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Wednesday 7 September 2016
Former Terrebonne Sheriff’s Officer Sentenced for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRYL B. STEWART, age 49, of Houma, was sentenced today after previously pleading guilty to one-count of theft of government funds.
U.S. District Judge Ivan L.R. Lemelle sentenced STEWART to 6 months’ probation and a $100 special assessment. Additionally, STEWART was ordered to pay $15,925 in restitution.
According to court records, STEWART was the Narcotics Unit Supervisor for the Terrebonne Parish Sheriff’s Office (TPSO) during a time period when the TPSO applied for and received two separate federal grants from the Department of Justice. The two grants were for personnel overtime and equipment to support a Multi-Jurisdictional Narcotics Task Force. From 2009 through 2012, STEWART claimed and approved his own overtime from the two grants. The Federal Bureau of Investigation began to look into the billing and discovered through documents and interviews that STEWART occasionally claimed overtime for the two federal grants at the same time that he was working private security details. There were other instances where STEWART claimed federal overtime hours from the grants but he did not actually participate in the narcotics enforcement work. The amount that was improperly billed totals $15,925.00. STEWART resigned from the Terrebonne Parish Sheriff’s Office on or about April 12, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
Executives of Maryland Telemarketing Business Facing Federal Indictment in $50 Million Nationwide Office Supply ScamRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Brian Keith Wallen, age 52, of Lutherville, Maryland, and Andrew Stafford, age 56, of Bel Air, Maryland with conspiracy to commit mail fraud and mail fraud arising from a nationwide fraudulent telemarketing scheme designed to ship unwanted and vastly over-priced light bulbs and cleaning supplies to thousands of businesses and non-profit organizations. The indictment was filed on June 30, 2016 and unsealed today upon the arrest of Andrew Stafford. Brian Keith Wallen was reported missing on April 28, 2016, and is still being sought by law enforcement.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.
“Based in Maryland, the defendants allegedly cheated thousands of American businesses out of more than $50 million through a sophisticated scheme that involved sham sales of light bulbs and cleaning supplies,” said U.S. Attorney Rod J. Rosenstein. “According to the allegations, company employees followed a script that included sending unsolicited supplies, lying to victims, and repeatedly submitting fraudulent bills.”
According to the indictment, on March 24, 2003, Midway Industries, LLC and Johnson Distributing, LLC were incorporated in Maryland, each with the stated purpose to engage in the retail sale of light bulbs and cleaning supplies, among other activities. Between July 22, 2008 and April 18, 2014, Wallen and another individual incorporated additional shell entities, in Maryland and Florida. Midway, Johnson Distributing and the shell entities will be collectively referred to here as “Midway.”
According to the indictment, at different times the Midway companies were owned, in whole or in part by Wallen, who held the title of CEO. Andrew Stafford held the title of President. According to the indictment, Wallen and Stafford exercised supervision over the practices at Midway.
The seven count indictment alleges that from 2007 through 2014, Wallen, Stafford, and the Midway co-conspirators fraudulently obtained millions of dollars from thousands of victim businesses by deceiving the businesses’ into paying exorbitant prices for light bulbs and cleaning supplies, as well as paying for products that the businesses never ordered.
Specifically, the indictment alleges that from about 2007 to 2014, Wallen, Stafford and other conspirators telephoned authorized representatives of businesses, who were often maintenance employees, on behalf of Midway companies. During these phone calls, the conspirators sought to conceal Midway’s true locations in Reisterstown, Maryland and in Florida. According to the indictment, during the initial calls, Wallen, Stafford, and the conspirators promised national store gift cards to the authorized representatives to induce them to place initial orders, or to provide Midway with additional company information or personal information, like the authorized representatives’ home address and personal phone number. The conspirators used the cell phone numbers and/or birthdays of the authorized representatives as “purchase order” numbers in order to lend legitimacy to later collections efforts.
In addition, during the calls the conspirators allegedly made false statements, including: that the victim businesses had an existing business relationship with Midway; and that Midway would send a “half box” of light bulbs. In fact, the “half box” was a deceptive technique used to understate the volume and price of shipments, and disguise unwanted future shipments. Wallen, Stafford, and the conspirators allegedly did not divulge the price of any products, engaging in a practice called the “price blow-off,” falsely telling the victim business that they did not have the price in front of them, but that it would be at the corporate discount. In fact, Midway did not offer a corporate discount.
As long as the victims continued paying the Midway invoices, in subsequent calls Wallen, Stafford, and the conspirators allegedly misrepresented that the balance of the victim’s order, or their “regular seasonal order” had recently been shipped, despite no order having been made by the victim business, and no actual shipment having yet been sent. The conspirators called authorized representatives under the guise of different Midway companies in order to repeat the process using a product other than light bulbs, often cleaning supplies.
The indictment further alleges that when the authorized representative could not be reached, Wallen, Stafford, and the conspirators would simply send the product and an inflated invoice to the victim, without the victim placing an order. The conspirators referred to this practice as “just ship.” If the authorized representative had quit, been fired, or even passed away, the conspirators sent a product and inflated invoice to the victim business knowing that the victim would be unable to dispute the validity of the order. This practice was referred to by the Midway conspirators as a “down the road.” The Midway conspirators regularly sought the approval of Wallen and Stafford, as their supervisors, to engage in the practices of “just ship,” or “down the road.”
According to the indictment, Wallen, Stafford, and the co-conspirators ordered the light bulbs and cleaning supplies from a company located in New Jersey (supplier). They instructed the supplier to ship the products to the victim without an invoice, and to send the invoices directly to Midway. Wallen, Stafford, and the conspirators then sent inflated invoices to the billing departments of the victims. The indictment alleges that the invoices sent to the victim businesses were regularly 900% above the prices Midway paid the supplier. After a victim had paid one invoice, Wallen, Stafford, and the conspirators sent invoices to the victim that were sometimes greater than 8,000% above the supplier’s prices.
When victims did not remit payment, the indictment alleges that the collections department at Midway repeatedly called the victims in order to force them to pay the inflated invoices. If the victim company continued to protest, the Midway collections department made false representations, including that an order had actually been placed with Midway, using as proof that the authorized representative had received a gift card, or provided his home address.
If the victim threatened to contact law enforcement or the Better Business Bureau, Wallen, Stafford and the conspirators allegedly offered to revise the invoice to a discounted rate, or take back a product for either a “re-stocking fee” or “at cost,” which was still substantially greater than the cost of the products purchased from the supplier.
The indictment alleges that as a result of the fraud scheme, Midway sent fraudulent invoices to victim companies for more than $100 million and received more than $50 million in payments on those invoices.
Wallen and Stafford each face a maximum penalty of 20 years in prison for the mail fraud conspiracy and for each count of mail fraud.
The guilty pleas of co-conspirators Robert Chesser, age 46, of Dundalk, Maryland; Brandon Johnston, age 38, of Catonsville, Maryland; Alan Landsman, age 36, of York, Pennsylvania; Steven Phillips, age 64, of Pikesville, Maryland; Brandon Riggs, age 34, of Baltimore; and Thomas Wishon, age 54, of Cockeysville, Maryland, were also unsealed today. All six have all pleaded guilty to conspiracy to commit mail fraud in connection with their roles in the scheme, and are awaiting sentencing.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The FBI is offering a reward of up to $5,000 for information leading to the location and arrest of Brian Keith Wallen. Anyone with information concerning Wallen's whereabouts is urged to call the Baltimore office of the FBI at 410-265-8080.
Anyone who believes they may have been a victim of this fraud scheme is asked to complete and submit this form Midway Victims Form to the email or mailing address on the form. Additional information can be found at the U.S. Attorney's Office website.
United States Attorney Rod J. Rosenstein commended the FBI and U.S. Postal Inspection Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney and Harry M. Gruber, who are prosecuting the case.
Domestic violence offender sentenced for illegal possession of gunRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Patrick Blair, 64, of Clarksburg, West Virginia, was sentenced today to 12 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Blair, who was previously convicted of “Domestic Violence” in Harrison County, West Virginia, was discovered to be in possession of a .357 magnum caliber rifle. He pled guilty in May 2016 to one count of “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
District of Columbia Man Pleads Guilty to Environmental CrimeRead the Press Release
James Powers, 59, of Washington, D.C., pleaded guilty today to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips of the District of Columbia and Acting Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“Our nation’s Clean Air Act requires strict adherence to the practices that protect the public from exposure to asbestos and includes criminal liability for those who do not comply with the law,” said Assistant Attorney General Cruden. “This prosecution is part of the Justice Department’s continuing commitment to protect the public and workers who are particularly vulnerable to harm from irresponsible, unsafe and illegal practices in the work place.”
“James Powers put a work crew and the public at risk by not taking the proper steps to safely renovate a building containing asbestos,” said U.S. Attorney Phillips. “The Clean Air Act specifically establishes standards for the safe handling of this dangerous material. This prosecution holds this businessman accountable for his recklessness and shows we will enforce laws that protect the health and safety of workers and citizens in the District of Columbia.”
“Exposure to asbestos poses serious risks to public health and our communities, so it’s imperative that it be handled properly and disposed of safely,” said Acting Special Agent in Charge Lynn. “This case demonstrates EPA and its law enforcement partners will hold accountable those who put the public at risk through unsafe practices.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He emailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
U.S. District Judge Amy Berman Jackson for the District of Columbia scheduled sentencing for Dec. 16. The charge carries a statutory maximum of five years in prison and potential financial penalties.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
In announcing the plea, Assistant Attorney General Cruden, U.S. Attorney Phillips and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, former Paralegal Specialists Krishawn Graham and John Lowell and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
District of Columbia Man Pleads Guilty to Environmental CrimeRead the Press Release
WASHINGTON – James Powers, 59, of Washington, D.C., pleaded guilty today to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The guilty plea, in the U.S. District Court for the District of Columbia, was announced by Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Channing D. Phillips of the District of Columbia, and Acting Special Agent in Charge Jennifer Lynn of the Environmental Protection Agency’s (EPA) criminal enforcement program in the Mid-Atlantic States.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.
“Our nation’s Clean Air Act requires strict adherence to the practices that protect the public from exposure to asbestos and includes criminal liability for those who do not comply with the law,” said Assistant Attorney General Cruden. “This prosecution is part of the Justice Department’s continuing commitment to protect the public and workers who are particularly vulnerable to harm from irresponsible, unsafe and illegal practices in the work place.”
“James Powers put a work crew and the public at risk by not taking the proper steps to safely renovate a building containing asbestos,” said U.S. Attorney Phillips. “The Clean Air Act specifically establishes standards for the safe handling of this dangerous material. This prosecution holds this businessman accountable for his recklessness and shows we will enforce laws that protect the health and safety of workers and citizens in the District of Columbia.”
