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12 October 2016
United States Attorney Announces Charges Against Narcotics Trafficker Connected to Heroin Overdose DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Robert M. Noble, Chief the Yorktown Police Department, announced the arrest and filing of charges against ANTHONY DELOSANGLES, a/k/a “Taco,” age 20, for narcotics dealing that resulted in death.
On September 19, 2016, the United States Attorney’s Office secured an indictment against DELOSANGLES, charging DELOSANGELES with conspiracy to distribute heroin. The indictment alleges that heroin distributed by DELOSANGELES resulted in the death of Thomas Cippollaro, age 25, of White Plains, New York, on November 9, 2015. DELOSANGELES is currently detained serving a prison sentence on related state narcotics charges.
DELOSANGELES was presented in federal court in White Plains before U.S. Magistrate Judge Paul E. Davison on October 11, 2016, and detained without bail. The case has been assigned to U.S. District Judge Kenneth M. Karas. DELOSANGELES faces a mandatory minimum term of 20 years in prison.
U.S. Attorney Preet Bharara stated: “The epidemic of opioid abuse is devastating our communities. Charges like those announced today strike at the heart of the problem – dealers who fuel the cycle of addiction and overdose. Anthony Delosangeles allegedly dealt in heroin, including the heroin that killed Thomas Cippollaro, a 25 year-old White Plains man. We thank the FBI and our local law enforcement partners for their extraordinary efforts that led to the charges today.”
FBI Assistant Director William F. Sweeney Jr. stated: “When dealers are out hawking their drugs, they rarely think beyond the easy money. Many times buyers end up in a morgue, and the dealers are on to the next sale. The cavalier attitude is obvious in this case when the defendant allegedly named some of his product ‘ice cream.’ The goal of the FBI and our law enforcement partners is to stop the drug traffickers who hope their clientele will think something named ‘ice cream’ won’t kill them.”
Yorktown Police Chief Robert M. Noble stated: “The Yorktown Police Department is proud to have played an integral role in the arrest of Anthony Delosangeles. This arrest would not have been possible without the assistance of the Westchester County Department of Public Safety, Putnam County Sheriff’s Office, F.B.I. and the United States Attorney’s Office. When agencies combine efforts, and work without agendas, excellence in law enforcement is possible. The residents of Yorktown and Westchester County are all a bit safer today, as an alleged heroin dealer is behind bars. We hope that this arrest will bring a small bit of solace to the family of Thomas Cipollaro.”
As alleged in the Indictment against DELOSANGLES[1]:
From at least in or about May 2015 up to and including in or about February 2016, in the Southern District of New York and elsewhere, ANTHONY DELOSANGELES, a/k/a “Taco,” and others conspired to sell heroin. The use of controlled substances distributed by DELOSANGELES resulted in the death of Thomas Cipollaro on or about November 9, 2015.
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DELOSANGELES is charged with one count of narcotics conspiracy, which carries a maximum of life in prison and a mandatory term of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The charges contained in the Indictment against DELOSANGELES are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This matter is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer Burns and Maurene Comey are in charge of the prosecution.
Mr. Bharara praised the outstanding investigative work of the FBI, the DEA, the Yorktown Police Department, and the Westchester County District Attorney’s Office.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney's Office Partners with Asheville City Schools to Launch Empowerment Initiative for Middle School StudentsRead the Press Release
ASHEVILLE, N.C. – The United States Attorney’s Office has partnered with Asheville City Schools to launch an empowerment initiative for middle school students, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The one-day youth summit was co-sponsored by the University of North Carolina – Asheville, the Sparc Network and the Grove Park Inn.
Approximately 200 students selected from Asheville Middle School attended the summit, which was held on the campus of UNC-Asheville. The goal of the summit was to encourage middle school students to discuss the culture and climate within their schools, to share their experiences with classmates, and to develop solutions for creating a positive school environment for students.
“All students deserve the opportunity to reach their full potential and to thrive within their schools without fear of harassment, violence or bullying,” said U.S. Attorney Rose. “When students are engaged and learn how to become agents of change, they are empowered to proactively address conflict, solve problems and foster a more positive school experience for all students. The summit is an opportunity for character development and positive growth.”
During the one-day summit, student leaders from Asheville Middle School discussed their concerns about their school’s current environment and developed strategies to address social pressures, including bullying. Over the course of the summit, students participated in student-led discussions, brainstormed on ways to help support all students have a positive school experience and developed action plans to address the needs of their school.
“Our partnership with the U.S. Attorney’s Office and our collaboration with our community partners has been incredible,” said Superintendent Baldwin following today’s summit. “I want to thank everyone who is supporting our efforts in our students’ voice initiative and for supporting important changes for our city and our school district.”
In addition to the interactive workshops, students also heard from Professor Michelle Horton of Wake Forest University and Founder & CEO of YOUniversity; Mr. Reggie Bean, author of Unfinished: 40 Lessons on Purpose, Self, and Becoming a Man; Dr. Pamela White, Superintendent of Asheville City Schools; April Dockery Principal of Asheville Middle School; Chief Tammy Hooper of the Asheville Police Department; and Chancellor Mary Grant of UNC-Asheville.
In making today’s announcement U.S. Attorney Rose thanked UNC-Asheville for hosting the summit and giving the students an opportunity to gather, and the Grove Park Inn and the Sparc Network for their support of this very important initiative.
U.S. Attorney Alicia Limtiaco Invited to Speak at the 21st International Summit on Violence, Abuse & TraumaRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that she and several members of the Guam Human Trafficking Task Force (HTTF) and the NMI Human Trafficking Intervention Coalition (HTIC) attended the 21st International Summit on Violence, Abuse & Trauma held on August 28-31, 2016, sponsored by the Institute on Violence Abuse and Trauma (IVAT). U.S. Attorney Limtiaco spoke on the topic of “Community Engagement and Reentry: Preparing Incarcerated Adults and Justice-Involved Youth for Reentry into the Community."
The IVAT strives to be a comprehensive resource, training and research center dealing with all aspects of violence, abuse and trauma. IVAT’s mission is to improve the quality of life for individuals on local, national and international levels by sharing and disseminating vital information, improving collaborations, networking, conducting research and trainings, assisting with direct professional services, providing program evaluations, and consulting to promote violence-free living.
U.S. Attorney Limtiaco and Victim Witness Coordinator Salome Blas shared information at the Pre-Summit on the efforts in the Pacific region of the U.S. Attorney’s Office and its various task forces, and the importance of a Pacific regional response to address violence prevention and enforcement issues.
U.S. Attorney Limtiaco and members of the Guam HTTF and NMI HTIC shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort of the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State, Office to Monitor and Combat Trafficking in Persons; the U.S. Department of Labor; the U.S. Department of Interior, Office of Insular Affairs; the Guam HTTF; the NMI HTIC; and other community partners. U.S. Attorney Limtiaco also elaborated on the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
Photos below were taken at the Summit.
