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Tuesday 30 August 2016
Federal Inmate Pleads Guilty to Fraud and Identity Theft ChargesRead the Press Release
JOHNSTOWN, Pa. – A federal prison inmate pleaded guilty in federal court to charges of credit/debit card fraud and identity theft, United States Attorney David J. Hickton announced today.
Jermain R. Stevenson, 26, an inmate at a federal correctional institution, pleaded guilty to the indictment before United States District Court Judge Kim R. Gibson.
In connection with the guilty plea, from Dec. 23, 2013, to March 30, 2014, Stevenson, along with co-defendants, used debit and credit card information to obtain more than $1,000, knowing that the debit cards and credit cards belong to other actual persons.
Judge Gibson scheduled sentencing for Jan. 5, 2017, at 10 a.m. The law provides for a maximum total sentence of 12 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stevenson.
Federal Inmate in Minersville Charged with Possession of Drug ContrabandRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted John Vercusky, age 38, a federal inmate at the United States Penitentiary Schuylkill (“USP Schuylkill”), Minersville, Pennsylvania, charging him with possession of a prohibited object. Specifically, marijuana, at the facility on October 25, 2015.
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Schuylkill. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
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 under federal law is 5 years of imprisonment for Vercusky, 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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Fall River Man Pleads Guilty to Escape from Federal FacilityRead the Press Release
BOSTON – A federal inmate pleaded guilty yesterday in U.S. District Court in Boston in connection with escaping from Coolidge House Residential Reentry Center in Boston.
Jason Barreto, 30, pleaded guilty to one count of escape from federal custody. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 22, 2016.
In September 2011, Barreto was convicted in the U.S. District Court in Rhode Island of one count of conspiracy to distribute oxycodone and was sentenced to 70 months in prison. On May 21, 2015, Barreto was transferred from the U.S. Penitentiary Big Sandy in Kentucky, to Coolidge House Residential Reentry Center in Boston to serve the remainder of his sentence. Barreto was scheduled to be released on Nov. 1, 2015.
On Sept. 17, 2015, following an incident at Coolidge House, Barreto walked out of the facility without authorization and did not return. On April 8, 2016, after receiving information regarding Barreto’s location, the U.S. Marshals Service arrested Barreto at Harrah’s Hotel and Casino in Atlantic City, New Jersey.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
Eastern Panhandle man sentenced for sexual abuse of a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Robert Paper, 32, of Ranson, West Virginia, was sentenced to 87 months in prison for traveling across state lines to engage in illicit sexual conduct with a teenage girl, United States Attorney William J. Ihlenfeld, II, announced.
Paper transported a fourteen year old female from Pennsylvania to West Virginia where he had sexual contact with the victim. The crimes occurred in January at a hotel in Berkeley County and at Paper’s home in Jefferson County.
Upon his release from prison, Paper will be supervised for a period of 40 years. He must also register as a sex offender for the rest of his life.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Hanover, Pennsylvania Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Dubuque Couple Sentenced to Probation for Illegally Possessing a FirearmRead the Press Release
A husband and wife who illegally possessed a firearm were each sentenced yesterday to a five year term of probation.
Willie Earl Horsley, Sr., 30, and Raven Javay Harris, 26, from Dubuque, Iowa, received the sentence after an April 20, 2016, guilty plea to possession of a firearm and ammunition by a prohibited person. Both individuals were prohibited from possessing a firearm because of their illegal drug use.
Evidence during the proceedings showed that Horsley and Harris were both unlawful users of marijuana and kept in their residence a .45 caliber pistol. On January 3, 2016, police responded to their residence after receiving a 911 call regarding a shooting. Horsley and Harris’ had left the firearm in their bedroom, accessible to their minor children. The children began playing with the firearm, which led to the shooting of Horsley and Harris’ two year old son. The child suffered multiple injuries and was airlifted to the University of Iowa Hospitals for treatment.
Horsley and Harris were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. A special assessment of $100 was imposed.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-1006.
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District Man Found Guilty of Sexually Abusing 11-Year-Old GirlRead the Press Release
WASHINGTON - Robert Kelsey, 28, of Washington, D.C., has been found guilty of sexually abusing an 11-year-old girl he met through Instagram when he was 26 years old, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), announced today.
Kelsey was found guilty by a jury on Aug. 29, 2016, following a trial in the U.S. District Court for the District of Columbia, of transportation of a minor with intent to engage in criminal sexual activity, aggravated sexual abuse of a child, and first-degree child sexual abuse with aggravating circumstances. The Honorable Reggie B. Walton scheduled sentencing for Nov. 18, 2016. Kelsey, a convicted felon, faces a potential sentence of up to life in prison without the possibility of release, and a mandatory minimum sentence of 30 years in prison.
According to the government’s evidence, Kelsey met the girl during the summer of 2014 on Instagram, concealing his true identity, posing as a 19-year-old and using a fictitious name. He suggested that they begin communicating by text via Kik Messenger. He flirted with her and told her that he wanted to have sex with her. On July 25, 2014, Kelsey arranged to pick up the girl from her summer camp, which was held at an elementary school in Bowie, Md. He told the camp staff that he was the child’s cousin so that he could take her from camp early that day.
Kelsey drove the victim to his house in Washington, D.C., where he sexually abused her, and then returned her to the vicinity of the camp. By that time, the victim’s father, who was at the camp to pick up his daughter, learned that she had been taken from the camp by a man, and the father summoned police. The victim disclosed what happened and Prince George’s County, Md. Police began an investigation. The case was referred to the Metropolitan Police Department, and an investigation by MPD and the FBI’s Child Exploitation Task Force led to Kelsey’s arrest. DNA analysis of evidence obtained from a medical examination of the victim also linked Kelsey to the crime.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the verdict, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorney Sharon Donovan; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Joyce Arthur, Troy Griffith, and Tiffany Jones; Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia, and Intern Wendy Acquazzino. Finally, they commended the work of Assistant U.S. Attorneys Andrea L. Hertzfeld and Kenya Davis, who prosecuted the case.
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Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
"The clemency initiative is about more than the 111 people who learned today that their sentences have been commuted; it's also about the families and communities who will welcome them home as they work to build a new life. With today's announcement, the President has given a second chance to over 300 individuals in the month of August and we expect many more men and women will receive that same opportunity in the months to come. We remain hopeful that Congress will come to a bipartisan and lasting solution for much needed sentencing reforms before the end of the year."
Cleveland attorney sentenced to nearly four years in prison for money launderingRead the Press Release
A Cleveland attorney was sentenced to nearly four years in prison for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 45, was convicted earlier this year of one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. U.S. District Judge Donald C. Nugent sentenced King to 44 months in prison
King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.
This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Carthage Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carthage, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Jerry Batchelor, 52, of Carthage, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole. The court also sentenced Batchelor to supervised release for the rest of his life following incarceration.
On Jan. 11, 2016, Batchelor pleaded guilty to receiving and distributing child pornography over the Internet. Batchelor utilized a peer-to-peer file-sharing network to obtain and trade images and videos of child pornography between Aug. 10, 2012, and April 4, 2014.
A search warrant was executed at Batchelor’s residence on April 7, 2014, and a desktop computer was seized along with three portable hard drives, a thumb drive and an SD card. Images and videos of child pornography included prepubescent minors and sado-masochistic images. Investigators also found videos taken by Batchelor, who secretly videotaped adults in the bathroom.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Boise Man Pleads Guilty to Destruction of Historic Trapper CabinRead the Press Release
BOISE – Jason Reed, 22, of Boise, Idaho, pleaded guilty today in United States Magistrate Court to destruction of government property, U.S. Attorney Wendy J. Olson announced. Reed was charged by an information filed by the U.S. Attorney’s Office.
Reed admitted that in August of 2015, he caused extensive damage to the Trapper Cabin. The Trapper Cabin is a government owned historic property located at the French Creek Trailhead on the McCall Ranger District of the Payette National Forest, in Valley County, Idaho. Reed advised Chief U.S. Magistrate Judge Ronald E. Bush that he broke out the cabin’s windows, wrapped a winch cable from his father’s ATV around the deck of the cabin, and pulled the deck off its foundation. He then admitted to wrapping the winch cable around a log on the corner of the cabin and pulled the two bottom logs, causing the cabin to partially collapse.
The Trapper Cabin was built in 1936 and is one of two cabins left in Idaho that were built and utilized for predatory control by the U.S. Fish and Wildlife Service. It was built in the Rocky Mountain style log cabin, using peeled lodge pole pine logs and mud chinking. It is the only cabin on the Payette National Forest that was built in this style. Prior to the damage caused by Reed, the cabin was in good condition and was eligible to be listed on the National Register of Historic Places. The cost to restore the cabin is $31,919.20. Reed has agreed to provide restitution in full.
The charge of destruction of government property is a class A misdemeanor and is punishable by up to one year in prison, one year of supervised release, and a fine of up to $100,000.
Reed is scheduled to be sentenced on November 14, 2016, before Chief U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Boise.
The case was investigated by the U.S. Forest Service.
Armed Savannah Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
SAVANNAH, GA: Tyrone Anwan Broadnax, 35, a multi-convicted felon who has sold drugs and perpetrated violence in Savannah for many years, was sentenced yesterday by Chief U.S. District Judge Lisa Godbey Wood to 168 months in prison for trafficking cocaine, crack cocaine, and ethylone, a Schedule I psychedelic controlled substance.
According to court documents and evidence presented at hearings, Broadnax was stopped by police on July 22, 2015 after undercover officers saw him engage in a hand-to-hand drug transaction in Savannah’s Victorian District. A search of Broadnax’s car revealed 95 baggies of drugs packaged for sale and a 9 mm semiautomatic pistol equipped with a high-capacity magazine. An infant girl was in the backseat of the car as Broadnax drove through Savannah with his drugs and gun. Following his arrest, Broadnax gave a full confession to police and bragged, “I sell every drug. . . . Every drug was in there today.”