“Exposure to asbestos poses serious risks to public health and our communities, so it’s imperative that it be handled properly and disposed of safely,” said Acting Special Agent in Charge Lynn. “This case demonstrates EPA and its law enforcement partners will hold accountable those who put the public at risk through unsafe practices.”
The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 58, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He e-mailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
U.S. District Judge Amy Berman Jackson for the District of Columbia scheduled sentencing for Dec. 16, 2016. The charge carries a statutory maximum of five years in prison and potential financial penalties.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
In announcing the plea, Assistant Attorney General Cruden, U.S. Attorney Phillips and Acting Special Agent in Charge Lynn expressed appreciation for the work performed by Special Agents from EPA and the Department of Transportation. They also acknowledged the efforts of Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, former Paralegal Specialists Krishawn Graham and John Lowell and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
Diabetic Medical Equipment Companies to Pay More Than $12 Million to Resolve False Claims Act AllegationsRead the Press Release
U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. and the two owners and presidents of those companies have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment, the U.S. Department of Justice announced. U.S. Healthcare Supply LLC, based in Milford, New Jersey, has agreed to pay more than $5 million, and Jon P. Letko, its owner and president, has agreed to pay more than $1 million. His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest.
“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”
“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” said U.S. Attorney Paul J. Fishman for the District of New Jersey.
The settlement announced today resolves allegations that U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc. set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls. This conduct violated the Medicare Anti-Solicitation Statute.
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 case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of New Jersey and the U.S. Department of Health and Human Services’ Office of the Inspector General. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Cumberland County, New Jersey, Man Charged with Possessing Dogs for Dog FightingRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, U.S. Attorney Paul Fishman, District of New Jersey, and Assistant Attorney General John Cruden, DOJ Environment and Natural Resources Division, announced.
Robert A. Elliott, Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere. He is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case and statements made in court:
The federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting.
On June 1, 2016, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting. That day, law enforcement officers executed a search warrant on a residence on a multi-acre property in Millville where Nichols lived. Another defendant, Robert Elliott, also lived at the residence.
During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs. Seven of the dogs were kept on heavy chains in a wooded area behind the house. The dogs were spaced so that they could not reach one another. Two additional dogs were housed individually in pens in the wooded area near the chained dogs. Law enforcement officers found three more dogs in shipping crates in the unfinished basement. One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.
Several of the dogs had scars and other signs of injury, and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:
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Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;
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A stand often called a “rape rack” (or “breeder stand” as referred to by defendant Robert Elliott) designed to hold a female dog off the ground and immobilize her while a male dog mounts her. The device is used where the female dog is too dog-aggressive to mate otherwise;
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A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures, and suture removing tools;
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Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;
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Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence
Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.
The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless proven guilty.
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Convicted Sex Offender Sentenced for Sexually Assaulting 6 Year-OldRead the Press Release
NEWPORT NEWS, Va. – Mark Anthony Lowe, 63, of Fort Worth, Texas, was sentenced today to 40 years in prison for coercion and enticement of a child and penalties for a registered a sex offender. Lowe was also sentenced to a lifetime of supervised release.
Lowe pleaded guilty on April 26. According to court documents, Lowe admitted he sexually assaulted a six year-old child while visiting the child’s family on Langley Air Force Base during the 2015 Christmas holiday. The child was taken to an area hospital and examined by a sexual assault nurse examiner and a sexual assault forensic report was completed. Lowe, a registered sex offender, has a criminal record which includes numerous sexual assault offenses with a child in 1993 in Tarrant County, Texas.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Gordon B. Johnson, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr31.
Cleveland woman sentenced to three years in prison for filing fraudulent tax claimsRead the Press Release
A Cleveland woman sentenced to three years in prison for filing false income tax returns on behalf of friends and relatives and fraudulently claiming more than $131,000, said U.S. Attorney Carole Rendon and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
Monique Kirk, 39, held herself out as a tax preparer and offered to prepare returns from friends and relatives. Kirk used the personal information they provided to file false and fictitious returns, including false wage income and tax credit information, many for claimants who earned little or no money, according to court documents.
Kirk requested some of the refunds be paid by direct deposit into bank accounts in the name of third parties that she controlled. Kirk converted his money to her own personal use, according to court documents
Kirk filed 21 false tax returns between 2012 and 2014 in which she claimed approximately $131,871 in tax refunds to which neither she nor the claimants were entitled. She was ordered to pay $122,501 in restitution.
“IRS Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit and unjustly enrich themselves by preparing false claims for refunds,” Enstrom said.
This case was prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the IRS-CI.
Clark Summit Man and Engineering Firm Indicted for Violations of Clean Water Act and Tampering with Government WitnessRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David D. Klepadlo, age 61, Clarks Summit, and David D. Klepadlo & Associates, Inc., have been charged in an Indictment returned by a federal grand jury in Scranton on September 6.
The Indictment was unsealed today following Klepadlo’s initial appearance before U.S. District Magistrate Judge Karoline Mehalchick. Judge Mehalchick ordered him to surrender his passport, have no contact with co-conspirators or government witnesses, and travel is limited to within the Middle District of Pennsylvania.
According to United States Attorney Peter Smith, Klepadlo, along with the engineering company he owns, David D. Klepadlo & Associates, Inc., are charged with conspiracy to violate the Federal Clean Water Act, multiple counts of specific Clean Water Act violations, and Tampering with a Government Witness.
The Indictment alleges that Klepadlo is certified by the Commonwealth of Pennsylvania as a waste water treatment plant operation. Klepadlo and his company contracted with local municipalities to operate and manage the municipalities’ waste water treatment plants in accordance with regulations and limitations in permits issued by the Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA).
The permits required that the permittee at all times maintain in good working order, and properly operate all facilities and systems installed and used to achieve compliance with the terms and conditions of the permits. It is alleged that for approximately two years, beginning in May 2012 and continuing through June 2014, Klepadlo and his company failed to properly operate and maintain the facilities and systems of treatment and control, in accordance with terms and conditions of the permits.
The facilities identified in the Indictment are the Greenfield Township Sewer Authority in Lackawanna County and the Benton/Nicholson Sewer Authority in both Lackawanna and Wyoming Counties.
The Indictment further alleges that as part of the conspiracy, Klepadlo knowingly failed to take daily and weekly samples and measurements required for the purpose of monitoring pollutants discharged into waterways of the United States; knowingly created false test results and falsely reported those results in discharge monitoring reports submitted monthly to the PADEP and the EPA; and knowingly diluted pollutant samples when the samples were believed to exceed the limits specified in the permit.
Klepadlo is also charged with corruptly attempting to persuade a government witness to fabricate a false explanation for the Clean Water Act violations for the purpose of influencing testimony of a witness in an official proceeding involving the testing and registering requirements of the permits.
Waste water from the Greenfield publicly-owned treatment plan is discharged into a tributary of Dundaff Creek, which flows into Tunkhannock Creek, which flows into the Susquehanna River. Waste water from the Benton/Nicholson facility flows into a tributary of South Branch Tunkhannock Creek, which also flows into the Susquehanna River.
The charges stem from an investigation jointly conducted by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigations. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the Conspiracy statute is 5 years’ imprisonment and a $250,000 fine. The Clean Water Act violations are punishable by up to 3 years’ imprisonment and a sliding scale for fines of $5,000 to $25,000 per violation, per day. The maximum penalty under the Tampering with a Witness statute is 20 years’ imprisonment, and a $250,000 fine. Each crime also carries a term of supervised release following imprisonment. 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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CPA Charged with Bank Fraud for Providing Inflated Tax Returns to Client to Use to Defraud LendersRead the Press Release
An Information[1] was unsealed today charging Barry Horrow, 68, of Glenn Mills with 4 counts of bank fraud, announced United States Attorney Zane David Memeger.
The information alleges that Horrow, a Certified Public Accountant who owned and operated his own accounting company, Horrow and Associates, which operated in both Delaware and West Chester Counties, committed bank fraud by helping one of his clients, George Barnard of Newtown Square (who owned Capital Financial Mortgage Corporation (“CFMC”) and who was charged previously in an indictment with various offenses stemming from a $13 million fraud scheme who owned) to defraud lenders into issuing mortgages for 3 multi-million dollar New Jersey Shore beach mansions and a yacht based on false information. Specifically, the information alleges that Horrow repeatedly provided false tax returns for Barnard to submit to lenders on which Horrow inflated Barnard’s income by hundreds of thousands of dollars, when Horrow knew that the lenders were going to be relying upon the inflated income figures in approving Barnard’s loan requests. The information also alleges that Horrow purported to conduct audits of CFMC, when in reality Horrow did not conduct any audits, and that he issued false audit reports that he knew were being submitted to lenders to help secure loans for both CMFC and Barnard.
Horrow faces a maximum sentence of 120 years’ imprisonment, a five-year period of supervised release, a $4,000,000 fine, a $400 special assessment, and a likely advisory sentencing guideline range of 51 – 63 months’ imprisonment. The information also seeks the forfeiture of over $2,965,000.
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development, Office of Inspector General, and the Internal Revenue Service, Criminal Investigative Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Buffalo Man Sentenced for Possessing Child PornographyRead 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 David Young, 29, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to 20 years in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that in February 2015, a West Seneca Schools resource officer obtained information that the defendant had images of child pornography on a cellular telephone. The resource officer notified Cheektowaga Police who began an investigation. On February 13, 2015, officers searched Young’s computer and located images of child pornography, some that were produced by the defendant.
In January 2016, Young pleaded guilty in state court to Attempted Sexual Abuse in the 1st degree. Judge Wolford cited this incident as one of the factors in her sentencing decision.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, Cheektowaga Police Department, under the direction of Chief David Zack and the West Seneca Police Department, under the direction of Chief Daniel Denz.
Brooklyn Man who Supplied Cocaine to Massena Sentenced to 5 YearsRead the Press Release
PLATTSBURGH, NEW YORK – Paul Williams, aka “Cash,” age 32, of Brooklyn, New York, was sentenced today to serve 5 years in prison for a drug distribution conspiracy involving at least 500 grams of cocaine.
The announcement was made by U.S. Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Senior U.S. District Judge Gary L. Sharpe also sentenced Williams to a 4-year term of supervised release, to begin after Williams’s release from prison.
As part of his August 2015 plea, Williams admitted that from 2012 through September 2013, he transported cocaine by bus from New York City to Plattsburgh, where he was picked up by co-conspirators and driven to Massena. Upon arriving in Massena, Williams personally sold the cocaine and provided it to other members of the conspiracy for sale. In August 2013, Williams was arrested in Plattsburgh with 84 grams of cocaine hidden in the bottom of a Pringles container; he planned to sell the cocaine in Massena.
