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Tuesday 6 September 2016
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Sentenced to 15 Years in PrisonRead the Press Release
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 James 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.
Man Sentenced in Manhattan Federal Court to 46 Months in Prison in Connection with $1.5 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that WILLIAM J. WELLS was sentenced today in Manhattan federal court to 46 months in prison for securities and wire fraud charges stemming from his scheme to defraud more than 30 investors, including friends, colleagues, and family, of more than $1.5 million through a Ponzi-like scheme, over the course of nearly six years until his arrest in October 2015. WELLS was arrested on October 1, 2015, and pled guilty on March 18, 2016, before United States Magistrate Judge Henry B. Pitman. Today’s sentencing was presided over by United States District Judge Kimba M. Wood.
U.S. Attorney Preet Bharara said: “William Wells repeatedly lied to his investors, falsely claiming positive returns when his trading was in fact calamitous. Buttressing his lies with fake account statements, he used investor money to pay personal expenses and to pay back other investors. For depriving his clients of their money – and sometimes their life savings – Wells has been sentenced to a substantial term in prison.”
Among other false and misleading statements, WELLS lied to prospective and existing investors by representing, including in fictitious account statements prepared by WELLS, that he had achieved consistently positive trading returns. In fact, WELLS’s trading was remarkably unsuccessful and he realized trading losses every year from 2009 until his arrest in October 2015. Of the money WELLS did not lose in securities trading, WELLS routinely converted investor funds to his own use to pay personal expenses and used new investor funds to pay back other investors in a Ponzi-like fashion.
Many of WELLS’s victims, several of whom submitted letters to the Court or spoke today at WELLS’s sentencing, lost their life savings to WELLS’s scheme, including money saved for retirement, medical bills, tuition, or wedding costs, or to purchase a family home.
According to the Complaint, the Indictment, and statements made in open court, including at the sentencing proceeding today:
From September 2009 through the present, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a fraudulent scheme to obtain investments by falsely representing that he had achieved consistently positive trading returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’s trading was remarkably unsuccessful. Between 2009 and the present, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’s trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. Of the money he did not lose in securities trading, WELLS routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’s automobile, and for private school tuition. In addition, to hide his trading losses and continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors in a Ponzi-like fashion. In total, WELLS distributed less than approximately $500,000 back to investors.
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In addition to the 46-month prison sentence, WELLS, 43, formerly of Manhattan and New Jersey, now living in Valley Cottage, New York, was sentenced to three years of supervised release. The Court further ordered WELLS to forfeit the proceeds of the scheme and to pay restitution in an amount to be determined.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for their assistance with the investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Louisville Attorney Sentenced to 48 Months in Federal Prison for Money Laundering Scheme and Defrauding Estates of More Than $1.6 MillionRead the Press Release
Ordered to pay $1,602,327.14 to multiple victims including $268,459.06 to St. Mary’s Church and $245,993.67 to WHAS Crusade for Children
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced today that David Cary Ford, 54, of Louisville, Kentucky, was sentenced to 48 months in federal prison following his conviction on criminal counts of wire fraud and money laundering, stemming from Ford’s actions while he was a practicing attorney and the executor of seven estates in Louisville.
“Attorneys are professionally and ethically bound to serve their clients’ best interests,” stated U.S. Attorney John Kuhn. “We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships.”
Ford previously pled guilty to charges alleging that from November 6, 2008, through February 11, 2015, Ford, while serving as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz, defrauded those estates of approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity.
Ford also pled guilty to laundering proceeds of his fraud by using funds belonging to one estate to conceal the depletion of funds from another estate. In pleading guilty, Ford admitted using his escrow account for this purpose with the intent to promote the carrying on of his fraud and to conceal or disguise the nature of the proceeds of his fraud.
As part of his sentence, Ford was ordered to pay over $1.6 million in restitution to 21 different victims who would have received that amount, according to bequests in the wills written by the individuals whose estates were defrauded, if not for Ford’s fraud. Those victims and the restitution they are owed include $245,993.67 that would have gone to the WHAS Crusade For Children and $5,598.59 for the Little Sisters of the Poor.
The restitution order also includes several Catholic religious organizations. Local victims included St. Mary’s Church ($268,459.06), St. Francis of Assisi Church ($44,743.18), Holy Family Catholic Church ($2,799.30), Our Mother of Sorrows Catholic Church ($2,799.30) and the Archdiocese of Louisville ($89,486.35).
Other victims included the Passionist Community ($245,993.67), the Passionist Nuns ($245,993.67), the National Shrine of St. Elizabeth Ann Seton ($134,229.53), the Franciscan Sisters of Allegany, Inc. ($134,229.53), the Catholic Foreign Mission Society of America, Inc. ($44,743.18), the Sisters of Charity of St. Joseph’s ($44,743.18), the Nazareth Literary and Benevolent Institution, Inc. ($44,743.18).
In addition, restitution was ordered for seven individuals, named only by their initials in court documents, who would have received bequests from the wills at issue if not for Ford's fraud.
The case was prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Lewis County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - Michael Prisner, Ewing, Missouri, was sentenced to 42 months in prison on charges involving his possession of child pornography between April and June 2015.
Prisner pled guilty in June to two felony counts of possession of child pornography. He appeared today in St. Louis for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, the Kirksville ICAC (Internet Crimes Against Children), Kirksville Police Department and the Lewis County Sheriff's Office. Assistant United States Attorney Coleen Lang handled the case for the U.S. Attorney's Office.
Lee County Postal Employee Charged with Delay or Destruction of MailRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Angelica M. Morman (28, Fort Myers) with delay or destruction of mail. If convicted, she faces a maximum penalty of five years in federal prison.
According to the indictment, on August 13, 2016, Morman, an employee of the United States Postal Service, knowingly destroyed, detained, and delayed approximately 418 pieces of standard and first class mail.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Service, Office of Inspector General. It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
Lawrence Man Sentenced for Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. - A Lawrence man was sentenced Tuesday to 70 months in federal prison for distributing child pornography, Acting U.S. Attorney Tom Beall said.
Tyler Padden, 35, Lawrence, Kan., pleaded guilty to one count of distributing child pornography. At sentencing, prosecutors said Padden had four computers containing 2,000 images and 800 videos of child pornography. He installed seven file sharing programs on his computer, allowing him to search for child porn and allowing other users to download images from his collection of child pornography.
The investigation began when a detective with the Overland Park Police Department used the Internet to download child pornography from Padden’s computer.
Beall commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Kentucky Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – A member of a conspiracy that distributed methamphetamine in and around Virginia and Kentucky, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Curtis Howerton, a.k.a “Bo,” 28, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and to distribute methamphetamine. Today in District Court, Howerton was sentenced to 57 months in federal prison.
“Methamphetamine is an addictive and deadly substance,” United States Attorney Fishwick said today. “We are proud to work with our partners on the local, state and federal levels to continue to fight to the scourge of methamphetamine trafficking throughout the region.”
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesboro, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Kentucky Man Pleads Guilty to Defrauding Federal and State Housing ProgramsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Erick Bradshaw, Sr., age 41, of Kentucky, pled guilty Thursday, September 1, 2016, in federal court in Greenville, to conspiracy to defraud federal and state housing programs, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Fresh Start Community Development Corporation (FSCDC) was created by Bradshaw as a non-profit organization that worked on repairing homes through grants from the South Carolina State Housing Finance Development Authority (“SC Housing”) and the Federal Home Loan Bank of Atlanta (“FHLBank Atlanta”). Bradshaw was the executive director of FSCDC.
Bradshaw sought grant monies from FHLBank Atlanta and SC Housing for the rehabilitation of low-income homes. He forged the signature of contractors on FHLBank Atlanta Funding Certifications and SC Housing Certifications of Payment. He also submitted certifications to FHLBank Atlanta and Draw Request for Payments to SC Housing that had inflated costs compared to the invoices of the contractors who actually performed the work. Often some work described as completed on the certifications such as handicap ramps on front porches were never completed though it was represented in documentation that the work was complete.
Agents interviewed Bradshaw and he admitted that FSCDC did not do what it was supposed to do. Contrary to program rules, Bradshaw negotiated with the contractors who were working on the houses for lower prices than were reported to the agencies. For example if SC Housing funded a roof repair for $5,000 based on documents submitted by FSCDC, and Bradshaw was able to negotiate with the contractor for $3,000, then FSCDC would keep the $2,000 difference. Bradshaw did this for some of the FHLBank funded properties, too.
The loss suffered by the programs is approximately $282,000.
According to Special Agent in Charge Tim Mowery of the Federal Housing Finance Agency, Office of the Inspector General, “The Affordable Housing Program funded by the Federal Home Loan Banks is meant to help the most vulnerable in society with their housing needs. When someone takes advantage of the program to profit for their own benefit, we will make sure they are brought to justice.”
Ms. Drake stated the maximum penalty Bradshaw can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Internal Revenue Service, United States Postal Inspection Service, and the Inspector General’s Office of the Federal Housing Finance Agency. Assistant United States Attorney Bill Watkins handled the case.
