social media accounts posing as teenagers. Using the assumed identities, group members searched social media websites and engaged minor females, specifically targeting 10 to 14 year-old girls, in conversation using internet chat and video applications. The group members worked together for hours and sometimes even days to deceive their victims and convince them to undress and engage in sexually explicit activity live on webcamera, which the group members recorded.
The group members used an elaborate scheme to entice, coerce, and deceive their victims. Each group member had at least one role, although at times a group member would play more than one role or switch from one role to another. The “hunters” visited social media websites commonly used by minors to locate minors and bring them back to the other group members. The “talkers” were primarily responsible for conversing with the minors. They asked the minors to do “dares” which escalated into sexual activity. If a victim was suspicious of the group members or reluctant to engage in sexual activity, the “loopers” would then play a previously recorded video of a minor engaged in sexual activity, pretending to be that minor, in order to convince the victim to engage in the same type of activity. Meanwhile, the “watchers” in the group were in charge of ensuring that no suspected law enforcement members or unwanted persons were present.
The group victimized at least 100 minor girls, most of whom have yet to be identified. If you have any information to help identify victims of this online conspiracy, fill out the FBI’s confidential survey at fbi.gov/sextortion or contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com. A confidential email can also be sent to [email protected]. Or call 1-800-CALL-FBI FREE (225-5324).
Co-defendants Virgil Napier, Jr. and John Garrison entered guilty pleas in June and July respectively and are currently scheduled to be sentenced in October by U.S. District Court Judge Judith E. Levy in Ann Arbor, Michigan. Co-defendants Justin Fuller, Thomas Dougherty and Dantly Nicart cases are at various stages in the proceedings.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and prosecuted by Assistant U.S. Attorneys April Russo and Sara Woodward.
Monroe County, Kentucky, Physician Guilty of Prescribing Pain Medications Outside the Course of Professional Medical PracticeRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician pleaded guilty today, in U.S. District Court, before Magistrate Judge H. Brent Brennenstuhl, with prescribing pain medications outside the course of professional medical practice, during a more than six year period, to five patients announced United States Attorney John E. Kuhn, Jr.
Clella Louise Hayes, whose medical practice is located in Tompkinsville, Kentucky, pleaded guilty to five counts of a grand jury indictment charging her with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice. Hayes, age 41, of Glasgow, Kentucky, pleaded guilty to authorizing prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone and Klonopin. According to the plea agreement, the illegal activities occurred between March 2008 through March 2014 and included five patients.
Specifically, between June 2009 and September 2011, Hayes intentionally dispensed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, and Demerol. During the same time period, Hayes failed to establish a legitimate diagnosis of A.R.’s (the patient) pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion. On September 19, 2011, Dr. Hayes prescribed fentanyl to A.R. On September 23, 2011, at age 55, A.R. died as a result of a fentanyl overdose, with post-mortem toxicology reports reflecting fentanyl at five times the therapeutic range in A.R.’s blood.
In a similar instance, Between November 2011 and November 2012, A.H. was Dr. Hayes’s patient. During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II controlled substances to A.H. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and Demerol.
Dr. Hayes failed to establish a legitimate diagnosis of A.H.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On November 27, 2012, A.H. died at age 48 as a result of a poly-pharmacy overdose, with post-mortem toxicology reports reflecting high blood concentrations of medications Dr. Hayes prescribed to A.H., including Oxycodone and Klonopin.
Further, Between June 2010 and January 2014, K.S. was Dr. Hayes’s patient. During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II and Schedule III controlled substances to K.S. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and hydrocodone.
Dr. Hayes failed to establish a legitimate diagnosis of K.S.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On January 1, 2014, K.S. died at age 53 as a result of a poly-pharmacy overdose, with post-mortem toxicology results reflecting oxycodone, and hydrocodone at ten (10) times the therapeutic dose, both of which Dr. Hayes prescribed to K.S in December 2013.
Sentencing is scheduled before Senior Judge Thomas B. Russell, in Bowling Green on January 18, 2017.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
Medina man indicted for stealing $275,000 from employer, using money to pay for vehicles, country club membershipRead the Press Release
A Medina man was named in a 22-count indictment, charged with stealing approximately $275,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.
Brian K. Stepp, 50, was charged with multiple counts of conspiracy to commit wire fraud, wire fraud, making false statements and other charges. Rachel M. Penn, 41, of Wellington, was also indicted on charges of conspiracy to commit wire fraud and wire fraud.