This case was investigated by HSI, the Massena Police Department, the Saint Lawrence County Sheriff’s Office, and the New York State Police.
This case was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Cyrus P.W. Rieck.
Boston Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Boston man pleaded guilty today in U.S. District Court in Boston to sex trafficking charges.
Akil J. DeCoteau, 28, pleaded guilty to one count of transportation of an individual with intent to engage in prostitution and one count of conspiracy to transport an individual for prostitution. U.S. District Court Judge Denise J. Casper scheduled sentencing for Nov. 30 2016.
In January 2014, DeCoteau met a woman at a friend’s apartment in Maine. DeCoteau asked the woman to work for him as a prostitute and that, in exchange, he would take care of her and provide her with food and shelter. The woman, who had no place to live at the time, agreed. DeCoteau took the woman to a hotel in Westbrook, Maine, rented a room, and posted advertisement online offering sex with the woman for a fee. DeCoteau charged men between $100 to $200 to have sex with the woman, and kept all of the money.
Over the course of two weeks, DeCoteau prostituted the woman in hotels in Maine, Massachusetts and New York. In each location, DeCoteau posted advertisements online offering sex with the woman for a fee, and then kept the money that woman received in exchange for the sexual services.
Last week, DeCoteau’s co-defendant, Kwamaine Wells pleaded guilty to related charges and is scheduled to be sentenced on Dec. 1, 2016.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team.
Area Man Sentenced to 30 Months in Federal Prison for Conspiracy to Commit Sex Trafficking of a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gage James Lester, age 20, was sentenced to 30 months in federal prison followed by three (3) years of supervised release on one count of Conspiracy to Commit Sex Trafficking of a Child. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, during an FBI interview, Lester was identified as providing an underage female for sex to another human trafficker he was associated with. The fifteen-year-old female initially denied being trafficked by Lester, but later admitted to being trafficked and said she lied because she was trying to protect him. She detailed how her and another then fourteen-year-old female were trafficked by Lester during the summer of 2014. She stated that Lester advertised them as prostitutes and that most of the money that was made by them was given to him. The FBI identified three ads posted in the “Fort Smith Escorts” section of the website that were used to advertise the two females. Lester was indicted by a federal grand jury on October 28, 2015 and pleaded guilty on April 25, 2016.
This case was investigated by the Federal Bureau of Investigation and the Fort Smith Police Department. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Anderson Man Sentenced for Smuggling Orangutan SkullsRead the Press Release
VICTORIA, Texas – A professional reptile breeder has entered a guilty plea to smuggling two orangutan skulls into the country from Indonesia, announced U.S. Attorney Kenneth Magidson along with Southwest Region Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service (FWS).
Graham Scott Criglow, 39, pleaded guilty before Senior U.S. District Judge John D. Rainey today. Criglow was ordered to pay a $2,500 fine and must serve three years of probation.
“One of our highest priorities is to combat wildlife trafficking here in the United States and abroad as we are on the front lines protecting those animals listed under the Convention on International Trade in Endangered Species,” said Chavez. “The successful outcome of this investigation is also the result of working with the U.S. Attorney's Office, where these individuals and companies are held responsible for their actions. I hope this sentence sends a strong message to those that are involved in smuggling wildlife that the crime is not worth the outcome.”
Criglow was charged by a criminal information with one count of smuggling two orangutan (Pongo species) skulls into the U.S. Orangutans are protected under the Endangered Species Act (ESA). The ESA prohibits any person subject to the jurisdiction of the U.S. to engage in the trade of any wildlife contrary to the provisions of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
During the plea today, the court learned that Criglow was the owner of Strange Cargo Exotics, which was an Internet-based wildlife related business he operated from his Anderson residence. Criglow’s business was engaged in the breeding, sale and trade of reptiles, including venomous snakes.
In April 2016, FWS inspectors at the San Francisco International Airport examined a parcel from Indonesia addressed to Criglow. The parcel lacked an Indonesian customs declaration and was screened using an x-ray machine. The inspectors determined the parcel contained two primate skulls. A morphology examination determined the wildlife was two orangutan skulls.
In May 2016, agents conducted a controlled delivery of the skulls at Criglow’s residence and executed a search warrant, at which time agents located several other animal skulls and bones. Authorities also located human remains including approximately 30 human skulls which were found to be legally purchased by Criglow for his personal collection.
The charges were the result of an investigation conducted by FWS with the assistance of the U.S. Postal Inspection Service and the Texas Parks and Wildlife Department. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
A Dozen People, including Former O.C. Superior Court Clerk, Indicted in Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – After a grand jury issued a federal racketeering indictment alleging corruption by a former clerk in the Orange County Superior Court, authorities this morning arrested 10 defendants on charges stemming from a bribery scheme in which the clerk improperly and illegally resolved cases on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges. Authorities expect to soon have two remaining defendants in custody.
According to the 38-count indictment unsealed this morning, the court clerk allegedly “fixed” criminal cases in exchange for cash bribes as high as $8,000. As a result of the scheme detailed in the indictment, hundreds of defendants had charges dismissed, had fees reduced, or avoided mandatory jail time in drunk driving cases after paying bribe money to the clerk or middlemen who took bribes on his behalf.
The man at the center of the scheme – former clerk Jose Lopez Jr. – is charged with being at the center of a racketeering enterprise that engaged in bribery. Lopez, a 36-year-old resident of Anaheim, allegedly “resolved” cases by entering information into the court’s computers to make it appear that a defendant had paid required fees or had performed community service.
In some cases, Jose Lopez illegally created records to indicate that a defendant had pleaded guilty to reckless driving and that drunk driving charges had been dismissed – thereby avoiding the consequences of a drunk driving charge. According to the indictment, in other cases, Jose Lopez illegally entered court records that it made it appear second-time DUI offenders had served mandatory jail time, when they had not.
“The racketeering indictment charges the former court clerk with accepting bribes to falsify court records on the court’s computer system,” said United States Attorney Eileen M. Decker. “Some of the records indicated that a case had been resolved, when no such action had been approved by any judge of the court, and some records included signatures that appeared to be those of officers of the court, but were in fact forged. This defendant allegedly assumed the roles of judges, prosecutors and defense attorneys to line his pockets in a staggering abuse of his position. Very simply, he compromised the entire justice system in Orange County.”
Lopez is charged with receiving bribes from individuals who had been prosecuted for drunk driving or traffic-related offenses, according to the indictment. Those who paid the bribes were solicited directly by Lopez or one of a team of recruiters. The 11 recruiters charged in the indictment are:
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Ricardo Quinones, 32, of Santa Ana;
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Juan C. Rosas Santillana, 32, of Chino Hills;
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Ramon Salvador Vasquez, 27, of Santa Ana;
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Manuel Galindo Jr., 26, of Santa Ana;
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Gibram Rene Lopez, also known as “Ivan,” 26, of Anaheim;
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Agustin Sanchez Jr., 32, of Santa Ana;
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Luis Alberto Flores Guillen, also known as “Bills,” 26, of Santa Ana;
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Oscar Centeno, also known as “Mosquito,” 26, of Santa Ana;
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Javed Asefi, also known as “Joey,” 43, of Ladera Ranch;
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Jeff Reynes Fernandez, also known as “Lean,” 24, of Fullerton; and
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Jesus Saldana, 28, of Garden Grove.
This morning, federal authorities arrested 10 of the defendants, including Jose Lopez. Guillen is expected to surrender later this morning. Sanchez is believed to be out of the state, but he is expected to be taken into custody in the near future.
The defendants arrested today are expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana.
“Mr. Lopez used his position of trust for personal gain and, in the process, conspired with others to pervert the legal system,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's arrest should send a message that fixing tickets and tampering with witnesses is taken seriously by law enforcement and corruption by public officials will result in serious consequences.”
The racketeering indictment alleges a scheme in which Lopez allegedly accepted bribes and illegally resolved criminal cases over a five-year period. The conspiracy ended in the spring of 2015 when the court learned about the misconduct and took steps to reopen many of the cases.
In addition to the bribes and falsified court records, Jose Lopez also allegedly forged the signatures of prosecutors. Several members of the conspiracy allegedly attempted to persuade witnesses to lie about the scheme if they were questioned by authorities.
The indictment alleges that Lopez improperly resolved more than 1,000 cases, including 69 driving-under-the-influence cases. Lopez allegedly received hundreds of thousands of dollars in bribes, and investigators continue to review evidence obtained during the investigation to determine the total amount he received.
According to the indictment, Lopez used bribe money to pay for, among other things, international vacations, trips to Las Vegas, and the opening of a restaurant in Garden Grove.
“This investigation demonstrates IRS Criminal Investigation's ability to trace the cash payments made to Jose Lopez and uncover the disposition of those funds,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation will continue to work with the U.S. Attorney’s Office and the FBI to bring to justice those who have enriched themselves in this scheme and in the process corrupted the Orange County Superior Court.”
All 12 defendants named in the indictment are charged with participating in a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO). This charge outlines 139 overt acts that outline bribe payments and official court documents that memorialized actions that simply never occurred.
The indictment also alleges 26 counts of bribery in which Jose Lopez either solicited money or one of seven of the recruiters paid money to him.
Jose Lopez is additionally charged with five counts of money laundering.
The indictment further charges Vasquez with conspiring to tamper with witnesses and two counts of witness tampering. Santillana and Fernandez are also charged with witness tampering.
Asefi is charged with making false statements to the FBI last year during its investigation into the bribery scheme.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If they are convicted of the RICO conspiracy, each defendant would face a statutory maximum sentence of 20 years in federal prison. The money laundering and witness tampering charges also carry a 20-year maximum penalty. The bribery charges carry a statutory maximum penalty of 10 years in prison.
This case is being investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office.
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Tuesday 6 September 2016
York Man Charged for Armed Robbery of PNC BankRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed on September 2, 2016 in U.S. District Court in Harrisburg charging a York man with possession of a weapon by a previous offender, bank robbery, and possession of a weapon in furtherance of a crime of violence.
According to United States Attorney Peter Smith, Derek Bowman, age 33, used a shot gun to rob the PNC Bank located in York, Pennsylvania on January 9, 2016.
This matter was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney Chelsea Schinnour.
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 life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Whitehall Man Sentenced to 37 Months on Machinegun ChargeRead the Press Release
ALBANY, NEW YORK – Shane Robert Smith, a/k/a Robert Smith, age 19, of Whitehall, New York, was sentenced today to serve 37 months in prison for illegal possession of a machinegun.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
U.S. District Judge Mae A. D’Agostino also ordered Smith to serve a 3-year term of supervised release upon his release from prison.