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Kanawha County felon caught by homeowner during break-in pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man who violated his federal supervised release by breaking into a house and stealing a pistol pleaded guilty today to a gun charge, announced United States Attorney Carol Casto. Travis Lee Hudnall, 31, entered his guilty plea to being a felon in possession of a firearm.
Hudnall admitted that on June 7, 2016, he broke into a residence in Hansford and stole a computer tablet and a loaded .40 caliber Smith & Wesson Model SW40C pistol. Hudnall additionally admitted that he stole a chainsaw from the surrounding property. As Hudnall was leaving the residence, the homeowner arrived and confronted Hudnall. Following a struggle, the homeowner detained Hudnall on the ground until law enforcement arrived. Hudnall was prohibited under federal law from possessing any firearm because of two previous felony convictions, one in Kanawha County Circuit Court for daytime entering without breaking and another in the United States District Court for the Southern District of West Virginia for being a felon in possession of a firearm.
Hudnall faces up to 10 years in federal prison on the gun charge, as well as up to an additional two years for violating his federal supervised release, when he is sentenced on November 21, 2016.
The investigation was conducted by the Kanawha County Sheriff’s Office, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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KC Tax Preparer Pleads Guilty to Fraudulent ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., tax preparer pleaded guilty in federal court today to aiding in the preparation of 51 fraudulent income tax returns.
Harry George, Jr., 36, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to assisting in the preparation and filing of false and fraudulent tax returns.
George was the owner of Xpress Tax KC, LLC, an income tax preparation business located at 905 Prospect Ave., Kansas City, Mo.
By pleading guilty today, George admitted that he prepared 51 false federal income tax returns seeking fraudulent refunds by including false filing status, false education credits, false American opportunity credits, false Schedule A’s, false earned income credits, false additional child tax credits, false retirement savings contributions credits, and/or false dependents. These fraudulent returns resulted in a tax loss of $116,946.
Under federal statutes, George is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Justice Department Statement on the Decision to Close Investigation of ABI’s Acquisition of Devils Backbone in Light of Distribution Relief Obtained in ABI/SABMiller SettlementRead the Press Release
Department Will Continue to Carefully Monitor ABI’s Compliance with Distribution Obligations and Competitive Effects of ABI’s Craft Acquisitions
Deputy Assistant Attorney General Juan Arteaga of the Justice Department’s Antitrust Division released the following statement today on the division’s decision to close its investigation into Anheuser-Busch InBev’s (ABI) acquisition of Virginia-based craft brewer, Devils Backbone.
“Over the past 30 years, the American beer industry has experienced a renaissance that has resulted in the most diverse, innovative and dynamic brewing culture in the world. This revival of the U.S. beer industry – an industry in which millions of Americans spend over $100 billion per year – is largely due to the hard work and growth of craft and other high-end brewers, which have provided consumers with a large number of new and high quality beer options.
“In addition to enhancing the diversity and quality of beer sold in the U.S., high-end brewers have served as an important constraint on the ability of large brewers – such as ABI and MillerCoors – to raise the prices on their premium beers. High-end beers such as craft beers constrain the ability of ABI and MillerCoors to continue to raise the prices on their beers because consumers are increasingly willing to trade-up from premium to high-end beers if the prices for premium brands come too close to the prices of high-end brands.
“In recent years, the division has successfully fought to preserve the competitive role that high-end brewers play in the U.S. beer industry. In 2013, for example, the division sued to challenge ABI’s acquisition of Mexican brewer Grupo Modelo, which resulted in the companies’ agreeing to divest Grupo Modelo’s entire U.S. business – including the rights to sell popular beer brands such as Corona and Pacifico in the U.S. – to an independent competitor. Since this divesture, these popular beer brands have continued to grow and vigorously compete for the hard earned dollars of consumers.
“Earlier this year, the division approved ABI’s acquisition of SABMiller only after ABI agreed to divest SABMiller’s entire U.S. business – including SABMiller’s ownership interest in MillerCoors – and to cease business practices and programs that restrict the ability and incentive of independent beer distributors to sell and promote the beers of ABI’s rivals. The division insisted on ABI’s agreement to distribution-related relief because craft and other brewers cannot grow in scale and effectively compete in the U.S. beer industry without meaningful access to efficient beer distribution networks, such as the network that distributes ABI beer.
“After careful consideration, the division has determined that, in light of the distribution relief secured in the ABI/SABMiller settlement, the competitive implications of ABI’s acquisition of Devils Backbone are too uncertain at this time to warrant further investigation. However, the division will be carefully monitoring ABI’s compliance with its distribution obligations under this settlement. The division will also carefully scrutinize any future craft acquisitions by ABI. The ABI/SABMiller settlement provides the division the opportunity to review certain of ABI’s future craft acquisitions – including acquisitions that may fall below the Hart-Scott-Rodino Act’s reporting thresholds.
“In reviewing any such future acquisitions, the division will consider whether these transactions, either singularly or collectively, are likely to harm competition by, among other things, giving ABI the ability to prevent its craft rivals from effectively getting their products to the market or the ability to increase high-end beer prices which, in turn, would enhance ABI’s ability to raise prices in the premium and sub-premium beer segments. If the division sees evidence that ABI may be circumventing its distribution obligations or has used multiple craft acquisitions to impair competition, it will consider all its enforcement options – including re-opening its investigation of ABI’s acquisition of Devils Backbone – and all appropriate relief.”
INTERPOL Washington Joins TwitterRead the Press Release
On Tuesday, September 6th, INTERPOL Washington officially joined the world of social media. The launch of the official USNCB Twitter account at https://twitter.com/INTERPOL_USA marks a new phase in expanding our communications tools. We encourage you to "follow us" to stay up to date with the latest INTERPOL Washington news.
Huntington man sentenced to nearly seven years in prison for federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with heroin was sentenced today to six years and eight months in federal prison, announced United States Attorney Carol Casto. James Lennon Pace, 27, previously pleaded guilty to possession with intent to distribute heroin.
On June 26, 2015, an officer with the Huntington Police Department observed Pace walking along the 1400 block of 10th Avenue in Huntington. Officers had been looking for Pace because he was a suspect in an unrelated crime. When approached by law enforcement, Pace gave the officer a false name and repeatedly placed his hands in his pockets. Officers detained Pace and discovered approximately 39 grams of heroin in Pace’s pocket. Pace admitted that he intended to distribute the heroin.
On September 22, 2015, agents with the Huntington FBI Drug Task Force executed a search warrant at 1201 Charleston Avenue in Huntington after observing Pace leave the residence. During the search, agents seized over 360 grams of heroin, some of which was mixed with fentanyl – an opiate painkiller roughly 40 to 50 times more powerful than pure heroin. Agents also seized firearms, over $4,000 in cash, a press used to prepare heroin, and other drug paraphernalia.
The Huntington Police Department and Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Houston Man Sentenced for Crosby Bank RobberyRead the Press Release
HOUSTON – A 32-year-old Houston man has been ordered to federal prison following his convictions for aggravated bank robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Kenneth Magidson. Dominic Renard Lindsey pleaded guilty March 23, 2016.
Today, U.S. District Court Judge David Hittner sentenced Lindsey to 51 months for the aggravated bank robbery which will be served consecutively to another seven years for the firearms charge. The total 135-month-term will be immediately followed by five years of supervised release.
Lindsey robbed the BBVA Compass Bank at 6011 FM 2100 Road in Crosby on May 18, 2016. He was armed and demanded money from the teller. He also pointed the weapon at customers and employees, forcing them to the ground. As he fled the bank, a witness followed him and saw him place two black duffle bags inside the jeep he was driving. After confronting him, the witness then saw him remove the bags and go into a foliage-laden area nearby.
Lindsey was driving a CenterPoint Energy (CPE) vehicle and told authorities he had a work order and was in the area checking a gas line. He was confirmed as a contractor for CPE, but the supervisor stated he did not have a work order for that area and that there was no gas line there nor any reason Lindsey should be there.
The clothing worn during the robbery and stolen money was found not far from Lindsey’s vehicle in the foliage where Lindsay was seen.
Authorities also discovered an unloaded .357 revolver, similar in color and style to the gun used during the bank robbery.
Lindsey has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Harrisburg Man Sentenced to 43 Months for Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, age 34, of Harrisburg, was sentenced to 43 months in federal prison for possession with intent to distribute heroin by Senior U.S. District Court Judge William W. Caldwell in Harrisburg.
According to United States Attorney Peter Smith, the sentence follows a two- day jury trial in January 2016. The charges were the result of an initial investigation by Harrisburg Bureau of Police in December 2014 in which Powell was found in possession of a loaded firearm and nine bundles of heroin in Harrisburg. The jury acquitted Powell of a related firearms charge. The nine bundles contained 90 bags or 90 individual doses of heroin.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is 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.