“These defendants used this company’s coffers like their own personal bank, stealing from their employer to provide for a lavish lifestyle,” U.S. Attorney Carole S. Rendon said.
“These two conspired in a variety of fraudulent financial schemes to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out financial fraudsters and hold them accountable for their criminal actions.”
Stepp and Penn worked together at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.
Stepp joined the company as vice president and eventually was promoted to acting president, although the company owner retained ultimate decision-making authority. Penn worked in the company’s accounting department. Her duties included reviewing expense claims submitted by employees and issuing reimbursement checks, according to the indictment.
Stepp and Penn conspired together between February 2014 and May 2015 to defraud Variety Contractors.
Stepp incorporated S&S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&S and other vendors to Variety Contractors of goods and services that were not provided. Stepp and Penn caused Variety Contractors to make payments on those fraudulent invoices, according to the indictment.
For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, Penn issued a check in the same amount made payable to Ganley, which Penn knew that Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to the indictment.
Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to the indictment.
The loss to Variety Contractors was approximately $275,000, according to the indictment.
Stepp also made numerous false statements in attempting to get several loans, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Marijuana Cultivator Pleads Guilty to Environmental Damage Caused by Marijuana Grown in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Juan Carlos Martinez-Tinoco (Martinez), 42, of Mexico, pleaded guilty today to committing a depredation against public land and natural resources in the vicinity of The Needles, a series of massive granite rock formations in the Sequoia National Forest in Tulare County, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 1, 2015, and August 4, 2015, Martinez was involved in a marijuana cultivation operation consisting of approximately 2,608 marijuana plants in the Needles area of the Sequoia National Park. The operation caused extensive damage to public land and natural resources. Agents observed evidence of the use of harmful poisons, including 50-pound bags of high-nitrogen fertilizer. They also noted that many native plants and trees had been cut to make room for the marijuana plants. Large piles of trash were stuffed under boulders and buried along a stream. Water was diverted from a spring that supports wildlife. The water source for the grow site drains into the Upper Kern River, which contains the Kern River Rainbow Trout, a localized species of rainbow trout that has been designated in the state of California as a “Species of Special Concern.” Martinez has also agreed to pay $4,286 in restitution to the U.S. Forest Service to clean up the damaged area.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, the Tulare County Sheriff’s Office, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Martinez, who is detained, is scheduled for sentencing on December 5, 2016. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Admits Defrauding VA with False Claim That He Served in Viet NamRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David Vincent Borry, age 58, pleaded guilty yesterday before U.S. District Court Judge J. Garvan Murtha in Brattleboro to knowingly defrauding a health care plan administered by the U.S. Department of Veterans Affairs.
A Grand Jury Indictment filed on February 11, 2016, alleged that Borry obtained medical services from the Veterans Administration Medical Center in White River Junction, Vermont, by falsely claiming to be a veteran of the United States Army. In Court yesterday before Judge Murtha, Borry admitted claiming to be an Army veteran who served in the Vietnam War in order to obtain veterans benefits. Judge Murtha ordered a presentence investigation and scheduled sentencing for January 17, 2017. Borry is at liberty subject to pretrial release conditions.
The case was investigated by the Veterans Administration Office of the Inspector General, Criminal Investigation Division, and the Veterans Administration police in White River Junction. Borry is represented by Federal Public Defender Michael Desautels. The United States is represented by Assistant U.S. Attorney William Darrow.
Lincoln Man Sentenced for Being a User/Addict in Possession of a FirearmRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on September 14, 2016, Domonique A. Camacho, 23, of Lincoln, was sentenced to 15 months in prison for possessing firearms while being a user of and/or addicted to marijuana between December 26, 2015, and January 9, 2016. The charge arose from an investigation into photos posted to Facebook showing Camacho holding two handguns and an SKS rifle. Camacho was contacted by Lincoln Police officers. He said the guns belonged to friends, and he admitted holding the guns shown in the Facebook photos at a friend’s residence. Camacho also admitted he was a daily user of marijuana.
Camacho was arrested on the federal charge on February 22, 2016, and has been detained since that time. Following the completion of his prison term, Camacho will serve two years on supervised release.
This case was investigated by the Lincoln Police Department.
Justice Department’s Office of Justice Programs Awards Nearly $6 Million to Project Safe Neighborhoods ProgramRead the Press Release
The Office of Justice Programs’ Bureau of Justice Assistance today awarded grants totaling $5.7 million to create safer neighborhoods through a sustained reduction in gang violence and gun crime. The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program. The goal of PSN is to create safer neighborhoods through a sustained reduction in gang violence and gun crime.