U.S. Attorney Richard S. Hartunian stated: “Our Joint Terrorism Task Force identified Shane Smith as a potential threat and quickly worked to neutralize him so that he would not be able to carry out a hate-inspired act of violence. This investigation and prosecution is an example of the kind of work that we and our law enforcement partners do every day to keep our citizens safe, which is our top priority.”
“The safety of our communities is paramount,” said FBI Special Agent in Charge Andrew W. Vale. “Threats like those posed by Mr. Smith need to be stopped as soon as possible. Thanks to the joint efforts of our law enforcement partners, Mr. Smith’s hateful vision will not be realized.”
Smith admitted that he repeatedly sought to purchase or otherwise obtain fully automatic weapons, as well as semiautomatic weapons that he intended to convert into fully automatic weapons. In social media postings and other communications, Smith repeatedly advocated violence toward members of racial and religious minority groups, and listed his interests as “guns, gun smithing, building bombs, knives, guerilla warfare, preserving my race and folk, and destroying the government.” Smith also attempted to form what he described as a “militant terrorist” group, or a “hit squad,” called the Silent Resistance Army that would be a “true underground Aryan militant army with only men who are not scared to kill or die to make change happen.”
After becoming aware of social media postings by the defendant, including a post in which Smith sought to acquire a Mac 10 machinegun, individuals working with law enforcement contacted him. In subsequent communications with those people, Smith confirmed that he sought to purchase a Mac 10 and that he intended to “rock and roll it,” a phrase that means to convert a semi-automatic weapon to fully automatic. Smith further explained that the firearm was “gonna be used to execute kikes, coons, and get money for the crew.” Smith also sought to acquire Green Tip ammunition, which is designed to pierce body armor, as well as explosives such as “c4 or grenades.”
After communicating through the Internet and text messages with an undercover FBI agent, Smith arranged to meet with the agent for the purpose of acquiring machineguns, silencers, and ammunition. On August 5, 2015, Smith met with an undercover FBI agent in Whitehall, New York, and took possession of two machineguns, a silencer, a Beretta handgun, and 120 rounds of Green Tip ammunition; the guns were not loaded and inoperable at the time. Smith was then immediately arrested.
This case was investigated by the FBI Joint Terrorism Task Force in Albany, and was prosecuted by Assistant United States Attorneys Sean O’Dowd and Solomon Shinerock.
West Seneca Man Sentenced on Child Pornography ChargeRead 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 Joseph S. Heleniak, 72, of West Seneca, NY, who was convicted of possession of child pornography, was sentenced to 120 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between August 30, 2013 and September 1, 2013, the defendant knowingly possessed images of child pornography that were stored on his AOL email account after obtaining them over the internet. Some of the images depicted prepubescent minors. Heleniak was previously convicted of possession of child pornography in 2005 in the Western District of New York and sentenced to 30 months in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Adam S. Cohen, Special Agent in Charge, and the Cheektowaga Police Department under the direction of Chief David Zack. The task force includes the Buffalo Police Department, the Cheektowaga Police Department, and the Niagara County Sheriff’s Office.
Webster Man Pleads Guilty to Creating A False DocumentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Becker, 41, of Webster, NY, pleaded guilty to creating a false document, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the Internal Revenue Service levied the wages of Becker and his wife in order to collect $226,000 in unpaid federal income taxes owed by the couple. In September 2013, the defendant created a fraudulent release of levy form and submitted it to his employer and his wife’s employer in order to defeat the IRS levy on their wages. As a result of the fraudulent document, the employers released approximately $17,800 to the Becker’s that should have been paid to the IRS.
The plea is the result of an investigation by Special Agents with the U.S. Treasury Inspector General for Tax Administration, acting under the leadership of Special Agent in Charge Robert E. O’Malley.
Sentencing is scheduled for December 13, 2016 at 3:00 pm before Judge Wolford.
United Kingdom Man Sentenced for His Role in Child ExploitationRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on September 6, 2016, Simon William Riley, 21, Swansea, Wales, United Kingdom, was sentenced before Judge Ralph R. Erickson to 12 years in prison on one Count of Sexual Exploitation of a Minor, two Counts of Advertising Material Involving the Sexual Exploitation of Minors, and one Count of Receipt of Child Pornography. Judge Erickson also sentenced Riley to serve 10 years of supervised release and ordered Riley to pay $400 to the Crime Victims’ Fund.
This case came to the attention of law enforcement after the National Center for Missing and Exploited Children (NCMEC) notified members of the North Dakota Internet Crimes Against Children (ICAC) Task Force that a website on the Tor Network contained child pornographic images of a girl located in Fargo, North Dakota. Subsequently, ICAC Task Force members identified the 13-year-old victim who told law enforcement that she sent the sexually explicit images to another female via Kik Messenger. In reality, this "female" was Simon Riley, an adult male. After Riley obtained these images, he posted advertisements on the website found on the Tor Network. The advertisement contained a link to a file-sharing site where other Tor users could access the images depicting the victim. Law enforcement determined that the victim’s images were accessed on more than 20,000 occasions by Tor users located throughout the world.
Through further investigation, the ND Bureau of Criminal Investigation and Homeland Security Investigation agents identified Simon Riley in the United Kingdom as the individual responsible for posting the above-mentioned advertisements. Based upon information provided to them by the ND ICAC Task Force, the National Crime Agency in the United Kingdom executed a search warrant at Riley’s residence on September 10, 2015. Foreign law enforcement recovered evidence, including electronic media, at Riley’s residence which linked him to the user account that posted the advertisements on the Tor Network and which contained a link to a separate file-sharing site which contained the victim’s images. The forensic examination of the media recovered from his residence in the United Kingdom revealed hundreds of child victims, including a second 13-year-old victim from Fargo, North Dakota.
This case was investigated by the North Dakota Internet Crimes Against Children Task Force, the Department of Homeland Security - Homeland Security Investigations in Grand Forks, ND, as well as the North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
U.S. Attorney Damon P. Martinez to Host 24th Annual Four Corners Indian Country Conference in Isleta PuebloRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez of the District of New Mexico is hosting the 24th Annual Four Corners Indian Country Conference at the Isleta Pueblo Hotel and Conference Center in Isleta Pueblo, N.M., on Sept. 7-9, 2016. U.S. Attorney Martinez will be joined by co-hosts U.S. Attorney John S. Leonardo of the District of Arizona, U.S. Attorney John W. Huber of the District of Utah, and Acting U.S. Attorney Bob Troyer of the District of Colorado.
The annual conference, which is sponsored by the U.S. Department of Justice’s Office for Victims of Crime and the U.S. Attorneys for the Districts of Arizona, Colorado, Utah and New Mexico, promotes a collaborative approach to addressing the needs of victims of crime in Indian Country in the Four Corners’ region. In addition to representatives of the four U.S. Attorney’s Offices and other DOJ agencies, conference participants will include tribal leaders, victim advocates and social services providers, tribal judges and prosecutors, and law enforcement officers.
The conference is scheduled to begin at 1:00 p.m. on Sept. 7, 2016, with an opening ceremony that will include welcoming remarks by the Honorable Eddie Paul Torres, Sr., Governor of Isleta Pueblo, and the U.S. Attorneys. The opening ceremony also will include a vocal performance by Kansas K. Begaye, an enrolled member of the Navajo Nation who is a Native American award winning recording artist and a former (2013) Miss Indian World. The second day of the conference, Sept. 8, 2016, will begin with a flute performance by Robert Tree Cody of the Lakota Nation, a five-time Native American Music Award winner.
This annual conference, which is held in each of the four districts on a rotating basis, exemplifies the Justice Department’s commitment to addressing the high rates of victimization of our women and children in our Native communities. The conference theme – “Serving Victims: Restoring Hope” – embodies what the Department of Justice is striving to achieve in Indian Country; helping victims overcome trauma, and preventing these crimes from reoccurring in the future. The conference provides a forum for developing strategies for assisting victims of crime and tackling other serious public safety challenges confronting our Native communities. It provides an opportunity for DOJ officials to hear from members of our Native communities about their needs and to work with them to address their unique challenges.
OPEN MEDIA: The opening ceremony, which will be held in the Grand Ballroom of the Isleta Pueblo Hotel and Conference Center from 1:00 p.m. to 2:30 p.m. on Wednesday, Sept. 7, 2016, will be open to the media. Reporters who wish to attend the opening ceremony and/or schedule interviews with the U.S. Attorneys should contact Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (mobile), or [email protected].
Two Greek Shipping Companies and Engineers Convicted of Pollution Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON—A federal jury in Greenville, North Carolina, has convicted Oceanic Illsabe Limited, Oceanfleet Shipping Limited and two of their employees of violating the Act to Prevent Pollution from Ships (APPS), obstruction of justice, false statements, witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina. Oceanic Illsabe Limited is the owner of the M/V Ocean Hope, a large cargo vessel that was responsible for dumping tons of oily waste into the Pacific Ocean last year. Oceanfleet Shipping Limited was the managing operator of the vessel. Both companies operate out of Greece. Also convicted at trial were two senior engineering officers who worked aboard the vessel, Rustico Ignacio and Cassius Samson. The jury convicted on each of the nine counts in the indictment.
The operation of marine vessels, like the M/V Ocean Hope, generates large quantities of oil sludge and oil-contaminated waste water. International and U.S. law require that these vessels use pollution prevention equipment, known as an oil-water separator, to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. The evidence presented to the jury showed that in June 2015, the vessel discharged around ten metric tons of sludge into the ocean. The vessel was also regularly pumping contaminated water directly overboard. None of these discharges were disclosed as required.
“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case,” said U.S. Attorney Bruce. “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”
“While the vast majority of vessel owners, operators, and crews who do business in the United States follow our environmental laws, every year, a few unscrupulous commercial mariners obstruct justice in an attempt to hide from the Coast Guard the intentional discharge of large quantities of pollutants into the oceans,” said Rear Admiral Meredith Austin, commander of the Fifth Coast Guard District. “Coast Guard Marine Inspectors and the Coast Guard Investigative Service, in concert with the Department of Justice, will continue to aggressively investigate and prosecute those who do this.”
The evidence presented during the nine-day trial demonstrated that the companies were aware that the ship had not offloaded any oil sludge from the vessel since September 2014 and that the ship rarely used its oil-water separator. Instead, the vessel’s second engineer, Samson, ordered crewmembers to connect what is known in the industry as a “magic pipe” to bypass the vessel’s oil-water separator and pump oil sludge overboard. In addition, crewmembers were ordered to pump oily water from the vessel’s bilges directly into the ocean up to several times per week. The dumping occurred with the knowledge and approval of the ship’s chief engineer, Ignacio. Finally, the engineers used a tank designated for oily wastes to store diesel fuel for sale on the black market.