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Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Sebastian Castro-Mejia, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Castro-Mejia was identified after being arrested in Conway, New Hampshire for Driving Under the Influence of Alcohol on June 7, 2016. A Deportation Officer later determined that he was a citizen of Guatemala who previously had been deported from the United States. Castro-Mejia, who was arrested on June 7, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Silverio Lopez-Gutierrez, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Lopez-Gutierrez was identified during a traffic stop in Rochester, New Hampshire on May 22, 2016. A Deportation Officer later determined that he was a citizen of Guatemala who previously had been deported from the United States. Lopez-Gutierrez, who was arrested on May 22, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Guatemalan Man Sentenced for Illegal Re-EntryRead 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 Fredy Otoniel Lopez Martinez, 30, of Guatemala, who was convicted of illegal reentry into the United States, was sentenced to time-served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on July 7, 2016, U.S. Customs & Border Protection agents encountered the defendant at the Lewiston Bridge Port of Entry. Martinez was a passenger in a vehicle traveling to Michigan for an art show. The vehicle’s GPS directed the driver of the vehicle from Western New York through Canada. After Canadian officials did not allow the vehicle to enter Canada, border agents conducted immigration electronic systems record queries, which revealed that the defendant had a criminal record in the United States and that he had been previously deported on May 21, 2009, pursuant to an order by a U.S. Immigration Judge. Martinez admitted to an agent that he illegally entered the United States in December 2010 along the U.S.-Mexican border.The sentencing is the result of an investigation by U.S. Customs & Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
Former Trucking Company Owner Sentenced for Federal Tax EvasionRead the Press Release
TOPEKA, KAN. – The former owner of a trucking company in Kansas City, Kan., was sentenced Tuesday to 33 months in federal prison for evading federal income taxes, Acting U.S. Attorney Tom Beall said. He was ordered to pay $939,408 in restitution.
Clifford C. Copp, 47, Overland Park, Kan., who owned Copp Trucking Co. in Kansas City, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he filed reports to the Internal Revenue Service in 2001 indicating the company owed approximately $939,408 in employment taxes for that year. However, the company did not pay the employment taxes due.
In February 2004 Copp was assessed trust fund recovery penalties of $669,037. When the IRS began collection efforts he concealed income. He filed a false statement to the IRS concealing his ownership interest in assets including livestock, life insurance and farm equipment. He also formed Wildcat Limo, LLC, and concealed his ownership interest in the company.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Police Officer Pleads Guilty to Federal Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former 17 year veteran police officer with the Fairview Township Police Department pled guilty today to federal charges stemming from the theft of seized money that was evidence in two separate drug cases.
According to United States Attorney Peter Smith, Tyson Baker, age 42, Etters, York County, pled guilty to two counts of theft of federal funds before U.S. District Court Judge Sylvia H. Rambo in Harrisburg. No date has been set for sentencing.
As the government stated as part of the record at the guilty plea hearing, the Federal Bureau of Investigation in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. At the time another officer with the Fairview Township Police Department cooperating with the FBI recorded conversations with Baker regarding the theft in which Baker discussed how the officer should steal drug proceeds from drug traffickers during traffic stops.
On December 16, 2015 the FBI, with the full cooperation of the Fairview Township Police Department, arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015 Baker was arrested by the FBI and confessed to both incidents.
United States Attorney Smith pointed out that Fairview Township Police initiated the complaint concerning Baker’s actions and that the Police Department cooperated fully with the FBI and state law enforcement in the investigation. “Law enforcement professionals recognize that a corrupt police officer is a danger to the community as well as fellow officers and that corruption only aids other law breakers. We appreciate and thank the Fairview Township Police who exposed and helped removed Baker from his position of authority.”
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 combined maximum penalty under federal law is 20 years. There is also a term of supervised release following imprisonment, and a $500,000 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.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department.
The case is being prosecuted by Assistant United States Attorneys William A. Behe and Michael Consiglio.
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Former Orange County Detective Guilty in HUD Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 47-year-old former Orange County Sheriff’s Detective has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chad Wayne Hogan, of Orange, Texas, pleaded guilty to an Information charging him with money laundering today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, from March 2009 to August 2015, Hogan deposited approximately 4,302 checks written on bank accounts held by Beverly Place Apartments, Cedarwood Apartments, and Villa Main Apartments, all in the Port Arthur/Groves, Texas area. Hogan deposited the checks in an account he had sole control over after receiving them from Shalana Murphy, the property manager at Beverly Place apartments. After depositing the checks, Hogan would give Murphy a portion of the checks in cash and keep a portion for himself. The checks were actually payable to tenants of the three apartment complexes and were written under the Housing and Urban Development’s (HUD) utility assistance program. The utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at the three apartment complexes were not aware they were receiving these benefits. On-site managers at the complexes, including Shalana Murphy, engaged in a scheme to sign tenants up for HUD utility assistance benefits, and then take the checks for themselves. While Hogan was not involved directly with the scheme to defraud HUD, he deposited the fraudulently obtained checks an account he controlled and provided Murphy with cash, keeping a portion of the proceeds for himself. Hogan was aware the checks he was depositing represented the proceeds of unlawful activity. The United States is also seeking a monetary judgment of $187,706, from Hogan as this was his portion of the scheme.
Under federal statutes, Hogan faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Buffalo State Graduate Student Pleads Guilty to Transmitting Threatening CommunicationsRead 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 Benjamin Bolton, 32, of Glendale, Colorado, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to transmitting interstate communications containing threats to injure the person of another. The charge carries a maximum of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant was admitted into Buffalo State College as a graduate student for the Fall 2013 semester. In April 2014, Bolton was suspended as a result of incidents at the school, including disputes with faculty members. Between June 2015 and August 5, 2015, the defendant made numerous telephone calls to faculty and staff personnel employed at Buffalo State, and to officers of the Buffalo State University Police Department. During many of these telephone calls, Bolton threatened to assault police officers, faculty, and staff members whom he identified by name.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Buffalo State University Police Department, under the direction of Chief Peter Carey.
Sentencing is scheduled for December 19, 2016 before Judge Vilardo.
Former Assistant Superintendent and Vendor Sentenced on Bribery ChargesRead the Press Release
A former Detroit Public Schools (DPS) vendor and former Assistant Superintendent of Specialized Student Services were sentenced today for their roles in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Norman Shy, 74, of Franklin received a sentence of 60 months and Clara Flowers, 61, of Detroit received a sentence of 36 months. Both were sentenced before U.S. District Judge Victoria Roberts. Both pleaded guilty in May to charges of conspiracy to defraud the United States and tax evasion.
According to court records, Shy, the owner of Allstate Sales, a DPS vendor of school supplies, conspired with 13 school officials to submit fraudulent invoices, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks to the school officials, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2014.
DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received.
In return for selecting Shy as a vendor and approving fraudulent invoices, Flowers accepted bribes and kickbacks in various forms, including prepaid gift cards and checks payable directly to her travel agency business and contractors who performed work on her home. In total, Shy paid Flower’s approximately $324,785.
The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy received approximately $2.7 million from DPS based on payments for fraudulent invoices.
“We hope that these sentences will deter anyone who thinks that they can take advantage of a large public institution like the Detroit Public Schools,” McQuade said. “We will hold accountable anyone who steals funds intended for our school children. If there is a message here, it is that someone is watching, you will get caught and you will go to prison.”
“Today’s sentencing should serve as a impactful reminder that the FBI will not stand by idly when those in the field of education violate the public’s trust for their own personal gain. The misapplication of already scarce public funds is not only illegal, but an insult to those dedicated educators working every day to make a better future for our children” said David P. Gelios, Special Agent in Charge, FBI Detroit Division
Final Defendant Sentenced to 5 Years in Prison for Vallejo-Based Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Marcus Cooper, 33, of Vallejo, was sentenced today by United States District Judge John A. Mendez to five years and five months in prison for submission of false claims to the Internal Revenue Service, aggravated identity theft, and possession of stolen mail, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Cooper and his co-defendants, Leticia Roque and Tiana Naples, conspired to submit a total of at least 60 false tax returns to the Internal Revenue Service in early 2012, requesting more than $200,000 in fraudulent tax refunds in other peoples’ names. The defendants obtained more than $102,000 in tax refund checks that were mailed to their address in Vallejo. When law enforcement agents searched the residence, a substantial volume of stolen United States mail was found in the house.
On February 9, 2016, Roque was sentenced by Judge Mendez to serve two years and six months in prison for her role in the conspiracy to submit false claims and aggravated identity theft.
On July 19, 2016, Naples was sentenced by Judge Mendez to serve 10 months of home detention for her role in the conspiracy to submit false claims.
This case was the product of an investigation by the United States Postal Inspection Service and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Executive Director of Coachella Valley Surgery Center Named in New Indictment that Adds Charges in $50 Million Health Care Fraud SchemeRead the Press Release
SANTA ANA, California – A Rancho Mirage woman who was the executive director of a cosmetic surgery center has been named in a superseding indictment that adds new fraud and identity theft charges to a case in which she is accused of participating in a scheme that billed insurance companies $50 million for cosmetic surgeries that were falsely claimed to be “medically necessary.”