National Partnership to End Interpersonal Violence’s (NPEIV) Global Peace Action Plan Pre-Summit sessions U.S. Attorney Alicia Limtiaco during her presentation of “Community Engagement and Reentry: Preparing Incarcerated Adults and Justice-Involved Youth for Reentry into the Community" Participants at the IVAT Summit Some of the attendees from Guam, left to right: Rose Mafnas from the Guam Department of Education (GDOE), Salome Blas from the U.S. Attorney’s Office, Audriana Rios from Guam Police Department, U.S. Attorney Alicia Limtiaco, Taylor Amdal-Barela from the Guam Coalition Against Sexual Assault & Family Violence and Maricor Amande from GDOE Participants from Guam: Salome Blas from the U.S. Attorney’s Office, and Rose Mafnas, Maricol Amande and Steve Pangelinan from the GDOETwin Falls Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Richard Roy Sexton, 73, of Twin Falls, Idaho pleaded guilty today in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, in August of 2015, agents with the United States Postal Inspectors Service (USPIS) and the Idaho Internet Crimes Against Children Task Force (ICAC) contacted Sexton at his residence in Twin Falls, Idaho. Sexton admitted to downloading images of minors engaged in sexually explicit conduct from the internet, and gave permission for agents to seize and search his computer and an external hard drive which contained the images. In October of 2015, Sexton visited a Verizon Wireless store in Twin Falls seeking assistance with an electronic tablet. An employee of the store observed child pornography on the tablet, and contacted the National Center for Missing and Exploited Children (NCMEC). NCMEC provided the information to the USPIS and ICAC investigators, who again contacted Sexton, and obtained permission to seize the tablet. Agents later obtained a search warrant to search the tablet.
In his plea agreement, Sexton admitted to possessing at least 360 images and 40 videos containing images of minors engaged in sexually explicit conduct on his computer, external hard drive, and tablet. The sexually explicit images included images of prepubescent minors. The electronic devices also contained evidence that Sexton was searching for and accessing images of child pornography via the internet. NCMEC subsequently identified 332 images containing known, identifiable victims from 34 known series of child pornography.
Sentencing is set for January 10, 2017, before Chief U.S. District Judge B. Lynn Winmill.
Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Sexton also agreed to forfeit the computer, external hard drive, and tablet used in the commission of the charged offense.
The case was investigated by the United States Postal Inspectors Service and the Idaho Internet Crimes Against Children Task Force (ICAC), and 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.”
Twenty people indicted in conspiracy that brought large amounts of heroin, cocaine and fentanyl to Northeast OhioRead the Press Release
Twenty people were indicted for their roles in a conspiracy that brought large amounts of fentanyl, heroin and cocaine into Greater Cleveland from Chicago and Yonkers, New York, law enforcement officials said.
Some of these conspirators had significant links to the Sinaloa cartel. As part of the investigation, law enforcement seized 29 kilograms of cocaine, six kilograms of heroin and one kilogram of fentanyl, as well as $400,000 and several firearms.
Named in the 51-count indictment are: Ismael Jacinto Acosta, 37, of Cleveland Heights; Alfonso Rodrigo, 36, of Warrensville Heights; David Urrabazo-Maldonado, Jr., 29, of Madera, Calif; Tennille Bryant, 36, of Yonkers, N.Y.; James Carver, 36, of Yonkers, N.Y.; Van Herron, 34, of Cleveland; Jose Hernandez, 55, of Chicago; Octavio Rodrigo, 60, of Maple Heights; Juan Carlos Solis, 26, of Chicago; Mario Amador-Ramirez, 52, of Cleveland; Roland Francisco Rivera-Erazo, 32, of Honduras; Maurice Walker, 31, of Cleveland; Manuel Maldonado, 37, of Lyndhurst; Reinaldo Hernandez, 27, of Cleveland; Cesar Zambrano-Espinal, 27, of Cleveland; Kelvin Zambrano, 27, of Cleveland; Jonathan Stepp, 32, of Cleveland; Ryan Miller, 33, of Cleveland; Nancy Vargas, 33, of Tolleson, Ariz. and Margaret Fernandez, 35, of Warrensville Heights.
The defendants conspired together from 2010 through 2016 to obtain fentanyl, heroin, cocaine and marijuana from suppliers in Chicago and Yonkers, N.Y. and then sell the drugs in Northeast Ohio.
Acosta obtained heroin from suppliers in Chicago. Jose Hernandez supplied vehicles with after-market trap compartments to transport hidden drugs and drug proceeds, according to the indictment.
Zambrano-Espinal used a home on West 130th Street in Cleveland to store and distribute the drugs and drug money. He supplied heroin and cocaine to others, including Stepp, Miller and Reinaldo Hernandez, who in turn sold the drugs in Northeast Ohio, according to the indictment.
The Rodrigos used a house on Maple Heights Boulevard in Maple Heights to store and distribute drugs and drug money. Maurice Walker, at the direction of Alfonso Rodgrigo, sold drugs and had access to stash houses, according to the indictment.
Jose Hernandez used a commercial bus line to attempt to transport two kilograms of heroin from Chicago to Cleveland, while Bryant transported one kilogram of fentanyl from Yonkers to Cleveland via commercial bus line. Bryant and Carver, working with the Rodrigos and Urrabazo-Maldonado, then transported the kilogram of fentanyl to the Maple Heights Boulevard home, according to the indictment.
Rodrigo and Margaret Fernandez is named in three counts for allegedly using the proceeds of drug sales to purchase several homes through the Cuyahoga County forfeited land sale.
“This organization is responsible for bringing nearly 100 pounds of heroin, cocaine and fentanyl into Northeast Ohio,” U.S. Attorney Carole S. Rendon said. “Sadly, the death toll continues to mount from this epidemic. Daily we mourn as parents bury their children and children bury their parents. In response, we will continue to aggressively target drug traffickers, while working just as aggressively to reduce the demand for drugs and to provide treatment for those already addicted.”
DEA Special Agent in Charge Timothy J. Plancon said: “Attacking the opiate and heroin abuse epidemic in Ohio and across the United States is a top priority for DEA. The indictments announced today reflect the complete disruption of a significant drug trafficking organization, responsible for the distribution of kilogram quantities of heroin, fentanyl, and cocaine in Ohio. In an environment where overdose deaths have become daily news, halting this group’s ability to distribute these very lethal drugs into our community is a victory for all citizens of northern Ohio. The efforts and cooperation of the Ohio State Highway Patrol in this investigation were vital, and deserve recognition.”
“The harm inflicted by these drugs is matched only by the profit potential for those who sell them. Today’s indictment is the culmination of a lengthy effort in which IRS-CI worked with its law enforcement partners to disrupt the flow of money -- the lifeblood that allows these organizations to proliferate,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This is an important victory for the citizens of Northern Ohio. These individuals not only fueled the drug problem in Northern Ohio, but they supported addiction in several parts of the country.”
This case is being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Marisa Darden following an investigation by the Drug Enforcement Administration, the Ohio State Highway Patrol and the Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
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.
Tulalip Tribal Member Sentenced to 9 Years in Prison for Assault, Witness Tampering and Illegally Possessing a FirearmRead the Press Release
An enrolled member of the Tulalip Tribes was sentenced October 7, 2016 in U.S. District Court in Seattle to nine years in prison and four years of supervised release for seven charges involving his repeated assault of an intimate partner, announced U.S. Attorney Annette L. Hayes. BRIAN H. JONES, SR., 47, of Tulalip and Marysville, Washington, was convicted of assault by strangulation, assault resulting in serious bodily injury, witness tampering, felon in possession of a firearm, possession of a firearm in furtherance of a crime of violence and two counts of assault with a dangerous weapon following a six-day jury trial. At sentencing U.S. District Judge Richard A. Jones noted the “horrific circumstances” of JONES’ criminal acts and the need to protect others given his continuous history of violence.
“Violence of this kind and attempts to subvert our justice system cannot be tolerated in any of our communities,” said U. S. Attorney Annette L. Hayes. “I commend law enforcement for its diligent investigation in this case. We take seriously our responsibility to address domestic violence in our tribal communities, and will do all that we can to hold defendants to account for the physical and psychological harms they cause.”