Broadnax’s criminal history and involvement with guns and drugs stretches over two decades. In 1995, at the age of 14, Broadnax and two accomplices mugged a man at gunpoint in downtown Savannah. In 2002, shortly after Broadnax was released from prison, he was arrested for selling cocaine within 1,000 feet of a housing project. He served less than half of a seven-year prison sentence. In 2005, Broadnax was arrested for trafficking crack cocaine and unlawfully possessing a stolen firearm. Although he was sentenced in 2007 to a 10-year term of incarceration, Broadnax was paroled in April 2008. Seven months later, he committed a shooting in Savannah’s Hitch Village neighborhood.
U.S. Attorney Ed Tarver stated, “Too often, career criminals like Tyrone Broadnax come to believe that serving a short stint in state prison is simply the cost of doing business. This United States Attorney’s Office is committed to stopping the revolving door and ensuring that felons who terrorize our community with gun violence and pollute our streets with drugs bear the full weight of their misdeeds. Gun-using drug dealers in this District should expect to be sentenced to long sentences that will be served without parole in federal prisons far away.”
The U.S. Attorney’s Office prosecuted Broadnax as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences, all of which must be served without the possibility of parole.
The case was investigated by the ATF and the Undercover Narcotics Investigation Team of the Savannah-Chatham Metropolitan Police Department (“SCMPD”). SCMPD’s K-9 Unit and the Georgia State Board of Pardons and Parole provided support. Assistant United States Attorney Theodore S. Hertzberg prosecuted the case on behalf of the United States.
Antioch Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
Christopher N. Bonick, 31, Antioch, Tennessee, was sentenced on August 26, 2016, to serve 20 years in prison, to be followed by 30 years of supervised release, for attempting to entice a minor to engage in sexual activity and possession of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. Bonick was sentenced by U.S. District Court Judge Aleta Trauger after having been found guilty by a federal jury following a March 2016 trial.
The evidence at trial showed that in July 2010, Bonick began communicating on-line with an individual that he initially believed to be a 13-year-old girl. In July 2011, Bonick engaged in a lengthy, sexually explicit chat with this person, who, unknown to him, was actually an undercover law enforcement officer in Louisiana. Bonick asked this individual if she would be willing to engage in sexual activity with him and told her that he had previously met a 15-year-old girl online and had traveled to have sex with her. Bonick discussed traveling to see her and continued the sexually explicit conversation.
Other evidence introduced at trial also showed that Bonick had previously communicated with numerous minors online and had solicited child pornography from them and had traded child pornography with other individuals via email.
Bonick was in possession of dozens of images of child pornography when a search warrant was served at his home in Antioch in January 2012, at which time he admitted that he was sexually attracted to minor teenagers.
Testimony presented to the Court during the sentencing hearing revealed that Bonick also had been talking on teen oriented websites to as many as 21 minors between July 2010 and July 2011 and had engaged young girls in chat conversations before turning the conversations to a sexual nature and sending and soliciting explicit images.
The case was investigated by the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Henry Leventis.
An Illegal Immigrant from Mexico Sentenced to Prison After Being Deported Five Times and ReturningRead the Press Release
A Mexican man who had previously been deported five times was sentenced today to more than three years in federal prison.
Manuel Sanchez-Rojas, 47, a citizen of Mexico who had been living in Waterloo, Iowa, received the prison term after a June 2, 2016, guilty plea to one count of illegal reentry of a removed alien after an aggravated felony conviction.
At the guilty plea, Sanchez-Rojas admitted he illegally reentered the United States without permission after having been deported from the United States in 1992, 1997, 2000, 2004, and 2005. Sanchez-Rojas was found by immigration authorities in Iowa on April 14, 2016, after Sanchez-Rojas had been arrested in Waterloo on a theft charge. After being arrested by immigration agents, Sanchez-Rojas threatened to return to the United States and shoot the agents. Sanchez-Rosa had previously been convicted 11 times in the United States, including convictions for assault with a deadly weapon, possession of a firearm, and burglary four times.
Sanchez-Rojas was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Sanchez-Rojas was sentenced to 37 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez-Rojas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2021.
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Akron men indicted in federal court for shooting woman in Cuyahoga Valley National ParkRead the Press Release
Two Akron men were charged in a federal indictment with attempted murder and related charges for shooting a woman in the Cuyahoga Valley National Park, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
DeZay M. Ely, 27, and Raymond T. Moore III, 26, are both charged with attempted murder and using and discharging a firearm during a crime of violence. Ely is also charged with being a felon in possession of ammunition.
Ely and Moore attempted to kill a woman on July 3 by shooting her in the head, according to court documents.
Attempted murder carries a maximum potential penalty of 20 years in prison. The charge of using and discharging a firearm during a crime of violence carries a mandatory minimum consecutive term of 10 years in prison.
If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Kevin Filiatraut and Kelly L. Galvin following an investigation by the FBI and Cuyahoga Valley National Park Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
14 Retailers Facing Federal Indictment for $16 Million Food Stamp FraudRead the Press Release
Baltimore, Maryland - A federal grand jury has returned nine separate indictments charging a total of 14 retail store operators for committing food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received over $16 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were unsealed today upon the arrests of the defendants.
Over 300 members of law enforcement participated in the arrests and execution of a total of 26 search warrants at the stores and related locations this morning. In addition, 46 bank accounts were seized.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
“The food stamp program is intended to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Honest storeowners work hard to earn a profit by actually selling food, and food producers and distributors also benefit. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
“Far from being a victimless crime, the offenders in this investigation defrauded a combined amount of approximately $16 million from taxpayer funded programs,” stated Kevin Perkins, Special Agent in Charge of the FBI Baltimore Office. “These programs are intended to provide assistance for those in need—not a means of abuse or selfish enrichment. The FBI Baltimore Division, along with our federal, state and local partners, remain steadfast in our commitment to root out those who steal from taxpayers and defraud our government programs.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually. As a result of unlawful cash transactions, the defendants obtained more than $16,482,270 in EBT deposits for transactions in which food sales never occurred or were substantially inflated.
According to the indictments, the defendants listed below owned and/or operated stores in the Baltimore area that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Walayat Khan, age 36, of Reisterstown, Maryland; and
Barbara Ann Duke, age 50, of Owings Mills, Maryland;
Maria’s Market Place, 307 S. Broadway in Baltimore; and Royals Food Market, 921 E. Patapsco Avenue in Brooklyn, Maryland. From October 2013 to June 2016, Khan and Duke allegedly obtained more than $1,486,118 in payments for food sales that never occurred.Shaheen Tasewar Hussain, age 60, of Ellicott City, Maryland;
Shop & Save, 301 Crain Highway South, Suite D, Glen Burnie, Maryland. From July 2014 through October 2015, Hussain allegedly obtained more than $778,183 in payments for food sales that never occurred.Kelym Novas Perez, age 34, of Baltimore; and
Jose Remedio Gonzalez Reyes, age 50, of Baltimore;
Kelym Grocery, 2734 Pennsylvania Avenue in Baltimore. From August 2013 through March 2016, Perez and her husband, Gonzalez Reyes, allegedly obtained more than $879,500 in payments for food sales that never occurred.Mulazam Hussain, age 54, of Windsor Mill, Maryland;
Monroe Food Mart and Y&J Grocery in Baltimore. From March 2013 through July 2016 Hussain allegedly obtained more than $1,242,745 in payments for food sales that never occurred.Mohammad Shafiq, age 50, of Gwynn Oak, Maryland; and his daughter,
Alia Shaheen, age 24, of Baltimore;
Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland. From about October 2010 through July 2016, Mohammad Shafiq and his daughter, Alia Shaheen, allegedly obtained more than $3,712,353 in payments for food sales that never occurred or were substantially inflated.Mohammad Irfan, age 59; and
Muhammad Sarmad, age 40, both of Nottingham, Maryland;
New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. From October 2010 through August 2016, Irfan and Sarmad allegedly obtained more than $3,550,662 in payments for food sales that never occurred.Mahmood Hussain Shah, age 57, of Catonsville, Maryland; and
Muhammad Rafiq, age 58, of Reisterstown;
Corner Groceries, 1242 Darley Avenue in Baltimore. From October 2010 through August 2016, Shah and Rafiq allegedly obtained more than $1,610,556 in payments for food sales that never occurred.Rizwan Pervez, age 38, of Essex, Maryland;
M&N Mini Mart, 1846 W. North Avenue; and Mega Mart1, 1522 Ellamont Street, both in Baltimore. From April 2014 through July 2016, Pervez, allegedly obtained more than $1,689,511 in payments for food sales that never occurred.Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore;
C&C Market, 4752 Park Heights Avenue in Baltimore. From November 2010 through April 2013, Hafeed allegedly obtained more than $1,532,642 in payments for food sales that never occurred.The defendants face a maximum sentence of 20 years in prison for each count of wire fraud; a maximum of five years in prison for conspiracy to commit food stamp fraud and wire fraud; and a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan; Jason D. Medinger; Peter J. Martinez, Rachel M. Yasser, Kathleen O. Gavin, Aaron S.J. Zelinsky; Patricia C. McLane, and Sean R. Delaney, who are prosecuting these cases.
Monday 29 August 2016
“YGz” Gang Member Pleads Guilty to Attempted Murders in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL BROWN, a/k/a “Mighty,” pled guilty late last Friday to engaging in a racketeering conspiracy that involved his participation in two attempted murders in connection with his membership in a racketeering enterprise known as the “Young Gunnaz” (“YGz”), a violent street gang that operated in and around several housing developments in the South Bronx. As part of his guilty plea, BROWN admitted to participating in: (a) an attempted murder of a member of the rival “Murda Moore Gangstas” gang (“MMG”) in which a lower-ranking YGz member shot and seriously injured a rival MMG member at the direction of BROWN, and (b) an attempted murder of members of the rival Lyman Place gang (“LPG”) in which BROWN fired gunshots that struck and injured at least two bystanders. BROWN faces a maximum term of 20 years in prison, and will be sentenced before United States District Judge Valerie E. Caproni on November 28, 2016.