Linda Morrow, 64, was named in a 31-count superseding indictment that was returned on August 31 by a federal grand jury. Morrow and her husband, who pleaded guilty earlier this year, were initially charged a year ago with participating in a scheme to defraud health insurance companies by submitting bills for more than $50 million for procedures that were claimed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations, and vaginal rejuvenation.
The superseding indictment adds nine new charges against Morrow – three new mail fraud charges, three counts of identity theft and three counts of aggravated identity theft charges. The new indictment expands on forfeiture allegations in the original indictment that would require Morrow, if she is convicted, to forfeit all of the ill-gotten gains obtained from the scheme, a figure that may exceed $20 million.
The superseding indictment outlines a scheme in which patients were lured to The Morrow Institute (TMI) in Rancho Mirage, where Morrow was the executive director, with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. TMI allegedly submitted bills to insurance companies seeking as much as $100,000 for individual surgeries, and as much as $700,000 for multiple surgeries. The indictment further alleges that some patients who underwent multiple surgeries at TMI suffered severe medical complications from the procedures.
“As part of the scheme charged in this indictment, the defendant allegedly used the names and signatures of patients without their knowledge to obtain payments for procedures that were not covered by insurance,” said United States Attorney Eileen M. Decker. “Health care fraud schemes that defraud insurance companies in this manner victimize both the insurers and the insured who are forced to pay higher premiums. This case seeks both to punish the defendants and to deprive them of their illegal profits."
In March, Morrow’s husband – Dr. David M. Morrow, 71, of Rancho Mirage, a cosmetic surgeon and dermatologist who was the owner of TMI – pleaded guilty to conspiracy to commit mail fraud and filing a false tax return. Dr. Morrow agreed to pay more than $1 million in restitution to victims. When he pleaded guilty, Dr. Morrow admitted that he had altered a medical record by handwriting “hernias” over the original text in the document, which had correctly listed the cosmetic procedure of “abdominoplasty” (tummy tuck).
To obtain reimbursement for cosmetic procedures, the doctors at TMI completely fabricated diagnoses – such as a “hernia” – in the patients’ official medical records, according to the indictment. The doctors also allegedly fabricated test results and symptoms on medical records to cover up the actual medical procedures being performed. For example, “tummy tucks” were fraudulently billed as hernia repair or abdominal reconstruction surgeries, rhinoplasties (“nose jobs”) were fraudulently billed as deviated septum repair surgeries, and breast lifts and augmentations were fraudulently billed as “tuberous breast deformity.”
The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP) and Cigna.
“The FBI devotes many resources to hold health care fraud cheats responsible, as demonstrated in the charges against Linda Morrow, regardless of whether they are doctors, business partners or marketers,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Linda Morrow’s crimes not only victimized insurance companies, but the public entities that ultimately had to foot the bill to pay the outrageous billings, which include the California Highway Patrol and multiple public school districts.”
When insurance companies refused to pay for the cosmetic procedures for patients who happened to be employed by public entities such as school districts, TMI made formal claims against those public entities, demanding payments totaling more than $15 million from the California Highway Patrol, the Desert Sands Unified School District, the Palm Springs Unified School District and the City of Palm Springs.
The superseding indictment further alleges that after the FBI executed a federal search warrant at TMI in March 2011, Morrow went to the home of a TMI employee and asked whether the employee had been “the mole” who had reported TMI to the FBI.
“We are relentless in our pursuit to uncover, investigate, and prosecute those who rip-off of the healthcare system, leaving California consumers to foot the bill through higher premiums,” said Insurance Commissioner Dave Jones. “I congratulate Department of Insurance detectives who worked this case since it began and partnered with the FBI and insurers to uncover Doctor Morrow’s multi-million dollar crimes and his wife Linda’s alleged role.”
Morrow is scheduled to be arraigned on the superseding indictment in United States District Court in Santa Ana on September 12. United States District Judge Josephine L. Staton previously ordered Morrow to stand trial on January 24, 2017.
An indictment contains allegations that a defendant has committed a crime. A defendant is presumed to be innocent until and unless proven guilty in court.
The superseding indictment charges Morrow with 24 mail fraud counts, including conspiracy to commit mail fraud. Each of those 24 charges carries a statutory maximum penalty of 20 years in federal prison.
Morrow is additionally charged with three identity theft charges, each of which carry a statutory maximum penalty of 15 years in prison. She is also charges with three counts of aggravated identity theft, which carry a mandatory two-year prison term that must run consecutive to any other sentence imposed in the case.
Count 31 in the superseding indictment is another new count that charges Morrow with misprision of a felony for allegedly failing to report the health care fraud scheme to authorities. This charge carries a statutory maximum penalty of three years in prison.
Dr. Morrow is scheduled to be sentenced by Judge Staton on December 2, at which time he will face a statutory maximum sentence of 23 years in federal prison.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation and the California Department of Insurance.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office.
El Paso Man Facing Federal Charge for Using Interstate Communications to Threaten Las Cruces Police OfficersRead the Press Release
ALBUQUERQUE – Sean Stinson, 32, of El Paso, Texas, made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with using interstate communications to threaten the lives and safety of Las Cruces Police Department (LCPD) officers. Stinson remains in custody pending a preliminary hearing and a detention hearing, which have not yet been scheduled.
Stinson was arrested on Sept. 2, 2016, for allegedly making telephone calls from El Paso to individuals in Las Cruces during which he threatened the lives of LCPD officers. According to the criminal complaint, Stinson allegedly had several telephone calls, some of which were recorded, with LCPD officers during which Stinson allegedly threatened to shoot, kill and otherwise injure specific officers. It also alleges that, during one call, Stinson threatened to station himself at the LCPD with a sniper rifle and shoot officers as they left the police department. The complaint further alleges that Stinson also made telephone calls to the Governor’s Office during which he reiterated his threats to harm LCPD officers.
If convicted of the charges in the criminal complaint, Stinson faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the LCPD. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Ecuadorian Couple Sentenced to Federal Prison in Connection with an Alien Smuggling ConspiracyRead the Press Release
In El Paso today, a federal judge sentenced an Ecuadorian couple to federal prison for their roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
United States District Judge Kathleen Cardone sentenced 40–year-old Paul Esteban Estrella Villota of Cuenca, Ecuador, and his 42-year-old wife Magaly Alemania Malagon Sandoya, to six years and five years in federal prison, respectively. Judge Cardone also ordered both defendants to pay a $5,000 special assessment and be placed on supervised release for a period of three years following the completion of their prison terms. Judge Cardone also ordered that Estrella pay a $2,500 fine. Earlier this year, both defendants pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain resulting in bodily injury. Estrella and Malagon have remained in federal custody since being arrested in Orlando, FL, on August 12, 2015.
The investigation into this smuggling organization began on November 4, 2013, after HSI El Paso special agents encountered two male juveniles in a suspected stash house. According to court documents, agents learned that Estrella and Malagon were the ring leaders of an alien smuggling organization that smuggled the juveniles into the United States.
The investigated revealed that on November 22, 2012, 25-year-old co-defendant Diana Marcial smuggled a two-year-old El Salvadoran child through the Bridge of the Americas (BOTA) Port of Entry (POE) as an identity imposter. Marcial used her own child's birth certificate to facilitate the smuggling. When that two-year-old’s mother, Wendy Heredia-Mejia, was herself arrested attempting to enter through the BOTA POE as an identity imposter, Heredia-Mejia identified Marcial as the individual who had crossed with her son. Marcial was contacted by HSI agents and returned the two-year-old child to law enforcement agents.
As a result of the above, Diana Marcial was convicted of making a false statement to authorities about the legal status of the child she brought into the United States. She was sentenced to one year probation and six months home confinement.
On November 6, 2013, 35-year-old Zandra Liduvina Llivichuzhca Murillo, the mother of one of the juveniles discovered by HSI El Paso agents two days prior, was arrested at Paso Del Norte (PDN) POE after she tried to enter the United States as a document imposter. The entry document she presented at the border was valid, but was in the name of another person. Arnulfo Delgado Salas, a 46-year-old co-defendant, was the driver of the vehicle carrying Llivichuzhca into the United States at the PDN POE. Salas, who was later arrested, was scheduled to plead guilty in May 2016 to one count of making a false statement, but absconded prior to his re-arraignment hearing. Salas is considered a fugitive.
Court records show that the man who arranged for Llivichuzhca and her child to be smuggled into the United States was a man she met in Ecuador. The man, whom she knew as “Paul,” charged her $15,000 each to smuggle her and her child. She paid him $6,000 up front. The woman positively identified Estrella as the man to whom she paid the smuggling fee. On March 28, 2014, Llivichuzhca was sentenced to timed served (just over 5 months incarceration) after pleading guilty to one count of false impersonation in an immigration matter.