Upon arriving at the Port of Wilmington, Oceanic, Oceanfleet, Ignacio and Samson attempted to hide these discharges by presenting a false and fictitious oil record book to U.S. Coast Guard inspectors. When inspectors uncovered evidence of dumping, the defendants ordered lower-level crewmembers to lie to Coast Guard personnel. Samson also made several false statements to a Coast Guard inspector regarding the bypass of the oil-water separator.
At the conclusion of trial, defendants Oceanic and Oceanfleet were convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and four counts of witness tampering. Ignacio was convicted of one count of conspiracy, one count of violating APPS, one count of obstruction of justice and two counts of witness tampering. Samson was convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and three counts of witness tampering. The companies could be fined up to $500,000 per count, in addition to other possible penalties. Ignacio and Samson face a maximum penalty of 20 years in prison for the obstruction of justice charges.
This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five. Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson of the U.S. Attorney’s Office for the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case. The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.
Turkish Man Sentenced to 3½ Months for Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tayfun Remzi Reis, 61, of Istanbul, Turkey, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 3½ months in prison for unlawfully re-entering the United States after having been removed from the country. He was also fined $2,000.
According to court records, on May 30, 2016, the defendant was discovered by a U.S. Border Patrol agent in an area of a recent border sensor activation near Blaine, Maine. Reis was located close to the international border, adjacent to a beaten down trail, and was found on the ground in a fetal position covered by branches. Fingerprint results revealed that he was a citizen of Turkey who in 1998 had been removed from the United States.
The investigation was conducted by the Department of Homeland Security’s U.S. Customs and Border Protection and U.S. Border Patrol.
Tobyhanna Resident Pleads Guilty to Heroin TraffickingRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old Tobyhanna resident pleaded guilty today before U.S. District Court Judge Malachy E. Mannion in Scranton, to distribution and possession with intent to distribute heroin.
According to United States Attorney Peter Smith, the defendant, Jabril Greggs, also known as “Bril,” admitted to distributing more than 80 grams of heroin between late 2013 and early 2015. Greggs admitted to selling 100 bags of heroin to a confidential informant on July 10, 2014, in Monroe County. Eighty grams of heroin is equivalent to approximately 2,600 retail bags of heroin.
Greggs was indicted by a federal grand jury in October 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), the Pennsylvania State Police, the Monroe County District Attorney’s Office, and Pocono Mountain Regional Police.
Greggs faces up to 20 years in prison and a $1 million fine. Judge Mannion ordered a pre-sentence report to be completed. Sentencing will be scheduled after the pre-sentence report is completed.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 20 years’ 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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Three Plead Guilty to Importing White-Tailed Deer in MississippiRead the Press Release
Hattiesburg, Miss. – Coleman Virgil Slade, 70, of Purvis, Mississippi, Don Durrett, 72, of Aspermont, Texas, and Dewayne Slade, 44, of Purvis, Mississippi, pled guilty on Wednesday, August 31, 2016, to conspiracy to violate the Lacey Act by importing live white-tailed deer into Mississippi, announced U.S. Attorney Gregory K. Davis, Special Agent in Charge Luis Santiago with the U.S. Fish and Wildlife Service, and Special Agent in Charge Dax Roberson with the U.S. Department of Agriculture – Office of Inspector General (USDA OIG).
Coleman Virgil Slade pled guilty to a felony conspiracy count. He will be sentenced on November 21, 2016, by U.S. District Judge Keith Starrett and faces a maximum penalty of five years in prison and a $250,000 fine.
Don Durrett and Dewayne Slade pled guilty to a misdemeanor conspiracy count and were each sentenced to a $10,000 fine, placed on three years of probation, and prohibited from hunting for one year.
According to the guilty pleas, from January of 2009 through December of 2012, the Slades and Durrett spent over $100,000 to purchase live white-tailed deer for delivery from Texas to Mississippi. It is illegal to import live white-tailed deer into Mississippi. However, the deer were transported to Lamar County, Mississippi, and placed in a high fence enclosure. The purchases and transportation to Mississippi of the live white-tailed deer were accomplished through false purchase and transportation records.
“The Department of Justice is committed to enforcing the Lacey Act and other federal laws to protect our wildlife resources,” said U.S. Attorney Gregory K. Davis. “We will continue to work closely with USDA OIG, U.S. Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks to enforce the Lacey Act.”
U.S. Fish and Wildlife Service Special Agent in Charge Luis Santiago stated “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously. We will continue working vigorously investigating those who choose to violate state and federal laws.”
“I want to thank the US Attorney’s office, OIG special agents, and our law enforcement partners for their hard work on this investigation,” said USDA OIG Special Agent in Charge Dax Roberson, “USDA OIG is committed to pursuing individuals who commit criminal violations of the Lacey Act, which is intended to protect the health and well-being of America’s wildlife.”
This case was investigated by the U.S. Fish and Wildlife Service - Office of Law Enforcement, the U.S. Department of Agriculture – Office of Inspector General, and the Mississippi Department of Wildlife, Fisheries, and Parks. It was prosecuted by Deputy Criminal Division Chief Darren LaMarca.Third Arkansas DHS Employee Pleads Guilty in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Tonique Hatton, 39, of North Little Rock, pleaded guilty to one count of conspiring to commit wire fraud and one count of receipt of a bribe in connection with USDA funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Hatton at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Hatton worked for DHS, and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding site(s).
Two of Hatton’s co-defendants, Jacqueline Mills and Kattie Jordan, were sponsors of feeding programs from approximately January 2012 to August 2014. Mills was a sponsor and had approved sites in cities including Helena and Marianna, Arkansas. Mills’ programs received more than $2.5 million in federal funds from DHS. Jordan was a sponsor and had approved sites in cities including Dermott, Dumas, Eudora, and Lake Village, Arkansas. Jordan’s programs received more than $3.5 million in federal funds from DHS.
Hatton was responsible for approving the feeding programs for Mills and Jordan at various times between January 2012 and August 2014. Mills and Jordan made bribe payments to Hatton to ensure those programs were approved. Some bribes were provided directly by checks made payable to Hatton or indirectly through payments to her relatives.
In exchange for these bribe payments, Hatton, knowing that these sponsors would submit inflated claims, would still approve their applications which contained the location of the sites and the maximum number of children who would be fed at each site.
During the time in the pending Indictment, Mills and Jordan submitted inflated claims for reimbursement to DHS, claiming that more children were fed at their sites than were actually fed. Because their applications had been approved for a specified number of children that could be fed at the sites, inflated claims were approved and paid by DHS without further scrutiny. Hatton also helped Mills and Jordan avoid DHS’s detection of the fraud.
Hatton is the ninth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for accepting bribes is not more than 10 years, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Texas Woman Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Greenville, Texas, resident pleaded guilty today to one count of aiding and assisting 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 John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, 39, was a tax return preparer operating under the names TX ASAP Tax Services and Fiesta Tax Service in Greenville. Ramirez admitted that from at least 2011 through 2014, she willfully prepared and filed individual income tax returns for clients that reported materially false information, including false business income and losses, false credits and false deductions in order to produce fraudulently inflated refunds. Ramirez prepared approximately 1,163 tax returns and caused an intended tax loss to the United States of approximately $1,155,383.
Ramirez is scheduled to be sentenced on Dec. 21. She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Parker commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation and Trial Attorneys Melanie A. Smith and Alexander R. Effendi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Texas Woman Pleads Guilty to Preparing False TaxRead the Press Release
WASHINGTON – A Greenville, Texas, resident pleaded guilty today to one count of aiding and assisting 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 John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, 39, was a tax return preparer operating under the names TX ASAP Tax Services and Fiesta Tax Service in Greenville. Ramirez admitted that from at least 2011 through 2014, she willfully prepared and filed individual income tax returns for clients that reported materially false information, including false business income and losses, false credits and false deductions in order to produce fraudulently inflated refunds. Ramirez prepared approximately 1,163 tax returns and caused an intended tax loss to the United States of approximately $1,155,383.
Ramirez is scheduled to be sentenced on Dec. 21. She faces a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation and Trial Attorneys Melanie A. Smith and Alexander R. Effendi of the Tax Division, who are prosecuting this case with assistance from Assistant U.S. Attorney David Jarvis of the Northern District of Texas.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Tampa Man Sentenced to More Than Eight Years for Role in Multiple Identity Theft and Credit Card Fraud ConspiraciesRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Yannier Arias to eight years and six months in federal prison for conspiracy, aggravated identity theft, and access device fraud. The Court also ordered him to forfeit $17,343.62, which is traceable to proceeds of the offenses. A federal jury found Arias guilty on April 21, 2016.
According to court documents, Arias first conspired with another Tampa man, Dariel Sardinas Lopez, to “skim” credit card numbers from identity theft victims at various gas stations in Hillsborough, Pinellas, and Sarasota counties; produce counterfeit credit cards encoded with that stolen account information; and then use those counterfeit cards to make thousands of dollars of fraudulent purchases in Florida and Michigan. After Lopez was arrested, Arias entered a second conspiracy with Jose Ojeda Vera, another Tampa man. It again involved the use of counterfeit cards encoded with the account information of identity theft victims to make similar purchases, including at luxury retailers such as Versace, Armani, and Louis Vuitton. All of the victims still had their cards in their possession when they learned that their accounts had been unlawfully used.
Sardinas Lopez previously pleaded guilty and was sentenced in July 2015 to four years in federal prison. Ojeda Vera has been charged for his role in the case and is currently a fugitive.
This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Eric Gerard.
Stockton Man Pleads Guilty to Staging Car Accidents in a Scheme to Defraud Insurance CompaniesRead the Press Release
FRESNO, Calif. — Cristopher Santiago Sanchez-Becerra, 32, of Stockton, pleaded guilty today to conspiracy to commit mail fraud and admitted that he staged car accidents in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least October 2011 until August 2014, Sanchez-Becerra conspired with at least six other individuals to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. Commonly, the defendants would also offer to repair the recruited individual’s vehicle at automobile repair shops that Sanchez-Becerra or a co-defendant owned, usually with less-than-complete repair work, for a fee less than the payment from an insurance company. In all, Sanchez-Becerra caused at least $210,000 in false insurance claims to be paid as a result of the conspiracy to defraud.
In each staged accident, Sanchez-Becerra and other defendants utilized two or three vehicles and caused about $5,000 to $10,000 in damage to each vehicle. After each staged collision, the defendants submitted a similar cover story to an insurer that concealed the true cause of the accident. The cover story would commonly use aliases, false identities, and false addresses when describing the defendants. The defendants also commonly used different vehicles in the staged collisions. They were able to do this by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles. The defendants operated in this manner to avoid scrutiny by an insurer that reviewed the false claims regarding a staged accident.