According to records filed in the case and testimony at trial, JONES assaulted both his ex-wife and her then husband in December 2014, holding them at gun point. In April 2015, JONES assaulted his ex-wife a second time, strangling her and beating her. Medical records indicate JONES’ ex-wife suffered injuries to her head, arms, legs, and throat trauma. Following his arrest in both assaults, records reveal JONES repeatedly contacted his ex-wife and convinced her to refuse to testify in a tribal court trial, as well as to seek a dismissal of the federal charges or recant in federal court. Prosecutors used evidence including the ex-wife’s prior sworn statements, medical records, and other witness statements to prove JONES’ guilt beyond a reasonable doubt.
JONES is also a felon having been previously convicted of a state felony crime, and is thus prohibited from possessing firearms.
JONES has been in federal custody since his arrest on June 3, 2015.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and J. Tate London.
Trio Sentenced in Connection to Thefts from Appomattox Gun StoreRead the Press Release
LYNCHBURG, VIRGINIA – Months after 56 guns were stolen from a federally licensed firearms dealer in Appomattox, three of the men who took part in the break-in have been sentenced in federal court on related charges, United States Attorney John P. Fishwick Jr. announced today.
Jaquan Tyree Harris, 21, of Amherst, Virginia, previously pled guilty to one count of stealing firearms from a federally licensed firearms dealer and one count of being a previously convicted felon illegally in possession of a firearm. Yesterday in the United States District Court in Lynchburg, Harris was sentenced to 52 months in federal prison.
Dequan Montez Kelso, 23, and Kwamane Jarrae McCoy, 22, both of Appomattox, Virginia, had each previously pled guilty to one count of stealing firearms from a federally licensed firearms dealer and one count of being a previously convicted felon illegally in possession of a firearm. Yesterday in District Court, Kelso was sentenced to 48 months in federal prison. In a separate hearing, McCoy was sentenced to 60 months in prison. All three defendants were ordered to pay restitution to the gun shop owner for damages stemming from the break-in.
“Keeping illegal guns out of the hands of prohibited users is a priority of the United States Attorney’s Office,” United States Attorney Fishwick said today. “One of the first steps we can take in keeping our communities safe is getting illegal guns off our streets. This case is a prime example of law enforcement working to do just that.”
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, in January 2016, four masked individuals burglarized TNT Outfitters in Appomattox, Virginia in the middle of the night, stealing 56 firearms. Following a thorough investigation by the ATF, Virginia State Police and the Appomattox County Sheriff’s Office, McCoy and Kelso were identified as being involved in the burglary and were soon located and found to be in possession of some of the stolen firearms. They were subsequently arrested and admitted their involvement in the incident.
Many of the stolen firearms, including a Glock 17, HiPoint C9, Smith and Wesson M&P 9 Pro, Remington Model 700 Shotgun and a Ruger Mini 14 .223 Rifle, remain missing. The Bureau of Alcohol, Tobacco, Firearms and Explosives have offered a $10,000 reward to anyone with knowledge of the whereabouts of these missing firearms. Anyone with information can contact the ATF at 1-800-283-4867.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Appomattox Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Texas Man Pleads Guilty to Federal Drug Trafficking Charge Arising Out of Seizure of More Than Ten Pounds of Cocaine in New MexicoRead the Press Release
ALBUQUERQUE – Luis Abelardo Ibarra, 36, of Fort Worth, Texas, pled guilty today in federal court in Las Cruces, N.M., to a cocaine trafficking charge arising out of the seizure of more than ten pounds of cocaine during a U.S. Border Patrol checkpoint inspection. Under the terms of his plea agreement, Ibarra will be sentenced to six years in prison followed by a term of supervised release to be determined by the court. Ibarra also will be required to forfeit $12,878 seized from him and his co-defendant during the checkpoint inspection.
Ibarra and his co-defendant Claudio M. Martinez, Jr., 47, also of Hobbs, were arrested in May 2013, on a criminal complaint alleging that they possessed approximately 4.76 kilograms (10.49 pounds) of cocaine in Luna County, N.M. According to the complaint, Ibarra and Martinez were arrested after U.S. Border Patrol agents at the U.S. Border Patrol station on State Highway in Luna County seized cocaine, cash and drug paraphernalia from the vehicle in which Ibarra and Martinez were traveling.
Ibarra and Martinez were subsequently indicted on Aug. 14, 2013, and charged with conspiracy and possession of cocaine with intent to distribute on May 23, 2013, in Luna County.
During today’s proceedings, Ibarra pled guilty to a felony information charging him with conspiracy to possess cocaine with intent to distribute, and admitted that on May 24, 2013, he and Martinez concealed five bricks of cocaine weighing 4.76 kilograms in a cooler and transported it into New Mexico. Ibarra remains in custody pending his sentencing hearing, which has yet to be scheduled.
Martinez pled guilty to the indictment in June 2014, and was sentenced in Sept. 2014, to six years in prison followed by five years of supervised release.
This case was investigated by the Las Cruces office of the DEA and the U.S. Border Patrol. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Tampa-Area Woman Sentenced for Theft of Tax Refund ChecksRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Barbara Barr to 36 months and 1 day in federal prison for theft of government funds and aggravated identity theft. The Court also entered a forfeiture money judgment in the amount of $8,000, representing the proceeds of the offenses. Barr pleaded guilty on July 28, 2016.
According to court documents, Barr and her co-conspirator sold two stolen tax refund checks, totaling over $40,000, to a confidential informant for $8,000.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Syracuse Man Sentenced for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Derrick Wilson, 36, of Syracuse, New York, was sentenced today to serve a 336 month (28 years) term of imprisonment, followed by 10 years of supervised release, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (“DEA”) and Syracuse Police Chief Frank Fowler.
“The sentence imposed today sends a clear message to those who traffick in illegal drugs- especially heroin, in the midst of this region’s opioid drug epidemic, that we will vigorously enforce the law and seek tough sentences for those who would profit from the misery of others,” said U.S. Attorney Hartunian.
“There is only one way illegal drugs end up in the hands of addicts and that is through the hands of drug dealers. Derrick Wilson was found guilty for his role in a heroin and crack cocaine conspiracy earlier this year and today’s sentencing is compensatory to the crimes committed,” said DEA Special Agent in Charge James J. Hunt.
“We will continue to work hard, utilizing every resource available, with the goal of stopping the heroin trade that has plagued our communities. We have all seen first-hand what this terrible drug does, and hope that this case and lengthy prison sentence will make others think twice before getting involved,” said Syracuse Police Chief Frank Fowler.
Wilson was convicted following a week-long trial in January 2016 during which he represented himself with an assigned attorney present to advise him on legal matters. The evidence at trial, some of which was obtained through court ordered wiretaps, showed that Wilson supervised the distribution of crack cocaine and heroin by other members of the conspiracy, whom he directed and employed. At trial it was established that Wilson made arrangements for heroin and cocaine powder from New York City to be transferred to him in Syracuse, where he ordered members of the conspiracy to process the cocaine powder into crack cocaine and package it for sale. Other members of the conspiracy acting at Wilson’s direction also packaged some of the heroin into uniquely marked plastic bags for “branding” purposes and distribution.
Wilson was the last of 13 defendants to be convicted of participating in a conspiracy to distribute heroin and crack cocaine in the Syracuse area from April 2013 to June 18, 2014. Wilson’s co-defendants all pled guilty and were sentenced as follows:
Name
Age
Residence
Sentence
Jeffrey Dowdell
37
Syracuse, NY
120 months
Tashawn Albert
28
Syracuse, NY
66 months
Kyle Dowdell
28
Syracuse, NY
120 months
Quonta Albert
23
Syracuse, NY
60 months
General Davis, Jr.