On November 16, 2014, United States Customs and Border Protection’s (CBP) Office of Border Patrol (OBP) agents encountered another national of Ecuador near Mount Cristo Rey in Sunland Park, NM. During an interview with HSI special agents, that individual identified Estrella and Malagon as the smugglers with whom he entered into a smuggling agreement to bring his daughter into the United States. Court records show he agreed to pay them $14,000.
On March 16, 2014, Border Patrol agents arrested another national of Ecuador near Clint, TX, after she illegally entered into the United States. Court records allege she told HSI special agents that a woman by the name of “Magi” arranged her smuggling travels from Ecuador to the United States, even though an Ecuadorian smuggler named “Paul” originally was to bring her to the United States. Furthermore, the young girl’s father told HSI special agents on February 25, 2015, that he made arrangements to pay $14,500 to a smuggler he knew only as “Magi” to smuggle his daughter from Ecuador through Mexico into the United States. While in Ciudad Juarez, Mexico, the young lady was kept in stash house by Estrella and Malagon’s co-conspirators. At that stash house, these co-conspirators repeatedly raped her before dropping her off in Mexico immediately south of Clint, TX.
Waldemar Rodriguez, special agent in charge of HSI El Paso, credited the team effort of other Department of Homeland Security (DHS) agencies locally and abroad that participated in the investigation. “HSI will not relent against human smugglers who treat people like a mere commodity,” said Rodriguez. “This case should resonate loud and clear: HSI special agents and our law enforcement partners will work tirelessly to identify, arrest and prosecute those responsible for the illegal movement of people into and through our country.”
Assistant United States Attorney Ian Hanna prosecuted this case on behalf of the Government.
Eagle Pass Brothers Sentenced to Federal Prison for Cocaine DistributionRead the Press Release
In Del Rio this afternoon, a federal judge sentenced two brothers, owners and operators of the Real Street Paint and Body Shop in Eagle Pass, to federal prison for distributing approximately six kilograms of cocaine in the Eagle Pass area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
United States District Judge Alia Moses handed down a 216-month-federal-prison sentence to 37–year-old Xavier Cardona. Judge Moses handed down the same prison sentence to his 33-year-old brother, Michael Cardona. In addition to the prison terms, Judge Moses ordered that the defendants pay a $372,320 money judgment and be placed on supervised release for a period of five years after completing their prison terms.
On October 23, 2015, jurors found the defendants of conspiracy to possess with intent to distribute over 500 grams of cocaine. They also found Michael Cardona guilty of possession with intent to distribute less than 500 grams of cocaine.
Evidence presented in trial revealed that from January 2009 until April 2014, the Cardonas used Real Street Paint and Body Shop and Michael’s residence to sell cocaine and launder drug proceeds. The Cardona brothers used the proceeds from their cocaine distribution to fuel their lifestyle of custom built modified cars that they showed at various car shows in Texas and to buy and remodel homes. During recorded phone calls played at trial, Michael Cardona stated that he provided cocaine to other dealers already packaged and cut so that it would move more quickly. Testimony and evidence showed that the Cardonas also employed firearms in their drug trafficking business. A search of the residences of both brothers resulted in the seizure of $162,795 in currency, approximately 160 packages of cocaine ready for distribution and five weapons.
Both defendants have remained in federal custody since their arrests on April 23, 2014.
The case resulted from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. Assistant United States Attorneys Ralph Paradiso, Lewis Thomas and Diana Cruz-Zapata prosecuted this case on behalf of the Government.
Delaware County Physician to Pay $100,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Prescribing Controlled SubstancesRead the Press Release
TULSA, Okla.—A Jay, Oklahoma, physician, Dr. Darrell R. Mease, entered into a settlement agreement to pay $100,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. The Comprehensive Drug Abuse Prevention Act of 1970, regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, from September 2010 to September 2015, Dr. Mease would pre-sign prescription pads and allowed his employees and his wife to prescribe phentermine and other controlled substances for patients without conducting a medical examination. Furthermore, Dr. Mease prescribed controlled substances for his wife who was not his patient.
If you are aware of any illegal prescription drug sales and distribution, contact the Drug Enforcement Administration at 1-877-792-2873.
This case was handled by Assistant United States Attorney Marianne Hardcastle. The claims asserted by the government are allegations only, and there has not been any determination of liability.
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Danny Heinrich Admits to Murder of Jacob WetterlingRead the Press Release
DANNY JAMES HEINRICH, 53, pleaded guilty today to federal child pornography charges. As part of his allocution, HEINRICH admitted in court that on October 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 12-year-old J.S.
Investigators recovered Jacob Wetterling’s remains on Friday, September 2, 2016; 26 years, 10 months, and 11 days after his disappearance from St. Joseph Township, Minn.
The announcement was made today by United States Attorney Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, Stearns County Sheriff John Sanner, Stearns County Attorney Janelle P. Kendall and Minnesota Bureau of Criminal Apprehension (BCA) Superintendent Drew Evans.
“Danny Heinrich is no longer a person of interest,” said U.S. Attorney Andrew 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 FBI Special Agent in Charge for the Minneapolis Division Richard T. 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 Stearns County Sheriff John 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 BCA Superintendent Drew 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 Janelle 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 October 22, 1989, he abducted, sexually assaulted, and murdered Jacob Wetterling.
According to HEINRICH’s guilty plea, on January 13, 1989, he abducted and sexually assaulted J.S., 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 United States 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.
Defendant Information:
DANNY JAMES HEINRICH, 53
Annandale, Minn.
Convicted:
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Receipt of child pornography, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Dallas Tax Preparer Pleads GuiltyRead the Press Release
DALLAS — Curtis Demond Johnson, who operated an income tax preparation business in Dallas, appeared in federal court this morning before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, from approximately 2010 to 2014, Johnson operated Inworks Tax Services, located in Galleria Tower Three on Noel Road in Dallas.
From at least 2011 through 2013, according to the factual resume, Johnson willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), tax returns that were materially false. Johnson routinely falsified or inflated or one more business deductions on Schedule C to create a business loss that offset legitimate wage income. This produced an inflated refund to the client and a corresponding tax loss to the U.S. His scheme also promoted additional clients and earned fees for Johnson. In fact, during this time, according to the factual resume, income tax returns prepared and filed by Johnson that contained false and fraudulent Schedule Cs resulted in an estimated tax loss to the U.S. of $480,859.
Sentencing is set for December 22, 2016, before U.S. District Judge Jane J. Boyle. Johnson faces a statutory maximum penalty of three years in federal prison and a $250,000 fine. He may also be ordered to pay restitution.
IRS Criminal Investigation is investigating the case. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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Counterfeiter Pleads GuiltyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man who lived in his travel trailer pleaded guilty in federal court today to a counterfeiting scheme that victimized businesses across the United States.
Stuart E. Thurber, 55, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing electronic images for the purpose of counterfeiting.
Thurber was arrested on April 5, 2016, by Mountain View, Mo., police officers for passing counterfeit $100 bills. When officers searched his truck and travel trailer in the Wal-Mart parking lot, they found three laptop computers, two hard drives and two printers. Thurber admitted that these items were used to print counterfeit $100 bills.
Thurber also acknowledged in today’s plea agreement that the government could establish by a preponderance of the evidence that he engaged in counterfeiting from January 2014 to June 2016. Thurber, who lived in his Dodge Dakota pick-up and travel trailer, engaged in a counterfeiting operation whereby he “washed” the ink off of genuine bills and used his computer and color printer to create counterfeit $100 bills, which he then passed to unsuspecting businesses throughout the United States.
Thurber manufactured and passed at least 93 counterfeit $100 bills in the Western District of Missouri. Among the victims of Thurber’s criminal activity was Dollar General and Wal-Mart in Mountain View, Southern Supply in Springfield, Mo., and Dollar General in West Plains, Mo. Under the terms of today’s plea agreement, Thurber must pay $800 in restitution to both Dollar General (in Mountain View) and Southern Supply; he must $400 in restitution to both Dollar General (in West Plains) and Wal-Mart.
At the time of his arrest, Thurber attempted to avoid detection and punishment by claiming to be a citizen of New Zealand and presenting a counterfeit New Zealand identification card in the name David Turnbull.
Under federal statutes, Thurber is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service, the Mountain View, Mo., Police Department, the Ozark, Mo., Police Department and the West Plains, Mo., Police Department.
Convicted Felon Sentenced to 6 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Brandon Dale Hayes, 31, of Central Falls, was sentenced today to 72 months in federal prison for being a felon in possession of a firearm. Hayes was arrested by Rhode Island State Police on July 12, 2015, after troopers discovered a loaded semi-automatic firearm Hayes had stashed under the front seat of a vehicle during a routine traffic stop.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Hayes to serve 3 years supervised release upon completion of his prison term. Hayes pleaded guilty on June 6, 2016, to being a felon in possession of a firearm, as charged in a federal indictment returned on October 14, 2015. No plea agreement was filed in this matter.