The indictment further alleges that Sanchez-Becerra and other defendants were able to repeat the scheme in dozens of crashes by recruiting other individuals to participate in the staged collisions. These individuals would allow their vehicles to be damaged and submit their own claim for damages. In many instances, false claims were submitted to the recruited individual’s insurance company.
“Fraud schemes like the one uncovered in this case are growing at an alarming rate, and unfortunately it’s consumers who ultimately pay the price,” said Ryan Spradlin, special agent in charge for HSI San Francisco. “As this probe makes clear, HSI is committed to working with its law enforcement partners to target those who seek to game the system for their own enrichment and ensure they’re held accountable for their crimes.”
“California is ground zero for auto insurance fraud,” said Insurance Commissioner Dave Jones. “Sanchez-Becerra's million-dollar conspiracy to rip-off insurers victimizes California consumers who end up paying for auto fraud losses through higher insurance premiums.”
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
Sanchez-Becerra is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 28, 2016. Sanchez-Becerra faces a maximum statutory penalty of 20 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.
Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Victor Hugo Soriano-Villafan, 26, of Modesto; Liobigildo Vargas, 46, of Turlock; Juan Marquez Cadenas, 30, of Patterson; and Alfonso Apu, 47, of Modesto. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
St. Louis County Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Raja Chellappa, of St. Louis County, pled guilty to two counts of wire fraud in connection with his solicitation and acceptance of a fictitious “buyer’s premium” as part of a 2015 commercial real estate transaction.
According to his plea agreement, Chellappa falsely told a buyer of a St. Charles County motel property that the seller had demanded a $50,000 “buyer’s premium” when no such demand had been made. The buyer agreed to pay the extra $50,000, which Chellappa directed the buyer to wire into his personal bank account. The $50,000 was not disclosed to the seller or to Chellappa’s real estate company during the escrow and closing process.
Chellappa pled guilty before Judge Catherine D. Perry, who set sentencing for December 14, 2016.
Each count of wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000. Restitution is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the St. Louis Division of the FBI and the United States Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
St. Croix Man Sentenced to 24 Months’ Imprisonment for Wire FraudRead the Press Release
St. Croix, USVI – On September 2, 2016, District Court Chief Judge Wilma A. Lewis sentenced Miguel Esperanza-Vasquez, 60, to 24 months’ imprisonment and three years of supervised release for wire fraud, United States Attorney Ronald W. Sharpe announced. Chief Judge Lewis ordered Esperanza-Vasquez to pay restitution in the amount of $27,120 and a $100 special assessment fee.
On February 11, 2016, Esperanza-Vasquez pleaded guilty to one count of wire fraud. As set forth in the plea agreement filed with the Court, Esperanza-Vasquez had no connection with any law enforcement or administrative agency concerned with immigration matters, yet he held himself out to be in a position to materially influence whether an undocumented immigrant could remain in the United States. As part of a scheme to defraud, Esperanza-Vazquez used his purported position to obtain money from the undocumented immigrant that he was not entitled to receive. Specifically, on May 12, 2013, as part of this scheme, Esperanza-Vazquez caused a Western Union money order to be sent by wire in interstate commerce from Houston, Texas, to St. Croix, United States Virgin Islands.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, and was prosecuted by Assistant United States Attorney Meredith J. Edwards.
Schenectady Man Pleads Guilty to Unlawfully Possessing a Loaded HandgunRead the Press Release
ALBANY, NEW YORK – Darryl Flannagan, age 26, of Schenectady, New York, pled guilty today to unlawfully possessing a firearm and ammunition while subject to an order of protection.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Flannagan faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on January 4, 2017 by Senior U.S. District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his plea, Flannagan admitted that on May 19, 2016, a Schenectady Police Officer stopped and questioned him as he was on his way to deliver a loaded handgun to a friend. Flannagan was acting nervously and wearing a heavy, leather coat on a warm day. When the Officer ordered Flannagan to put the coat on the ground, Flannagan dropped the coat and attempted to flee, but was quickly arrested. In the coat, Officers found a 9 millimeter handgun loaded with 6 rounds of ammunition.
On the day he possessed the gun, Flannagan was the subject of a Colonie Town Court order of protection, which prohibited him from having almost any contact with his child’s mother. Because Flannagan was subject to this order, he was prohibited under federal law from possessing a firearm or ammunition.
This case was investigated by the FBI, the Schenectady Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
San Fernando Valley Man Pleads Guilty in 2013 Shooting Spree at LAX and Admits First-Degree Murder of TSA OfficerRead the Press Release
LOS ANGELES – A Sun Valley man pleaded guilty this afternoon to 11 federal charges related to a 2013 shooting at Los Angeles International Airport in which he murdered Transportation Security Administration Officer Gerardo Hernandez.
Paul Anthony Ciancia, 26, pleaded guilty to first-degree murder in the fatal shooting of TSA Officer Hernandez on November 1, 2013.
As a result of the guilty pleas, Ciancia is expected to receive a sentence of at least life in federal prison, plus 60 years. The defendant could be sentenced to multiple life terms and additional years in prison. There is no parole in the federal system.
The guilty pleas were announced by Attorney General Loretta E. Lynch; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Eileen M. Decker; and Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
“The 2013 murder of TSA Officer Gerardo Hernandez was a tragic and reprehensible act of violence,” said Attorney General Lynch. “With this guilty plea, the Department of Justice is making clear that wrongdoers who target our nation’s brave law enforcement officers will be held accountable for their crimes. I want to thank the many federal, state, and local law enforcement officers who contributed to this critical investigation – including my colleagues in the ATF and the U.S. Marshals Service – and I want to once again express the Justice Department’s unwavering support for the brave men and women who wear the badge.”
“The guilty pleas entered in court today will hopefully bring some justice to the victims of this horrific attack that senselessly ended the life of a federal officer and injured several others,” said United States Attorney Decker. “Mr. Ciancia now faces a life-without-parole sentence in federal prison, ensuring he will be punished for his crimes and never again have the ability to harm other innocent people. Today’s guilty plea is also a reminder of the tremendous acts of bravery and heroism demonstrated by law enforcement at LAX on the day of the shooting. I commend the hundreds of law enforcement personnel from the Los Angeles Airport Police, the Los Angeles Police Department, the TSA, the FBI and many other agencies who responded to this incident, conducted a thorough and professional investigation, and played a key role in reaching today’s resolution.”
According to a plea agreement file last week, in early 2013, Ciancia purchased a semiautomatic rifle, 500 rounds of ammunition and 10 magazines for the rifle. On the morning of November 1, 2013, Ciancia modified two pieces of luggage and zip-tied them together to conceal his loaded rifle.
Later that morning, Ciancia entered Terminal Three at LAX, removed the loaded rifle from his modified luggage and fired at and killed Officer Hernandez, who was checking passengers’ travel documents as part of his duties as a TSA Officer. Ciancia admitted that he then went upstairs to a TSA checkpoint, by which time many TSA officers and passengers had fled the airport. He fired his weapon at TSA Officers Tony Leroy Grigsby and James Maurice Speer, as well at a civilian, Brian Ludmer, all of whom sustained serious injuries and required surgery but survived the attack.
“Mr. Ciancia’s guilty plea is a welcome development toward reaching justice for the victims of this violent attack, one of whom was murdered as he carried out his duties as a TSA officer, and several others who were wounded when Mr. Ciancia brutally targeted them with his weapon,” said FBI Assistant Director Fike. “I’m proud of the JTTF members and prosecutors for their diligence over the past few years in getting to this point.”
According to the plea agreement, as Ciancia passed passengers hiding in or fleeing the terminal during the attack, he asked if they were TSA and when they said no, he passed without shooting at them.
“Our Transportation Security Officers put their lives on the line each and every day to keep the flying public safe,” said Secretary of Homeland Security Jeh Johnson. “We still remember the awful day that Officer Gerardo Hernandez became known as the first slain-on-duty officer. Today’s threat environment demands that we all remain vigilant, and this guilty plea should remind everyone that if you harm one of our officers, you will be brought to justice.”
“The Transportation Security Administration appreciates the hard work of the Justice Department in addressing a tragedy that significantly impacted the men and women of our agency, and brought unspeakable pain to the family of one of our most devoted officers,” said Keith Jeffries, Transportation Security Administration Federal Security Director. “Officer Gerardo Hernandez was known as a hard-working, brave, dedicated officer and devoted family man who was a proud member of the TSA family. He is missed each day. Our thoughts and prayers remain with his family.”
Appearing today before United States District Judge Philip S. Gutierrez, Ciancia pleaded guilty to one count of murder of a federal officer; two counts of attempted murder of a federal officer; four counts of violence at an international airport; one count of discharging of a firearm during a crime of violence causing death; and three counts of discharging a firearm during a crime of violence,
The first degree murder charge carries a mandatory sentence of life in federal prison. The two additional charges based on the killing of Officer Hernandez – violence at an international airport that resulted in death and using a firearm to murder and cause death – each carry potential sentences of life in federal prison.
The two attempted-murder charges and each of the three charges based on violence against the surviving victims all carry a statutory maximum penalty of 20 years in federal prison.
The first count of using a firearm carries a mandatory minimum sentence of 10 years, and the other two use-of-a-firearm charges each carry mandatory sentences of 25 years. The cumulative 60-year sentences for these charges would be served consecutively to any other sentences that are imposed.
Judge Gutierrez is scheduled to sentence Ciancia on November 7.
This case is the product of an investigation by members of the Los Angeles Joint Terrorism Task Force (JTTF), which is led by the Federal Bureau of Investigation and includes agents and officers from 45 other local, state and federal agencies.
The following agencies provided considerable assistance during the investigation: the Los Angeles Airport Police; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; the Transportation Security Administration; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the United States Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the United States Marshals Service; the United States Postal Inspection Service; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by First Assistant United States Attorney Patrick R. Fitzgerald, Assistant United States Attorneys Melissa Mills of the Terrorism and Export Crimes Section, Joanna M. Curtis of the Violent and Organized Crime Section, and DOJ Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Crimes Section.
Rochester Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Willie Harris, 46, of Rochester, NY, who was convicted of possession of cocaine with intent to distribute and being a felon in possession of ammunition and a firearm, was sentenced to 115 months in prison and six years of supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on June 10, 2014, Harris was arrested at 49 Troup Street in Rochester after agents from the Federal Bureau of Investigation and officers of the Rochester Police Department executed a search warrant in one of the apartments at that address.