Manhattan U.S. Attorney Preet Bharara said: “The YGz gang turned the Bronx neighborhoods in which it operated into a war zone – terrorizing residents and innocent bystanders with violence stemming from its feuds with rivals, and flooding the streets with drugs. Michael Brown’s guilty plea shows that law enforcement won’t give up until the perpetrators of gang violence are brought to justice.”
According to the controlling Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
BROWN was a member of the Bronx-based street gang known as the YGz, a leading member of a set of the YGz based in the Mitchell Houses in the Bronx, and committed acts of violence with other gang members to further the interests of the gang. From at least 2005 to June 2016, members and associates of the YGz enriched themselves by selling drugs, such as “crack” cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the YGz killed and attempted to kill other individuals.
As part of his involvement in the YGz gang, BROWN participated in at least two attempted murders of members of rival gangs. First, in or about 2008, BROWN himself fired gunshots at and attempted to murder rival LPG gang members and ended up hitting and injuring two bystanders in the vicinity of Lyman Place in the Bronx. Second, on or about November 15, 2011, at the direction of BROWN, a lower-ranking member of the Millbrook set of the YGz shot and seriously injured a rival MMG gang member near the Moore Houses in the Bronx in an attempt to kill the victim of this shooting.
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Mr. Bharara praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, Andrew Adams, and Dina McLeod are in charge of the prosecution.
Unlawful Alien Sentenced for Possession of Firearms and AmmunitionRead the Press Release
Orlando, Florida– U.S. District Judge John Antoon, II has sentenced Hamid Mohamed Ahmed Ali Rehaif (25, Melbourne, and a citizen of the United Arab Emirates) to 18 months in federal prison for possession of a firearm and ammunition by an unlawful alien. Following his prison term, he will be deported back to the United Arab Emirates. Rehaif was found guilty by a federal jury in May 2016.
According to evidence presented at trial, Rehaif was admitted into the United States in 2013 under a student visa in order to attend the Florida Institute of Technology (FIT). After completing three semesters at FIT, he was academically dismissed in December 2014. As a result, Rehaif became an unlawful alien when he failed to immediately depart the United States. During that time, Rehaif possessed firearms and ammunition at a local shooting range in Melbourne, Florida. In addition, he provided ammunition to two hotel employees as “gifts.” At the sentencing hearing, the Court found that Rehaif had illegally purchased three other firearms.
Law enforcement agents originally made contact with Rehaif in December 2015, at a hotel in Melbourne where he had been living for two months. According to court documents, Rehaif stayed at the hotel for 53 straight days and paid over $11,000 in room fees. Law enforcement found rounds of handgun and rifle ammunition in his hotel room and in a storage unit that Rehaif had rented, but did not locate any firearms.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier and Special Assistant United States Attorney Christina R. Downes.
United States Attorney's Office Assembles a Team of Specialists to Assist Former Patients/Family Members of Dr. Farid FataRead the Press Release
United States Attorney Barbara McQuade today announced that her office has put together a team of specialists to assist former patients and family members of Dr. Farid Fata in completing the restitution claim form. Fata was sentenced to 45 years in federal prison for providing medically unnecessary chemotherapy treatments to patients. The government has seized approximately $11.9 million and is encouraging and reminding victims to file claims before the filing deadline of October 5, 2016.
The U.S. Attorney’s Office has been working with the Crimes Services Commission for the State of Michigan and a team of Certified Public Accountants (CPAs) and CPA organizations to offer assistance to victims at no charge. The assistance will be provided starting on September 6, 2016 from 9:00 am – 5:00 pm, Monday-Friday and will take place at Common Ground, located at 1200 North Telegraph Road, Building 32 East, Pontiac, Michigan 48341. While walk-ins will be accepted, victims are encouraged to schedule an appointment and can do so by calling the current Fata claims toll free number at 1-877-202-3282. The toll free line will begin accepting calls to schedule appointments on Thursday, September 1 at 3:00pm. Depending on the complexity of the claim victims will be assisted by either a victim advocate specialist or a CPA or both.
The U.S. Attorney’s Office would like to thank Director James McCurtis and Program Specialist Leslie O’Reilly of the Crimes Services Commission of Michigan, Mark Davidoff, CPA, Michigan managing partner Deloitte LLC, Marshall Hunt, Director of Tax Policy and Advocacy at the Accounting Aid Society and Jean Jernigan, Vice President of Business Development at the Michigan Association of CPAs for their assistance in this effort.
In addition, we have prepared two information sheets to help claimants understand how to complete the Claim Forms as efficiently as possible and to make the filing process easier. Those can be accessed through the website www.fataclaims.com on the homepage. The two documents are:
- How to Prove What Victim Paid or Owed
- Listing Multiple Expenses
If you have questions about these documents, please call the phone staff at 1-877-202-3282. You can also view and download copies of these documents on the website at www.fataclaims.com.
We are also reminding victims that they can file claims for their out-of-pocket physical and mental health remedial treatments needed as a result of the treatment they received from Fata. The last date you can be reimbursed for remedial treatment is September 6, 2016. We are encouraging physicians who are currently treating former patients of Fata to sign the necessary forms regarding remediation in an effort to help victims pay for the cost of their treatment.
United States Attorney McQuade stated, “We recognize that the process of filling out a restitution claim form can be an extremely difficult process both emotionally and physically for victims and their families. While no amount of money can restore what has been taken away by the actions of Fata, we hope that with the added assistance we can attempt to give back as much of the seized funds as we can.”
U.K. Citizen Sentenced for Role in Overseas Investment ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Martin Rhys-Jones, 52, a citizen of the United Kingdom, who was convicted of laundering money derived in a wire fraud conspiracy, was sentenced to 72 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay $2,897,130 in restitution.
Assistant U.S. Attorney Russell T. Ippilito, who along with retired Assistant U.S. Attorney John E. Rogowski, handled the case, stated that Jones, who was extradited from Spain, oversaw a “boiler room” scam in Barcelona, Spain, which conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices. Customers were told they were buying more valuable, regular shares of stock.
Approximately 250 investors lost more than $2,900,000 in the scam. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by Jones and his co-conspirator, Arnold Wrobel, a former resident of Buffalo. Wrobel was convicted in December 2015 and is awaiting sentencing.
A total of 12 defendants were arrested in the case, four have been convicted.
The sentencing is the result of an investigation on the part of Department of Homeland Security, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Two sex offenders headed to prison for federal crimesRead the Press Release
CHARLESTON, W.Va. – Two sex offenders were sentenced to prison for federal crimes, announced United States Attorney Carol Casto.
Jeremy L. Kelley, 39, of Parkersburg, was sentenced in federal court in Charleston to 15 years in prison for attempted production of child pornography and possession of child pornography. Following his release from federal prison, he will be placed on supervised release for 30 years and will also be required to register as a sex offender. Kelley admitted that on September 6, 2014, he intentionally placed a cell phone in a vent located above a shower in a bathroom. Kelley further admitted that he placed the cell phone in the vent so that he could secretly record a minor in the shower. Law enforcement located a removable media device at Kelley’s Parkersburg residence in November 2015, and an analysis of that device revealed over 600 images of child pornography. More than 600 images of child pornography were also located on another cell phone and a computer used by Kelley at his place of employment in Pleasants County, located in the Northern District of West Virginia. Kelley also admitted to sharing some of the child pornography over the Internet. Kelley’s prosecution was the result of federal, state, and local law enforcement agencies working together in both the Northern and Southern Districts of West Virginia.
In a separate prosecution, James Roy Arthur, 45, formerly of Charleston, was sentenced in federal court in Huntington to three years and five months in prison, followed by 10 years of supervised release, for failing to register as a sex offender. Arthur was convicted in 1996 in Kanawha County Circuit Court of Second Degree Sexual Assault. As a result of this conviction, Arthur was required to register as a sex offender. Around January 1, 2016, Arthur moved to Fort Gay in Wayne County, and did not register as a sex offender, despite knowing it was required by law. Arthur continued to reside in Wayne County until his arrest on January 31, 2016.
The investigation of Kelley was conducted by Homeland Security Investigations, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department. Assistant United States Attorneys Lisa G. Johnston and Sarah W. Montoro are in charge of the prosecution of Kelley. United States District Judge John T. Copenhaver, Jr., imposed Kelley’s sentence.
The United States Marshals Service and the West Virginia State Police conducted the investigation of Arthur. Assistant United States Attorney Jennifer Rada Herrald is in charge of Arthur’s prosecution. Chief United States District Judge Robert C. Chambers imposed Arthur’s sentence.
These cases were brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Two Doctors Face Federal Charges of Illegally Writing Prescriptions for Addictive Narcotics Connected to Gang’s Drug TraffickingRead the Press Release
LOS ANGELES – Two doctors who each operated medical offices in Lynwood have been arrested on federal drug charges that allege they issued prescriptions for narcotics and sedatives without a medical purpose.
The two doctors were charged by the United States Attorney’s Office in conjunction with an operation conducted by the Torrance Police Department and the Los Angeles District Attorney’s Office that targeted members and associates of the East Coast Crips criminal street gang.
The two doctors – Sonny Oparah, 75, of Long Beach, and Edward Ridgill, 64, of Ventura – surrendered to federal authorities on Friday and were released on bond that afternoon after making their first appearances in United States District Court. Both men were ordered to again appear in federal court for arraignments on September 15.
Two criminal complaints unsealed on Friday charge Oparah and Ridgill with illegally prescribing the powerful painkillers hydrocodone (best known as Vicodin or Norco) and codeine (for example, promethazine with codeine cough syrup, which is known on the street as purple drank), alprazolam (commonly known as Xanax), and carisoprodol (a muscle relaxer best known as Soma). According to the affidavit filed in the cases, Oparah issued nearly 13,000 prescriptions for those drugs in a one-year period between July 2014 and July 2015, and Ridgill issued more than 21,000 such prescriptions in a three-year period between July 2011 and July 2014. All of the prescribed drugs were at or near maximum strength.