Hayes’ sentence is announced by United States Attorney Peter F. Neronha and Rhode Island State Police Superintendent Colonel Steven G. O’Donnell.
According to information presented to the court, on July 12, 2015, a State Police trooper stopped a vehicle in which Hayes was a rear-seat passenger. The vehicle, which carried five individuals, was stopped along Route 95 in Warwick after the trooper observed several motor vehicle violations. After approaching the vehicle, the State Police trooper detected an odor of marijuana. Upon questioning, Hayes admitted to the trooper that he was in possession of a small amount of marijuana.
After removing Hayes and the rest of the individuals from the vehicle, the trooper discovered a loaded 9mm semi-automatic handgun under the passenger front seat and several items in the trunk of the vehilce used in the distribution of marijuana. Hayes later admitted to State Police that the firearm and the items located in the trunk of the vehicle belonged to him. The investigation determined that Hayes had removed the loaded 9mm semi-automatic handgun from his waistband during the traffic stop and stowed it under the front passenger seat.
Hayes has been detained since his arrest. According to court records, Hayes was previously convicted on felony assault, drug and firearm charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Columbus man sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Columbus man who was caught in a stolen car with heroin was sentenced today to a year and nine months in federal prison, announced United States Attorney Carol Casto. Jharel Daivon Kirkland, 27, previously pleaded guilty to possession with intent to distribute heroin.
On January 27, 2016, officers with the Huntington Police Department’s Special Emphasis Unit were conducting surveillance at a known drug residence in Huntington when they observed Kirkland enter the residence. Officers learned that the vehicle Kirkland was driving had been stolen in Columbus, and law enforcement conducted a traffic stop when Kirkland left the residence. Kirkland was arrested for possession of a stolen vehicle. During a search of Kirkland after his arrest, an officer located approximately 30 grams of heroin Kirkland had concealed in his underwear. Kirkland admitted that he intended to distribute the heroin.
The Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Columbus Man Sentenced for Role in “Craigslist” RobberiesRead the Press Release
COLUMBUS, Ohio – Raphael D. Person Jr., 31, of Columbus, was sentenced in U.S. District Court today to a total of 506 months in prison and ordered to pay a total of $23,900 in restitution for his role in a conspiracy to rob two people who had posted vehicles for sale on Craigslist. Person helped plan the robberies and fired a gun during each one.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Middletown Police Chief Rodney Muterspaw, and Columbus Police Chief Kim Jacobs announced the sentence handed down by Senior U.S. District Judge James L. Graham.
A jury convicted Person on October 30, 2015 following a four-day trial of one count of conspiracy, two counts of armed robbery and two counts of discharging a firearm in connection with the robberies. One robbery occurred in Columbus in December 2011. The second one happened in Middletown, Ohio in February 2012.
The government presented evidence and witnesses testified that Person and three others arranged to meet people who had posted cars for sale, bought the cars, then robbed the victims of the money after the purchases were finished. Witnesses testified that Person suggested that the conspirators rob the victims following the sales and that Person was the one who discharged a gun in both robberies.
“During the trial, victims testified that they were afraid for their lives during the robberies,” Acting U.S. Attorney Glassman said. “A lengthy prison term helps bring justice to the victims, and that’s the outcome we received in this case.”
A grand jury indicted Person and co-defendant Mickey L. Velazquez, 31 of Columbus on September 26, 2013 on the five crimes. Velazquez pleaded guilty on January 6, 2015 and was sentenced on June 12, 2015 to 360 months in prison. Two other Columbus men, Ricardo Valazquez-Flores, 25 and Jonathan Flores Oquendo, 24, pleaded guilty to the same crimes prior to the indictment. Valazquez-Flores was sentenced on May 24, 2013 to 204 months in prison, and Oquendo was sentenced on January 3, 2104 to 336 months in prison.
Person must serve more than 42 years in prison in this case consecutive to another prison sentence of 41 years to life imposed in Franklin County, Ohio, where he was convicted of committing murder during a May 2012 home invasion.
Person was arrested by Dooly County Sheriff’s deputies near Vienna, Georgia on September 21, 2013. He has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys David J. Bosley and Timothy D. Prichard, who represented the United States in this case.
Cleveland dentist sentenced to year in prison, ordered to pay $344,000 for healthcare fraudRead the Press Release
A Cleveland dentist was sentenced to a year in prison and ordered to pay nearly $344,000 in restitution for fraudulently billing Medicaid for more work that not authorized or never done, said Carole S. Rendon, law enforcement officials said.
Robert Rouzaud, 60, was previously found guilty of healthcare fraud.
He operated Five Points Dental Centre on East 152nd Street. Rouzaud submitted claims on behalf of Medicaid recipients for services that were not pre-authorized, as required, and/or not provided. This took place between 2009 and 2015, according to court documents.
For example, Rouzaud billed for an excessive number of fillings on the same teeth, when he had not done fillings, filed claims for fillings on teeth that had been previously extracted, and submitted claims for fillings on patients who had dentures, according to court documents.
Rouzaud submitted false claims totaling $407,982 for services he did not provide between 2009 and 2015. He was paid nearly $344,000 for these services, according to court documents.
“This dentist’s fraudulent actions were egregious, and he deserves to go to prison for stealing from taxpayers,” U.S. Attorney Carole S. Rendon said.
“Robert Rouzaud stole money from a federal health care program intended to assist the most vulnerable in our society, the disabled and the poor, and today he paid the price for those actions,” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Region. “HHS/OIG and our law enforcement partners will work tirelessly root out those providers who steal from the Medicaid program.”
This case was prosecuted by Assistant U.S. Attorney Michael Collyer following an investigation by the FBI, the Department of Health and Human Services -- Office of Inspector General and the Ohio Attorney General's Office.
Cedar Rapids Woman Pleads Guilty to Identity Theft, Stealing from the Government, and Lying to Receive Housing AssistanceRead the Press Release
A woman who unlawfully used another person’s identity to file a fraudulent tax return and steal money from the government pled guilty last week in federal court in Cedar Rapids. She also pled guilty to lying to a government agency in order to receive housing assistance benefits.
Kaeisha Robinson, 39, from Cedar Rapids, Iowa, was convicted of one count of aggravated identity theft, one count of theft of government property, and one count of making false statements to a government agency.
In a plea agreement, Robinson admitted that from May 2011 to February 2013, she filed numerous false and fraudulent tax returns. She further admitted that she filed these returns in both her own name and the names of others, some of whom were unaware that she was using their identities to file fraudulent returns. Robinson also admitted that as a result of these fraudulent returns, she received refunds from the Internal Revenue Service and stole money from the government. Finally, Robinson admitted that from October 2011 through July 2013, she lied on forms she completed in order to receive Section 8 housing assistance by failing to report all of her income. This resulted in Robinson’s receipt of assistance to which she would not have been entitled had she been truthful.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Special Agent in Charge Karl Stiften. “Stealing identities and filing false tax returns is a crime that hurts innocent taxpayers. We are serious about holding those accountable who attempt to defraud the government.”
“This office will continue to work with the IRS to vigorously prosecute those who steal innocent people’s identities in order to file a false tax return and steal money,” said United States Attorney Kevin W. Techau. “These crimes cause harm to the person whose identity is stolen and harm to the U.S. taxpayer. Those who commit such crimes need to be held accountable.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Robinson remains in custody of the United States Marshal. Robinson faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of seventeen years’ imprisonment, a $750,000 fine, $300 in special assessments, and seven years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service-Criminal Investigation, United States Postal Service-Criminal Investigation, and the Department of Housing and Urban Development Office of the Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-0071.
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California Resident Sentenced to 52 Months in Federal Prison for Defrauding Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHDI MOAREFIAN, also known as “Michael Miller,” 37, of Irvine, California, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for participating in an extensive mortgage loan modification scheme. MOAREFIAN also was ordered to pay restitution in the amount of $2,390,496.59.
According to court documents and statements made in court, Aria Maleki, MOAREFIAN and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Maleki presided over the entire structure of this scheme, and MOAREFIAN was a senior member of the sales team. Acting as representatives of the above-named entities, MOAREFIAN and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
The investigation revealed that the top tier of salesmen, including MOAREFIAN, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, MOAREFIAN and five other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On February 17, 2016, MOAREFIAN pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Maleki pleaded guilty to the same charge and, on July 18, 2016, was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
This matter has been investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
California Man Pleads Guilty in 2013 Shooting Spree at Los Angeles International Airport and Admits to First-Degree Murder of Transportation Security Administration OfficerRead the Press Release
A Sun Valley, California, man pleaded guilty today to charges related to a 2013 shooting at Los Angeles International Airport (LAX) in which he murdered a Transportation Security Administration (TSA) officer.
Attorney General Loretta E. Lynch, Secretary Jeh Johnson of the Department of Homeland Security, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.
Paul Anthony Ciancia, 26, 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, before U.S. District Judge Philip S. Gutierrez of the Central District of California.
“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.”
“Our Transportation Security Officers put their lives on the line each and every day to keep the flying public safe,” said Secretary 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 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 U.S. 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.”