The program's effectiveness is based on a cooperative approach and unified strategies led by the local U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners. The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.
"Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities," said Attorney General Loretta E. Lynch. "These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope."
“Although crime rates remain at historically low levels nationally, some communities – and particularly, certain segments of those communities – continue to struggle with gun crimes and gang violence,” said Assistant Attorney General Karol V. Mason. “The funding provided through Project Safe Neighborhoods gives these jurisdictions the resources they need to improve outreach and education, prosecute gun and gang cases, and restore peace to their streets and homes.”
This year’s recipients of approximately $500,000 each include Black Family Development, Inc. of Michigan; the California Governor’s Office of Emergency Services; the Denver Police Department; City of Brookhaven, Georgia; the Governor’s Office of Crime Control Prevention in Maryland; the Ohio Office of Criminal Justice Services; and Texas’ Safe City Commission. Awards of approximately $300,000 went to the City of Greensboro, North Carolina; The Justice Education Center, Inc. of Connecticut; the Wisconsin Department of Justice; City of Columbia, South Carolina; and the Indiana Criminal Justice Institute (two awards). The City of Memphis, Tennessee, the City of Omaha, Nebraska and Louisiana State University each received awards of $150,000.
Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Joplin Man Sentenced for Distributing Child Porn over the InternetRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for distributing and possessing child pornography.
James Allen Crippen, 45, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole.
On Sept. 23, 2015, Crippen pleaded guilty to distributing child pornography over the Internet and to possessing child pornography.
On Sept. 24, 2014, members of the Southwest Missouri Cyber Crime Task Force received two Cyber Tips from the National Center for Missing and Exploited Children, which reported that Crippen had uploaded two images of child pornography to his Tumblr account.
Law enforcement officers executed a search warrant at Crippen’s residence and conducted a forensic analysis on the items seized. Investigators discovered 61 child pornography graphics and a multimedia file containing child pornography on Crippen’s desktop computers. Investigators also found child pornography on Crippen’s iPhone.
Crippen forfeited to the government two desktop computers, an iPhone, two cell phones, 42 optical media disks and other electronic media storage devices that were used to commit the offense.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cybercrimes Task Force, the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ivory Coast Diplomat Convicted of Conspiracy and FraudRead the Press Release
ALEXANDRIA, Va. – Koissy Thomas Kemmeth, 52, of New York, New York, pleaded guilty today to conspiracy to commit wire fraud and making a false, fictitious and fraudulent claim against the United States.
According to court documents, Kemmeth was a native and citizen of the Ivory Coast who had worked as a driver for the Ivory Coast Mission to the United States. From 2010 through February 2015, Kemmeth worked with another national of the Ivory Coast, Kouame Tanoh, to defraud others of money and property. As part of the conspiracy, Kemmeth created false and fraudulent employment verification letters for Tanoh, and his aliases, on the official letterhead of the Ivory Coast Mission to the United Nations and claimed to have been issued in line with the official authority of the Mission. These letters falsely represented that Tanoh, or one of his aliases, was employed by the Mission. At least one of these letters alleged to have been from another diplomat who had previously served at the Mission, but had returned to the Ivory Coast by the date of the letter.
During that same time period, Kemmeth assisted Tanoh with a scheme that involved the preparation and electronic filing of false and fictitious federal and state income tax returns that requested fraudulent refunds. Some of these false claims were filed on behalf of Kemmeth, who knew he was not supposed to be filing any federal or state tax returns because he was in the United States as a foreign diplomat. Kemmeth assisted with the scheme by providing his bank account information to Tanoh so that fraudulent refunds could be deposited into Kemmeth’s account. Tanoh also used the mailing address for the Ivory Coast Mission to the United States on some of the income tax returns. Kemmeth would then collect any mail sent to the Mission for these returns.
Kemmeth was indicted by a federal grand jury on May 26. Kemmeth faces a maximum penalty of 20 years in prison when sentenced on December 2. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Inspector in Charge Terrence P. McKeown, US Postal Inspection Service, Washington Division.; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-129.
Inland Empire Woman Arrested on Federal Charges of Helping Her Husband Flee United States While He Was Pending SentencingRead the Press Release
RIVERSIDE, California – A Moreno Valley woman was arrested this morning on federal charges after she allegedly helped her husband flee the United States after he had pleaded guilty in a federal criminal case.
