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19 October 2016
Kansas Aesthetics Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
A Leawood, Kansas business owner was sentenced yesterday to 51 months in prison after being convicted of tax evasion following a five-week jury trial in April announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Thomas Beall of the District of Kansas.
According to the evidence at trial, Kathleen M. Stegman, 58, owned and operated Midwest Medical Aesthetics (Midwest). During the years 2006 through 2010, Stegman concealed cash receipts, diverted hundreds of thousands of dollars from Midwest for her personal use, created and used an entity to falsify business expenses and hide Midwest customer checks and falsely claimed as business expenses a mortgage payment on an investment property, the cost of an invisible dog fence, residential gas and electricity bills, Mercedes Benz lease payments and an investment in a deck coating product. The government also presented evidence that Stegman used the money she diverted from Midwest to fund a lavish lifestyle, including the purchase of condominiums in Las Vegas, over $300,000 in gold coins, a 54-foot yacht and real estate in North Carolina.
The evidence presented also established that Stegman caused an employee to destroy business records during a civil tax audit, provided the Internal Revenue Service (IRS) with false and altered documents and attempted to tamper with a witness’s statement to criminal investigators.
In addition to the prison term, U.S. District Judge Julie Robinson ordered Stegman to pay restitution to the IRS in the amount of $68,733 as a condition of supervised release and a fine in the amount of $100,000.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Ryan R. Raybould and John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Seeks to Intervene in Lawsuit Alleging Race Discrimination and Retaliation by Pocomoke City, Maryland, the Worcester County Sheriff and the State of MarylandRead the Press Release
The Justice Department announced today that it has moved to intervene in Savage et al. v. Pocomoke City et al., a private lawsuit alleging race discrimination and retaliation under Title VII of the Civil Rights Act of 1964 by Pocomoke City, Maryland, the Worcester County Sheriff and the state of Maryland. Title VII is a federal statute that prohibits employment discrimination on the basis of the basis of sex, race, color, national origin and religion.
The United States’ complaint in intervention alleges that the Worcester County Sheriff and the state of Maryland subjected former Pocomoke City Police Officer Franklin Savage to a racially-hostile work environment while he was assigned to a joint task force operated by the sheriff’s office. Specifically, Officer Savage was repeatedly subjected to racial epithets as well as other racially-charged acts of harassment, humiliation and intimidation by his co-workers and supervisors. Officer Savage’s complaints about racial harassment allegedly resulted in a series of retaliatory actions against him by the Worcester County Sheriff’s Office and Pocomoke City, concluding with the termination of his employment. The complaint further alleges that Pocomoke City similarly retaliated against two other officers – former Pocomoke City Police Chief Kelvin Sewell and former Pocomoke City Police Lieutenant Lynell Green – for supporting Officer Savage in the course of his complaints. Chief Sewell was eventually terminated as well.
The complaint seeks a court order that requires the defendants to implement policies and procedures that will ensure a workplace environment free of discrimination and retaliatory conduct. The United States also seeks relief, including monetary relief for the three charging parties as compensation for damages caused by the alleged discrimination.
“Federal law protects against discrimination and retaliation in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “In police departments, that protection is vital not only for individual officials, but also for the communities they serve. The Justice Department is firmly committed to ensuring that our nation’s state and local law enforcement agencies comply with Title VII’s promise of a workplace free from racial discrimination and retaliation.”
Officer Savage, Chief Sewell and Lieutenant Green each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Baltimore Office investigated the charges and made reasonable cause findings. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
“No one should have to face harassment and retaliation while at work,” said EEOC Chair Jenny R. Yang. “When public employees face discrimination, it undermines the trust and credibility in our public institutions. This case represents the latest partnership between EEOC and the Department of Justice to advance our shared Title VII enforcement responsibilities.”
This lawsuit was brought as a result of a joint collaborative effort by the EEOC and the Civil Rights Division to vigorously enforce Title VII.
“EEOC is committed to ensuring the employees who serve the public in critical law enforcement positions are protected by the laws forbidding unlawful harassment and retaliation in the workplace,” said Director Spencer H. Lewis Jr. of EEOC’s Philadelphia District Office, which includes the Baltimore Field Office. “I am pleased that EEOC and the Department of Justice have established a collaborative relationship that will impact public employers and work together to redress violations of the law when they occur.”
Enforcement of federal employment discrimination laws remains a top priority of the Justice Department. More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt. The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Pocomoke City Motion to InterveneJury Convicts Rochester Man of Murder and Narcotics and Firearms OffensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damion Colabatistto, 39, of Rochester, NY was convicted following a jury trial of murder, conspiracy to possess and distribute cocaine, crack cocaine and heroin and possessing firearms during, in relation to and in furtherance of the narcotics conspiracy.
“This verdict concludes a prosecution involving one of the most violent group of defendants that Rochester has ever seen,” said U.S. Attorney Hochul. “Over the course of a decade, these defendants trafficked deadly drugs, brutally attacked those they perceived as threats, and were willing to murder without regard for might be harmed by their gunfire. The entire community should be proud of the extraordinary work of Assistant United States Attorneys Rodriguez and Marangola, and all who worked on this critically important prosecution. “
ATF Special Agent in Charge Ashan M. Benedict said, “Damion Colabatistto was an enforcer for a violent narcotics distribution organization who was responsible for many acts of violence in support of the group’s illicit activities in the greater Rochester area. That violence extended to innocent people, including Moesha Harmon, 20 years old, a mother of two small children, who was gunned down just a few days shy of her 21st birthday, when Colabatistto, attempting to kill a target of the organization, fired multiple times into the wrong house. Though no words can replace the love of a mother lost so senselessly and tragically, we hope that Colabatistto’s conviction brings some closure to Ms. Harmon’s children and the rest of her family. Those out there who use firearms to intimidate, injure, or kill should know that ATF and our law enforcement partners remain committed to seeing you arrested, convicted, and imprisoned. We would like to express our gratitude to the Rochester Police Department and the U.S. Attorney’s Office for their dedication to this investigation.”
The murder conviction carries a maximum term of life in prison, the drug conspiracy a maximum term of 20 years in prison, and the firearms conviction carries a mandatory minimum five years in prison and a maximum of life, to run consecutive to the sentences imposed on the other counts of conviction.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that on July 26, 2009, the defendant and his former brother in law and friend Angelo Ocasio went to 137 Cameron Street looking to kill a rival drug dealer with whom Colabatistto and another co-conspirator had fought with the night before. When they arrived at the house, Colabatistto and Ocasio shot and killed Moesha Harmon when she came to the upstairs window of the residence believing she was the rival drug dealer.
In May 2016, Angelo Ocasio was convicted following a jury trial in connection with the shooting of Meosha Harmon and of the underlying drug trafficking conspiracy. Ocasio will be sentenced on November 9, 2016.
During Colabatistto’s trial, the Government’s evidence established that one of the two guns used to murder Meosha Harmon was also used to murder Jose Troche on January 14, 2010 outside his house at 510 Augustine Street in Rochester. Jose Troche was a member of the drug distribution conspiracy along with Colabatistto and Ocasio. The drug conspiracy was headed by James Kendrick and his brother Pablo “Paul” Plaza. Troche was murdered because Kendrick and Plaza feared that Troche would cooperate against Kendrick in an ongoing narcotics prosecution. Colabatistto participated in the planning of the Troche murder and was the getaway driver when Paul Plaza shot Troche on the morning of January 14, 2010.
James Kendrick and Paul Plaza were tried in a separate seven-week trial in June and July of this year. They were each found guilty of the drug trafficking conspiracy and of several firearms offenses, including offenses relating to the murder of Jose Troche. Kendrick and Plaza were also found guilty of the murder of Francisco Santos in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. James Kendrick was also found guilty of the murder of Ryan Cooper in the spring of 1999. Cooper’s remains have never been found. Like Jose Troche, both Santos and Cooper (who was a cousin of Kendrick’s and Plaza’s) were murdered because Kendrick and Plaza believed they were disloyal members of the conspiracy who had cooperated with the police or were planning to do so. Kendrick and Plaza will be sentenced on November 22, 2016.
The drug conspiracy that Colabatistto and Ocasio were members of and was led by Kendrick and Plaza, was a large, long term and very violent drug distribution group. The group committed multiple beatings, shootings and murders to protect their drug operations and to retaliate against those who posed a danger to the conspiracy, including disloyal workers and rival drug dealers.
Damion Colabatistto’s conviction is the culmination of an investigation which commenced in 2010. As a result of the investigation and resulting prosecutions, four murders (Francisco Santos in 1998, Ryan Cooper in 1999, Meosha Harmon in 2009 and Jose Troche in 2010) have been solved and the responsible murderers have been brought to justice. Altogether, 11 co-conspirators have been convicted in connection with the underlying drug distribution conspiracy and/or the firearms possessions and murders committed in furtherance of the conspiracy.
The conviction of Colabatistto and of his co-conspirators before him are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Intern Experiences Police Ride AlongRead the Press Release
Interns for INTERPOL Washington get to make valuable connections with law enforcement during their participation in the six-month program. As an INTERPOL Washington intern, Rachelle Tugade had the opportunity to experience a Police Ride Along with a Prince George’s County Police Officer. This allowed her to accompany the officer during their tour of duty in a police vehicle and act as an observer for the day. The evening started out quietly enough. The officer told her of his previous experiences as a police officer and what it’s like to work in the area. He took her on a detour of the neighborhood and explained the different criminal scenarios that have happened in those areas, which included stabbings, drug overdoses, and assaults. As the police officer put it, “The neighborhood looks normal on the outside, but it’s what’s behind closed doors that matters.”
As the hours passed, things started to liven up a bit as they went to a variety of scenes and served as backup for other officers. Rachelle witnessed a hit-and-run car crash in a residential area, was present at a scene of a robbery at a local store, and went inside different apartment complexes to respond to residents’ emergency phone calls. The officer also introduced her to his colleagues, who told her stories of crazy scenarios they have had to deal with in the past. Overall, Rachelle’s ride along experience was great! She didn’t quite know what to expect, but she’s very glad her internship gave her this opportunity. It definitely broadened her respect for law enforcement and she would recommend anyone interested in law enforcement to contact a local police department and experience a police ride along. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Inmate at United States Penitentiary Sentenced to an Additional 18 Months in Prison for Assaulting Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal inmate at the United States Penitentiary at Canaan was sentenced today, by U.S. District Court Judge Malachy E. Mannion in Scranton, to serve an additional 18 months in prison on the charge of assaulting a federal corrections officer.