“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 Assistant Director in Charge 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, in early 2013, Ciancia purchased a semiautomatic rifle, 500 rounds of ammunition and 10 magazines for the rifle. On the morning of Nov. 1, 2013, Ciancia modified two pieces of luggage and zip-tied them together to conceal his loaded rifle inside.
Ciancia admitted that later that morning, he entered LAX Terminal Three, removed the loaded rifle from his modified luggage and fired at and killed TSA Officer Gerardo Hernandez while he was checking passengers’ travel documents. 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 as a civilian, Brian Ludmer, he admitted, all of whom sustained serious injuries and required surgery but survived the attack. 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.
The Los Angeles Joint Terrorism Task Force (JTTF) investigated the case. The JTTF is led by the FBI and includes agents and officers from 45 other local, state and federal agencies.
The Los Angeles Airport Police; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; TSA; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach, California, Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the U.S. Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the U.S. Marshals Service; the U.S. Postal Inspection Service; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided substantial assistance in the investigation.
First Assistant U.S. Attorney Patrick R. Fitzgerald of the Central District of California, Assistant U.S. Attorney Melissa Mills of the Central District of California’s Terrorism and Export Crimes Section, Assistant U.S. Attorney Joanna M. Curtis of the Central District of California’s Violent and Organized Crime Section and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Crimes Section prosecuted the case.
Brentwood Woman Convicted of Criminal Contempt for Violating Court-Ordered Asset FreezeRead the Press Release
Kennan Dozier, 58, of Brentwood, Tenn., pleaded guilty on September 2, 2016, to criminal contempt of court, for violating a Temporary Restraining Order issued by the U.S. District Court, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Judge Todd J. Campbell, Dozier admitted her role in violating a Temporary Restraining Order issued by the U.S. District Court for the Middle District of Tennessee in connection with a lawsuit brought by the Federal Trade Commission (“FTC”) and the State of Tennessee in 2010.
The FTC lawsuit included allegations that United Benefits of America, LLC, a company controlled by Dozier’s then-husband, Timothy Thomas, made material misrepresentations during telemarketing calls to consumers seeking health insurance. On August 4, 2010, the U.S. District Court issued a Temporary Restraining Order with Asset Freeze (“Asset Freeze”), which found that there was good cause to believe that the defendants of the lawsuit had engaged in acts that violated certain federal and state laws, and that immediate and irreparable harm could result if certain assets were disposed of. The Asset Freeze specifically prohibited Dozier and Thomas from transferring or disposing of certain funds.
Dozier admitted that, after being served with a copy of the Asset Freeze, she and Thomas approached a mutual friend regarding the fact that their assets had been frozen. This friend was asked to deposit certain checks into her own bank account, and to allow Thomas to use the funds from those checks. Subsequently, this friend deposited several checks into her bank account, including a check payable to Dozier for approximately $129,000, which was derived from United Benefits sales commissions. In addition, Dozier admitted cashing a check for approximately $7,800 after the Asset Freeze had been issued and served.
Dozier is scheduled to be sentenced by Judge Campbell on January 6, 2017.Timothy Thomas, 54 of Franklin, Tenn., was charged in the same indictment as Dozier, and faces charges of mail fraud, wire fraud, money laundering, and criminal contempt. He is scheduled for trial on November 22, 2016. An indictment is merely an accusation and is not evidence of guilt, and Thomas is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the U.S. Department of Labor, Employee Benefits Security Administration. The case is being prosecuted by Assistant U.S. Attorneys William F. Abely and Cecil W. VanDevender.
Benton City Man Sentenced to 30 Years in Federal Prison for Sex TraffickingRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced Roberto L. Llerenas, Jr., age 36, of Benton City, Washington, was sentenced today to 30 years in federal prison as a result of his convictions on four counts of trafficking two children under 18 for commercial sex.
On June 30, 2016, the defendant was found guilty by jury trial on two counts of Sex Trafficking of Children or Sex Trafficking by Force, Fraud or Coercion and two counts of Financially Benefiting from Sex Trafficking by Force, Fraud, or Coercion, all involving two victims.
Today, Senior United States District Judge Edward F. Shea, who presided over the trial, sentenced Llerenas to a total of 30 years in federal prison for each count of conviction, with the sentences to run concurrently. Judge Shea further ordered that Llerenas must spend the rest of his life on supervised release and must register as a sex offender.
Llerenas prostituted two fifteen-year-old girls between June 1, 2013 and July 13, 2013, in and around migrant worker camps, in the Pasco, Washington and Wenatchee, Washington areas. Llerenas had a pattern wherein he would bring the girls to a migrant worker camp, take cash from a migrant worker, hand the customer a condom, and whichever girl the customer chose would be made to have sex with the customer, typically on the concrete floor of a communal shower room.
Llerenas prostituted the girls against their will using force, threats, and coercion, all the while keeping the proceeds from the prostitution for himself. Both victims testified at trial about how Llerenas used manipulation, coercion, threats, and sometimes violence to cause them to engage in prostitution and to prevent them from reporting the offenses to authorities.
During the lengthy sentencing hearing that began on August 31, 2016 and concluded today, Senior Judge Shea recounted the basis for the jury’s four guilty verdicts against Llerenas and noted that the victims’ testimony, as well as the testimony of other witnesses, was thoroughly convincing. Judge Shea stated the Defendant “carried out a heartless plot to prostitute [the two victims] . . . so that he would benefit financially.” Judge Shea also found that Llerenas willfully obstructed justice when he offered “patently false” testimony on “all points of this case” and when Llerenas accused the victims of fabricating the charges against him. Judge Shea described Llerenas as “cunning” and stated that Llerenas’ testimony was flatly contradicted by the government’s witnesses and other evidence.
During the sentencing hearing, the two victims and members of the victims’ families were also able to address the Court and Llerenas, recounting the effect of Llerenas’ crimes and the need for a lengthy sentence. One victim noted the offense made her feel lost and like she had no control. She explained that she still is able to “remember it all so well.” The other victim explained she had to numb her feelings and set aside her emotions to get through the trafficking, but that she still holds in a lot of pain.
Michael C. Ormsby said “I commend the victims for their incredible courage in coming forward and testifying at great length in this case. The damage Llerenas caused the two victims for his own selfish benefit is immeasurable. The sentence handed down today reflects the seriousness of the defendant’s conduct. Federal, state, and local authorities will continue to investigate allegations of child exploitation and our office will continue to zealously prosecute those who sexually exploit minors and other vulnerable members of our society.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Benton County Sheriff’s Office. The case was prosecuted by Alison L. Gregoire and James A. Goeke, Assistant U.S. Attorneys for the Eastern District of Washington, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Anderson man charged in tax fraud schemeRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today that an Anderson man has been charged with theft of public money. Dwayne S. Peak, 64, Anderson, Indiana, is alleged to be involved in a scheme where identity theft victims had tax returns prepared under their name and the refund was deposited into Peak’s account.
“Defrauding the IRS takes money from the United States Treasury and ultimately is stealing from the American public,” said Minkler. “Those who choose this illegal activity will be held accountable.”
Peak profited from the receipts of 21 fraudulent tax refunds from the years 2012, 2013 and 2014, totaling over $238,000. The government alleges Peak set up several bank accounts in order to receive the fraudulent refunds which are believed to have been prepared by unknown individuals. Three of the accounts had been opened just weeks prior to Peak receiving the illegal refunds. Peak is alleged to have received the refunds and kept a percentage for himself then forwarded the remaining balance of the money to others.
The victims in this case are the Internal Revenue Service and several individuals whose identities were illegally used to file false tax returns in order to steal funds. One identity theft victim told investigators that they were not involved in the filing of a federal return that resulted in a refund and signed an affidavit documenting the incident with the IRS.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation.
“Identity theft and refund fraud are top priorities for IRS Criminal Investigation,” said IRS Criminal Investigation Acting Special Agent in Charge John C. Pesnichak. “We are vigilant in our investigations of these schemes and will continue to work with the United States Attorney Office and our federal partners to protect the American people and the United States Treasury.”
Assistant United States Attorney James M. Warden who is prosecuting the case for the government, said Peak could receive 10 years in prison and a $250,000 fine if convicted.
An Information is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Albuquerque Man Pleads Guilty to Unlawful Possession of Firearm and Robberies of Albuquerque-Area Convenience StoresRead the Press Release
ALBUQUERQUE – Oscar Anchondo, 39, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of a firearm and violating the Hobbs Act by robbing two Albuquerque-area convenience stores at gunpoint.
Anchondo’s guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Tom Romero of the Bernalillo Police Department, Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), and Chief Michael Geier of the Rio Rancho Police Department.