The affidavit describes 12 undercover operations during which Oparah or Ridgill sold prescriptions in exchange for cash fees. In most instances, the doctors sold the prescriptions without ever examining the undercover officer or cooperating witness. A medical expert’s independent review of the undercover recordings and seized patient files confirmed that there was no legitimate medical basis for the prescriptions. The expert, writing about Oparah, said his “actions are very alarming” and the evidence reflects “extreme departures from the standard of care,” according to the affidavit.
“The powerful drugs in this case, which include addictive painkillers, can kill users who abuse them,” said United States Attorney Eileen M. Decker. “The investigation determined that these doctors were significant suppliers of drugs to a street gang. As the charges in the indictments demonstrate, these doctors enabled the gang’s criminal activity just like street-level drug dealers.”
The arrests of Oparah and Ridgill occurred jointly with a sweep that targeted the East Coast Crips street gang in “Operation Money Bags.” The charges against gang members and their associates are being unsealed today. As described in the federal affidavit, the investigation into Oparah and Ridgill originated when the investigation into the East Coast Crips revealed evidence that “Oparah and Ridgill served as large-scale sources of supply to [gang] members and associates via their issuance of medically unnecessary controlled drug prescriptions.”
“These arrests demonstrate DEA’s resolve to target all drug traffickers regardless of their standing in the community,” said Anthony A. Chrysanthis, Assistant Special Agent in Charge of the DEA’s Los Angeles Field Division. “With our law enforcement partners, we will continue our pursuit of those that contribute to the opioid addiction crisis and poison our society under the guise of the medical profession.”
The federal investigation into Oparah and Ridgill showed that they operated cash businesses. Federal authorities made cash seizures from both doctors, and bank records showing that Ridgill deposited $500,000 in cash into his bank accounts over a period of less than three years.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in the federal cases against the doctors was conducted by the Drug Enforcement Administration, the Los Angeles Police Department, the Torrance Police Department, IRS - Criminal Investigation, the California Medical Board and the Los Angeles High Intensity Drug Trafficking Area.
The cases against Oparah and Ridgill is being prosecuted by Assistant United States Attorney Benjamin Barron of the Organized Crime Drug Enforcement Task Force.
Tulsa Woman Sentenced to 47 Months for Role in Income Tax Fraud SchemeRead the Press Release
TULSA, Okla.—A Tulsa woman was sentenced today to serve 47 months in prison and pay restitution in the amount of $88,194.23 to the Internal Revenue Service for her role in a scheme to file and obtain refunds from at least 49 false income tax returns, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma and Special Agent in Charge Damon Rowe of the Internal Revenue Service-Criminal Investigation’s Dallas field office.
Tameka Denise Johnson, 34, pleaded guilty on May 20, 2015, to the federal charge of false claim against the government. Her co-conspirator Sidney Brook Mayfield, 30, of San Antonio, Texas, was sentenced to six months and ordered to pay restitution in the amount of $47,408.91 to the Internal Revenue Service on November 9, 2015. United States District Chief Judge Gregory K. Frizzell presided over both sentencings.
According to court records, during 2011 and 2012, Johnson and Mayfield obtained personal identification information such as names, dates of birth, addresses, and Social Security numbers from various persons, and used that information to create and file fraudulent income tax returns for the years 2010 and 2011. As part of the scheme Mayfield’s role was primarily to gather the personal information, and Johnson made and electronically filed the tax returns using the stolen information.
The case was investigated by IRS-Criminal Investigation. Assistant United States Attorneys Kevin C. Leitch and Clemon Ashley prosecuted the case.
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St. Louis Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 24, 2016, Gary M. Skinner, 61, of St. Louis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Skinner, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 121 months imprisonment, 4 years supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Skinner was involved with co-defendant Brandon L. Watson, a/k/a "Dubb," and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson in Metropolis. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Skinner was responsible for the distribution of more than 907 grams of ice. Co-defendant Watson was previously sentenced to 151 months imprisonment for his role in the methamphetamine conspiracy.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Sedalia Sex Offender Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., sex offender pleaded guilty in federal court today for possessing child pornography.
Jesse William Laws, 37, of Sedalia, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a July 15, 2015, federal indictment.
Laws was required to register as a sex offender due to two 2006 federal convictions in the District of Montana for receiving and possessing child pornography, for which he was sentenced to nine years in federal prison. Following incarceration, Laws was placed on supervised release, which was transferred to the Western District of Missouri.
According to today’s plea agreement, the probation office searched Laws’s residence on Feb. 11, 2015, because Laws was suspected of having violated certain conditions of his release. Laws admitted that he had been drinking and that he had been in the presence of children without the permission of the probation office, which were both in violation of his supervised release. The court revoked his supervised release and sentenced him to two years in federal prison without parole.
Probation officers examined a cell phone while they were searching the residence. Investigators found 107 possible images of child pornography on the phone. The browser history revealed multiple visits to a child pornography Web site.
Under federal statutes, Laws is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, which must be served consecutively to the two-year sentence he is currently serving for the revocation of his supervised release. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence Miller. It was investigated by the U.S. Office of Probation and Parole and the FBI.
Rumford Man Sentenced to Four Years for Firearm PossessionRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Troy Blanchard, 27 of Rumford, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to four years in prison and three years of supervised release for possessing a firearm after having been convicted of a felony.
According to court records, on January 19, 2016, officers of the Rumford Police Department saw Blanchard walking on a street in that town carrying a shotgun. Blanchard then dropped the firearm and entered a nearby residence. The police recovered the shotgun and then arrested Blanchard at the residence. Blanchard was prohibited under federal law from possessing firearms because of a 2014 conviction in Oxford County for trafficking in drugs.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rumford Police Department.
Roanoke Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
ROANOKE, VIRGINIA – The third member of a conspiracy that distributed large quantities of various drugs throughout the Roanoke Valley pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to federal drug conspiracy charges, United States Attorney John P. Fishwick Jr. announced.
Noel Phillip Solett, 40, of Roanoke, Va., pled guilty today to one count of conspiring to distribute at least 50 grams of methamphetamine or at least 500 grams of a substance containing a detectable about of methamphetamine.
“These defendants caused great pain to individuals throughout the Roanoke Valley who struggled with addiction to these dangerous substances,” United States Attorney Fishwick said today. “I am grateful to the men and women who investigated and prosecuted this conspiracy and slowed the tide of drugs into our community.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Laura D. Rottenborn, Solett admitted that between December 2015 and February 2016 he bought methamphetamine from co-conspirator Tyler Johnson. Johnson pled guilty to federal drug charges last week. Solett and Johnson generally met in Roanoke or Salem to conduct their drug transactions. Solett admitted to buying 1,000 grams of crystal methamphetamine from Johnson. Solett then sold the methamphetamine to other drug customers. Solett also sold heroin. One of Solett’s drug customers was Brandon Thomas. Thomas previously pled guilty to federal sex trafficking and drug trafficking charges.
Solett was interdicted by police in February 2016 during the course of a drug transaction in the parking lot of a Roanoke hotel. During a search of his vehicle, Roanoke City Police found two lockboxes in the trunk of his car, which contained methamphetamine, heroin, LSD, and ammunition. Police also recovered a .45 caliber handgun in the driver’s side door compartment.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Roanoke City Police Department, the Roanoke County Police Department, the Salem Police Department, and the Virginia State Police. Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn prosecuted the case for the United States.
Roanoke Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who was previously convicted of a crime and therefore prohibited by federal law from possessing a firearm, pled guilty last week to a federal firearms charge, United States Attorney John P. Fishwick Jr. announced today.
Jon Phillip Dumire, 23, of Roanoke, pled guilty last Friday in the United States District Court for the Western District of Virginia in Roanoke to one count of being a previously convicted felon illegally in possession of a firearm.
“Keeping firearms out of the hands of prohibited users is the first step in making our communities less violent,” Untied States Attorney Fishwick said today. “If our friends and neighbors are going to feel safe in our neighborhoods they must know that law enforcement is working to ensure that illegal guns are being taken off the streets.”
According to evidence presented during a guilty plea hearing in District Court last week, in the early morning hours of December 27, 2014, while at a house party on Stewart Avenue, SE in Roanoke, and thereafter, Dumire was armed with two guns, a small silver. 25 caliber pistol with a white handle and a .380 caliber pistol. Dumire was seen holding these guns and wearing them on his hips throughout the events that morning at the party, after the party and inside and outside his residence.
The case was brought following an investigation by the Central Virginia Violent Crime Safe Streets Task Force [Roanoke Violent Crime Task Force], a joint state-federal task force formed in January 2016 led by the FBI that includes the Virginia State Police, Roanoke City Police and Roanoke County Police. While not an official member of the task force, the Bureau of Alcohol, Tobacco, Firearms and Explosives is routinely involved in the work of the task force and was crucial in the Dumire investigation. The case was prosecuted for the United States by United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Daniel Bubar.
Quincy Police Lieutenant Charged with Defrauding his DepartmentRead the Press Release
BOSTON – A Lieutenant with the Quincy Police Department was charged in an indictment unsealed today in connection with collecting double pay while working for the Quincy Police Department in 2015.
Thomas Corliss, 51, was indicted on 12 counts of mail fraud and one count of fraud involving federal funds. Corliss was released on conditions following an appearance before U.S. District Court Magistrate Judge Jennifer C. Boal.
As alleged in the indictment, an internal investigation by the Quincy Police Department revealed that Lieutenant Corliss had fraudulently collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015. It is also alleged that Corliss collected his regular pay while on vacation in the Bahamas and on Cape Cod in 2015. In total, Corliss’s defrauded the QPD of more than $10,000.
The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of fraud involving federal funds provides for a sentence of no great than 10 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. 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; Ronald G. Gardella, Special Agent in Charge of the Department of Justice Office of the Inspector General, New York Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan DiSantis of Ortiz’s Public Corruption Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Prison for Head Telemarketer at Predatory “Law Firm”Read the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738, Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – August 29, 2016
SAN DIEGO – San Diego telemarketer Charles Rose was sentenced today to eight months in custody for his role in a fraudulent loan modification scheme that employed as many as 30 telemarketers to sell bogus legal services to hundreds of struggling homeowners. In reality, this “law firm” had just one figurehead attorney, and did not perform any legal services for the 1,000 clients they swindled.