According to United States Attorney Bruce D. Brandler, Orlando Garcia-Mata, age 24, formerly of Texas, previously admitted to throwing a punch at a corrections officer at the United States Penitentiary at Canaan. The incident occurred on March 22, 2016. Garcia-Mata is presently serving a sentence of 46 months in prison on the charge of unlawfully being found in the United States after having been previously deported. The sentence Garcia-Mata received today will be served in addition to that sentence.
Garcia-Mata was indicted by a grand jury in Scranton in April 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara
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Heroin Dealer Charged with Drug Dealing Resulting in DeathRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Donte Jacobs, age 28, of New Castle, Delaware, was indicted on October 13, 2016, for conspiracy to distribute heroin and fentanyl that resulted in the death of another person.
Jacobs faces a minimum mandatory sentence of 20 years in prison, a maximum sentence of a lifetime in prison, a fine of $5,000,000, and a minimum of 3 years of supervised release following a prison sentence. Jacobs was also indicted for the illegal possession of a handgun, for which he faces an additional maximum penalty of ten years in prison, a fine of $250,000, and 3 years of supervised release.
According to the indictment, Jacobs conspired to distribute a controlled substance that resulted in the fentanyl-related death of T.A. on June 29, 2016. Jacobs was arraigned on the charges in U.S. District Court today.
U.S. Attorney Oberly stated, “This is the first such indictment filed by the U.S. Attorney’s Office in Delaware. The number of deaths related to the distribution of heroin laced with fentanyl has reached epidemic-like numbers. Those responsible for providing this poison to those addicted to heroin can, where the evidence exists, expect to face indictment like this.
This indictment is the result of an investigation by the DEA Wilmington Resident Office – HIDTA Group 41, the New Garden Police Department, and the New Castle County Police Department. Special Assistant U.S. Attorney Christopher L. de Barrena-Sarobe is prosecuting the case on behalf of the United States.
The charges in the indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Grand Jury Returns Indictment in Garden City Bomb Plot CaseRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment here Wednesday charging three southwest Kansas men with conspiring to detonate a bomb at an apartment complex in Garden City where Muslim immigrants from Somalia live and worship, Acting U.S. Attorney Tom Beall said.
The indictment was based on the same facts presented in an Oct.14 criminal complaint filed in U.S. District Court in Wichita alleging the men conducted surveillance to size up potential targets, stockpiled firearms, ammunition and explosive components, and prepared a manifesto to be published after the bombing.
Charged with one count of conspiring to use a weapon of mass destruction were:
Curtis Allen, 49, Liberal, Kan.
Gavin Wright, 49, Liberal, Kan., owner of G & H Mobile Home Center at 1250 E. Tucker Road in Liberal.
Patrick Eugene Stein, 51, Wright, Kan.
If convicted, the defendants face up to life in federal prison. Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi and Trial Attorney David Cora of the Justice Department’s Counterterrorism Section are prosecuting.
OTHER GRAND JURY INDICTMENTS
Garret Sims, 29, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Aug. 24, 2016, in Topeka.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of a firearm following a felony conviction: Up to 10 years and a fine up to $250,000.
Possession with intent to distribute methamphetamine: Up to 20 years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Joseph D. Carrier, 37, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a stolen firearm. The crimes are alleged to have occurred Aug. 25, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Charles James Filkins, Jr., 33, Berryton, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Aug. 28, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Brandon Lee Morris, 22, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred Aug. 13, 2016, in Topeka.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the first count and up to five years and a fine up to $250,000 on the second count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Jordan W. Mayfield, 22, Golden, Colo., is charged with one count of possession with intent to distribute cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 21, 2016, in Topeka.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute cocaine: Up to 20 years and a fine up to $20 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm following a felony conviction: Up to 10 years and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Government Reaches $2.24 Million Settlement with Institutional Pharmacy Omnicare in Lawsuit First Brought by Former Regional Service Area Director in LodiRead the Press Release
SACRAMENTO, Calif. — Omnicare Inc., a national long-term care pharmacy, will pay a combined $2.24 million to resolve federal and state False Claims Act allegations that it improperly billed federal and state health care programs for prescription drugs that were dispensed to patients in skilled nursing and other institutional care facilities.
Specifically, the settlement resolves allegations that Omnicare employees manually altered the National Drug Code (NDC) field on claims resubmitted to Medicare, Medicaid, and TRICARE, in order to overcome prior rejection of these claims for payment. The alleged conduct occurred between January 1, 2006, and September 1, 2014, prior to CVS Health Corporation’s purchase of Omnicare.
As part of the settlement, CVS Health Corporation and its subsidiaries also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that covers their institutional pharmacy services operations. The CIA is designed to increase accountability and transparency and to avoid or promptly detect future fraud and abuse.
“We are committed to ensuring the integrity of the federal health care system, and this extends to paying only for drugs that accurately reflect an underlying prescription,” said Acting U.S. Attorney Talbert.
The allegations resolved by the settlement were first raised in a lawsuit filed against Omnicare under the qui tam, or whistleblower, provisions of the False Claims Act by a former Regional Servicer Area Director in Omnicare’s pharmacy in Lodi, California. The Act allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $411,624 of the recovery proceeds.
This case was pursued by Assistant United States Attorney Edward Baker through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Civil Division of the Department of Justice, the Federal Bureau of Investigation, and the Defense Health Agency. A team from the National Association of Medicaid Fraud Control Units assisted with the investigation and participated in settlement negotiations on behalf of the states, and included representatives from the Offices of the Attorneys General for the states of California, Massachusetts, New York, Ohio, and Texas.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Fugitive Gang Leader Arrested for Two MurdersRead the Press Release
Earlier today, a four-count indictment was unsealed in United States District Court for the Eastern District of New York charging Nicholas Washington, also known as “Nicholas Hayes” and “Face,” with the 2005 murder of Steven Negron and the 2006 murder of Andrell Napper. The indictment was returned under seal by a federal grand jury sitting in Brooklyn on May 7, 2014.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As detailed in the indictment and a detention memorandum filed by the government, Washington was a leader of the “G’z Up” gang, which operated in and around the Marcy Houses public housing development in the Bedford-Stuyvesant neighborhood of Brooklyn. G’z Up members and associates earned money by trafficking in crack-cocaine and firearms in Brooklyn, upstate New York and Pennsylvania, and committed acts of violence to protect their enterprise.
In 2005, Washington allegedly planned the murder of a rival drug supplier and directed two G’z Up members to carry out the crime. Those G’z Up members shot at the rival gang member but instead struck and killed Negron, who was standing nearby.
In 2006, Washington allegedly planned a second murder. The intended victim was a rival gang member who Washington believed was responsible for the murder of Washington’s brother. Washington and other members and associates of G’z Up located the target, and two of Washington’s associates opened fire. Napper, who was not the intended target, was instead struck and killed.
Two days after Washington was indicted he learned of the federal charges, evaded arrest, and was a fugitive for more than two years. On May 21, 2016, New York City Police Officers arrested him in connection with a non-fatal shooting that occurred in Brooklyn on May 9, 2014. Washington is currently charged in New York Supreme Court, Kings County, with attempted murder and other crimes based on that shooting. On October 19, 2016, Washington was taken into federal custody.
“Nicholas Washington’s days as a fugitive are over. He will now face charges for the two murders he ordered that tragically resulted in the deaths of two bystanders,” stated United States Attorney Capers. “The message here is clear – we will be dogged in our pursuit of violent gang members who commit senseless and cowardly acts of violence and will not let the passage of time deter us from bringing them to justice.”
FBI Assistant Director-in-Charge Sweeney stated, “When gang members start pulling the trigger on their weapons, they’re not worried about the collateral damage they inflict. In this case, two innocent people were murdered for just simply being in the wrong place at the wrong time. The suspect here thought he was smarter than law enforcement by evading arrest, but his continued alleged criminal behavior landed him in custody where he will face justice.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz and Melody Wells.
The Defendant:
Nicholas Washington
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 14-CR-266 (ILG)
Former New Canaan Resident Sentenced to 33 Months in Federal Prison for Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 49, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for defrauding investors of more than $1.3 million.
According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business. The shipping companies were entirely fictitious. Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.
As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement. He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.
Judge Bolden ordered JEFFREY to pay $919,500 in restitution to the victims of this scheme. JEFFREY paid back certain victims after he found out about the FBI investigation, but required those victims to sign “settlement” agreements purporting to settle claims related to the fictitious companies.
On March 24, 2016, JEFFREY pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Miami-Dade County Aviation Department Division Director Pleads Guilty to $5,000,000 Fraud and Kickback SchemeRead the Press Release
A former Division Director of the Miami-Dade County Aviation Department pled guilty for his involvement in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ivan Valdes, 46, of Miami, pled guilty to a one-count criminal Information charging him with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Valdes is scheduled to be sentenced on January 5, 2017, at 10:30 a.m., before United States District Judge Darrin P. Gayles. Valdes faces a statutory maximum term of 10 years’ imprisonment and fines of up to $250,000.
According to the court record, including a stipulated statement of facts, Valdes, a former Miami-Dade County Aviation Department Division Director was involved in a $5,000,000 fraud and kickback scheme. During in or about 2010, Valdes arranged with a co-conspirator to request that the Miami-Dade County Aviation Department purchase light fixtures for the Miami International Airport, in exchange for Valdes being paid a share of the proceeds. Between 2010 and 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of over 9,000 LED light fixtures which cost Miami-Dade County millions of dollars. Valdes was paid in cash by a co-conspirator, with whom he split approximately $2.2 million in fraudulent proceeds from the scheme. Valdes used some of the fraudulent proceeds to pay an employee in the procurement section of the Miami-Dade County Aviation Department, who assisted with the fraud.