29
Clay, NY
130 months
Willie Strong, Jr.
37
Liverpool, NY
120 months
Jamall Harris
36
Syracuse, NY
Scheduled for 11/9/2016
James Handford
38
Syracuse, NY
120 months
Zephaneea Dowdell
33
Syracuse, NY
Scheduled for 11/18/2016
Lashandrea Johnson
31
Syracuse, NY
13 months
James Hudson
25
Syracuse, NY
60 months
Darnyl Apgar
28
Syracuse, NY
120 months
This case was investigated by the United States Drug Enforcement Administration (“DEA”) and the Syracuse Police Department, with assistance from the Federal Bureau of Investigation (“FBI”) and is being prosecuted by Assistant U.S. Attorneys Carla Freedman and Nicolas Commandeur.
Springdale Man Sentenced to 65 Months in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jose Maria Calderon, age 48 of Springdale, Arkansas, was sentenced today to 65 months in federal prison followed by three (3) years of supervised release on one count of Possession with Intent to Distribute 50 Grams of More of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the Plea Agreement, on two separate occasions between November, 2015 and March, 2016, investigators with the Drug Enforcement Administration (DEA) and the Springdale Narcotics Unit conducted two controlled buys with an intermediary for Calderon in which over 10 grams was delivered by the intermediary to a confidential source. During the incidents, Calderon would arrive at the public location and make contact with the intermediary but not receive funds nor directly distribute methamphetamine to the confidential source. Subsequently investigators issued a search warrant on Calderon’s address in Springdale. When officers arrived, Calderon was searched and found to have $783 in cash and two cell phones on his person. He was informed of his Miranda rights and agreed to cooperate and led officers to a large quantity of methamphetamine concealed inside a lampshade. He admitted that during the past year he had been receiving methamphetamine each month. In addition to methamphetamine, officers found 1.14 grams of cocaine, $15,699 in U.S. currency, digital scales, packaging materials, a heat sealer, and wire transfer receipts. The suspected methamphetamine was sent to the Arkansas State Crime Lab where it was determined to be 294 grams of actual methamphetamine. The suspected cocaine was also tested and confirmed to be 1.4 grams of a mixture or substance containing cocaine.
Calderon was indicted by a federal grand jury in May, 2016 and pleaded guilty in July, 2016.
“Methamphetamine is a highly addictive drug and one of the most destructive drugs we face today. DEA and our law enforcement partners are working hard to thwart the threat of methamphetamine distribution and abuse here in the Western District of Arkansas,” stated DEA Assistant Special Agent in Charge Matthew Barden. “We have successfully collaborated in order to put this drug dealer in federal prison as a result of his desire to supply the citizens in Springdale with methamphetamine.”
The investigation was led by the Drug Enforcement Administration and the Springdale Narcotics Unit. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Southwest Arkansas Man Sentenced to over Seven Years in Federal Prison for Firearms ViolationRead the Press Release
Texarkana, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Bobby Joe Hampton, age 29 of Wilton, Arkansas, was sentenced today to 87 months and 23 days in federal prison on one count of Felon in Possession of a Firearm. The sentence is to run concurrent with the remaining undischarged state sentence received in Miller County. Hampton was indicted by a federal grand jury in March, 2014 and was found guilty after a two-day jury trial in July, 2015. The Honorable Judge Susan O. Hickey presided over the sentencing in the United States District Court in Texarkana.
This case was investigated by the Texarkana Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
South Windham Man Convicted of Mailing Cyanide Resulting in Death, Fraud and Witness TamperingRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Bangor Maine: United States Attorney Thomas E. Delahanty II announced that Sidney P. Kilmartin, 54, of South Windham, Maine, was convicted yesterday following a six-day jury trial in U.S. District Court of mailing injurious articles (cyanide) resulting in death, wire fraud, mail fraud and witness tampering. He was found not guilty of witness retaliation. On December 9, 2015, he was charged with those crimes in a superseding indictment. On October 3, 2015, he pled guilty to related wire and mail fraud charges.
According to court documents, in September 2012, the defendant acquired potassium cyanide and thereafter offered to sell it on a website devoted to suicidal persons. Between September of 2012 and May 2013, he communicated by email with people around the world offering the cyanide, and accepting payments for it through PayPal. To some of those victims, he sent Epsom salts instead of cyanide. When one victim he sent Epsom salts to in England did not die after the victim ingested them, the victim complained to the defendant and law enforcement authorities. Thereafter, the defendant sent him real cyanide that resulted in his death.
Kilmartin faces up to life in prison and a $250,000 fine on the mailing cyanide resulting in death charge, and up to 20 years in prison and a $250,000 fine on the remaining charges. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Postal Inspection Service and the Humberside Police Force (City of Hull, England).
Second Defendant Pleads Guilty in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alagi Samba, 46, of Bronx, NY, pleaded guilty to conspiracy to commit wire fraud affecting a financial institution, before U.S. District Judge Laurence J. Vilardo. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth Moellering, who are handling the case, stated that between June 2008 and February 2009, the defendant conspired with other individuals to devise a scheme to commit mortgage fraud which included obtaining seven loans for unqualified borrowers.
As part of the scheme, Samba served as a realtor on behalf of co-conspirator Daniel Badu in the purchase of a property at 814 Faile Street, Bronx, NY. The defendant was aware that Badu was employed as a home health aide and did not have the income or assets to qualify for a mortgage loan in the amount of $574,543 to purchase the property. Samba obtained Badu’s personal identification information and business documents and provided them to another co-conspirator, a mortgage broker, knowing that the documents would be altered or created to falsely indicate that Badu was an ophthalmologist at his company Eagle Eyes. In addition, fraudulent paystubs and tax returns were submitted to support the loan application. Samba knew that these false loan documents were submitted a mortgage bank in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved.
The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans. These fraudulent transactions caused losses of approximately $3,603,830 affecting financial institutions in Buffalo and elsewhere.
Daniel Badu was also convicted of wire fraud affecting a financial institution and is scheduled to be sentenced on November 15, 2016 at 10:00 am before Judge Vilardo.
Charges are pending against defendants Gregory Gibbons, Julio Rodriguez, Laurence Savedoff, and Tina Brown. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the United States Postal Inspection Service under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, the United States Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Brad Geary; and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen. Additionally, the New York State Department of Financial Services assisted with the investigation.
Sentencing for defendant Samba is scheduled for March 14, 2017 at 10:00 a.m. also before Judge Vilardo.
San Antonio Duo Sentenced to Federal Prison for Sex Trafficking of a Minor SchemeRead the Press Release
In San Antonio this morning, 26–year-old Valentin Renko was sentenced to 25 years in federal prison followed by 20 years of supervised release for sex trafficking of a minor announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In December 2015, Renko pleaded guilty to the charge. By pleading guilty, Renko admitted that on or about July 1, 2015, he provided and smoked methamphetamine with his co-defendant, 30-year-old Karen Lee, and a 12-year-old female. That minor, who Renko made contact with through a social media website, had been reported missing to the Kirby Police Department in the days leading up to July 1, 2015. Renko and Lee also discussed and planned ways of providing the child victim to adult males for commercial sex. Lee, subsequently, took digital photos of Renko engaged in sexually explicit conduct with the minor female. Lee also insisted the minor female make money in order to continue to reside with Lee and encouraged the victim to make dates with males using a social networking website. During those dates, between July 2 and July 6, 2015, the victim engaged in sexual activity in exchange for U.S. currency and/or narcotics.