Anchondo was arrested in Oct. 2015, on a criminal complaint alleging that Anchondo unlawfully possessed a firearm and ammunition on Oct. 6, 2015, in Sandoval County, N.M. According to the criminal complaint, on Oct. 6, 2015, a resident of the Town of Bernalillo called the Bernalillo Police Department to report a stolen vehicle. The victim reported that Anchondo stole the vehicle after threatening to kill her, and that Anchondo was armed when he made the threat. Officers responded to the call and located the vehicle parked in the driveway of another residence in Bernalillo. In response to an inquiry from the officers, an occupant of the residence said that Anchondo was in the residence.
Anchondo was subsequently indicted on the same charge on Dec. 17, 2015. According to court records, on Oct. 6, 2015, Anchondo was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in state court: armed robbery with a deadly weapon, attempted robbery with a deadly weapon, and being a felon in possession of a firearm.
During today’s proceedings, Anchondo entered a guilty plea to the indictment charging him with being a felon in possession of a firearm and to a felony information charging him with two counts of violating the Hobbs Act. In entering the guilty plea, Anchondo admitted the following criminal conduct:
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On Sept. 29, 2015, Anchondo entered the Giant convenience store located at 6100 San Mateo Blvd. NE in Albuquerque, threatened the store employees with a firearm, demanded money, and robbed the employee of cash.
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On Sept. 29, 2015, Anchondo entered the 7-Eleven convenience store located at 1801 San Pedro Dr. NE in Albuquerque, threatened the store employees with a firearm, demanded money, and robbed the employee of cash.
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On Oct. 6, 2015, Anchondo was in possession of a firearm during a standoff with police who were attempting to arrest him for the offense charged in the criminal complaint, and that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the ATF office in Albuquerque and the Bernalillo Police Department with assistance from the Albuquerque Police Department and the Rio Rancho Police Department. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
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Alamogordo Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Robert Alan Rutledge, 34, of Alamogordo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking crime charges. Under the terms of his plea agreement, Rutledge will be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Rutledge was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Rutledge was arrested on an indictment charging him and seven co-conspirators with conspiracy to distribute methamphetamine in Otero County, N.M., between April 9, 2015 and Oct. 16, 2015, and other drug trafficking offenses. During today’s proceedings, Rutledge entered a guilty plea to participating in a methamphetamine trafficking conspiracy and possessing methamphetamine with intent to distribute. In his plea agreement, Rutledge admitted that in Aug. and Sept. 2015, he obtained more than 50 grams but less than 200 grams of methamphetamine from a co-defendant, which he sold to other individuals. Rutledge further admitted that on Aug. 29, 2015, he sold 18 grams of methamphetamine to another individual. A sentencing hearing has yet to be scheduled.
Rutledge is the 13th of the 18 federal defendants to enter a guilty plea. The remaining five federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
$372,584 in Edward Byrne Memorial Justice Grant Funds AwardedRead the Press Release
United States Attorney G.F. Peterman, III announced eight agencies in the Middle District of Georgia received Department of Justice grant funds totaling $372,584.
The Edward Byrne Memorial Justice Assistance Grant Program (JAG) allows states and local governments to support a broad range of activities to prevent and control crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology programs; 7) crime victim and witness program (other than compensation).
The 2016 JAG award recipients in the Middle District of Georgia are as follows:
Baldwin County $17,567
Macon-Bibb County $87,417
City of Warner Robins $31,639
City of Valdosta$16,850
City of Albany $69,820
Columbus Consolidated Government $93,124
Athens-Clarke County Unified Government $37,046
City of Americus $19,121
Questions should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Monday 5 September 2016
Governor Mapp’s Security Officer Detained Pending Trial for Possession of over 21 Kilos of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI -- Neal A. Chesterfield, 37, of St. Thomas, was arrested Saturday and charged with possession of approximately 21½ kilograms of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. At his initial appearance and detention hearing today in District Court, U.S. Magistrate Judge Ruth Miller remanded Chesterfield to the custody of the United States Marshals Service pending trial.
According to the complaint and affidavit filed with the court, on Saturday at the Cyril E. King Airport on St. Thomas, a U.S. Customs and Border Protection (CBP) K-9 alerted to the presence of narcotics in Chesterfield’s carry-on luggage while he was waiting in the Spirit Airlines gate area. Chesterfield, who is a security officer for Governor Kenneth Mapp, used his law enforcement credentials to bypass TSA screening, and was about to board Spirit flight 212 to
Fort Lauderdale. Upon inspection of Chesterfield’s luggage, CBP officers discovered 18 plasticwrapped packages, the contents of which tested positive for the presence of cocaine, weighing 21.44 kilograms. CBP officers also discovered $26,025.00 in U.S. Currency inside a small computer bag in Chesterfield’s possession.If convicted, Chesterfield faces a minimum sentence of not less than 10 years in prison, and a fine of up to $10 million.
This case is being investigated by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Delia Smith.
Friday 2 September 2016
United States District Court Affirms Piedmont Woman’s Conviction and Sentence for Collecting Signatures on United States Postal Service PropertyRead the Press Release
United States Attorney Randolph J. Seiler announces that the United States District Court has affirmed the federal conviction and sentence of Roberta Helmerick. Helmerick was convicted in federal district court in Rapid City of Collecting Signatures on United States Post Office Property, after being warned repeatedly by postal personnel and the Rapid City Police that her signature collecting violated federal regulations. The magistrate judge who heard the case imposed a $200 fine after convicting Helmerick.
During the trial, the magistrate judge heard that Helmerick was advised repeatedly that collecting signatures on a petition on post office property was a violation of federal regulations. Despite numerous requests from postal personnel and officers with the Rapid City Police Department to move her signature collection activities to sidewalks around the post office, Helmerick continued collecting signatures, even after other members of the group she belonged to had moved to the sidewalks.
In her appeal, Helmerick argued the Postal regulations were not posted sufficiently to provide notice of their requirements. In a published opinion, the district court affirmed the magistrate judge’s verdict in all respects, concluding Helmerick had received actual notice of the regulations.
Assistant U.S. Attorney Eric Kelderman prosecuted the case at trial and handled the appeal for the government. The investigation was conducted by the United States Postal Inspection Service and the Rapid City Police Department.
U.S. Attorney’s Office to Host Conference on Large-Scale Incidents Focusing on the San Bernardino Terror Attack and Victim-Centered ResponseRead the Press Release
LOS ANGELES – The United States Attorney’s Office is hosting a conference next week that will bring together first responders and experts who will provide their insights on last year’s terrorist attack in San Bernardino and important lessons learned that can be applied to other large-scale incidents.
Importantly, the conference on Tuesday, September 6, will feature discussions on better serving the victim population after a large-scale event. The San Bernardino terror attacks of December 2, 2015 will be the primary case study.
During the conference, experts will provide an overview of the initial response to the San Bernardino attacks, lessons learned from the coordinated response by first responders, the variety of issues that the victims will face, the need for victim-support teams, and how the victim-support teams can be most effective in their unique roles.
“While we hope to never again experience an event like the San Bernardino attack, there are important lessons we can learn and share about responding to such attacks. These lessons can be applied to a variety of incidents that we may face in this district and will help us be more prepared for large-scale events in the future,” said United States Attorney Eileen M. Decker. “The speakers at our conference will highlight the best practices for responding to large-scale incidents, with an important focus on providing services to victims. The victim-oriented presentations will focus on everything from providing the initial medical care to information about court proceedings. Our goal is to increase our ability to provide the maximum available assistance to the victims of such an incident, both during the incident and over the longer term. The victims of such incidents deserve nothing less.”
Speakers at the event will include United States Attorney Eileen M. Decker; San Bernardino Assistant Chief of Police Eric McBride; Dr. Michael Neeki, Chief of Emergency Services at Arrowhead Medical Center and members of the FBI’s Victim Services team who responded to the incident in San Bernardino. The event will be on Tuesday, September 6, at the California Endowment Center, 1000 North Alameda Street in downtown Los Angeles. The news media is invited to attend ONLY the opening session of the conference from 8:30 a.m. to 9:00 a.m.
Two Greek Shipping Companies and Engineers Convicted of Pollution Crimes and Obstruction of JusticeRead the Press Release
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.
Two Cedar Rapids Men Sentenced for Heroin DistributionRead the Press Release
Two Cedar Rapids men who worked together to sell heroin and crack cocaine were sentenced yesterday to serve terms of imprisonment in federal prison.
Chanord Hawkins, age 23, from Cedar Rapids, Iowa, (formerly Chicago, Illinois), received a prison term of 30 months’ imprisonment after a May 17, 2016, guilty plea to one count of distribution of heroin and crack cocaine. Donnell Cole, age 29, from Cedar Rapids, Iowa, (formerly Chicago, Illinois) received a 16-month prison term after a May 27, 2016, guilty plea to one count of distribution of heroin and crack cocaine.
At the guilty plea, both admitted working together to sell cocaine base, commonly called crack cocaine and heroin in the Cedar Rapids area during late 2015.
Both defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Both defendants must also serve a 3-year term of supervised release after the prison term and pay a special assessment of $100. There is no parole in the federal system. Both defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tony Morfitt and investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-008. Follow us on Twitter @USAO_NDIA.