On two occasions, Valdes instructed a co-conspirator to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. The co-conspirator bid and won the contracts. As a result, Valdes and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to the Miami-Dade County Aviation Department.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Fort Worth High School Teacher Admits to Felony Child Pornography ChargeRead the Press Release
FORT WORTH, Texas — Matthew Anthony Keller, 24, of Watauga, Texas, who, according to police reports, taught at Southwest High School in Fort Worth, Texas, appeared this morning before U.S. Magistrate Judge Jeffrey L Cureton and pleaded guilty to one count of production of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.
Keller faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release. Keller has been in custody since his arrest in July 2016 on a related federal complaint. He is scheduled to be sentenced on March 2, 2017, by U.S. District Judge Terry R Means.
According to documents filed in the case, the investigation began when a parent of a 15-year-old child (MV1) discovered a relationship between MV1 and Keller and notified a police department in Macomb County, Michigan. The parent was further concerned because it was discovered that Keller planned to fly from Texas to Michigan and possibly meet with MV1 for a sexual encounter.
When a search warrant was conducted at Keller’s residence in Watauga, law enforcement seized a computer from his bedroom. A forensic analysis of that computer revealed the presence of a sexually explicit video of the minor victim.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI, the Tarrant County District Attorney’s Office, and the Macomb County Sheriff’s Office are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
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Former CEO Sentenced for Bribery and Fraud Scheme Involving Red Light Camera Contracts in OhioRead the Press Release
A former CEO of a traffic light enforcement camera vendor was sentenced today to 14 months in prison for her role in a multi-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 57, of Cave Creek, Arizona, was sentenced today before U.S. District Judge Michael H. Watson of the Southern District of Ohio. She pleaded guilty on June 19, 2015, to one count of conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley cooperated with the government’s investigation against John Raphael, an Ohio lobbyist, who pleaded guilty to one count of violating the Hobbs Act for his involvement in the scheme. On June 8, 2016, Raphael was sentenced to serve 15 months in prison.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. During this time, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus, Ohio, and Cincinnati through Raphael, a consultant retained by the company. Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions through Raphael with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a red light camera enforcement contract with the city of Columbus. Finley also admitted that she and her co-conspirators concealed the true nature and source of the payments by Raphael and the company’s payment of false invoices for “consulting services,” which funds Raphael then provided to the campaigns of the elected public officials.
The FBI’s Cincinnati Field Office, Columbus Resident Agency, investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio prosecuted the case.
Florida Man Sentenced for Wichita Bank RobberyRead the Press Release
WICHITA, KAN. - A Florida man was sentenced Wednesday to 46 months in federal prison for robbing a Wichita bank, Acting U.S. Attorney Tom Beall said.
Antonio Adam Smiley, 30, Zephyrhills, Fla., pleaded guilty to one count of bank robbery. He admitted that on Nov. 18, 2015, he robbed the Emprise Bank branch at 2323 S. Hydraulic. He fled the bank with the money and left Wichita. He was identified from surveillance photos and arrested Nov. 23, 2015, in Zephyrhills, Fla.
Beall commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Jury Finds Arizona Man Guilty on Marijuana Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Yesterday afternoon, a federal jury sitting in Las Cruces, N.M., found John Wayne Hargrove, 57, of Pierce, Ariz., guilty on marijuana trafficking charges after a two-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector.
Hargrove, Janelle Richter, 57, also of Pearce, Ariz., Edgar Antonio Silvas-Hinojos, 28, a Mexican national illegally in the United States, and three other Mexican nationals, were arrested on Feb. 8, 2016, on a criminal complaint charging them with conspiracy and possession of 135.11 kilograms (297.25 pounds) of marijuana with intent to distribute.
Hargrove, Richter and Silvas-Hinojos were subsequently indicted on June 14, 2016, and charged with participating in a marijuana trafficking conspiracy and possession of marijuana with intent to distribute. According to the indictment, the defendants committed the crimes charged on Feb. 8, 2016, in Hidalgo County, N.M.
The evidence at trial established that U.S. Border Patrol agents arrested Hargrove and Richter at 10:45 p.m. on Feb. 8, 2016, as the two were trying to hide inside of Hargrove’s truck which was parked near an abandoned building in the desert off of Highway 80 near the Arizona/New Mexico border. The agents also found Silvas-Hinojos, who was wearing camouflage clothing, trying to hide in the back of the truck. The agents also seized six bundles containing almost 300 pounds of marijuana from the truck.
The evidence established that earlier that night, seven Mexican nationals wearing camouflage clothing, including Silvas-Hinojos, delivered the marijuana to Hargrove. Hargrove loaded the bundles of marijuana into his truck, and tried to conceal the marijuana bundles under a tarp, sleeping bags and construction equipment. He then agreed to drive Silvas-Hinojos to Phoenix, which is why the Border Patrol found him in Hargrove’s truck.
Border Patrol agents testified that, despite the dark of night and remoteness of the area, they were able to find Hargrove’s truck by using an infrared camera. During their surveillance, the agents were able to observe the seven Mexican nationals as they carried the bundles of marijuana to the abandoned property. The agents arrested the six men after they departed from the area without their bundles. Thereafter, the agents went to the abandoned property where they found Hargrove, Richter and Silvas-Hinojos.
The Border Patrol agents transported Hargrove, Richter and the seven Mexican nationals to the Lordsburg Border Patrol Station where Hargrove made a voluntary post-arrest statement. Hargrove told the agents that he was in the area to go fishing. While the agents did find some fishing equipment in Hargrove’s truck, they also found other equipment, including night vision goggles, and two loaded firearms, which Hargrove admitted were his. When asked about the marijuana, Hargrove claimed that he thought it was alfalfa.
The jury deliberated an hour before returning a guilty verdict against Hargrove.
At sentencing, Hargrove faces a statutory mandatory minimum penalty of five years and maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
Richter pled guilty on Aug. 2, 2016, and remains in custody pending a sentencing hearing where she also faces a statutory mandatory minimum penalty of five years and maximum of 40 years in federal prison. The seven Mexican nationals also have entered guilty pleas. They will be deported after completing any prison sentences imposed on them.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorneys Dustin C. Segovia and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Federal Grand Jury Indicts Three for Credit Union RobberyRead the Press Release
AMARILLO — A federal grand jury in Amarillo, Texas, returned a two-count indictment last week charging three men with the robbery of an Amarillo Credit Union, announced John Parker, U.S. Attorney for the Northern District of Texas.
Raul Garcia, 27, Leonard Jovon Coulter, 28, and Richard Charles Cunningham, Jr., 38, are each charged with one count of credit union robbery, and one count of using and carrying a firearm during and in relation to a crime of violence. All three defendants are in custody.
According to the indictment, on September 23, 2016 Coulter and Cunningham entered the Education Credit Union, located at 1801 FM 2381 in Amarillo with firearms and took by force and intimidation money belonging to the credit union. Garcia remained in the vehicle as the getaway driver.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the robbery count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory seven-year penalty and a $250,000 fine.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department were the investigating agencies. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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FCI Berlin Inmate Sentenced on Federal Weapon Possession ChargeRead the Press Release
CONCORD, N.H. – Joshua Starr, 30, formerly an inmate at the Federal Correctional Institution in Berlin, New Hampshire, was sentenced in United States District Court for the District of New Hampshire on federal weapon possession charges, announced United States Attorney Emily Gray Rice. The Court imposed a term of 18 months’ imprisonment, to be served consecutive to Starr’s current prison sentence.
During a routine cell search in November 2015, FCI Berlin correctional officers discovered a six-inch plastic stabbing weapon secreted in Starr’s assigned bunk. Starr was previously prosecuted and convicted in federal district court in New Hampshire for possession of a similar weapon as an inmate at FCI Berlin.
This prosecution arose from an investigation by the Federal Correctional Institution in Berlin, New Hampshire, in collaboration with the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Nick Abramson.
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El Departamento De Justicia Y El Departamento De Salud Y Servicios Humanos Emiten Una Guía Conjunta Para Los Sistemas De Bienestar De MenoresRead the Press Release
El Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Department of Health and Human Services (HHS)] emitieron una carta orientativa conjunta hoy a los sistemas de bienestar de menores estatales y locales sobre las exigencias del Título VI de la Ley de Derechos Civiles de 1964 y sus normas de implementación. El Título VI prohíbe la discriminación basada en la raza, el color y el origen nacional en programas y actividades que reciban asistencia financiera federal.
La guía busca asegurarse de que los sistemas de bienestar de menores conozcan sus responsabilidades de proteger los derechos civiles de niños y familias. La guía forma parte de una asociación en curso entre los departamentos para ayudar a las agencias de bienestar de menores a proteger el bienestar de los niños y asegurar el cumplimiento de las leyes federales contra la discriminación. El año pasado, los departamentos emitieron una guía sobre la intersección de los requisitos de bienestar de menores y el Título II de la Ley para Personas con Discapacidades, así como también la Sección 504 de la Ley de Rehabilitación. La guía emitida hoy destaca la clara necesidad de un debate franco y productivo sobre cómo las leyes, políticas, prácticas y prejuicios implícitos de bienestar de menores afectan a las comunidades de color.
Los datos muestran que determinados grupos raciales y étnicos tienen sobrerrepresentación en el sistema de bienestar de menores en comparación con sus números en la población general. La carta de orientación aborda las quejas de acceso racial e idiomático que los departamentos han recibido alegando una remoción innecesaria de los niños de sus familias biológicas; la denegación de igualdad de acceso a los padres biológicos a servicios de reunificación con competencia cultural; la denegación de colocaciones con familiares o parientes; estadías innecesariamente prolongadas en casas de acogida; y denegación de una participación plena e informada a familiares en los tribunales de familia y servicios sociales simplemente porque tienen conocimientos limitados del inglés a nivel oral, de lectura o de escritura.
“Esta guía ayudará a asegurar que todas las familias, sin importar el acceso racial o idiomático, puedan aceder a servicios de bienestar infantil libres de discriminación,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “La ley exige que todos los receptores de financiación federal ofrezcan programas, actividades y servicios de manera justa y equitativa sin importar la raza, el color o el origen nacional. Los sistemas de bienestar de menores estatales y locales tienen una enorme responsabilidad en el apoyo de familias y niños, y esperamos que esta guía ofrezca claridad respecto de la aplicación de obligaciones federales contra la discriminación a la crucial labor que realizan.”