Prior to executing the search warrant, Harris spoke with officers and told them he had a short-barreled “rifle” and cocaine inside his apartment. Once inside of the location, officers found four bags of cocaine, as well a digital scale commonly used to measure drugs for distribution, small ziplock bags and approximately $180.00 in United States currency. Officers also located a Mossberg 500 C slide action shotgun, the barrel of which had been sawed-off to a length of 16 and 1/8 inches. Ammunition was also found with the shotgun.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Portuguese National Pleads Not Guilty to Reentering United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded not guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. U.S. Magistrate Judge John M. Conroy ordered that Abelha be held without bail pending trial, which has not been scheduled. Abelha has been detained since his arrest on August 20.
According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.
Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Abelha faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Pennsylvania Man Pleads Guilty to Federal Charge in Confrontation with Law Enforcement Near the White HouseRead the Press Release
Defendant Was Shot After He Refused Repeated Commands to Drop Handgun
Jesse A. Olivieri, 31, of Ashland, Pennsylvania, pleaded guilty today to a federal charge stemming from a confrontation with law enforcement in which he brandished a gun near the White House, announced U.S. Attorney Channing D. Phillips for the District of Columbia and Chief Robert D. MacLean of the U.S. Park Police.
Olivieri pleaded guilty before the U.S. District Judge Royce C. Lamberth for the District of Columbia to resisting or impeding certain officers or employees with a dangerous weapon. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of eight to 14 months in prison and a potential fine of up to $40,000. No sentencing date was set.
According to a statement of offense, signed by the defendant as well as the government, on May 20, Olivieri was seen in a car that was parked on the north side of the 1600 block of Constitution Avenue NW. Moments later, witnesses heard a gunshot and observed Olivieri holding a silver handgun and standing outside his vehicle. He was then seen walking quickly north through the grass toward the south lawn of the White House.
A short time later, U.S. Secret Service Uniform Division Officers observed Olivieri pass through the security gate near the southwest grounds of the White House, in the 1600 block of E Street NW. He was proceeding quickly towards the security gate near E Street and South Place NW, still openly holding a silver handgun in his right hand, pointed toward the ground. Secret Service officers repeatedly ordered him to stop, but he ignored their commands and continued to walk toward the White House. At that point, a Secret Service agent confronted him, again ordering him to halt and drop the weapon. When Olivieri refused, the agent shot him once.
A silver .22-caliber semi-automatic handgun was recovered from Olivieri. It contained one round of ammunition in the chamber and eight rounds in the magazine. In addition, Olivieri’s car was located, and an empty holster, 15 rounds of .22-caliber ammunition and a canister of pepper spray were found by law enforcement inside the vehicle. A spent .22-caliber shell casing was found nearby, in the westbound travel lanes of Constitution Avenue NW.
Today’s plea hearing took place at a hospital in Washington, D.C., where Olivieri continues to receive treatment related to the injuries that he sustained in the incident.
In announcing the plea, U.S. Attorney Phillips and Chief MacLean commended the work of those who handled the case from the U.S. Park Police. They also expressed appreciation for the assistance provided during the investigation by the Secret Service, the FBI’s Washington Field Office and the Metropolitan Police Department. Finally, they acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Crabb Jr., who investigated and prosecuted the matter.
Pennsylvania Man Pleads Guilty to Federal Charge in Confrontation with Law Enforcement Near the White HouseRead the Press Release
WASHINGTON – Jesse A. Olivieri, 31, of Ashland, Pa., pled guilty today to a federal charge stemming from a confrontation with law enforcement in which he brandished a gun near the White House, announced U.S. Attorney Channing D. Phillips and Robert D. MacLean, Chief of the United States Park Police.
Olivieri pled guilty before the Honorable Senior Judge Royce C. Lamberth of the U.S. District Court for the District of Columbia to resisting or impeding certain officers or employees with a dangerous weapon. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of eight to 14 months in prison and a potential fine of up to $40,000. No sentencing date was set.
According to a statement of offense, signed by the defendant as well as the government, on May 20, 2016, at about 3:05 p.m., Olivieri was seen in a car that was parked on the north side of the 1600 block of Constitution Avenue NW. Moments later, witnesses heard a gunshot and observed Olivieri holding a silver handgun and standing outside his vehicle. He was then seen walking quickly north through the grass toward the south lawn of the White House.
A short time later, U.S. Secret Service Uniform Division Officers observed Olivieri pass through the security gate near the southwest grounds of the White House, in the 1600 block of E Street NW. He was proceeding quickly towards the security gate near E Street and South Place NW, still openly holding a silver handgun in his right hand, pointed toward the ground. Secret Service officers repeatedly ordered him to stop, but he ignored their commands and continued to walk toward the White House. At that point, a Secret Service agent confronted him, again ordering him to halt and drop the weapon. When Olivieri refused, the agent shot him once.
A silver .22-caliber semi-automatic handgun was recovered from Olivieri. It contained one round of ammunition in the chamber and eight rounds in the magazine. In addition, Olivieri’s car was located, and an empty holster, 15 rounds of .22-caliber ammunition, and a canister of pepper spray were found by law enforcement inside the vehicle. A spent .22-caliber shell casing was found nearby, in the westbound travel lanes of Constitution Avenue NW.
Today’s plea hearing took place at a hospital in Washington, D.C., where Olivieri continues to receive treatment related to the injuries that he sustained in the incident.
In announcing the plea, U.S. Attorney Phillips and Chief MacLean commended the work of those who handled the case from the U.S. Park Police. They also expressed appreciation for the assistance provided during the investigation by the Secret Service, the FBI’s Washington Field Office, and the Metropolitan Police Department. Finally, they acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Crabb Jr., who investigated and prosecuted the matter.
Pennsylvania Man Charged with Attempting to Entice a Minor into Sexual ActsRead the Press Release
ALBANY, NEW YORK – Eric S. Mann, age 32, of Howard, Pennsylvania, was ordered detained on Friday after being arrested on August 25 for attempting to coerce and entice a minor into sex.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that from May 10, 2016 through August 25, 2016, Mann used various forms of Internet-based communication to entice someone he thought was a 14-year-old boy to meet at a truck stop in Milesburg, Pennsylvania, for a sexual encounter. A Colonie Police Department investigator was posing as the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
Mann was arrested on August 25 in Milesburg and was ordered detained by a Middle District of Pennsylvania Magistrate Judge pending his appearance in Albany. Mann appeared on Friday at a detention hearing in Albany before U.S. Magistrate Judge Christian F. Hummel, who ordered Mann detained pending further proceedings.
If convicted, Mann faces at least 10 years and up to life in prison, as well as a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Parma man convicted of child sex traffickingRead the Press Release
A Parma man was convicted of sexually exploiting a 14-year-old girl, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Richard Purnell, 54, was convicted by a jury of sex trafficking of children. He is scheduled to be sentenced on Dec 13.
“Those who prey on our children, whether selling them or buying them, will be prosecuted to the fullest extent the law allows,” Rendon said. “We are gratified Judge Adams ordered the defendant into custody so he can continue serving what we expect will be an appropriately lengthy prison sentence.”
“Purnell chose to repeatedly victimize a 14-year-old girl for his own sexual gratification without any regard for what is legally or morally acceptable," said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. "His actions are reprehensible and unacceptable. The FBI will continue to work with our law enforcement partners to aggressively pursue and bring to justice those who engage in human trafficking.”
Purnell repeatedly engaged in commercial sex acts with the 14-year-old, whose images were posted on the website backpage.com by Ronnie Pratt, according to court documents and trial testimony.
Pratt has pleaded guilty to sex trafficking charges and is awaiting sentencing.
Purnell continued to engage in commercial sex acts with the girl even after she told him she was only 14 years old, according to trial testimony.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Linda Barr following an investigation by the FBI’s Child Exploitation Task Force. The Child Exploitation Task Force is comprised of the FBI, Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to the successful investigation.
Omaha Woman Sentenced in Health Care Fraud CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on September 2, 2016, United States District Judge John M. Gerrard sentenced Zenia Miller to one year and one day imprisonment, three years of supervised release and ordered her to pay $294,263.00 in restitution following her conviction for health care fraud.
Zenia Miller owned and operated Home Care Services, Inc. which provided Personal Assistance Services to Nebraska Medicaid recipients. Home Care Services, Inc. also had an agreement with the Nebraska Department of Health and Human Services to provide Chore Services to low income recipients.
Between at least February 2012 and September 2014, Miller routinely inflated or caused the inflation of monthly claims submitted to Nebraska Medicaid and DHHS for reimbursement. Hours were added so that each recipient appeared to have received the maximum number of hours of service authorized for them.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of Inspector General and the Nebraska Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s office.
Oldham County Man Sentenced to 30 Years in Prison for Aiding and Abetting the Sex Trafficking of A ChildRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the 30-year sentence, of an Oldham County, Kentucky, man by Chief District Judge Joseph H. McKinley Jr., in United States District Court, for aiding and abetting the sex trafficking of a minor. There is no parole in the federal prison system.
“Howard Chambers subjected this young girl to repeated sexual abuse,” stated U.S. Attorney John Kuhn. “Acting with unfathomable selfishness, he chose to traumatize a child in favor of his own self-gratification. The goal of my office was to obtain the maximum sentence of incarceration that insured Chambers would never touch another child. I do want to thank the law enforcement officers and our prosecutor who worked tirelessly together in the investigation of these crimes. I want the public to know we are doing everything in our power to protect the most vulnerable members of our community.”
Howard Key Chambers, 65, and co-defendant Christopher Kosicki helped each other to carry out the sex trafficking of a child. Chambers, a former youth choir leader at an Oldham County church, admitted to travelling to Kosicki’s home in Louisville, to engage in sexual activity with a 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts. Commercial sex acts include any sex act, on account of which anything of value is given to or received by any person. On several occasions, Chambers gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, Chambers admitted to giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers engaging in sexual activity with the child.
In 2013, Chambers met co-defendant Kosicki via Craigslist.com. The two communicated online and, eventually, Chambers travelled from Oldham County to Louisville to meet Kosicki at Kosicki’s residence. The criminal activity took place at Kosicki’s Louisville home.
Kosicki was sentenced to serve 50 years in prison, followed by a life term of Supervised Release, by Chief District Judge Joseph H. McKinley Jr., on February 1, 2016. Kosicki pleaded guilty to multiple child sexual exploitation charges, including sex trafficking of a child and the production of child pornography involving 10 children, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Kosicki, 27, pleaded guilty in total to 15 charges, in a Superseding Indictment, including sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn provided information that led law enforcement to Kosicki’s residence in Louisville. Shadburn is being prosecuted in the Southern District of Indiana.
In addition to the 30-year sentence, Chambers will be required to serve a ten year period of supervised release and register as a sex offender.
Assistant United States Attorneys Jo E. Lawless and Spencer McKiness prosecuted the case. The Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI) conducted the investigation.