The telemarketers, who reported to Rose and followed his example to make sales, recruited new customers using a series of lies designed to lure them into paying a hefty $3,500 fee to the “law firm” of Haffar & Associates. Using scripts, form letters, and his own recorded sales calls, Rose taught his telemarketing staff how to use a variety of false statements to get desperate homeowners to pay the exorbitant fees. Among the lies used by Rose and his staff were claims of the firm’s “98% success rate,” clean record with the California State Bar, special access and success with “just about every lender,” and specialized staff and “lawyers” who would conduct a “forensic audit” of the clients’ loan documents.
Rose and his co-schemers falsely told victims that their attorneys had “never” lost a client’s home to foreclosure, and that although the firm had a “100% money back guarantee,” no customer had “ever asked for a refund.” In fact, as Rose and figurehead attorney Mohamed Haffar have both admitted, Haffar & Associates did not have anything close to a 98% success rate, did not have any special connections with banks or their legal departments, did not successfully complete loan modifications, and many of their dissatisfied customers never received the refunds they requested.
One of Rose’s co-schemers, Michael Nazarinia, did actually supervise the “case managers” who submitted some loan modification applications to banks. But in contrast to the representations made to clients, attorney Haffar did not directly supervise Nazarinia’s case managers – instead, they dealt with clients without any input or direction from Haffar. The schemers understood that Haffar’s fees were intended to compensate him for the risk he took in allowing Nazarinia and Rose to use his name, bar license, and law firm to execute the scheme.
After Haffar & Associates stopped doing new business, Rose and Nazarinia started a new company, called “REST Report Matters,” charging even more money for a product they claimed would facilitate the review of applications for loan modifications. Rose admitted that he made false representations to potential clients in order to induce them to sign up and pay their fees.
In addition to his fraudulent loan modification scheme, Rose was also charged with tax offenses for failing to report over $120,000 in income from Haffar & Associates to the IRS.
United States Attorney Laura Duffy condemned the conduct in this case, noting that “these individuals preyed on the vulnerability of some of our neediest citizens during their time of hardship and suffering. Our law enforcement partners will continue to root out these scams to punish people who enrich themselves by exploiting others.”
“Charlie Rose aggressively pursued distressed mortgage holders, offering a false sense of hope while he enriched himself,” said Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division. “When criminals use the mail to perpetrate fraud, postal inspectors, with the full cooperation of their law enforcement partners, will actively pursue them until they are brought to justice.”
Anthony J. Orlando, Acting Special Agent in Charge of IRS Criminal Investigation said, “Using the promise of a law firm to represent its clients, the defendants preyed on financially desperate homeowners struggling to keep a roof over their heads. As today’s sentence shows, those who brazenly enrich themselves on the backs of distressed homeowners will be held accountable for their crimes.”
“Charles Rose preyed on others’ misfortune to line his own pockets,” said Special Agent in Charge Leslie DeMarco of the Federal Housing Finance Agency – Office of Inspector General. “The sentence he received today provides justice and will hopefully act as a deterrent to anyone else who might be tempted to engage in similar conduct.”
Three co-defendants were also convicted on federal charges in the scheme. In addition to stipulating to his disbarment, attorney Mohamed Haffar pleaded guilty to tax charges relating to the venture in August 2014, and was later sentenced by U.S. District Judge Houston to three months. Michael Nazarinia pleaded guilty in November 2015 to mail fraud and tax offenses, admitting that he generated a fraudulent lease agreement in order to deceive a client’s mortgage holder and fraudulently delay eviction. Nazarinia also admitted to filing false income tax returns and failing to pay more than $30,000 in taxes. Nazarinia was sentenced to nine months in prison, also by Judge Houston. And in May 2015, Stacy Tuers pleaded guilty on tax charges and admitted that he knew the telemarketers were making false statements to potential clients, but continued to sell Haffar & Associates loan modification services.
DEFENDANT:
Charles Rose, 15CR1786-JAH Age: 32 San Diego, CA
CHARGES
Mail fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, $100 special assessment, restitution.
Subscribing to a false tax return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED:
Michael Nazarinia, 15CR2718-JAH Age: 41 San Diego, CA
Mohamed Haffar, 14CR2251-JAH Age: 36 San Diego, CA
Stacy Tuers, 15CR1342-JAH Age: 54 San Diego, CA
AGENCIES
United States Postal Inspection Service
Internal Revenue Service – Criminal Investigation
Federal Housing Finance Agency – Office of Inspector General
Northern Maine Medical Center Agrees to Pay $125,000 to Settle Civil Controlled Substances Act AllegationsRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Northern Maine Medical Center (“NMMC”), has entered into a civil settlement agreement with the United States in which it will pay $125,000 to resolve allegations that it violated the federal Controlled Substances Act (“CSA”).Controlled substances are strictly regulated in the United States because of their potential for abuse and the danger they pose if improperly used. The CSA establishes a closed system of controls over the handling of controlled substances by registrants, including hospitals, pharmacies and rehabilitation facilities. Violations of the CSA concerning dispensing and administering, distribution, recordkeeping, and other related activities can result in civil penalties.
NMMC is a hospital in Fort Kent, Maine. In addition to acute care services, NMMC also offers long term care and skilled rehabilitation at a location at 25 Bolduc Avenue, in Fort Kent, known as Forest Hill. NMMC operates as a Hospital/Clinic registered with the Drug Enforcement Administration (“DEA”), but does not have a separate registration for Forest Hill.
The settlement resolves allegations that NMMC negligently failed to maintain and keep records of its destruction of Schedule II through V controlled substances at Forest Hill and at its on-site pharmacy. The CSA requires registrants to document the amount, date and manner of destruction and disposal of controlled substances. The Government alleged that the only information NMMC maintained concerning the destruction of controlled substances at Forest Hill was a notation that the drug was “wasted”; that NMMC pharmacy records omitted the manner of disposal; and that NMMC unlawfully distributed controlled substances at Forest Hill because it did not have a registration permitting it to distribute and dispense controlled substances there.
NMMC admitted no wrongdoing in resolving the matter and contended that its actions at all times complied with the applicable CSA requirements. NMMC cooperated fully throughout the investigation.
The case was investigated by the DEA’s Office of Diversion Control. The civil action is docketed United States v. Northern Maine Medical Center, 16-cv-00445-JDL (D. Me.).
Multiple defendants plead guilty to federal drug crimesRead the Press Release
HUNTINGTON, W.Va. – Multiple defendants pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto.
Jerrell Leon Johnson, 53, of Huntington, pleaded guilty in federal court in Huntington to possession with intent to distribute 28 grams or more of crack. On January 20, 2016, members of the Drug Enforcement Administration conducted a search of Jerrell Johnson’s residence located on Rear 9th Avenue in Huntington. During that search, agents located approximately 48 grams of crack inside a kitchen drawer. Jerrell Johnson admitted that he intended to sell the crack seized by law enforcement. Agents also located a large amount of cocaine in the residence. Jerrell Johnson faces at least five and up to 40 years in federal prison when he is sentenced on December 5, 2016.
In a separate drug prosecution, Ashley Nicole Farley, 25, of Huntington, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin. On August 27, 2015, Farley was arrested on a warrant for distribution of heroin. In a search of Farley incident to her arrest, officers located a gray tan powder and cash. The cash contained marked currency from a previous undercover heroin buy from Farley. Farley faces up to 20 years in federal prison when she is sentenced on December 5, 2016.
In another separate drug prosecution, Antonio Tarvares Johnson, 39, of Charleston, pleaded guilty in federal court in Charleston to distribution of heroin. Antonio Johnson admitted that on September 28, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at the Motel 6 in Cross Lanes. Antonio Johnson additionally admitted that he sold drugs to a confidential informant on September 29, 2015, and on December 16, 2015. Antonio Johnson faces up to 20 years in federal prison when he is sentenced on December 12, 2016.
The Drug Enforcement Administration conducted the investigation of Jerrell Johnson. The investigation of Farley was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Gregory McVey is handling the prosecutions. The plea hearings for Jerrell Johnson and Farley were held before Chief United States District Judge Robert C. Chambers.
The Metropolitan Drug Enforcement Network Team conducted the investigation of Antonio Johnson. Assistant United States Attorney Clint Carte is responsible for the prosecution of Antonio Johnson. The plea hearing for Antonio Johnson was 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 heroin and 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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Miami Gardens Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edwin Fana, 37, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. Fana also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
Fana’s role in the scheme included operating a “call site” in his residence in Miami Gardens, according to the plea agreement. He admitted that he would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. According to the plea agreement, Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Fana admitted that law enforcement seized nearly 11,000 telecommunications identifying numbers from him and that the scheme caused at least $1 million in losses.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
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.
Methamphetamine Conspirator SentencedRead the Press Release
ABINGDON, VIRGINIA – Another member of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta to Southwest, Virginia, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Jeremy Bartley, 27, of Bristol, Tennessee, previously pled guilty to one count of conspiring to distribute methamphetamine. Today in District Court, Bartley was sentenced to 180 months in federal prison. Donna Jenkins, 64, of Abingdon, Virginia, who previously pled guilty to one count of misprision of a felony, was sentenced today to two years of probation and a fine of $5,000.
“This conspiracy brought large amounts of methamphetamine into SW Virginia, profiting from the addiction of others,” United States Attorney Fishwick said today. ““We will continue to work with our partners in law enforcement to dismantle large, wide-ranging distribution conspiracies like the one this defendant was involved with.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary, Bartley was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Member of Newark, New Jersey, ‘South Side Cartel’ Gang Pleads Guilty to Racketeering, Carjacking, Robbery and Drug ChargesRead the Press Release
A Newark, New Jersey, man pleaded guilty today to his role in a violent and long-running racketeering conspiracy perpetuated by the “South Side Cartel,” a set of the Bloods street gang based in Newark, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Malik Lowery, aka Leek, 35, pleaded guilty before U.S. District Judge Esther Salas in the District of New Jersey to multiple counts of a second superseding indictment charging him with racketeering, racketeering conspiracy, carjacking, robbery affecting interstate commerce and conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 280 grams or more of crack cocaine. Lowery is scheduled to be sentenced on Dec. 6, 2016.