“Esta guía conjunta es otro paso en la dirección correcta para remediar prácticas discriminatorias en las actividades de bienestar de menores,” declaró la Directora de la Oficina de Derechos Civiles del HHS Jocelyn Samuels. “Todos los profesionales en los sistemas estatales y locales de bienestar de menores tienen la obligación de comprender y cumplir con las leyes federales que protegen a las familias y los niños en las comunidades a las que sirven. Esperamos que esta guía ofrezca estrategias de amplio alcance para que las agencias de bienestar de menores aborden las prácticas discriminatorias en sus programas y actividades.”
“Es fundamental para las familias y los niños que las decisiones tomadas por las agencias para el bienestar de menores sean sin discriminación, sea intencional o no,” dijo Mark Greenberg, Secretario Auxiliar para los Niños y las Familias (en funciones) del HHS. “Nosotros creemos que esta orientación ayudará a las agencias a servir mejor a los niños de todos los orígenes y proporcionar protecciones importantes para las familias y los niños.”
“Todos los niños y las familias merecen ser tratados con respeto y dignidad,” dijo el Comisionado Rafael López de la Administración de Niños, Jóvenes y Familias y Comisionado Auxiliar Interino del Buró de Menores. “Es crucial que trabajemos juntos para asegurarnos de que nuestros sistemas sean totalmente accesibles, transparentes y justos. Esta guía es un paso importante para garantizar que todas las familias, sin importar su raza, color u origen nacional, tengan igualdad de acceso a servicios y sean tratadas de manera justa en todo momento.”
El Buró de Menores de la ACF administra la financiación para agencias y tribunales de bienestar de menores. La ACF también brinda orientación y asistencia técnica a agencias de bienestar de menores respecto de las leyes de bienestar de menores. La Oficina de Derechos Civiles del HHS y la División de Derechos Civiles del Departamento de Justicia son responsables de garantizar que los sistemas de tribunales estatales y agencias de bienestar de menores financiados respectivamente cumplan con el Título VI y sus normas de implementación. El departamento también es responsable de garantizar una coacción sistemática y eficaz del Título VI en todas las agencias que reciben financiamiento federal.
Para información adicional sobre la División de Derechos Civiles, visitar www.justice.gov/crt. Para información adicional sobre el Buró de Menores de la ACF, visitar www.acf.hhs.gov/cb. Para información adicional sobre la Oficina de Derechos Civiles del HHS, visitar www.hhs.gov/ocr/.
Title VI Child Welfare Guidance SpanishDiscard Unwanted Drugs: DEA’s Pill Take Back DayRead the Press Release
CEDAR RAPIDS, IA – On Saturday, October 22, from 10 a.m. to 2 p.m. the Drug Enforcement Administration (DEA) will give the public its 12th opportunity in six years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Cedar Rapids and Dubuque are hosting sites. In Cedar Rapids, bring your pills for disposal to the police department located at 515 1st Street S.W. In Dubuque, the drop off site is located at the Sam’s Club parking lot, 4400 Ashbury Road. The drop off sites cannot accept liquids or needles or sharps, only pills or patches. The service is free and anonymous, no questions asked.
Last April, Americans turned in 447 tons (over 893,000 pounds) of prescription drugs at almost 5,400 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 11 previous Take Back events, DEA and its partners have taken in over 6.4 million pounds—about 3,200 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
United States Attorney Kevin W. Techau stated, “In 2015 alone, more than half of the over 40,000 unintentional drug overdose deaths in the United States involved prescription drugs, and hazardous opioid pain relievers led to about 17,000 of those deaths. Young people are especially susceptible to these dangers. Nearly four in 10 teens who have misused or abused a prescription drug obtained it from their parents’ medicine cabinet. Clearly prescription drug addiction and abuse represent nothing less than a public health crisis. We appreciate DEA’s effort to remove this poison from homes so that it does not end up in the wrong hands.”
For more information about DEA’s drug diversion program efforts and the disposal of prescription drugs go to: https://www.deadiversion.usdoj.gov.
Those unable to participate next Saturday are offered year around opportunities in Iowa to discard unused, expired and unwanted medications at locations around the state. To find those sites, go to the Iowa Governor’s Office of Drug Control Policy: https://odcp.iowa.gov/rxtakebacks.
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Departments of Justice and Health and Human Services Issue Joint Guidance for Child Welfare SystemsRead the Press Release
The Justice Department and the Department of Health and Human Services (HHS) issued a joint guidance letter today to state and local child welfare systems on the requirements of Title VI of the Civil Rights Act of 1964 and its implementing regulations. Title VI prohibits discrimination on the basis of race, color and national origin in programs and activities receiving federal financial assistance.
The guidance aims to ensure that child welfare systems know about their responsibilities to protect the civil rights of children and families. The guidance is part of an ongoing partnership between the departments to help child welfare agencies protect the well-being of children and ensure compliance with federal nondiscrimination laws. Last year, the departments issued guidance on the intersection of child welfare requirements and Title II of the Americans with Disabilities Act, as well as Section 504 of the Rehabilitation Act. The guidance issued today highlights the clear need for frank and productive discussion about how child welfare laws, policies, practices and implicit bias affect communities of color.
Data shows that particular racial and ethnic groups are overrepresented in the child welfare system compared to their numbers in the general population. The guidance letter addresses race and language access complaints that the departments have received alleging unnecessary removal of children from their biological families; biological parents being denied equal access to culturally competent reunification services; denial of relative or kinship placements; unnecessarily long stays in foster care; and family members being denied full and informed participation in family courts and social services simply because they have limited proficiency in speaking, reading, writing or understanding the English language.
“This guidance will help ensure that all families, regardless of race or language access, can access child welfare services free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The law requires that all recipients of federal funding deliver programs, activities and services in a fair and equal manner regardless of race, color or national origin. State and local child welfare systems carry a tremendous responsibility in supporting families and children, and we hope this guidance provides clarity regarding the application of federal nondiscrimination obligations to their critical efforts.”
“This joint guidance is another step in the right direction to remedy discriminatory practices in child welfare activities,” said Director Jocelyn Samuels of HHS’ Office for Civil Rights. “All professionals in state and local child welfare systems have an obligation to understand and adhere to the federal laws that protect the families and children in the communities that they serve. We hope this guidance offers far-reaching strategies for child welfare agencies to address discriminatory practices in their programs and activities.”
“It’s crucial to families and children that the decisions made by child welfare agencies are made without intentional or unintended discrimination,” said Acting Assistant Secretary Mark Greenberg of HHS’s Administration for Children and Families (ACF). “We believe this guidance will help agencies better serve children of all backgrounds and provide important protections for families and children.”
“All children and families deserve to be treated with respect and dignity,” said Commissioner Rafael López of the Administration on Children, Youth and Families and Acting Associate Commissioner of the Children’s Bureau. “It is critical that we work together to ensure that our systems are fully accessible, transparent and just. This guidance is an important step to ensuring that all families, regardless of race, color or national origin, have equal access to services and are treated fairly at all times.”
The ACF’s Children’s Bureau administers funding for child welfare agencies and courts. ACF also provides guidance and technical assistance to child welfare agencies regarding child welfare law. HHS’ Office for Civil Rights and the Justice Department’s Civil Rights Division are responsible for ensuring that their respectively-funded state court systems and child welfare agencies comply with Title VI and its implementing regulations. The department is also responsible for ensuring consistent and effective enforcement of Title VI across federal funding agencies.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Additional information about ACF’s Children’s Bureau is available at www.acf.hhs.gov/cb. Additional information about the HHS’s Office for Civil Rights is available at www.hhs.gov/ocr/.
Title VI Child Welfare GuidanceDefendants Sentenced on Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – Three Southwest Virginia residents, who previously pled guilty to charges related to the manufacturing of methamphetamine, were sentenced this week on federal drug charges, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
Dana Lynn Vanmeter, 44, of Meadowview, Virginia, pled guilty on August 4, 2016, to one count of conspiring to manufacture methamphetamine, one count of using or maintaining a place for the purpose of manufacturing, distributing, and using methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present. This week, Vanmeter was sentenced to 60 months’ imprisonment, to be followed by 3 years’ supervised release, a mandatory assessment of $300 and $599 restitution to the Drug Enforcement Administration for the clean-up of a methamphetamine laboratory discovered at her residence.
John Steven Fields, 40, of Glade Springs, Virginia, and Shauna Danielle Davie, 25, of Meadowview, Virginia, both plead guilty in July 2016 to one count each of conspiring to manufacture methamphetamine. This week, Fields was sentenced to 12 months’ imprisonment, to be followed by 3 years’ supervised release, a mandatory assessment of $100, and was also held jointly and severally responsible for $599 restitution to the DEA. Davie was sentenced to 2 years’ probation, a mandatory assessment of $100 and was also held jointly and severally responsible for $599 restitution to the DEA.
A fourth defendant, April Fields, has also pled guilty to related charges and is scheduled to be sentenced on January 10, 2017.
“When individuals risk the lives of others, especially children, to manufacture this volatile and deadly drug, they must be punished,” United States Attorney Fishwick said today. “We will continue to work with our partners from the Attorney General’s Office to attack the problem of methamphetamine trafficking from all sides- enforcement, prevention and treatment.”
“These were very serious crimes and the sentences imposed in these cases reflect the seriousness of the offenses. Methamphetamine is one of the most dangerous drugs inflicted upon our region of the country and we will continue to work with local, state, and federal partners to vigorously prosecute those who manufacture it,” stated Attorney General Herring.
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Town of Damascus Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States.
Danbury Man Sentenced to 30 Years in Federal Prison for Murdering I-84 Motorist in 2000Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEX GARCIA, 38, of Danbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 360 months of imprisonment, followed by five years of supervised release, for shooting and killing a Danbury man traveling on I-84 in January 2000.
According to court documents and statements made in court, on January 17, 2000, at approximately 11:02 p.m.., Mark Rebong was discovered in the driver’s seat of an idling vehicle in the vicinity of Exit 2 off of I-84 in Danbury. Mr. Rebong had had been shot once in the head and died as a result of his injuries.
The investigation revealed that GARCIA was a member of the Almighty Latin King and Queen Nation (“Latin Kings”). In late December 1999, there was ongoing dispute in Danbury between the Latin Kings and another criminal gang, the Crips. On December 28, 1999, the dispute escalated as a result of the shooting of a high-ranking member of the Crips.