On April 25, 2015, Lee was sentenced to 20 years in federal prison after pleading guilty to her role in the sex trafficking of a minor scheme.
This case resulted from a South Texas Officers and Prosecutors Human Trafficking Task Force (STOP HTTF) investigation led by the FBI together with the Texas Department of Public Safety and the Kirby Police Department. Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.
San Antonio Bandidos Member Pleads Guilty to MurderRead the Press Release
Bandidos Outlaw Motorcycle Organization (OMO) member Frederick Cortez (aka “Fast Fred”), age 48, faces life in federal prison after pleading guilty to murder, announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; and San Antonio Police Chief William McManus.
Cortez pleaded guilty before United States Magistrate Judge Pamela A. Mathy in San Antonio this afternoon to Murder in Aid of Racketeering, stemming from the January 2002 retaliation murder of Robert Lara in Atascosa County for killing one of their own. Javier Negrete, a member of the same Bandidos OMO chapter as Cortez, was killed outside a San Antonio bar in October 2001.
Cortez remains in custody pending sentencing scheduled for January 23, 2017, before Senior United States District Judge David A. Ezra.
Bandidos OMO National President Jeffrey Pike, age 61 of Conroe, TX, and National Vice President John Portillo, age 57 of San Antonio, who are also charged in the same indictment, are currently scheduled for trial on August 7, 2017. Portillo remains in federal custody; Pike, on bond, pending trial.
The superseding indictment accuses Pike and Portillo of directing, sanctioning, approving and permitting other members of the organization to carry out racketeering acts including murder, attempted murder, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Sallisaw Woman Sentenced to 12 Months 1 Day, $574,000 Restitution for Theft of Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JADE LaRAE OBREGON, age 38, of Sallisaw, Oklahoma, was sentenced to 1 year and 1 day of imprisonment for THEFT OF FEDERAL PROGRAM FUNDS, in violation of Title 18, United States Code, Section 1341. OBREGON was also ordered to pay $574,385.94 in restitution.
The Indictment alleged that on or about January 1, 2012, and continuing through December 31, 2013, in the Eastern District of Oklahoma, JADE LaRAE OBREGON, defendant herein, being an agent of Sequoyah Memorial Hospital, said organization receiving in the one year period beginning January 1, 2012, benefits in excess of $10,000 from federal health care programs, embezzled, stole, obtained by fraud, and knowingly converted to the use of a person not the rightful owner, property worth at least $5,000 and owned by such organization, that is diabetic test strips.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
The charges are a result of an investigation by the Federal Bureau of Investigation. OBREGON was ordered to report to the Bureau of Prisons on January 15, 2017.
Assistant United States Attorney Melody Nelson represented the United States.
Roswell Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ana Solis, 23, of Roswell, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Solis is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 were charged with state offenses.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 35, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Solis, Mendiola and 14 other federal defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
During yesterday’s proceedings, Solis pled guilty to conspiracy, possession of methamphetamine with intent to distribute, and using a communication device to facilitate drug trafficking crimes. In entering the guilty plea, Solis admitted conspiring with her co-defendants to distribute methamphetamine in Chaves County and using a telephone to further commission that crime from June 2015 through July 31, 2015. Solis also admitted that on July 25, 2015, and July 31, 2015, she and a co-defendant arranged to purchase two pounds of methamphetamine with the intention of distributing it to others.
At sentencing, Solis faces a statutory minimum penalty of ten years and a maximum of life in prison. A sentencing hearing has yet to be scheduled.
To date, seven of Solis’ co-defendants have entered guilty pleas. The remaining defendants have entered not guilty pleas to the indictment. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Rochester Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Pedro Cruz, 40, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to 97 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that the investigation began when law enforcement officers discovered the downloading of child pornography related to a website and a particular user name. The investigation led to the execution of a search warrant at Cruz’s residence. Forensic previews of some computer-related items seized from the defendant’s residence revealed thousands of images of child pornography on a laptop computer, thousands of images of child pornography on a desktop computer, over 30,000 images of child pornography on an external hard drive, and over 20,000 images of child pornography on various CDs and DVDs.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force consists of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
Plummer Man Sentenced for Aggravated Assault and Use of a Firearm in a Crime of ViolenceRead the Press Release
COEUR D’ALENE – Cruz Flechita Ramon Soto, 34, of Plummer, Idaho, was sentenced yesterday for aggravated assault and use of a firearm in a crime of violence, U.S. Attorney Wendy J. Olson announced. Soto was sentenced to 180 months in prison followed by five years supervised release. Chief U.S. District Judge B. Lynn Winmill also ordered Soto to pay restitution in an amount to be determined later. Soto pleaded guilty on July 29, 2016.
According to the plea agreement, in the early morning of November 12, 2015, while the victim, an Indian, was sleeping in the living room of a relative’s house, Soto, also an Indian, came to the house. Soto and the victim spoke for about 20 minutes then Soto shot the victim in the chest, back, and neck. The victim was flown to Kootenai Hospital where he was stabilized and flown to Harborview Medical Center in Seattle. The victim was able to identify Soto as the shooter. The shooting occurred within the boundaries of the Coeur d’Alene Indian reservation.
The case was investigated by Coeur d’Alene Tribal Police, Benewah County Sheriff’s Department, and Federal Bureau of Investigation.
Owners of Biofuel Company Plead Guilty to Conspiracy and Fraud ChargesRead the Press Release
The owners of an Indiana biofuel producer pleaded guilty to conspiracy, fraud and false statements for participating in a scheme that generated over $60 million in fraudulent tax credits and U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Triton Energy LLC, a company that purported to produce and sell biofuel for use as transportation fuel.
Fred Witmer, 46, and Gary Jury, 58, pleaded guilty before U.S. District Magistrate Judge Magistrate Judge Susan Collins of the Northern District of Indiana, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance, Special Agent in Charge James D. Robnett for the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office.
According to their pleas, Witmer and Jury were co-owners of Triton Energy LLC and Gen2 Renewable Diesel LLC, both located in Waterloo, Indiana. Witmer admitted to participating in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel be used domestically for transportation, Witmer admitted selling it for uses that included the production of fire starter logs and asphalt and also for power generation. Jury admitted to participating in a conspiracy to fraudulently claim tax credits and to providing false statements to the EPA.
As part of their pleas, Witmer agreed to serve a sentence of 57 months’ incarceration and Jury agreed to serve a sentence of 30 months’ incarceration. A sentencing hearing, has not yet been scheduled.
“Witmer, Jury, and their co-conspirators defrauded a program Congress had enacted to incentivize the production of biofuels and to help modernize our nation’s energy economy,” said Assistant Attorney General Cruden. “These serious crimes undermine these important public policies and this case demonstrates they will not go unpunished. The Justice Department will continue to vigorously prosecute those seeking to manipulate these programs for personal gain.”
“Eliminating fraud in the renewable fuels market is key to achieving the greenhouse gas reductions Congress intended under the Renewable Fuel Standard,” said Assistant Administrator Giles. “EPA is committed to holding those who violate the law accountable and ensuring a level playing field for companies that follow the rules.”
“When individuals, such as Mr. Witmer, Mr. Jury and their co-conspirators, use fraud and deceitful measures to take advantage of federal tax credits and incentives for personal gain, the harm is felt by all American taxpayers and our economy,” said Deputy Chief Don Fort for IRS-CI. “IRS-CI will continue to vigorously pursue individuals who attempt to undermine our tax system.”