Elba Soto, 36, was arrested without incident this morning by the U.S. Marshals Service. Soto made her initial appearance this afternoon in United States District Court in Riverside, where she was ordered detained (held without bond). An arraignment in the case was scheduled for October 19.
Soto was arrested pursuant to a criminal complaint that charges her with being an accessory after the fact for allegedly driving her husband to Mexico so he could avoid being sentenced after pleading guilty to illegal reentry after deportation.
Soto’s husband, Jose Guadalupe Vega-Zuniga, pleaded guilty on August 3 and remains scheduled to be sentenced on October 17. Vega-Zuniga admitted that he was in the United States without authorization after being deported to his native Mexico on four occasions between 2000 and 2008. When he pleaded guilty before United States District Judge Michael W. Fitzgerald in Los Angeles, Vega-Zuniga admitted that he previously had been convicted of drug trafficking and assault with a deadly weapon in state court, as well as being found guilty in 2000 of a felony offense of illegally being in the United States. At the time of his guilty plea, Vega-Zuniga was free on a $100,000 unsecured bond and was subject to electronic location monitoring.
According to the criminal complaint filed against Soto, Vega-Zuniga removed his location monitoring bracelet about four days after pleading guilty. On August 8, a person resembling Soto went to the court’s Pretrial Services Office and returned the electronic monitoring bracelet, explaining that Vega-Zuniga had removed the device and she did not know his whereabouts.
An investigation by the U.S. Marshals Service revealed that Soto’s vehicle entered Mexico through the Otay Mesa port of entry on August 18. Photographs taken during the crossing show Soto in the driver’s seat of the vehicle, with Vega-Zuniga in the passenger seat.
“The evidence in this case indicates the defendant knowingly transported her husband to Mexico while he was pending sentencing in the latest of his criminal cases,” said United States Attorney Eileen M. Decker. “If these allegations are proven, the defendant knowingly assisted a convicted felon avoid justice. As a result, the defendant now faces her own criminal case and a significant prison term.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If she is found guilty of being an accessory after the fact by helping Vega-Zuniga flee the United States, Soto would face half of the maximum prison sentence that Vega-Zuniga faces as a result of his guilty plea. Vega-Zuniga faces a statutory maximum sentence of 20 years in prison, so therefore Soto would face a sentence of up to 10 years in prison.
The case against Soto is being prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Independence Man Sentenced to 30 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who sexually assaulted five children over a period of several years was sentenced in federal court today for producing child pornography.
Kenneth R. Davis, 36, of Independence, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole. The court also sentenced Davis to spend the rest of his life on supervised release following incarceration.
Davis and co-defendant Randy Mull, 38, both of Independence, each pleaded guilty on April 6, 2016, to aiding and abetting one another to produce child pornography. They admitted to taking a series of pornographic photos of a 14-year-old child victim (identified as “John Doe #2) in their bedroom on July 15, 2010.
Mull was sentenced on Aug. 23, 2016, to 30 years in federal prison without parole followed by a lifetime of supervised release after incarceration.
According to court documents, two victims (a brother and sister, identified as Victim #1 and Victim #2) reported to the Independence Police Department on Sept. 15, 2014, that they had been sexually assaulted by Mull and Davis over a four-year period. Victim #1 told investigators that he was molested an amount of times described as in “double” or “triple” digits. During the sex acts with Victim #1, which began when he was 14 years old, photographs were taken by Davis and Mull.
Investigators found images of child pornography on Davis’s computer, including pornographic images of additional child victims apparently taken over a period of several years. In all, five children were identified as victims of the sexual assaults and child pornography production. In some instances, the minors were allowed to stay overnight in the care of Davis and Mull at their residence with the permission of the victims’ parents.
A forensic examination of Davis’s computer uncovered 104 videos and 944 images of child pornography, including images of a 10-to-14-month-old female and a 3-year-old female being raped by adult males.
Davis must pay $5,000 in restitution to each of five separate victims whose images of child sexual abuse he received or possessed; or $3,000 to each victim if he can pay restitution within 30 days of the sentencing date.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Independence, Mo., Police Department and the Kansas City, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former president of Steelworkers Union Local 5000 charged with stealing hundreds of thousands of dollars from labor unionRead the Press Release
A 29-count federal indictment was unsealed charging the former president of the Steelworkers Local 5000 with stealing hundreds of thousands of dollars from the labor union.
David R. Sager, 58, of Gibsonburg, was indicted on nine counts of embezzlement or theft from a labor union, 18 counts of mail fraud, one count of obstruction of justice and one count of making false statements to law enforcement.