On January 17, 2000, GARCIA was a passenger in a vehicle traveling westbound on I-84. The driver of the vehicle, a high-ranking member of the Latin Kings, saw Mark Rebong driving near them on the highway and told GARCIA to shoot at Rebong’s vehicle. GARCIA then used an assault rifle to fire two rounds at the vehicle. As a result, Mark Rebong was killed.
Mark Rebong was neither a member of a gang nor engaged in any criminal activity.
“In a reckless act of brutal violence, this defendant murdered an innocent young man who was driving to work,” said U.S. Attorney Daly. “I commend the investigators from the Danbury Police, State Police and DEA who never stopped searching for Mark’s killer until he was finally brought to justice. Hopefully the Rebong family, who showed patience and courage and dignity throughout this ordeal, have found a measure of solace in this result.”
Judge Meyer ordered the 30-year federal sentence to run concurrently with an unrelated 40-year state sentence that GARCIA is currently serving.
On June 15, 2016, GARCIA pleaded guilty to one count of use of a firearm during and in relation to a crime of violence.
This matter was investigated by the Drug Enforcement Administration, Danbury Police Department and Connecticut State Police Western District Major Crime Squad, with assistance from the Connecticut Department of Correction and the Danbury State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
DEA and Partners Hold Prescription Drug Take Back Day SaturdayRead the Press Release
Thousands of communities participate in this weekend’s event
Boston, MA – This weekend DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 22 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at one of 566 collection sites throughout New England, operated by 505 local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over—2.4 percent of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last month, more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
“The diversion of prescription pain killers contribute to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. "Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
Vermont’s United States Attorney, Eric Miller, added, “The misuse and abuse of prescription opioids touched off Vermont’s current heroin epidemic and continues to contribute to overdose deaths and injuries. Vermonters can play an important role in protecting public health and safety by cleaning out their medicine cabinets and safely disposing of prescription drugs they no longer need.”
Last April, during its 11th Take Back Day, the DEA New England Field Division (NEFD) participated in the Drug Take-Back Day and over the course of four hours 86,900 pounds of expired, unused, and unwanted prescription drugs were collected at 551 collection sites throughout New England. The following was the breakdown of collected weights for the six New England states:
Connecticut 8,815.50 lbs.
Massachusetts 25,028 lbs.
Maine 31,960 lbs.
New Hampshire 12,560 lbs.
Rhode Island 3,460 lbs.
Vermont 5,094.60 lbs.
Total for NEFD 86,918.1 lbs.The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
DEA and Community Partners in Michigan Hold Prescription Drug Take Back Day on SaturdayRead the Press Release
- Over 130 Take Back locations across the Great Lakes State -
Detroit, MI – DEA reprises this weekend one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, October 22nd, 2016, between 10 a.m. and 2 p.m. the public can dispose of their unused, unwanted prescription medications at one of 4,700 collection sites nationwide, and over 130 sites in Michigan, operated by 3,800 local law enforcement agencies and other community partners. The service is free of charge, no questions asked.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over, which is 2.4% of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health, which was released last month. That is more people than abuse cocaine, heroin, hallucinogens, and methamphetamines combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
Last April, during its 11th Take Back Day, the DEA and over 4,200 of its national, tribal, and community law enforcement partners collected 893,498 pounds (about 447 tons) of unwanted prescription drugs at almost 5,400 collection sites. Since the program began six years ago, about 6.4 million pounds (about 3,200 tons) of drugs have been collected. That’s more than a quarter pound of pills for each of the 25 million children aged 12 to 17 in America, pills that won’t result in abuse or overdose.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the "Got Drugs?" icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
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DEA and Community Partners in Kentucky Hold Prescription Drug Take Back Day on SaturdayRead the Press Release
-50 Take Back locations across the Bluegrass State
Detroit, MI – DEA reprises this weekend one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, October 22nd, 2016, between 10 a.m. and 2 p.m. the public can dispose of their unused, unwanted prescription medications at one of 4,700 collection sites nationwide, and 50 sites in Kentucky, operated by 3,800 local law enforcement agencies and other community partners. The service is free of charge, no questions asked.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.4 million Americans age 12 and over, which is 2.4% of the population—abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health, which was released last month. That is more people than abuse cocaine, heroin, hallucinogens, and methamphetamines combined. Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
Last April, during its 11th Take Back Day, the DEA and over 4,200 of its national, tribal, and community law enforcement partners collected 893,498 pounds (about 447 tons) of unwanted prescription drugs at almost 5,400 collection sites. Since the program began six years ago, about 6.4 million pounds (about 3,200 tons) of drugs have been collected. That’s more than a quarter pound of pills for each of the 25 million children aged 12 to 17 in America, pills that won’t result in abuse or overdose.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code. Or they can call 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids and needles or other sharps will not be accepted.
Cleveland man to serve 18 years for distribution of heroin, fentanylRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Lamont McClain, 37, of Cleveland, Ohio, was sentenced for the distribution of heroin mixed with fentanyl and will now serve a total of 18 years in prison, United States Attorney William J. Ihlenfeld, II, announced.
McClain, who admitted to selling and conspiring to sell heroin and fentanyl on several occasions in 2015 in Ohio County, was sentenced to 95 months today by Senior U.S. District Judge Frederick P. Stamp, Jr. Judge Stamp ordered the sentence to run consecutively to a 120-month sentence previously imposed by U.S. District Judge John Preston Bailey for a 2014 heroin trafficking conviction, and thus McClain will be incarcerated for a total of 215 months.
Evidence was presented at today’s sentencing hearing regarding the powerful nature of the substances sold by McClain and the fact that it led to multiple overdoses in the Ohio Valley. Several of McClain’s transactions occurred on Wheeling Island, and one occurred near Madison Elementary School.
U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Central and Southern Ohio Heroin Trafficking Network DismantledRead the Press Release
COLUMBUS, OHIO – The last of eight defendants guilty of distributing heroin, anabolic steroids and other drugs in central and southern Ohio has been sentenced in U.S. District Court, capping a two-year investigation by federal, state and local law enforcement agencies.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division, agencies participating in the Southern Ohio Drug Task Force, and Columbus Police Chief Kim Jacobs announced the sentences today. U.S. District Judge Michael H. Watson presided over the case.
The eight defendants who pleaded guilty to conspiracy are:
Mark Eubanks, 34, Columbus. Sentenced to 150 months in prison.
Donald Smith, 52, Columbus. 72 months.
Johnathan Nunez, 27, Wheelersburg, 41 months.
Gregory Workman, 51, Springfield. 36 months.
Timothy Mutter, 59, Franklin Furnace. 36 months.
Richard Glenn, 36, Portsmouth. 36 months.
Kent Whiteside, 32, Columbus. 18 months.
Trent Banks, 47, South Bloomfield. 36 months’ probation.
All except Banks pleaded guilty to conspiracy to distribute heroin. Banks pleaded guilty to trafficking anabolic steroids.
According to court documents, the FBI began investigating a drug trafficking organization operating in central and southern Ohio in 2014. During the course of the investigation, agents identified Eubanks as a distributor of narcotics, including heroin, cocaine, MDMA and anabolic steroids. Eubanks used two residences and a storage unit in Columbus to conduct drug transactions and store narcotics, drug proceeds and firearms. As the investigation progressed, agents learned that Eubanks and his co-conspirators were distributing heroin and anabolic steroids in central and southern Ohio. Agents executed search warrants at various locations and seized quantities of heroin and MDMA, 200 vials of anabolic steroids, drug paraphernalia, ten firearms, ammunition, and more than $37,000 in cash.
A federal grand jury indicted the defendants in October, 2015.
Agencies in the Southern Ohio Drug Task Force include Scioto County Sheriff Marty V. Donini, Lawrence County Sheriff Jeff Lawless and the police departments in Portsmouth, Jackson and Ironton.
U.S. Attorney Glassman commended the investigation of this case by the task force agencies, and Assistant U.S. Attorney Brian J. Martinez and Deputy Criminal Chief Michael Hunter, who represented the United States in this case.
Carlisle Woman Indicted for Fraud in Connection with Commercial Drivers License Medical ExaminationRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Joann Wingate on September 28, 2016, for wire fraud, submitting false documents, and aggravated identity theft as part of a scheme to defraud carried out between 2012 and 2014. The Indictment was unsealed following the arrest of Wingate by the U.S. Department of Transportation, Office of Inspector General.
According to U.S. Attorney Bruce D. Brandler, Wingate, a 58-year-old resident of Carlisle, used the identity of a licensed physician to administer physical examinations to holders of commercial driver’s licenses (CDL) after her chiropractor’s license was suspended in October 2014. Wingate also fraudulently claimed to be a medical doctor in order to serve as a medical review officer for drug tests for CDL holders, when in fact she was never authorized to administer drug testing.
The Indictment alleges that in 2013 and 2014 Wingate fraudulently advertised her medical services at rest stops and gas stations in the Carlisle area; entered into a business agreement with a Carlisle trucking firm to handle the firm’s driver drug and alcohol program requirements, collected urine samples and caused them to be returned to medical laboratories while representing herself to be a medical review officer, completed medical examinations and transmitted false documents to the Pennsylvania Department of Transportation.
The Federal Motor Carrier Safety Administration (FMCSA) part of the U.S. Department of Transportation (DOT) develops and publishes standards to test license commercial motor vehicle drivers. Commercial driver’s licenses issued by states, including Pennsylvania, must meet standards established by DOT. Commercial vehicle drivers must pass standard examinations prior to obtaining a license and at regular intervals and must possess a valid certificate completed by a licensed medical examiner. CDL holders are also subject to mandatory drug and alcohol testing by a qualified medical review officer.
The Indictment alleges that Wingate’s scheme defrauded CDL holders and the Carlisle-based trucking firm and caused false documents to be generated and submitted in connection with the DOT’s commercial motor vehicle safety program.
The matter was investigated by the U.S. Department of Transportation, Office of Inspector General, the Pennsylvania State Police and the Cumberland County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Scott Ford.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty in this offense is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Bronx, New York, Man Admits Role in Conspiracy to Possess with Intent to Distribute 22 Kilograms of Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man today admitted to his role in a conspiracy to possess with intent to distribute 22 kilograms of heroin in New Jersey, U.S. Attorney Paul J. Fishman announced.