“The FBI was pleased to be part of another renewable fuel fraud investigation in the state of Indiana, in this case targeting Mr. Witmer, Mr. Jury and their co-conspirators,” said Special Agent in Charge Abbott. “This fraud scheme also victimized U.S. Taxpayers who believe those who participate in these programs should abide by the rules which govern them. This multi-agency effort is indicative of the commitment of resources by the FBI against perpetrators seeking to take advantage of incentivized programs in place to modernize our domestic energy programs”
Wire Fraud is punishable by up to 20 years in prison. Conspiracy is punishable by up to five years in prison. False Statements to the EPA is punishable by up to two years in prison.
Assistant Attorney General Cruden commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik, who represented the United States in this case.
Orange County Man Sentenced for Production of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Thomas Samborski, II (41, Orange County) to 20 years in federal prison and a life term of supervised release for production of child pornography. The Court also ordered him to pay restitution and to register as a sex offender upon his release from prison.
Samborski pleaded guilty in July 2016.
According to the plea agreement, on March 1, 2015, Samborski made sexually suggestive posts involving photographs of three minor children on a file sharing Internet site. As a result, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted an investigation and on March 6, 2015, agents executed a search warrant at Samborski’s residence. During the search, agents recovered an iPhone 6 Plus containing hundreds of lascivious images of a female child that had been produced on March 1 and March 3, 2015. Additional electronic devices and media containing child pornography, including photographs showing the sexual abuse of infants and other minor victims, were also recovered.
"This criminal has caused irreparable harm to a young child and he will now spend the next 20 years in prison for these crimes,” said Susan L. McCormick, special agent in charge of HSI Tampa. “We hope that today’s sentencing can bring a small measure of closure to the victim and family.”
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Orange County Man Sentenced for Production of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Thomas Samborski, II (41, Orange County) to 20 years in federal prison and a life term of supervised release for production of child pornography. The Court also ordered him to pay restitution and to register as a sex offender upon his release from prison.
Samborski pleaded guilty in July 2016.
According to the plea agreement, on March 1, 2015, Samborski made sexually suggestive posts involving photographs of three minor children on a file sharing Internet site. As a result, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted an investigation and on March 6, 2015, agents executed a search warrant at Samborski’s residence. During the search, agents recovered an iPhone 6 Plus containing hundreds of lascivious images of a female child that had been produced on March 1 and March 3, 2015. Additional electronic devices and media containing child pornography, including photographs showing the sexual abuse of infants and other minor victims, were also recovered.
"This criminal has caused irreparable harm to a young child and he will now spend the next 20 years in prison for these crimes,” said Susan L. McCormick, special agent in charge of HSI Tampa. “We hope that today’s sentencing can bring a small measure of closure to the victim and family.”
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Idaho Man Sentenced for Passport Fraud and Aggravated Identity TheftRead the Press Release
COEUR D’ALENE – Kevin John Weinreis, 50, of Tensed, Idaho was sentenced yesterday for making a false statement in a passport application and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Weinreis to 26 months in prison followed by three years of supervised release. Weinreis pleaded guilty on July 28, 2016.
According to the plea agreement, in November 2014, Weinreis falsely used the name and identifying information of another person to obtain a United States passport bearing his photograph. In January 2016, law enforcement became aware of this passport fraud. A Deputy United States Marshal and a Benewah County Sheriff’s Deputy went to Weinreis’ Tensed residence and interviewed him. Weinreis denied his true identity and was arrested. He later admitted who he was after being fingerprinted.
The case was investigated by the State Department’s Diplomatic Security Service, the United States Marshal’s Service, and the Benewah County Sheriff’s Office.
North Carolina drug dealer pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A North Carolina heroin dealer pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Adam Denson, 28, of Gastonia, entered his guilty plea to distribution of heroin.
Denson admitted that on May 14, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at Little Page Terrace in Charleston. Denson further admitted that he sold heroin to a confidential informant on three additional occasions in May 2015.
Denson faces up to 20 years in federal prison when he is sentenced on January 23, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Nine Members and Associates of the Hankton Gang SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the sentencing of nine members and associates of the Hankton Organization.
According to the court documents, members of this organization and their associates ran a violent drug ring in and around the City of New Orleans dating back to 1996. During the course of this organization’s life, its members and associates killed rival drug dealers, intimidated witnesses who dared to cooperate with law enforcement, attempted to obstruct the state criminal justice system by having associates provide false alibi testimony in state court, and killed witnesses, along with a witness’ family member, in an effort to obstruct justice. U.S. District Judge Martin L.C. Feldman sentenced the defendants as follows:
SHIRLEY HANKTON, age 61 – Pled guilty on May 16, 2016, to a Racketeer Influenced and Corrupt Organizations Act (RICO) violation; sentenced to serve 60 months’ incarceration, followed by three years of supervised release.
THOMAS HANKTON, age 40 – Pled guilty on May 16, 2016, to a RICO violation (Count 1), conspiracy to distribute controlled substances (Count 2), and assault with a dangerous weapon in aid of racketeering (Count 15); sentenced to serve 300 months’ incarceration, followed by 10 years of supervised release as to Counts 1 and 2, with credit for time served. As to Count 15, THOMAS HANKTON was sentenced to serve 240 months’ incarceration, followed by 5 years of supervised release, all sentences to be served concurrently.
TROY HANKTON, age 32 – Pled guilty on April 27, 2016, to conspiracy to possess firearms; sentenced to serve 168 months’ incarceration, followed by 3 years of supervised release.
NAKIA HANKTON, age 38 – Pled guilty on April 27, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 132 months’ incarceration, followed by 5 years of supervised release.
GEORGE JACKSON, age 42 – Pled guilty on June 1, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 168 months’ incarceration (with credit for time served), followed by 5 years of supervised release.
DERRICK SMOTHERS, age 38 – Pled guilty on May 4, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 235 months’ incarceration (with credit for time served), followed by 5 years of supervised release.
TERRELL SMOTHERS, age 40 – Pled guilty on May 4, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 144 months’ incarceration (with credit for time served), followed by 5 years of supervised release.
NETTHANY SCHEXNAYDER, age 37 – Pled guilty on May 16, 2016, to misprision of a felony; sentenced to serve 3 years’ probation.
SANA JOHNSON, age 41 – Pled guilty on June 6, 2016, to misprision of a felony; sentenced to 1-year probation.
All of the above-listed defendants pled guilty to charges in the Third Superseding Indictment. Co-defendants TELLY HANKTON, WALTER PORTER, ANDRE HANKTON, and KEVIN JACKSON, were found guilty after a three-week jury trial in June 2016. TELLY HANKTON, WALTER PORTER, ANDRE HANKTON, and KEVIN JACKSON, are scheduled to be sentenced on November 9, 2016 at 1:30 p.m.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera, William J. Quinlan, Jr., David Haller, and Brittany Reed were in charge of the prosecution.
Montgomery meth dealer sentenced to over 10 years in federal prisonRead the Press Release
CHARLESTON, W.Va. – A Montgomery man caught with substantial amounts of methamphetamine, heroin, and marijuana was sentenced today to 10 years and a month in federal prison for a drug charge, announced United States Attorney Carol Casto. Bryan Lee Palmer, 43, previously pleaded guilty to possession with intent to distribute methamphetamine.