In pleading guilty to the racketeering charges, Lowery admitted that he was involved in the murder of a South Side Cartel member on Oct. 20, 2007; committing an armed carjacking with fellow South Side Cartel members on Jan. 3, 2008; and robbing a drug dealer on Feb. 3, 2008, among other acts.
The South Side Cartel was once known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise. The gang is a subset of the Bloods street gang that has operated primarily from two apartment buildings, dubbed the “Twin Towers,” located on Hawthorne Avenue in Newark. Local law enforcement has made repeated narcotics and gun-related arrests at these buildings from 2002 to 2010. Many of the South Side Cartel members have tattoos depicting these buildings and the gang’s initials. At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or are serving prison sentences for gang-related crimes.
Lowery and his co-defendants, Mark Williams, aka B.G., and Farad Roland, aka B.U., represent the last of the gang’s active members. On Aug. 10, 2016, Williams pleaded guilty to racketeering and related charges before Judge Salas. Roland is scheduled to begin trial in September 2017 on five murder charges.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Newark Division, Newark Police Department and Essex County Prosecutor’s Office investigated the case. Trial Attorney Robert Feitel of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Robert Frazer and Courtney Howard of the District of New Jersey’s Organized Crime/Gangs Unit in Newark are prosecuting the case.
Member of Newark’s ‘South Side Cartel’ Gang Pleads Guilty to Racketeering, Carjacking, Robbery and Drug ChargesRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a violent and long-running racketeering conspiracy perpetuated by the “South Side Cartel,” a set of the Bloods Street gang based in Newark, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Malik Lowery, a/k/a “Leek,” 35, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to multiple counts of a second superseding indictment charging him with racketeering, racketeering conspiracy, carjacking, Hobbs Act Robbery and conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 280 grams or more of crack cocaine.
According to documents filed in this case and statements made in court:
As part of the racketeering charges, Lowery admitted his role in the Oct. 20, 2007, murder of a member of the South Side Cartel that took place on Bragaw Avenue in Newark. Lowery also admitted to committing an armed carjacking with fellow South Side Cartel members on January 3, 2008, and to the robbery of a drug dealer on Feb. 3, 2008, among other acts.
Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang's members were officially brought into the Bloods gang in 2002 and 2003. The gang’s center of activities were apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Avenue, the location of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of the South Side Cartel members had tattoos showing these buildings and the logo of “SSC” representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. Lowery and his co-defendants, Mark Williams, a/k/a “B.G.” and Farad Roland, a/k/a “B.U.” represent the last of the gang’s active members. Co-founded by Amin Roland and Farad Roland between 2003 and 2010, the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise.
Lowery faces a sentence of 25 to 30 years in federal prison, according to the terms of the plea agreement. Sentencing is scheduled for Dec. 6, 2016.
On Aug. 10, 2016, Williams pleaded guilty to racketeering and related charges. The criminal case against Roland is pending before Judge Salas, who has scheduled the trial for September 2017. Roland is charged with five death-penalty eligible murders. On Feb. 9, 2015, the Government announced in court that then-U.S. Attorney General Eric Holder had authorized and directed that the death penalty be sought against Roland.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose; and prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Courtney Howard of the Organized Crime/Gangs Unit in Newark, and Trial Attorney Robert Feitel of the Criminal Division’s Capital Case Section.
Defense counsel: John Azzarello Esq., Morristown, New Jersey, Anthony Ricco, New York, New York
Martinsburg man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Matthew Dylan Harrison, 26, of Martinsburg, West Virginia, was sentenced today to 18 months in prison for distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Harrison pled guilty in May 2016 to one count of “Distribution of Heroin.”
Special Assistant United States Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Longshoreman Pleads Guilty to Labor ViolationRead the Press Release
BROWNSVILLE, Texas – The former president of the International Longshoreman’s Association (ILA) Local 1544 has been convicted of failing to maintain labor union records, announced U.S. Attorney Kenneth Magidson. Roberto Gracia Jr., 63, of Brownsville, entered a guilty plea today.
The Local 1544 is a labor organization representing clerks and checkers at the Port of Brownsville. ILAs are required to report spending of union funds in order to maintain transparency within the organization. During Gracia’s tenure as president of Local 1544, he failed to keep records detailing the use of the union funds, causing unaccounted for union monies totaling $3,478.30.
Gracia was president of Local 1544 in 2012 and 2013. In that role, he was required to maintain the financial records of Local 1544 as required by the U.S. Department of Labor (DOL). The requirements include keeping all the receipts for expenditures to account for all funds and their disbursement for the business purposes of Local 1544. However, in the Labor Organization Annual Financial Report (LM-4) Gracia signed and filed on July 1, 2013, he failed to maintain the required records. This lack of records keeping lead to the loss of $3,478.30 to Local 1544.
As part of the plea today, the court also heard that Gracia had also been president of ILA’s Local 1395 from 2006-2007. During that tenure, he also failed to maintain the required union records with a loss to the Union of $26,354.
U.S. Magistrate Judge Ronald Morgan accepted the plea today and ordered Gracia serve five years of probation. He has also paid full restitution to both Local 1544 and Local 1395.
As a result of the conviction, Gracia will be unable to hold any ILA office position.
The DOL's Office of Labor-Management Standards’ Dallas-New Orleans District Office conducted the investigation. Assistant U.S. Attorney Karen Betancourt prosecuted the case.
Leader Sentenced to over 7 Years in Federal Prison for Fraudulently Obtaining over $1.4 Million in Unemployment BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Diameter Akala, age 43, of Silver Spring, Maryland, Washington, D.C. and New York, today, to 90 months in federal prison, followed by three years of supervised release, for fraudulently obtaining over $1.4 million in unemployment benefits. Judge Hollander also ordered that Akala pay $1,468,463.80 in restitution, approximately the amount obtained in unemployment benefits.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division.
“Today's sentencing sends a clear message that there are serious consequences for those who conspire to defraud the U.S. Department of Labor's Unemployment Insurance program. The Office of Inspector General remains committed to working with our law enforcement and state workforce agency partners to aggressively pursue those who exploit the Unemployment Insurance program by fraudulently obtaining funds intended for vulnerable American workers truly in need of unemployment benefits,” stated Robin Blake, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General.
“Government agencies and millions of Americans depend on the security and reliability of the US Postal Service for the processing and distribution of their government benefits. When criminals misuse the US Mail to steal those benefits, Postal Inspectors are there to protect the mail, the programs, and the public from this type of fraud,” stated Terrence P. McKeown, Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from 2012 to 2015, Akala and his co-conspirators caused the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue fraudulent unemployment benefits in the names of individuals by submitting false applications for monetary benefits. Akala enlisted his friends and family members to join him in the scheme.
Members of the conspiracy obtained the personally identifying information (PII) of individuals, including Maryland residents. Akala filed false documentation with DLLR and DLI in the names of fictitious companies, falsely stating that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were ever paid to DLLR or DLI in the names of the fictitious companies. Akala, electronically and by phone, filed claims in Maryland and Pennsylvania for unemployment benefits in his own name and the names of other individuals, falsely claiming that they previously worked for those fictitious companies. Akala used the PII of individuals who had given permission to have their information used, as well as many who did not. Akala offered money to co-conspirators in exchange for PII.
Akala and other members of the conspiracy used residential mailing addresses of co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive unemployment benefits in the form of prepaid debit cards. In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically a fraudulently obtained prepaid debit card.
Co-conspirators Wilfred Mendez, Ferny Alexander Moreno Puente, Wilfredo Torres, his half-brother, Eric Gonzalez, co-conspirators Tawana McClain, Yaw Bempa-Boateng, and Carmen Benitez agreed to have Akala file fraudulent unemployment claims in their names. Mendez, his mother Dulce Oleo, Moreno Puente and Torres also provided the personal identification information and/or addresses of other individuals to file additional false claims in the names of those individuals, and others. The co-conspirators used the fraudulently obtained unemployment benefits prepaid debit cards that were mailed directly to them or provided to them by Akala, at ATMs or stores in order to withdraw and use the funds. Some of the cards were in their names, but some of the cards were in the names of other individuals. Generally, the conspirators kept a portion of the fraudulently obtained funds for themselves and provided the remainder to Akala. The members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits. Akala moved between states to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.
Judge Hollander previously sentenced co-conspirators: Wilfred Mendez, age 21, of Bronx, New York; Ferny Alexander Moreno Puente, age 26, of Gaithersburg, Maryland; Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland; Wilfredo Torres, age 36, of Alexandria, Virginia; Carmen Benitez, age 29, of Scranton, Pennsylvania; Dulce Oleo, age 39, of the Bronx, New York; Tawana McClain, age 51, of Washington, D.C.; and Eric Gonzalez, age 34, of Alexandria, Virginia, to between 33 months and a year and a day in prison.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted the case.
Leader in Timeshare Resale Fraud Scheme Sentenced to Nine Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Eugene Warren Brewington (34, Orlando) to nine years in federal prison for conspiracy to commit mail fraud and wire fraud for his role as a leader in a timeshare resale fraud scheme. The Court also entered a money judgment against Brewington in the amount of $704,326.55, which represents the total amount of money fraudulently obtained as a result of the scheme. Brewington was found guilty by a jury on June 10, 2016.
According to testimony and evidence presented at trial and sentencing, Brewington founded and operated two companies in Orlando, “Timeshare Title Services LLC” and “United Clearing Solutions LLC.” Representatives of the two companies, known as “callers,” made unsolicited phone calls to timeshare owners throughout the country and falsely claimed that a buyer existed for their timeshares. The timeshare owners were told that buyers had deposited money into an escrow account for the purchase of their timeshares, and they received documents from the companies that appeared to be legitimate timeshare sales contracts. Ultimately, the timeshare owners were told to send advance fees to the companies to finalize the sales. Numerous timeshare owners made advance fee payments to the companies but received no services and their timeshares were never sold.