“This defendant betrayed the union membership he promised to represent,” said U.S. Attorney Carole S. Rendon.
Local 5000 is based in Middelburg Heights and a subordinate organization of the United Steelworkers union. It represented approximately 100 employees working for private companies in and around the Great Lakes. Sager served as president from 1999 through April 2016, according to the indictment.
Local 5000 went on strike in 2009 after failing to reach a contract agreement with a company identified in the indictment as Company 2. The company proposed eliminating the position of contract coordinator, which Sager held. The union membership did not vote on the strike. Local 5000 took steps to establish a Strike Fund – designed to provide financial relief to striking members, based on their need – with Sager and two other union officials as the signatories on the bank account, according to the indictment.
In order to claim Strike Fund benefits, members had to submit a voucher and a copy of a bill. That voucher was then reviewed by a committee on which Sager served. Once approved, the voucher and documentation was forwarded to the Strike Fund signatories for approval. If approved, a union official identified in the indictment as Labor Official 2 issued checks as payment on the vouchers, according to the indictment.
Sager submitted more than $185,000 in vouchers to receive Strike Fund benefits for his family’s expenses between 2010 and 2012. He and his wife had nearly $160,000 in income during the same time period. While collecting Strike Fund benefits, Sager made and caused to be made numerous retail purchases of non-necessity items, such as dining out at several restaurants and the purchase of Carrie Underwood concert tickets, according to the indictment.
The strike ended in 2012. A year later, Company 2 reinstated Sager as a wheelsman and assigned him to work aboard a vessel. He received personal leave and then did not return to work on the vessel. Company 2 terminated his employment, according to the indictment.
On May 16, 2013, an employee of Company 5 wrote an email to some employees which noted, “We are on the verge of losing Local 5000 if we can’t come up with an arrangement an I am afraid (another union) will pick up the pieces and become the sole course of crew manpower on the lakes,” according to the union.
On July 11, 2013, Companies 4 and 5 and Local 5000 signed a joint employment trust agreement, which they renewed a year later. Company 3 refused to participate in the agreement and told Sager and others that it violated the Taft-Hartley Act, according to the indictment.
On May 28, 2014, an employee of Company 3 sent an email to employees stating: “You will notice that [Local 5000 is] coming back at us for the Joint Employment Trust [aka Sager’s pay],” according to the indictment.
In 2013, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $56,061 payable from Local 5000 checks. In 2014, Companies 4 and 5 paid approximately $57,750 to Local 5000 through the trust agreement, and Sager received approximately $73,418 payable from Local 5000 checks. In 2015, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $74,003 payable from Local 5000 checks, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Antoinette T. Bacon following an investigation by the U.S. Department of Labor – Office of Inspector General, the U.S. Department of Labor's Office of Labor Management Standards and the Internal Revenue Service.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Railroad Employee’s Disability Fraud Netted over $447KRead the Press Release
NORFOLK, Va. – Jeffrey A. Ratliff, 60, of Chesapeake, pleaded guilty today to charges of theft of government property related to claiming over $447,000 in disability benefits from the U.S. Railroad Retirement Board (RBB) over the last 20 years.
According to the statement of facts filed with the plea agreement, Ratliff worked as a pipefitter for Norfolk Southern railroad from September 1974 until March 1995. From April 1995 to August 2015, Ratliff collected monthly disability benefits from the RRB while concealing his employment as a real estate agent. In July 1995, Ratliff applied for a disability annuity for injuries sustained on the job in 1990. In his application Ratliff falsely claimed that his injuries prevented him from working and that he had stopped working for the real estate firm in May 1995.
Each year, Ratliff was sent a “Disability Reminder Notice” from the RRB, reminding him of his legal obligation to notify the Board if there was a change in his employment status. Ratliff never notified the RRB that he was working as a real estate agent, and continued to receive disability benefits for 20 years, totaling $447,483.74. On July 22, 2015, Ratliff submitted to a voluntary interview with federal agents, and after being confronted with evidence, admitted that he worked as a real estate agent and was paid using his wife’s social security number to hide his income.
Ratliff was charged by criminal information on August 8 and faces a maximum penalty of 10 years in prison and a $250,000 fine when sentenced on January 20, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Acting Special Agent in Charge James Ellis, U.S. Railroad Retirement Board- Office of the Inspector General, Office of Investigations, made the announcement after the plea was accepted by Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-110.