Palmer admitted that on February 26, 2016, he made arrangements for a drug deal to take place at a hotel in South Charleston. When Palmer arrived at the hotel, he was met by law enforcement. The officers obtained a search warrant for a duffel bag and backpack that was in Palmer’s possession. When officers searched the bags, they found over 1,500 grams of methamphetamine, approximately 700 grams of heroin, over a half a kilogram of marijuana, a loaded .45 caliber semi-automatic pistol, and over $30,000 in cash. Palmer further admitted that it was his intent to distribute the drugs in the Charleston area. Law enforcement estimated the street value of the seized drugs to be approximately $466,000.
The case against Palmer was investigated by the Kanawha County Sheriff’s Department and members of its Sheriff’s Tactical Operations Patrol (STOP) team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is 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 methamphetamine and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mexican National Sentenced to 60 Months for Drug TraffickingRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Telesforo Lozano, 60, of Torreon, Mexico, was sentenced today to 60 months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for drug trafficking. The judge ordered that Lozano undergo 4 years of supervised release after finishing his term of imprisonment, receive substance abuse testing and deportation consideration, and pay a $200 mandatory special assessment.
Following a two-day trial in July 2016, Lozano was found guilty by a federal jury of one count of conspiring to distribute cocaine and one count of possession with intent to distribute cocaine. The jury heard evidence that Lozano was acting as a drug courier for a Mexican drug cartel and was hired to transport drugs from Mexico to Atlanta, Georgia. On August 21, 2015, Lozano drove across the border from Juarez, Mexico into El Paso, Texas with 4.34 kilograms of cocaine concealed in a hidden compartment inside the engine of a black Ford F-150 truck. On August 23, 2015, Lozano was pulled over for a traffic violation on I-10 East in Mobile County, Alabama by an Alabama State Trooper. A subsequent search of Lozano’s truck led to law enforcement’s seizure of the concealed cocaine, which had a retail value of approximately $500,000.
The case was investigated by the Drug Enforcement Administration, the U.S. Customs and Border Protection, and the Alabama Law Enforcement Agency. The case was prosecuted by Assistant United States Attorneys George May and Sinan Kalayoglu.
Member of $1.5 Million Fraudulent Check Cashing Scheme Sentenced to over Five Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Terry Bowman, age 56, of Laurel, Maryland, today to 66 months in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud, bank fraud, and for aggravated identity theft arising from a scheme to defraud financial institutions. Chief Judge Blake also entered an order requiring James to pay restitution in the full amount of the victims’ actual foreseeable losses during the time he was involved in the conspiracy, $279,026.82. A federal jury convicted Bowman on June 9, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to evidence presented at his four-day trial, from approximately 2007 through November, 2013, Bowman conspired with Nigerian nationals Friday James and Akintunde Akinlosotu and others to defraud financial institutions by depositing counterfeit and stolen checks and withdrawing the funds before the deposits were identified as fraudulent. James and Akinlosotu would register businesses with the state. James, Akinlosotu and other conspirators including Bowman would obtain post office box addresses and open bank accounts for the businesses. They would then deposit stolen, altered, and counterfeit checks into the accounts and withdraw the funds before the checks could bounce.
According to trial evidence and court documents, Bowman and others including LaKeisha Butler, Kesa Baker, obtained post office boxes and opened bank accounts for the businesses. Bowman and his co-conspirators used the identities of other people, or allowed their own identities to be used, to conduct these transactions. The paperwork for the transactions was prepared by James or Akinlosotu, and the mailbox keys, checkbooks and debit cards were provided back to them. Only James or Akinlosotu picked up the mail from the post office boxes.
Additional co-conspirators were recruited to deposit the counterfeit checks and to withdraw the money, including Naimah Okail, Isaac Kusimo, and others. James and Akinlosotu would pick up the individuals and provide them with a check to deposit or to cash, usually completing the checks in front of the cashers and obviously signing a name which was not theirs. James and/or Akinlosotue would transport the recruited individual to a bank, where that person used his or her own identification and the checks provided. The checks often had a telephone number written on the checks, which would be answered by James or Akinlosotu if the bank called to confirm that the check was genuine. Once the check was cashed, the money would be given to James or Akinlosotu, and a portion (usually 5-10%) paid to the recruit.
In addition to cashing checks using the identities of others and allowing his identity to be used in the scheme, Bowman recruited and assembled his own team of workers to be used in the scheme, including at least one whose identity was used to establish businesses, open mail boxes, and open financial accounts. Bowman was paid for the activities of his workers, and then he paid the workers himself.
During Bowman’s participation in the bank fraud conspiracy, he and his co-conspirators obtained extensions of credit from federal insured financial institutions of $279,026.82 which was foreseeable to Bowman. More than 10 financial institutions and individuals were victimized by this scheme.
Chief Judge Blake sentenced: Friday James, age 43, of Laurel, Maryland, to 54 months in prison; LaKeisha Butler, age 33, of Columbia, Maryland, to 30 months in prison; and Kesa Baker, age 43, of Baltimore, to 13 months in prison, after giving her credit for 13 months she served on a related case in Pennsylvania. Naimah Okail, age 35, of Baltimore; Isaac Kusimo, age 30, of Takoma Park, Maryland also pleaded guilty to their roles in the scheme and were sentenced to a year and a day in prison. Chief Judge Blake also entered an order requiring James to pay restitution in the full amount of the victims’ actual losses, currently computed to be approximately $1,909,021.57. Judge Blake scheduled the sentencing of Akintunde Akinlosotu, age 45, of Lanham, Maryland for October 31, 2016 at 9:30 a.m.
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 U.S. Postal Inspection Service and IRS – CI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Massachusetts Resident Indicted on Sex Trafficking ChargeRead the Press Release
PROVIDENCE, R.I. – Devon Brown, 24, of Everett, MA, was arraigned in federal court in Providence today on a sex trafficking charge. It is alleged that Brown transported a woman from Massachusetts to Rhode Island for the purpose of commercial sexual activity.
A federal indictment returned yesterday and unsealed in U.S. District Court in Providence today charges Brown with a Mann Act charge of interstate transportation with the intent to engage in prostitution.
The indictment of Devon Brown is announced United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Cranston Police Chief Colonel Michael J. Winquist.
According to information presented to the court, a joint investigation by the Cranston Police Department and HSI agents determined that on March 7, 2016, Devon Brown, allegedly operating out of a motel in Seekonk, MA, paid for and posted Backpage ads offering a woman for commercial sexual activity.
On March 7, 2016, an HSI undercover agent responded to the ad posing as a customer and allegedly arranged with Brown for the woman to be brought to a Cranston residence. According to information presented to the court, when the woman arrived at the Cranston residence and allegedly engaged in a sex for money conversation with the undercover agent she was detained while Brown was arrested outside of the building.
An indictment is merely an allegation 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.
The matter, charged first in Rhode Island State Court prior to the return of a federal indictment, is being prosecuted in federal court by Assistant U.S. Attorney Terrence P. Donnelly with the assistance of Rhode Island Assistant Attorney General Daniel C. Guglielmo.
Brown, arrested earlier today at his residence in Massachusetts, appeared before U.S. District Court Magistrate Judge Lincoln D. Almond. A not guilty plea was entered. Brown was released to home confinement with electronic monitoring.
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Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Manderson Man Sentenced for Illegal Use of InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a Manderson, South Dakota, man convicted of Enticement of a Minor Using Interstate Commerce was sentenced on October 5, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
William Belt, a/k/a William Fire Thunder, age 21, was sentenced to 15 years of imprisonment, followed by 10 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and required to register as a sex offender.