Brewington managed the bank accounts where the advance fees were deposited and rented the office spaces from where the “callers” executed the scheme. Within a three-month period, more than $500,000 in timeshare owner payments were deposited into bank accounts for the two companies. Brewington and others associated with the companies used these funds to enrich themselves.
Another participant in the scheme, Chima Edozie Aligwekwe (33, Orlando), was also found guilty of conspiracy to commit mail fraud and wire fraud by a jury. His sentencing hearing is scheduled for September 12, 2016.
This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Kara M. Wick.
Last of Four Convicted for Role in Takeover-Style Robbery of AT&T Store in Grand Prairie is Sentenced to 120 Months in Federal PrisonRead the Press Release
DALLAS — The last of four Dallas individuals who were involved in the January 2015 takeover-style robbery of an AT&T store in Grand Prairie, Texas, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Anthony Poe, 22, of Dallas, was sentenced by U.S. District Judge David C. Godbey to 120 months in federal prison following his guilty plea in December 2015 to one count of possession with intent to distribute crack cocaine and one count of interference with commerce by robbery and aiding and abetting.
The leader of the group, Luther Elder, 30, was sentenced in May to 210 months in federal prison. He pleaded guilty to one count of interference with commerce by robbery and aiding and abetting. Brandon Walker, 29, and Chambrezia Johnson, 26, who pleaded guilty to the same offense, were also sentenced in May to 87 months and 53 months, respectively. Judge Godbey also ordered Poe and Johnson to pay $13,854 in restitution, jointly and severally.
According to documents filed in the case, on January 23, 2015, Elder recruited Johnson and Poe, as well as another unknown individual, to assist him and Walker in robbing an AT&T store in Grand Prairie. Upon picking up Johnson, Poe, and the unknown individual, Elder and Walker drove the group to a Wal-Mart in Grand Prairie, where Elder purchased a duffel bag and an “air gun” that was intended to be used in the robbery.
After arriving at the AT&T store, Johnson and Walker entered the store to scout it out and determine how many people were in the store. They left and advised Elder, who then instructed Poe and the unknown individual to rob the store and Johnson to stay in the back of the store as a potential getaway driver.
At approximately 1:23 p.m., Poe entered the store carrying the “air gun” while the unknown individual entered and brandished what appeared to be a firearm. Poe and the unknown individual ordered all of the employees to the back of the store and the unknown individual struck an 81-year-old customer on the side of the head, because she was not complying fast enough with his demands, and then drug her to the rear of the store by her neck. Poe and the unknown individual demanded cash and cell phones from the victims, fled the store, and were picked up by Elder and Walker. Elder and Walker than dropped off Poe and the unknown individual at a motel before being arrested as they were in route to sell the stolen phones.
Regarding Poe’s drug conviction, on April 17, 2014, when officers arrived at a residence on Colonial Drive in Dallas to investigate a drug complaint, Poe opened the door holding a revolver in his hand and after seeing the officers, quickly attempted to flee. Officers, who had smelled a strong odor of marijuana coming from inside, then entered the residence and detained Poe. Several baggies of crack cocaine, marijuana, and a second handgun were in plain view. Poe admitted he knowingly possessed with the intent to deliver more than 28 grams of crack cocaine.
The case was investigated by the Grand Prairie Police Department, the Dallas Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brian Poe prosecuted the case.
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Joshua Leroy Cooper Sentenced to Serve 140 Months in Prison for Federal Firearms OffensesRead the Press Release
KNOXVILLE, Tenn. – Joshua Leroy Cooper, 32, of Knoxville, Tenn., was sentenced on Aug. 29, 2016, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve 140 months in federal prison.
Cooper pleaded guilty in April 2016 to possessing firearms and ammunition as a previously convicted felon. The firearms were discovered as a result of a search warrant executed at Cooper’s residence by the Knoxville Police Department because of narcotics purchases at his home. One of the recovered firearms had been reported stolen. Cooper was previously convicted of aggravated robbery, aggravated assault, and aggravated child abuse and neglect of a child six years or less, making it illegal for him to possess firearms or ammunition. In addition to the federal charges, charges related to this investigation are also pending against Cooper in Knox County Criminal Court.
Agencies involved in this investigation included the Knoxville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jennifer Kolman, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Neighborhoods ("PSN"), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Holliston Man Charged in Connection with Weapons TroveRead the Press Release
BOSTON – A Holliston man was arrested in connection with his possession of a trove of weapons, ammunition and incendiary material, and his threats to use them.
Joseph Garguilo, 40, was charged in a criminal complaint with being a prohibited person in possession of ammunition. Garguilo is scheduled to appear before U.S. District Court Magistrate Judge Jennifer C. Boal in Boston today at 2:30 p.m.
According to the charging documents, on July 27, 2016, the FBI received information Garguilo had recently acquired parts to make an AR-15 rifle, and he was stockpiling other weapons including tasers, mace guns, hunting knives and thermite (an incendiary). Around the same time Garguilo allegedly stated that “he will plant a bomb in police station…and kill as many homeland security officers as he can before they kill him.” The FBI then initiated an investigation. In recent days, the FBI learned that Garguilo had stated that he wanted to attack a mosque and/or kill President Obama. Garguilo also allegedly said he wanted to, “chain a mosque closed and burn it down.” Garguilo did not mention any specific mosque or time for this attack. The FBI also learned that Garguilo was stockpiling food and water as part of his plan, and that an acquaintance of Garguilo’s believed he was “about to snap.”
On Aug. 26, 2017, federal agents conducted a search of Garguilo’s residence and seized parts to assemble an AR-15 rifle, ammunition for the AR-15 rifle, nine millimeter ammunition, chemicals that could be combined to create incendiary or explosive compounds, and hand written notes threatening violent attacks against members of the Islamic faith.
As alleged in court documents, Garguilo is the subject of an active restraining order which prohibits him from possessing firearms and ammunition based upon a finding that “there is substantial likelihood of immediate danger of abuse…”
The charging statute provides a sentence of no greater than 10 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; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Holliston Police Chief John J. Moore; and Medway Police Chief Allen M. Tingley, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Lori Holik and Mark Grady of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greenville Medical Practice Receives Probationary Sentence and Agrees to Pay $300,000 to the United StatesRead the Press Release
Contact Person: Bill Watkins
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Neurology Associates of Greenville, P.A., pled guilty and was sentenced today in federal court in Greenville, for receiving misbranded drugs in interstate commerce, a violation of Title 21, United States Code, Section 331(c). United States Magistrate Judge Jacquelyn D. Austin of Greenville placed the practice on 3 years of federal probation. No fine was imposed because the practice, in settlement of a parallel civil case brought by the U.S. Attorney’s Office, agreed to pay $300,000 to the United States due to the submission of Medicare claims for non-approved botulinum toxin (Botox).
Evidence presented at the change of plea hearing established that under federal law no form of Botox may be commercially distributed for use on humans unless it has been approved by FDA. Only Allergan’s product manufactured in the United States is approved and licensed by the FDA. Records obtained during this investigation show that the practice from 2010-2013 purchased non-FDA approved Botox from a wholesaler who purchased the Botox from a factory in Ireland. This drug is deemed misbranded under federal law as it was not FDA approved for sale in the United States. The practice received this non-FDA approved Botox in interstate commerce.
The case was investigated by agents of the Office of Inspector General of the Department of Health and Human Services. Assistant United States Attorney Bill Watkins of the Greenville office handled the criminal case and Assistant United States Attorney Jennifer Aldrich of the Columbia office handled the civil case.
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Four sentenced for firearm, identity theft chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Four people were sentenced today for firearm and identity theft charges, United States Attorney William J. Ihlenfeld, II, announced.
Curtessa Monet Franklin, 22, of Canton, Massachusetts, was sentenced to 15 months in prison for lying while attempting to acquire a firearm. Franklin pled guilty in April 2016 to one count of “Conspiracy to Provide a False Statement During the Attempted Purchase of a Firearm.”
Christopher Lee Linn, 30, of Jessup, Maryland, was sentenced to 58 months in prison for firearm and identity theft charges. Linn pled guilty in May 2016 to one count of “False Statement in Acquisition of a Firearm” and one count of “Aggravated Identity Theft.”
Robert Jackson Rowand, 36, of Martinsburg, West Virginia, was sentenced to 35 months in prison for unlawfully possessing a firearm. Rowand, who has prior felony convictions in Berkeley County, WV, pled guilty in May 2016 to one count of “Felon in Possession of a Firearm.”
Alan Clark Toliver, 36, of Charles Town, West Virginia, was sentenced to 24 months in prison for unlawfully possessing a firearm. Toliver, who has prior felony convictions in New Jersey and North Carolina, pled guilty in May 2016 to one count of “Felon in Possession of a Firearm.”
Assistant United States Attorney Shawn M. Adkins prosecuted Franklin, Rowand, and Toliver. Assistant United States Attorney Paul T. Camilletti prosecuted Linn. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the cases. They were assisted by the West Virginia State Police on the Franklin case; the Berkeley County Sheriff’s Office and Martinsburg Police Department on the Rowand case; and the Berkeley County Sheriff’s Office and Jefferson County Sheriff’s Office on the Toliver case.
Chief U.S. District Judge Gina M. Groh presided.
Former Millington Reserve Officer Receives 26 Years for Producing Child PornographyRead the Press Release
Memphis, TN – A former Millington reserve police officer has been sentenced to serve more than a quarter century in federal prison for producing child pornography of three female minors. The defendant also transported a minor across state lines with intent to engage in unlawful sexual activity. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
"Anyone who chooses to prey on the most vulnerable members of our society deserves to be behind bars," said U.S. Attorney Stanton. "As a former reserve police officer, Friar was sworn to serve and protect the citizens of our community from crime. But he broke that oath to satisfy his own abhorrent fetishes, and will spend the next 26 years in federal prison because of his egregious acts."