Edwin Alamo Jr., 21, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor-trailer, driven by Sauro D. Estevez Figueredo and Alberto Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Emmanuel Gonzalez and Alamo drove to the tractor-trailer and left with a suitcase given to them by Mora. Later, Porfirio Peralta-Nunez arrived at the tractor-trailer with two empty bags and left shortly afterwards with the bags filled.
Subsequent traffic stops allegedly revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Additional quantities of narcotics were allegedly found in Peralta-Nunez’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl remaining at the tractor-trailer.
Alamo admitted that he went to Clifton to pick up narcotics from a tractor-trailer and that he obtained a suitcase containing approximately 22 kilograms of heroin.
The count of conspiracy to possess with intent to distribute more than one kilogram of heroin carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Jan. 30, 2017.
Co-defendants Mora and Gonzalez have pleaded guilty. Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Meredith Williams of the Narcotics/OCDETF unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender
Albuquerque Man Sentenced to Prison for Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Carl Weatherman, 34, of Albuquerque, N.M., was sentenced today in federal court in Santa Fe, N.M., to 75 months in prison for his conviction on a receipt of child pornography charge. Weatherman will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender when he completes his prison sentence.
Weatherman was arrested on federal child pornography charges on April 8, 2014, based on a criminal complaint alleging receipt and possession of visual depictions of minors engaged in sexually explicit conduct charges. According to the criminal complaint, the investigation into Weatherman was initiated by the Bernalillo County Sheriff’s Office (BCSO) in Dec. 2013, when a minor child reported seeing Weatherman watch child pornography and that Weatherman showed child pornography to the minor child. Between Dec. 2013 and Feb. 2014, the BCSO executed search warrants at Weatherman’s residence which authorized them to seize, among other things, computers, computer-related media and cellphones. Items seized by the BCSO during the searches were submitted for forensic examination by the New Mexico Regional Forensic Laboratory, and were found to contain images and videos consistent with child pornography.
Weatherman was indicted on May 7, 2014, and charged with one count of receipt of child pornography and one count of possession of child pornography.
On Dec. 10, 2014, Weatherman entered a guilty plea to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Weatherman admitted that between Aug. 2013 and Dec. 2013, he knowingly received child pornography on his computer.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Regional Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Shannon Lamont Jackson, 38, of Albuquerque, N.M., pled guilty today to a federal heroin trafficking charge. Under the terms of his plea agreement, Jackson will be sentenced to 77 months in prison followed by a term of supervised release to be determined by the court.
Jackson was arrested on Dec. 3, 2015, on an indictment charging him with distributing heroin on Sept. 6, 2015, in Bernalillo County, N.M. During today’s proceedings, Jackson pled guilty to the indictment and admitted that in Sept. 2015, he negotiated the sale of 20 grams of heroin with undercover FBI agents. Jackson remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’ Office. Assistant U.S. Attorney Shana B. Long is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
18 October 2016
Wichita Man Charged with Sex Trafficking of 17-Year-OldRead the Press Release
WICHITA, KAN. – A Wichita man was charged Tuesday in federal court here with the sex trafficking of a 17-year-old girl, Acting U.S. Attorney Tom Beall said.
John H. Dickerson, 34, Wichita, Kan., was charged with one count of the sex trafficking of a minor and one count of unlawful possession of a firearm following a felony conviction.
A criminal complaint filed in U.S. District Court in Wichita alleges the case grew out of a human-trafficking enforcement operation conducted by the FBI and the Wichita Police Department. On Saturday, Oct. 15, a detective answered an advertisement on an adult services Web site. He arranged to meet a sex worker at a hotel in Wichita and to pay $200 for an hour of sex.
Dickerson dropped off a 17-year-old girl at the detective’s room. The girl and Dickerson were taken into custody. Investigators learned that that Dickerson had been paid several times to take the girl to meet customers.
If convicted, he faces a penalty of not less than10 years in federal prison and a fine up to $250,000 on the trafficking charge, and up to 10 years and a fine up to $250,000 on the firearm charge.
The Wichita Police Department, the FBI and the Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
West Virginia business owners plead guilty to failing to pay employment taxesRead the Press Release
WASHINGTON – Two Wayne County, West Virginia business owners pleaded guilty today to federal employment tax charges, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carol A. Casto for the Southern District of West Virginia.
Michael Taylor, 48, pleaded guilty to one count of conspiracy to defraud the United States in the ascertainment, computation, assessment and collection of employment tax from mid-2007 through 2010. Jeanette Taylor, 44, pleaded guilty to one count of failing to pay over employment tax for the last quarter of 2009.
According to documents filed with the court, from 2000 through 2010, Michael Taylor and Jeanette Taylor owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky. The Taylors changed the name of the business several times, though the operations of the business remained the same. From 1999 to 2004, the business operated as Taylor Contracting & Taylor Ready-Mix LLC. In 2004, the name changed again to Taylor Contracting/Taylor Ready-Mix LLC. In 2010, the name changed a third time to Bluegrass Aggregates.
Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees. From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks. Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm. The Taylors also failed to pay over $490,000 in employment taxes for a prior business. The total tax loss for the Taylors’ conduct is $1.4 million.
The sentencing hearing has been scheduled for Jan. 23, 2017. The Taylors each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked IRS Field Collection for their significant work on this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
West Virginia Business Owners Plead Guilty to Failing to Pay Employment TaxesRead the Press Release
Two Wayne County, West Virginia business owners pleaded guilty today to federal employment tax charges, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carol A. Casto for the Southern District of West Virginia.
Michael Taylor, 48, pleaded guilty to one count of conspiracy to defraud the United States in the ascertainment, computation, assessment and collection of employment tax from mid-2007 through 2010. Jeanette Taylor, 44, pleaded guilty to one count of failing to pay over employment tax for the last quarter of 2009.
According to documents filed with the court, from 2000 through 2010, Michael Taylor and Jeanette Taylor owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky. The Taylors changed the name of the business several times, though the operations of the business remained the same. From 1999 to 2004, the business operated as Taylor Contracting & Taylor Ready-Mix LLC. In 2004, the name changed again to Taylor Contracting/Taylor Ready-Mix LLC. In 2010, the name changed a third time to Bluegrass Aggregates.
Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees. From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks. Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm. The Taylors also failed to pay over $490,000 in employment taxes for a prior business. The total tax loss for the Taylors’ conduct is $1.4 million.
The sentencing hearing has been scheduled for Jan. 23, 2017. The Taylors each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Ciraolo also thanked IRS Field Collection for their significant work on this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Washington State Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Haben Sebhatu, Seattle, Washington, was sentenced to 63 months in federal prison for participating in two stolen identity credit card fraud rings that were disrupted in St. Louis.
Sebhatu’s conduct included credit card fraud activities in Missouri, Washington, Indiana and Arkansas. Sebhatu was arrested by the Ladue Police Department after a traffic stop on March 25, 2016, which revealed numerous counterfeit credit cards and a card encoding machine in his vehicle.
Sebhatu pled guilty in July to one felony count of credit card fraud, one count of possessing device making equipment and nine counts of aggravated identity theft. He appeared today for sentencing before Judge Audrey G. Fleissig.
The case was investigated by the Ladue (Missouri) Police Department, the U.S. Secret Service and the Pierce County (Washington) Prosecuting Attorney’s Office. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Washington County Man Sentenced to 8 Years in Federal Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania, has been sentenced in federal court to 96 months imprisonment, followed by a lifetime of supervised release, on a charge of Receipt of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Michael G. Williams, 48, of Eighty Four, Pennsylvania.
According to information presented to the court, the court was advised that from on or about June 18, 2015, and continuing thereafter to on or about June 25, 2015, Williams knowingly received visual depictions, namely, videos and images in computer graphics and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Williams.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Attorney’s Office Hosts Cyber Security SummitRead the Press Release
LOS ANGELES – The United States Attorney’s Office is hosting a Cyber Security Summit at the USC Radisson Hotel today in Los Angeles. The event, which is part of Cyber Security Awareness Month, is being held in partnership with the Federal Bureau of Investigation, the University of Southern California, the Lares Institute, and the National Cyber-Forensics & Training Alliance.
Top officials from utilities/critical infrastructure, local government, banking, the motion picture industry, the software industry, universities and law enforcement are attending the Summit. The Summit is offering information on new and developing cyber threats, preventing cyber attacks, and recognizing and remediating attacks when they occur. Attendees are participating in “table top” exercises in which participants analyze a cyber attack, reflect on preparedness, and discuss the benefits of sharing data with law enforcement.
“Reports of hacking and cyber intrusions have become an everyday occurrence. Many in the cyber security arena believe there are two kinds of companies – those that have been the victims of computer intrusions, and those who don’t know they have been victims,” said United States Attorney Eileen M. Decker. “The Cyber Security Summit brings together the public, private, and non-profit sectors, to include officials from every level of government, academic and consultant experts, corporate general counsel, and chief information security officers. Our goal is to share information, foster relationships, and protect American business interests from both domestic and foreign threats.”
The Summit features speakers that include United States Attorney Eileen M. Decker and USC Chief Counsel Carol Mauch Amir. The FBI is providing a current threat briefing to the attendees to inform them of the most recent types of cyber attacks and defenses to those types of attacks. The perspective of the business community is represented by executives from Ernst & Young, Target Corporation, IBM and Sony Pictures Entertainment.
“Cyber security is a shared responsibility among the public and private sectors, as well as an individual responsibility for all of us who use Internet-connected devices," said Deirdre Fike, the Assistant Director in Charge of the FBI's Field Office. "As organizations, large and small, contend with cyber intrusions, ransomware, e-mail compromise schemes and myriad cyber challenges to their security, this summit will afford both government and private business stakeholders an opportunity to meet in person to discuss our collective cyber security needs.”
“This event is a valuable opportunity for information security professionals in the public and private sectors to openly discuss methods of planning for and responding to cyber incidents in a non-crisis setting,” said Matthew LaVigna, Director of Operations and CEO for the National Cyber-Forensics & Training Alliance. “Neither private industry nor the government should be expected to address this threat alone. Events like this will help to establish trusted relationships and lead to future collaborative efforts.”