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."
North Carolina Man Indicted for Attempting to Interfere with IRS Employees and Filing False Income Tax ReturnsRead the Press Release
A federal grand jury sitting in Charlotte, North Carolina, returned an indictment on Aug. 16, which was unsealed today, against a Monroe, North Carolina, resident charging him with one count of attempting to interfere with the due administration of the internal revenue laws and five counts of filing a false income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the indictment, between approximately October 2007 through at least September 2011, Billy D. Floyd attempted to obstruct and impede the due administration of the internal revenue laws by filing numerous false Internal Revenue Service (IRS) Forms 1040X, Amended Individual Income Tax Returns, in an attempt to reduce his tax liability to zero. The indictment further alleges that Floyd submitted fictitious “Surety Bonds” to the IRS that falsely purported to satisfy his outstanding tax liabilities. Floyd also attempted to disrupt the public sale of property that the IRS previously seized by attempting to intimidate IRS employees conducting the sale as well as potential buyers. Following the termination of the public sale due to his actions, Floyd also filed a lien against the property in an effort to encumber it and prevent any sale by the IRS.
If convicted, Floyd faces a statutory maximum sentence of three years in prison for each count in the indictment. He also faces a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorney Gregory Bailey of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Minnesota Man Admits to the Murder of Jacob WetterlingRead the Press Release
Danny James Heinrich, 53, of Annandale, Minnesota, pleaded guilty today to federal child pornography charges. As part of his allocution, Heinrich admitted in court that on Oct. 22, 1989, he abducted, sexually assaulted and murdered 11-year-old Jacob Wetterling. Heinrich also admitted that, in January 1989, he abducted and sexually assaulted a 12-year-old.
Investigators recovered Wetterling’s remains on Sept. 2; nearly 27 years after his disappearance from St. Joseph Township, Minnesota.
The announcement was made today by U.S. Attorney Andrew M. Luger for the District of Minnesota, Special Agent in Charge Richard T. Thornton for the FBI’s Minneapolis Division, Stearns County Sheriff John Sanner, Sterns County Attorney Janelle P. Kendall and Superintendent Drew Evans for the Minnesota Bureau of Criminal Apprehension (BCA).
“Danny Heinrich is no longer a person of interest,” said U.S. Attorney Luger. “He is the confessed murderer of Jacob Wetterling and nearly 27 years after he committed this heinous crime, he has been brought to justice. And Jacob is finally home.”
“This outcome is proof of what we can accomplish when law enforcement and prosecutors work together at the federal, state and local level,” said Special Agent in Charge Thornton. “When the FBI proposed a cold case review with the assistance of an expert from the FBI’s Child Abduction Rapid Deployment team two years ago, our partners agreed to this and embraced the opportunity to have a new set of eyes help take a fresh look at the voluminous and complex case file. I am extraordinarily proud of the FBI and of all the law enforcement personnel, past and present who poured their hearts and souls into this investigation, seeking justice for Jacob and answers for everyone.”
“Jacob Wetterling’s abduction in 1989 ended an age of innocence for Central Minnesota and beyond and had a dramatic impact on how parents raised their children,” said Sterns County Sheriff Sanner. “As the investigation wore on and years turned to decades the hope of resolving the case and bringing Jacob home never once faltered. A combination of steadfast determination, science and a unique collaborative effort involving local, state and federal agencies highlighted the value and importance of these relationships. Even though the ending is not what we had hoped and prayed for, Jacob is finally home.”
“From the night he went missing, the BCA never gave up on finding Jacob,” said Superintendent Evans. “For 27 years, BCA agents and our many partner agencies from all over the country doggedly followed every lead and pursued every tip. The BCA team of agents, scientists, and crime scene examiners have been collecting and analyzing evidence throughout the investigation. Last fall, our scientists connected Heinrich through DNA to another assault, which led to his arrest on the charges he faces today and eventually, led our agents and crime scene team to Jacob. While this is not the result we hoped for, Jacob can now finally come home.”
“This event in the history of Minnesota, especially the history of Stearns County, could not have been accomplished without every member of this local, state and national team,” said Stearns County Attorney Kendall. “Despite the complication of this path, this case demonstrates that no case is too hard to solve, no tip too insignificant to consider and no legal obstacle insurmountable in finding answers and accountability for Jacob Wetterling and for everyone near and far who knows his name. We never stopped looking for Jacob; none of us will ever forget the moment we found him. Our condolences and deepest sympathies remain with the Wetterling family.”
According to Heinrich’s guilty plea, on Oct. 22, 1989, he abducted, sexually assaulted and murdered Wetterling.
According to Heinrich’s guilty plea, on Jan. 13, 1989, he abducted and sexually assaulted a 12-year-old boy.
According to Heinrich’s guilty plea, he possessed between 10 and 150 child pornography images, including images of prepubescent minors under the age of 12. The pornographic material portrays sadistic or masochistic conduct and images of morphed child pornography.
The parties have jointly recommended a federal prison sentence of 20 years.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit. Substantial assistance was provided by the Stearns County Attorney’s Office. The Department of Justice Child Exploitation and Obscenity Section also provided assistance.
Mexican National Sentenced to 108 Months in Prison for Trafficking Methamphetamine in Eddy CountyRead the Press Release
ALBUQUERQUE – Israel Mireles-Rivera, 35, a Mexican national unlawfully in the United States and residing in Hagerman, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 108 months in federal prison for his methamphetamine trafficking conviction. Mireles-Rivera will be deported after completing his prison sentence.
Mireles-Rivera and co-defendant Ediberto Guzman, 63, of Carlsbad, N.M., were arrested in Jan. 2014, on a three-count indictment charging them with methamphetamine trafficking and firearms offenses. Count 1 of the indictment charged the two men with conspiracy to distribute methamphetamine from Feb. 2013 through Oct. 2013 in Eddy and Chaves Counties, N.M. Counts 2 and 3 charged Mireles-Rivera with possession of methamphetamine with intent to distribute and being an alien illegally in possession of a firearm.
According to the indictment, between Feb. 2013 and Oct. 2013, Mireles-Rivera provided methamphetamine to Guzman on multiple occasions, and Guzman sold the methamphetamine to others, including a person who was working with law enforcement officers. It also alleged that on Oct. 17, 2013, Mireles-Rivera had more than 180 grams of methamphetamine hidden in a vehicle outside his residence and a smaller amount of methamphetamine inside his residence.
On Jan. 16, 2015, Mireles-Rivera pled guilty to a two-count felony information charging him with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. In entering his guilty plea, Mireles-Rivera admitted that between Feb. 2013 and Oct. 2013, he was involved in a methamphetamine distribution conspiracy. During this period, Mireles-Rivera supplied methamphetamine to an individual who sold the drugs to others. Mireles-Rivera also admitted that subsequent to his arrest, law enforcement officers seized approximately eight ounces of methamphetamine when they searched his house and vehicle.
Co-defendant Guzman pled guilty to the conspiracy count of the indictment on April 25, 2014. He was sentenced on June 26, 2014, to 48 months in federal prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA, the HIDTA Region VI Pecos Valley Drug Task Force and the Carlsbad Police Department. This case was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’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.
Melrose Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jeremy Lillie, age 32, of Melrose, New York, pled guilty today to distribution, receipt and possession of child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Lillie faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on January 4, 2017 by Senior U.S. District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Lillie will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Maryland Woman Pleads Guilty to Federal Charge in Embezzlement Scheme Against Her EmployerRead the Press Release
WASHINGTON – Stacey Walters, 38, a former accountant at Howard University, pled guilty today to a federal charge of wire fraud stemming from a scheme in which she embezzled over $105,000 from her employer, U.S. Attorney Channing D. Phillips announced.
Walters, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled sentencing for Nov. 15, 2016.
According to the government’s evidence, Walters was hired at Howard University in July 2010. Her responsibilities included preparing financial reports and performing general accounting and budget functions. She was terminated from the job in October 2011.
From December 2010 through May of 2011, according to the government’s evidence, Walters submitted a total of 13 forms authorizing payment from her employer to various vendors. However, she fraudulently listed the banking information for her own account on one of the forms, causing $9,388 to be transferred to her own account. In addition, Walters listed banking information for another individual, Shantel Brown, on 12 other forms, causing $96,398 to be transferred to Brown’s account. At the direction of Walters, Brown transferred half of the funds she had fraudulently received from Howard University to Walters.
Brown, 34, of Waldorf, Md., pled guilty on Feb. 22, 2016 to one count of conspiracy to commit wire fraud and one count of wire fraud. She is to be sentenced on Nov. 1, 2016, also by Judge Boasberg. In her guilty plea, Brown admitted taking part in the fraud against Howard University. She also admitted to carrying out a separate scheme from November 2011 through March 2013 in which she stole $79,874 from her employer, Defenders of Wildlife; Brown worked for the non-profit organization as a payroll/compliance specialist at the time.
As part of their pleas, both defendants must pay restitution.
In announcing the pleas, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD), as well as Criminal Investigator Stephen Cohen of the U.S. Attorney’s Office. He also expressed appreciation for the assistance provided by Assistant U.S. Attorney Thomas Swanton, Criminal Investigator Juan Juarez, and Paralegal Specialists Jessica Mundi and Christopher Toms, all of the U.S. Attorney’s Office. Finally, he acknowledged the work of Assistant U.S. Attorney Teresa A. Howie, who is prosecuting both cases.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Sentenced to 15 Years in PrisonRead the Press Release
FARGO – Matthew Gust, 26, was sentenced today to 15 years in prison for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
Gust admitted in his guilty plea that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40-ounce beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused more than $250,000 in damages.
Gust pleaded guilty on May 19 to an arson charge and a hate-crime charge. He was charged with those two counts by information on March 20. He had earlier been indicted by a grand jury for using a destructive device in the commission of a crime; that charge was dismissed as part of his plea agreement.
“This sentence sends a clear message to those who attempt to divide our community by sowing violence and fear,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to vigorously prosecute perpetrators of hate violence.”
“This case exemplifies the strong partnership between local, state and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate,” said U.S. Attorney Myers. “The sentence handed down by the court today sends a strong message to all members of our community that such conduct will not be tolerated and that our collective response will be swift and certain.”
“The FBI remains steadfast in its commitment to investigating and apprehending those who commit crimes of violence aimed at others because of nationality, ethnicity or religious beliefs,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. “The FBI will continue working with its law enforcement partners to enforce these types of violations wherever they occur.”
“There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated,” said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. “ATF will continue to diligently investigate these crimes to ensure that all of our residents feel safe and welcomed.”
This case was investigated by Grand Forks Police Department, the FBI and the ATF. The case was prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.