According to information presented in court, on July 13, 2015, a Shelby County Sheriff’s Office Deputy responded to a call at the Millington residence of Rickie Friar, 67. The call was made by Friar’s housekeeper, who had stopped by the defendant’s residence to do some chores. Friar was out of town at the time. While there, a female minor who accompanied the housekeeper opened Friar’s iPad and showed the housekeeper sexually explicit images of children who regularly spent time with Friar.
A forensic examination of Friar’s iPad, along with other electronic devices seized during a search of his residence revealed additional videos and images of female minors engaged in sexually explicit conduct. Friar is visible in some of the images and videos, and his voice can be heard in others. The videos and images were produced between July 2013 and May 2015. Two of the victims were under 12 years old at the time; one was under the age of 18 years old.
Hours after his housekeeper notified law enforcement of what had been seen on Friar’s iPad, Friar was located in Arkansas, returning from a trip to Oklahoma. He had a female minor with him. Law enforcement agents found receipts, dated a day or two earlier, for sex toys and lubricant in Friar’s vehicle.
In May 2016, Friar pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to:
• one count of knowingly transporting a minor under the age of 18 years old between the states of Tennessee and Oklahoma for the purpose of engaging in sexual activity;
• tw0 counts of attempting to and knowingly using a female minor under 12 years old to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct;
• one count of attempting to and knowingly using a female minor under the age of 18 years old to engage in sexually explicit conduct.
On Monday, August 29, 2016, Judge Fowlkes sentenced Friar to 312 months in federal prison.
This case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Middlebury Fire Chief to Serve Time in Prison for Embezzling FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL PERROTTI, 49, of Middlebury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to three months of imprisonment, followed by three years of supervised release, for embezzling funds while serving as the Fire Chief of the Town of Middlebury. Judge Meyer also ordered PERROTTI to perform 200 hours of community service during his term of supervised release.
On July 23, 2015, a jury found PERROTTI guilty of two counts of theft concerning programs receiving federal funds.
According to the evidence at trial, PERROTTI served as the Fire Chief of the Middlebury Volunteer Fire Department, Inc. (“MVFD”) from 1997 until 2014. PERROTTI also is a licensed electrical contractor and, since approximately 2010, has operated Paul Perrotti Electric, LLC (“PPE”). In 2012 and 2013, PERROTTI used Town funds to pay for unauthorized personal expenses and for expenses associated with PPE. These payments included checks made directly payable to employees of PPE, checks made to various vendors of PPE for PPE-related supplies, and checks made to pay third parties, who ultimately passed on the payments to PERROTTI. PERROTTI also submitted invoices to the Town of Middlebury for expenses that he falsely claimed were incurred by MVFD but, in fact, were expenses related to the business of PPE, including bills for various vendors of PPE.
In a post-trial ruling, Judge Meyer found that PERROTTI embezzled $25,746 from the Town and the MVFD.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Sarah Karwan and Heather Cherry.
Former Lee County Deputy Detained Pending Trial for Receipt and Possession of Child PornographyRead the Press Release
Montgomery, Alabama – Kevin Wayne Taylor (39), of Phenix City, Alabama and former Lee County Deputy Sheriff, was detained without bond today pending his trial for receipt and possession of child pornography, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Tuesday, August 23, 2016, Taylor was arrested for receipt and possession of child pornography after an investigation by the State of Alabama Bureau of Investigation. This investigation started when a 10 year old victim reported that Taylor had inappropriately touched and taken pictures of her genital area ([1]). The Lee County Sheriff’s Office forwarded the report to the State Bureau of Investigation who executed a search warrant at Taylor’s residence. During the execution of the search warrant, agents found over 1600 images of child pornography on three computers. One of the computers containing child pornography was Taylor’s official Lee County Sheriff’s Office laptop computer. The evidence further showed that Taylor had been collecting these images for approximately eleven years. Lee County Sheriff Jay Jones promptly terminated Taylor’s employment.
A detention hearing was held today to determine if Taylor should be released pending his trial. The Court found that if Taylor were released from jail, he would pose a danger to the community and ordered that Taylor be held without bond.
An indictment is merely a method of charging a defendant. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
United States Attorney Beck would like to thank the following agencies for their involvement with this case: Alabama State Bureau of Investigation, the Lee County Sheriff’s Office, and the Department of Homeland Security. Assistant United States Attorneys Hollie Worley and Curtis Ivy are prosecuting the case.
[1] As a result of the victim’s report, the State of Alabama arrested Taylor for sexual abuse of a minor under the age of 12.
Former FBI Agent Sentenced to 36 Months in Prison for Stealing Drug Proceeds and Obstructing JusticeRead the Press Release
A former FBI special agent was sentenced today to 36 months in prison for stealing over $136,000 in drug proceeds seized during the execution of search warrants in 2014, falsifying documents and tampering with a witness.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General’s Los Angeles Field Office made the announcement.
Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty on May 2, 2016, to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering. Bowman was sentenced by U.S. District Judge Jesus G. Bernal of the Central District of California, who also ordered Bowman to pay $136,462 in restitution.
According to admissions made in connection with his plea, Bowman misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014 after they were transferred to his custody in his official capacity as a federal law enforcement officer. Bowman admitted that he proceeded to spend the stolen money for his own personal use and enjoyment, including tens of thousands of dollars on vehicles and new equipment, including speakers, rims and tires. Bowman also used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds, he admitted.
According to the plea agreement, in order to conceal his embezzlement, Bowman falsified official FBI reports and submitted a deposit receipt – with a forged signature – that understated the amount of proceeds he had actually seized at the search site. In October 2014, Bowman sent emails to a local police detective containing a detailed cover story that the detective was instructed to provide in case he was asked about Bowman’s handling of the drug proceeds and a copy of the receipt with the forged signature so that the detective could falsely claim the forged signature as his own, Bowman admitted.
The Department of Justice’s Office of the Inspector General investigated the case. Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section prosecuted the case.
Former College Professor Pleads Guilty to Possessing Child PornographyRead the Press Release
CINCINNATI – Holt Parker, 59, of Cincinnati pleaded guilty in U.S. District Court here today to one count of possession of child pornography, admitting that he attempted to destroy a thumb drive containing nearly 1,000 video files, the majority of which depicted child pornography that he had downloaded from the Internet.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the plea entered today before U.S. District Judge Timothy S. Black.
According to court documents, FBI agents executed a search warrant at his home in the Clifton neighborhood on March 15, 2016. Agents seized a laptop computer and a damaged thumb drive. Parker told agents that when he realized law enforcement officers were searching his house, he attempted to destroy the thumb drive because he had recently downloaded hundreds of images and videos of child pornography. Forensic analysis confirmed that the drive contained video files and images, including an image of an infant.
The plea agreement concludes that an appropriate sentence would be a prison term of at least 36 months but no more than 96 months. The agreement also asks the court to impose a $5,000 special assessment, a fine, restitution and a term of supervised release as determined by the court.
“Child pornography is dangerous contraband, and possessing it is a serious crime. Prosecuting cases like this reflects our commitment to using all the tools at our disposal to protect the most vulnerable,” Acting U.S. Attorney Glassman said.
Judge Black will schedule sentencing following an investigation by the court. Parker, a former University of Cincinnati professor, remains free on bond, but is prohibited from having any access to computers or children.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and the Ohio Internet Crimes Against Children Task Force, as well as Assistant United States Attorney Kyle Healey, who is representing the United States in this case.
Former City of Chicago Transportation Official Sentenced to Ten Years for Corruption in Awarding of Red-Light Camera ContractsRead the Press Release
CHICAGO — The former assistant transportation commissioner for the city of Chicago was sentenced today to ten years in federal prison for his role in a corruption scheme involving the city’s red-light camera contracts.
A jury in January convicted JOHN BILLS, 55, of Chicago, on all counts against him. The conviction included nine counts of mail fraud, three counts of wire fraud, one count of extortion under color of official right, one count of conspiracy to commit bribery, three counts of bribery, and three counts of filing false tax returns.
In addition to the 120-month prison sentence, U.S. District Judge Virginia M. Kendall also ordered restitution in the amount of $2,032,959.50.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
In 2003, as an assistant transportation commissioner, Bills was a voting member of the city’s Request for Proposal (RFP) evaluation committee, which sought vendors under the city’s Digital Automated Red Light Enforcement Program. In May 2003, the committee recommended awarding contracts to Phoenix-based Redflex Traffic Systems Inc., to install cameras that automatically record and ticket drivers who run red lights. Evidence at trial revealed that from approximately 2003 to 2011, Bills used his influence to expand Redflex’s business with the city, resulting in millions of dollars in contracts for the installation of hundreds of red-light cameras. In exchange for his efforts, Redflex provided Bills with cash and personal benefits, including meals, golf outings, rental cars, airline tickets, hotel rooms and other entertainment.
Some of the benefits were given directly to Bills, while hundreds of thousands of dollars in cash was funneled to him through a friend, MARTIN O’MALLEY. Redflex hired O’Malley as a contractor and paid him lavish bonuses as new cameras were added in Chicago. O’Malley testified at trial that he often stuffed the bonus money into envelopes and gave it to Bills during meals in Chicago restaurants. In addition, O’Malley testified that he used some of the bonus money paid to him by Redflex to purchase and pay all expenses for a condo in Arizona that Bills used as his own. O’Malley, of Worth, pleaded guilty in December 2014 to one count of conspiracy to commit bribery. He is scheduled to be sentenced by Judge Kendall on Sept. 12, 2016.
After KAREN FINLEY became CEO of Redflex, O’Malley’s commissions escalated and Bills assisted Redflex in being awarded a “sole-source” contract for additional cameras. The sole source contract was rescinded when a competitor complained. As the city began the process of issuing a second RFP in 2007, Bills, in his capacity as a non-voting, advisory member of the 2007 evaluation committee, assisted in ensuring that the RFP favored Redflex. Finley, of Cave Creek, Ariz., pleaded guilty last year to one count of conspiracy to commit bribery. She is scheduled to be sentenced by Judge Kendall on Nov. 10, 2016.
The government is represented by Mr. Fardon and Assistant U.S. Attorneys Laurie J. Barsella and Timothy Storino.