Two men sentenced for methamphetamine chargesRead the Press Release
ELKINS, WEST VIRGINIA – Two men were sentenced in federal court today on methamphetamine charges, United States Attorney William J. Ihlenfeld, II, announced.
Donald Cantrell, 40, of Mill Creek, West Virginia, was sentenced today to 70 months in prison for one count of “Possession with Intent to Distribute Methamphetamine.” Cantrell was discovered in possession of methamphetamine last year in Randolph County, West Virginia.
Patrick James Young, 31, of Beverly, West Virginia, was sentenced today to 27 months in prison for one count of “Possession with Intent to Distribute Methamphetamine.” Cantrell was discovered in possession of methamphetamine last year in Randolph County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner prosecuted the cases on behalf of the government.
The Mountain Region Drug and Violent Crime Task Force investigated.U.S. District Judge John Preston Bailey presided.
Two Men Charged with Sex Trafficking of Three VictimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were charged in federal court today for the sex trafficking of three victims.
Calvin Anthony Miller, also known as “Serious,” 34, and his cousin, Henry Dailey, 36, were charged with conspiracy to commit sex trafficking in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Miller and Dailey remain in federal custody pending a detention hearing on Oct. 20, 2016.
Today’s complaint is the result of Operation Cross Country X, an international FBI investigation of sex trafficking in partnership with local law enforcement agencies.
According to an affidavit filed in support of the federal criminal complaint, a federal undercover agent assisted the Independence, Mo., Police Department, posing as a customer attempting to hire a prostitute for sex. On Oct. 14, 2016, the undercover agent located an online listing for an individual identified as Victim 1. The post included provocative and partially nude photos and her description and some possible acts that she was willing to do. The agent contacted Victim 1 and she agreed to meet him at a hotel.
Victim 1 provided law enforcement officers with information on Miller, who she said was her pimp, and Dailey, both of whom she said exploited commercial sex workers. Victim 1 told law enforcement officers that Miller was violent and abusive, the affidavit says.
According to the affidavit, Victim 1 located online advertisements for two additional women who had been trafficked by Miller, identified as Victim 2 and Victim 3. Victim 2, who is described in the affidavit as “a very young baby-faced girl,” had recently arrived in Kansas City on a bus with Dailey, the affidavit says.
An Independence police detective located Victim 2 with Dailey at an Independence hotel. They were detained, the affidavit says, and Victim 2 told the detective that she wanted away from the group and just wanted to go home. Law enforcement officers also found Victim 3 at the hotel. She stated, “If I tell you anything he will kill me” and started crying. Victim 3 stated that she did not believe the police could provide enough security to protect her from “these guys.” Victim 3 said she wanted to leave and get away from Miller.
While at the hotel, agents determined that Miller had rented two rooms on the third floor and a room on the first floor. Agents made contact with Miller on the third floor. Miller was noncompliant with law enforcement requests, was directed to the ground, and cuffed.
Each of the victims told law enforcement officers that Miller and Dailey required them to work as prostitutes, threatening them with violence and death if they tried to leave, and took all of their money. According to the affidavit, they also said that Miller and Dailey forced them to use drugs to keep them addicted and dependent on them.
Victim 3 said Miller had broken her hip during a violent encounter in Overland Park, Kan., in June 2016. According to the affidavit, Victim 3 was treated at the hospital, and when she was released she was given six weeks’ worth of pain medication. After a week, she said, Miller had used the remaining amount of her pain medication. After two weeks, Miller allegedly required her to begin working as a commercial sex worker with a broken hip, without pain medication.
According to the affidavit, Victim 3 showed federal agents the ledger where she had been keeping track of the money she had made. Victim 3 told agents that she had paid Miller approximately $13,000 over the past month.
Victim 3 told agents that Miller had transported her from St. Louis to Kansas City, Las Vegas, and as far away as Washington state to work as a commercial sex worker. She had wanted to leave on multiple occasions, she said, but was not able to leave. Victim 3 also told agents that Miller had a Google voice account which allowed him to view and hear all text message and verbal conversations on her phone.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Independence, Mo., Police Department.
Two Former Drug Enforcement Administration Task Force Officers Charged with Drug Conspiracy, Weapons Offenses and Other CrimesRead the Press Release
Two former Drug Enforcement Administration (DEA) task force officers were charged in a superseding indictment unsealed today with drug conspiracy, weapons offenses, robbery, obstruction of justice and falsification of records in federal investigations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General (DOJ OIG) Dallas Field Office and Deputy Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (OPR) made the announcement.
Karl Emmett Newman, 49, of Kentwood, Louisiana, and Johnny Jacob Domingue, 27, of Maurepas, Louisiana, were indicted by a federal grand jury in the U.S. District Court for the Eastern District of Louisiana on Oct. 7, 2016. Newman is charged with one count of conspiracy to possess with intent to distribute cocaine and oxycodone, one count of interference with commerce by robbery, one count of possessing a firearm during a crime of violence, one count of possessing a firearm during a drug trafficking crime, two counts of unlawful conversion of property by a government officer or employee, two counts of falsifying records in a federal investigation and one count of obstruction of justice. Domingue is charged with one count of falsifying records in a federal investigation. Newman was originally charged on May 13, 2016, in a now-unsealed indictment, and was arrested on that date. Domingue was arrested on a now-unsealed criminal complaint on May 12, 2016.
In addition to serving as DEA task force officers, Newman and Domingue previously served as deputies with the Tangipahoa Parish, Louisiana, Sheriff’s Office.
The charges and allegations contained in an indictment are only accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, DOJ OIG and DEA-OPR investigated the case. Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
Two Charleston crack dealers appear in federal court for drug crimesRead the Press Release
CHARLESTON, W.Va. – Two Charleston drug dealers appeared in federal court today for crimes involving crack, announced United States Attorney Carol Casto. Dushawn D. Williams, 40, was sentenced to two and a half years in federal prison for distribution of crack. In a separate prosecution, Terri Mitchell, 25, entered her guilty plea to possession with intent to distribute crack.
Williams admitted that on July 24, 2015, he sold approximately an ounce of crack to a confidential informant working with law enforcement in exchange for $1,600. The drug deal took place in the parking lot of the Dollar General store in Cross Lanes.
In a separate drug prosecution, Mitchell admitted that in March 2015, law enforcement executed a search warrant at her Charleston residence and discovered approximately 80 grams of cocaine and over 60 grams of crack in her bedroom, along over $7,600 in cash. Mitchell further admitted that in May 2015, law enforcement executed another search warrant at her residence in Charleston. While searching Mitchell’s residence, officers found that Mitchell was in possession of approximately 2.7 grams of crack in the pockets of her pants. Mitchell faces up to 20 years in federal prison when she is sentenced on January 25, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation of Williams. Assistant United States Attorney John J. Frail is in charge of the Williams prosecution. The case against Mitchell was investigated by the Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Timothy D. Boggess is responsible for the Mitchell prosecution. The hearings were held before United States District Judge Thomas E. Johnston.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including crack. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Topeka Man Sentenced for Conspiracy in Fort Riley Bomb PlotRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Tuesday to 15 months in federal prison for conspiring with another man who devised a plot to detonate a vehicle bomb at Fort Riley military base near Manhattan, Kan., Acting U.S. Attorney Tom Beall announced today.
Alexander E. Blair, 29, Topeka, Kan., pleaded guilty to one count of conspiracy. During a plea hearing, Blair admitted he conspired with co-defendant John T. Booker, Jr., 22, Topeka. Asked after he was arrested about the fact Booker’s plan called for America service members to die in the bombing, Blair said: “That’s what they signed (up) for.”
In March 2014, the FBI began an investigation into Booker, who called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, Blair chose not to report what he knew to the authorities.
Booker pleaded guilty to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property. He is awaiting sentencing.
Beall commended the FBI Joint Terrorism Task Force, Assistant U.S. Attorneys Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section for their work on the case.
Three Military Members Indicted for Paying Kickbacks to Tricare Beneficiaries to Obtain Prescriptions for Compounded MedicationsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Cordera Hill (27, Tampa), Anthonio Miller (25, Tampa), and Rashad Barr (24, St. Petersburg) with one count of conspiracy and nine counts of offering to pay and paying kickbacks in connection with a federal health care benefit program. If convicted, each faces a maximum penalty of five years in federal prison on each count. The indictment also notifies the individuals that the United States intends to forfeit the proceeds traceable to the offenses.
According to the indictment, in October 2014, Hill, an active duty member of the United States Army, and Miller, an active duty member of the United States Navy, agreed to become sales representatives for Centurion Compounding, Inc. Centurion, a marketing firm in Wesley Chapel, utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. These creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams. Centurion directed the prescriptions that it received for the patients its sales representatives had recruited to two compounding pharmacies: Lifecare Pharmacy and later Oldsmar Pharmacy. Centurion received approximately 50 percent of the after-cost amount of each claim paid by a health care benefit program to the pharmacy for each prescription filled. Centurion then paid its sales representatives a percentage of the paid claims it received from the pharmacies.
With the help of patient recruiter Barr, who was a U.S. Army reservist, Hill, Miller, and others working with them agreed to make, made, and caused to be made illegal kickbacks in the form of cash payments, doctor visit co-pays, meals, travel costs, and entertainment expenses to TRICARE beneficiaries to induce those beneficiaries to see doctors for the purpose of obtaining prescriptions for compounded creams marketed by Centurion and filled at Lifecare and later Oldsmar, resulting in commission payments to Centurion and its sales representatives, including the defendants.
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 Defense Criminal Investigative Service, the FBI, the Department of Health and Human Services Office of Inspector General, and the DEA. It will be prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Three Arrested for Conspiracy to Commit Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Ronnie E. Mejia, 27, Jeffrey Carvajal, 25, and Cerrone Hall, 29, all residents of New York City, were arrested today on an Indictment filed in Syracuse alleging they conspired to use stolen identities to defraud the Internal Revenue Service (IRS) through the filing of false federal income tax returns, announced United States Attorney Richard S. Hartunian.
The indictment alleges the three men and others conspired to use personal identification information stolen from residents of Puerto Rico to file fraudulent income tax returns in order to steal refund checks mailed to locations in the Syracuse area.
If convicted, all three men face up to twenty years in prison and fines of up to $250,000.00 for conspiring to commit mail and wire fraud. Defendants Ronnie E. Mejia and Cerrone Hall also face mandatory consecutive sentences of two years on each of ten aggravated identity theft counts. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
All three defendants were arraigned today in federal court in New York City. They are scheduled to appear in Syracuse before United States Magistrate Judge Andrew T. Baxter on October 31, 2016.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by Internal Revenue Service, Criminal Investigations and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Tallahassee Man Convicted of Federal Child Pornography CrimesRead the Press Release
TALLAHASSEE, FLORIDA – Ray Eugene Collins, 62, of Tallahassee, was convicted today of receipt, distribution, and possession of child pornography. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in January 2014, law enforcement officers identified a computer determined to belong to Collins that was sharing child pornography files through a peer-to-peer network. A forensic review of Collins’s laptop and external hard drive revealed that Collins had downloaded dozens of videos and images of child pornography between October 2013 and January 2014.
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Leon County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jason S. Beaton.
Collins faces a minimum of five years and a maximum of 20 years in prison. Collins’s sentencing hearing is scheduled for January 11, 2017, at 11:00 a.m. at the United States Courthouse in Tallahassee.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Six MS-13 Members Sentenced to over Five Years in PrisonRead the Press Release
NEWARK, N.J. – Six members of the international street gang “Mara Salvatrucha” (also known as MS-13) were each sentenced to over five years in prison for various racketeering crimes including extortion, drug distribution, and conspiracy to commit murder, U.S. Attorney Paul J. Fishman announced today.
Amilcar Romero, a/k/a “Chichi,” 47, of Los Angeles, and German Lisandro Benites-Moreno, “Raro,” 23, of Houston, were each sentenced today by U.S. District Court Judge Stanley R. Chesler to 60 months in prison. Marvin Garcia-Cruz, a/k/a “Buffalo,” 33, of West New York, New Jersey, was sentenced today by Judge Chesler to 108 months in prison. Romero previously pleaded guilty to one count of racketeering conspiracy. Benites-Moreno previously pleaded guilty to one count of racketeering conspiracy and one count of conspiracy to ship firearms while being an illegal alien. Garcia-Cruz previously pleaded guilty to one count of conspiracy to commit murder in aid of racketeering and one count of conspiring to possess firearms in furtherance of a crime of violence.
On Oct. 17, 2016, Hector Carranza-Solis, a/k/a “Blackie,” 32, of West New York, Luis Lopez-Guzman, a/k/a “Nino,” 26, of Union City, New Jersey, and Rudy Gutierrez, a/k/a “Chiqui,” 24, of Union City, were each sentenced by Judge Chesler to 60 months in prison. Carranza-Solis and Lopez-Guzman each pleaded guilty to one count of conspiracy to commit murder in aid of racketeering. Gutierrez pleaded guilty to one count of racketeering conspiracy.
According to documents filed in this case and statements made in court:
Romero and Joel Antonio Cortez, 42, a/k/a “Pee Wee,” of Los Angeles, served as the top deputies to Jose Juan Rodriguez-Juarez, 34, the alleged leader of MS-13’s “national program” which was an effort to bring all of local sets operating in the United States under a single, cohesive leadership structure.
By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the east coast of the United States to join the national program. Both are also alleged to have ordered acts of violence, including Cortez’s authorization of the November 2013 murder plot in Hudson County and Romero’s order to east coast-based gang members to collect money on behalf of the gang by force and violence.
Romero and Cortez also collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.
Benites-Moreno, a Texas-based enforcer, admitted discussing the use of extortion and threats of violence to collect “rent” from other gang members. He also admitted that from Jan. 5, 2014 through July 18, 2014, he conspired with others to ship firearms from Texas to the east coast of the United States, including New Jersey.
Lopez-Guzman, Carranza-Solis, and Rudy Gutierrez were three members of the “Hudson Locotes Salvatruchas” MS-13 clique based in Hudson County. Garcia-Cruz was the leader of “Pinos Locos Salvatrucha,” another MS-13 clique based in Hudson County. All four admitted to their roles in a conspiracy to murder an MS-13 member who had violated the gang’s rules and the member’s brother, who was alleged to belong to a rival gang. They admitted that they participated in telephone calls and other discussions with the leadership of the gang in the United States and El Salvador – including Cortes – to seek permission to kill the rival gang members. Law enforcement learned of the murder plot during the course of the investigation and arrested the defendants before it could be completed.
Romero’s sentence will be served consecutively to a 44-year prison sentence imposed by California state court in 1997 for attempted murder.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
Sharon Man Sentenced for Tobacco Tax Fraud and Money LaunderingRead the Press Release
BOSTON - A Sharon man was sentenced today in U.S. District Court in Boston in connection with illegally selling tobacco products and laundering the proceeds.
Kaleem Ahmad, 47, was sentenced by U.S. District Court Judge William G. Young to two years in prison, one year of supervised release and restitution in an amount to be determined by the Court at a later time. The Court also ordered forfeiture of hundreds of thousands of dollars in tobacco products and over $138,000 belonging to Ahmad and the tax-evading wholesale tobacco business in which he engaged. In May 2016, he pleaded guilty to conspiring to defraud Massachusetts of wholesale tobacco taxes and to filing a false personal income tax return.
Muhammad Saleem Iqbal, his partner, and Ahmad operated a wholesale business in Norwood under the name “Pick N Dip,” that sold tobacco products, including cigars and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses. Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and must pay a 40% excise tax on cigars brought into Massachusetts.
In order to evade tobacco taxes, beginning around 2010, the three repeatedly purchased tens of thousands of dollars of smokeless tobacco and cigars in Pennsylvania where no taxes are imposed for these products. They then arranged to have the products covertly transported to Massachusetts for resale, without filing the records required by Massachusetts state law and federal law, and without paying excise taxes.
Ahmad and others transported more than $50,000 in cash at a time from Massachusetts to Pennsylvania where the money was used to purchase additional untaxed smokeless tobacco and cigars. They also engaged in large cash transactions in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of their illegal tobacco business and to avoid transaction reporting requirements under federal and state law.
Iqbal was sentenced yesterday to 42 months in prison, two years of supervised release and ordered to pay restitution of $28,027,946 for his role in the scheme.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Valuable assistance was also provided by the Massachusetts Department of Revenue. Assistant U.S. Attorneys Stephen P. Heymann of Ortiz’s Economic Crimes Unit and Doreen Rachel, Chief of Ortiz’s Asset Forfeiture Unit, handled the case.
Roswell Man Pleads Guilty to Federal Conspiracy and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Joseph Ray Mendiola, 35, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine and cocaine trafficking charges. Under the terms of his plea agreement, Mendiola will be sentenced within the range of 120 to 180 months in prison followed by a term of supervised release to be determined by the court.
Mendiola is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 were charged with state offenses.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Mendiola, that distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Mendiola and 15 other federal defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
During today’s proceedings, Mendiola pled guilty to conspiracy to possess methamphetamine and cocaine with intent to distribute and possession of methamphetamine with intent to distribute. In entering the guilty plea, Mendiola admitted conspiring with his co-defendants to distribute methamphetamine and cocaine in Chaves County from June 2015 through July 31, 2015. Mendiola also admitted that on July 25, 2015, and July 31, 2015, he and a co-defendant arranged to purchase two pounds of methamphetamine with the intention of distributing it to others. Mendiola remains in custody pending a sentencing hearing which has yet to be scheduled
To date, all but one of Mendiola’s co-defendants have entered guilty pleas and are awaiting sentencing. The remaining defendant has entered a not guilty plea to the indictment. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Previously Charged U.S. Postal Employee Re-Arrested for Sexually Exploiting a ChildRead the Press Release
BOSTON – A United States Postal Service employee was re-arrested today after law enforcement discovered evidence that he sexually exploited a child sometime between 1999 and 2001.
Stephen Mantha, 62, of Spencer, was charged in a criminal complaint unsealed today with sexually exploiting a minor boy sometime between 1999 and 2001. Mantha was originally charged on Sept. 21, 2016, with possession of child pornography and accessing with the intent to view child pornography. He was arrested at that time, but was released to home detention on Sept. 26, 2016 pending trial.
It is alleged that, beginning in the summer of 2015, USPS Office of Inspector General investigators were alerted to suspicious internet searches being conducted by Mantha on a computer at the Shrewsbury processing and distribution center where he worked as an electronic technician. A subsequent investigation revealed that Mantha was using the USPS computer to search for, and view, images of child pornography on the internet.
On Sept. 21, 2016, a search warrant was executed at Mantha’s residence where computers, DVDs/CDs, video cassettes, an external hard drive, and over a dozen thumb drives were recovered. A preliminary on-scene forensic review of three of the thumb drives revealed images of child pornography. Since that time, federal agents have continued to review the materials and discovered a video of Mantha sexually assaulting a young boy, approximately seven years old. According to court documents, federal agents located and interviewed the victim depicted in the video (now an adult), and the victim confirmed the sexual exploitation.
The charge of sexual exploitation of a child provides for a mandatory minimum of 10 years and no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Eileen Neff, Special Agent in Charge of the United States Postal Service’s Office of Inspector General; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Chief David Darrin of the Spencer Police Department; and Chief James Hester, Jr. of the Shrewsbury Police Department, made the announcement today. Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Pair Sentenced for Roles in Analogue Distribution ConspiracyRead the Press Release
ABINGDON, VIRGINIA – Two more members of a 22-person conspiracy, that brought a controlled substance analogue into Southwest Virginia from as far away as China, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
John Roma Bryan III and Wesley David Gross were sentenced today in the Federal Court for their roles in the conspiracy
Bryan, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute alpha-PVP, also known as “Flakka,” and one count of possessing a firearm in furtherance of a drug trafficking crime and using and carrying a firearm during and in relation to a drug trafficking crime, was sentenced today to 72 months in federal prison.
Gross previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute alpha-PVP. Today in District Court, Gross was sentenced to 96 months in federal prison.
“This form of synthetic drug, known as gravel and flakka, has dire health consequences for users and should be avoided at all costs,” United States Attorney Fishwick said today. “We are grateful to the work of our law enforcement partners for putting an end to this distribution conspiracy and slowing the importation of this deadly substance into our community.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.