Belt was charged on September 9, 2015, and pleaded guilty on July 1, 2016. The conviction stems from Belt using his iPod to entice a minor female to engage in unlawful sexual acts during the summer of 2015 near Manderson.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Belt was immediately turned over to the custody of the U.S. Marshals Service.
Macon Attorney Sentenced for Narcotics DistributionRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Holly Hogue Edwards, age 36, a former attorney from Macon, Georgia, was sentenced today to serve three years on probation and pay a $1000 fine for distribution of oxycodone and methamphetamine. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Judge, in Macon.
Ms. Edwards pled guilty to the charges on April 20, 2016. In her plea agreement, she admitted that on June 4, 2015, after being introduced to a Georgia Bureau of Investigation undercover agent through a confidential informant, she made arrangements to sell the undercover agent ten (10) tablets of oxycodone and an “eight ball” (three and a half grams) of methamphetamine. Ms. Edwards met the undercover agent in the parking lot of fast food restaurant and provided the undercover agent with a sample of methamphetamine to try, explaining it was from a different source of supply from the source she typically uses. The agent then provided Ms. Edwards with $500 of official funds for the “eight ball” of methamphetamine and the ten (10) oxycodone tablets. Ms. Edwards left to meet with her source of supply. Agents observed Ms. Edwards travel to a nearby gas station and meet with her source of supply. Ms. Edwards then returned and handed the undercover agent the ten (10) oxycodone tablets, stating that she did not get the “eight ball” of methamphetamine but would get it to him later in the day.
In addition to the sentence imposed by the court, Ms. Edwards surrendered her license to practice law last month based on the charges for which she appeared this morning. In accepting the surrender of Ms. Edwards’ license, the Supreme Court of Georgia stated that such action was “tantamount to disbarment.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug trafficking often leads to morally debased actions of those involved, which was the case in this investigation. This attorney was licensed to practice law, but this does not mean that she was above the law. This investigation would have not been possible without the collaborative efforts between our local, state and federal law enforcement counterparts.”
This case was investigated by the Georgia Bureau of Investigation, the Monroe County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Beth Howard handled the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Logan County, Kentucky, Tax Return Preparers Guilty of Preparing False Tax ReturnsRead the Press Release
Falsified taxpayer education expenses resulting in education credits on prepared tax returns for a loss of more than $250,000
BOWLING GREEN, Ky. – Two former tax preparers pleaded guilty in United States District Court this week, before United States District Judge Greg N. Stivers, to conspiring to defraud the United States through preparing false tax returns and aiding in the preparation of the false returns at a tax preparation office in Logan County, Kentucky, announced United States Attorney John E. Kuhn, Jr.
Defendants Tara L. Mitchell and Mechelle Blankenship were initially charged in a 21-count grand jury indictment, that was unsealed March 21, 2016. According to the plea agreement, the defendants worked together at Triple J Tax, a tax return preparation office located in Russellville, Kentucky. Mitchell managed the office and in 2012, hired and trained defendant Blankenship to prepare tax returns.
The defendants admitted yesterday, in separate plea agreements, that between March 2012, and November 2014, they knowingly agreed to defraud the United States by preparing and electronically filing U.S. Individual Income Tax Returns, on behalf of themselves and clients of Triple J Tax, which contained statements that they knew were false and fraudulent as to material matters, thereby causing the Internal Revenue Service to pay tax refunds that were not due under provisions of the Internal Revenue laws. The loss was more than $250,000.
Specifically, the returns stated the taxpayers had incurred educational expenses, when they had not, and thus falsely claimed education-related credits, to which the taxpayers were not entitled.
Further, in the course of the conspiracy, Mitchell and Blankenship also included fraudulent education credits on their own tax returns. On or about January 10, 2013, Mitchell and Blankenship prepared Mitchell’s 2012 tax return, fraudulently claiming education expenses in the amount of $3,500, resulting in a $950 American opportunity credit. On or about April 11, 2013, Mitchell and Blankenship prepared Blankenship’s 2012 tax return, fraudulently claiming education expenses in the amount of $4,000, resulting in a $371 American opportunity credit and a $557 education credit.
If convicted at trial, Blankenship could be sentenced to up to 41 years in prison, fined $1,450,000 and required to serve a 3 year period of supervised release. Mitchell could be sentenced up to 29 years in prison, fined $1,050,000 and required to serve a 3 year period of supervised release.
Assistant United States Attorney Amanda E. Gregory is prosecuting the case. The Internal Revenue Service (IRS) Criminal Investigation office is conducting the investigation.
Leader of an Orlando-Area Heroin Trafficking Organization Pleads GuiltyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Angel Manuel Fontanez (32, Clermont) today pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and cocaine, as well as individual counts of distributing and possessing heroin. He faces a mandatory minimum sentence of 10 years, up to life, in federal prison.
Fontanez was indicted on March 23, 2016, along with co-conspirators Alexis Fontanez Nieves, Ernesto Cabanas-Torres, Zuleyka Jeanette Colon-Rivera, Pedro Juan Rivera-Aviles, Wilbert Joel Alequin-Pagan, Robert Sautner, and Emmanuel Verges. To date, four of the eight defendants have been convicted of a federal drug offense. A trial date for the remaining individuals is currently set for October 24, 2016.
According to court documents, a drug trafficking organization whose members referred to themselves as “La Compania” or “the Company” used a telephone number (“the heroin line”) that frequently changed to sell heroin to customers primarily in the Orlando tourist district, near International Drive. Customers would call the heroin line and arrange to purchase heroin from a member of the organization. The heroin line changed hands from one member of the organization to the next, as heroin was sold during two 12-hour shifts, seven days a week.
Fontanez was the leader of the organization, and he traveled out-of-state to acquire kilograms of heroin that were transported back to the Orlando area and then re-packaged into smaller, street-level quantities for distribution. He also managed and directed the activities of the organization’s street dealers. Based on undercover heroin purchases and other evidence developed during this investigation, law enforcement determined that Fontanez’s drug organization distributed approximately one kilogram of heroin to its customers in the Orlando area every two weeks. The organization also occasionally provided its customers with cocaine.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Andrew Searle.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Kuna Man Sentenced for Possession of Child PornographyRead the Press Release
BOISE – Jonathan Dillard, 49, of Kuna, Idaho was sentenced today for possession of child pornography, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Stanley A. Bastian sentenced Dillard to 87 months in prison followed by lifetime supervised release. Dillard pleaded guilty on February 23, 2016.
According to the plea agreement, Dillard admitted accessing a Yahoo chat group to access and view images of child pornography in November and December of 2013. In January of 2014, investigators with the Idaho Attorney General's Office Internet Crimes Against Children Unit executed a search warrant at Dillard's residence in Kuna, Idaho and seized computers and electronic storage devices. In his plea agreement, Dillard admitted possessing 57 images of child pornography, and 13 videos containing child pornography, on his laptop computer, a flash drive, and two DVDs. Dillard also admitted that he had previously been convicted of possession of child pornography in U.S. District Court in 2003.
As part of his plea, Dillard also agreed to forfeit a Dell Inspiron laptop computer, a USB flash drive, and DVDs used in the commission of the charged offense. As a result of his conviction, Dillard will be required to register as a sex offender.
The case was investigated by the Idaho Attorney General's Office's Internet Crime Against Children (ICAC) Unit, with assistance from the Ada County Sheriff's Office. The ICAC Unit is a coalition of state and local law enforcement agencies that works with the ICAC Task Force to investigate and prosecute individuals who use the internet to criminally exploit children.
The 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.”
Knoxville Resident Sentenced to Serve 37 Months in Prison for Tax Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – Mayra Edith Blair, 41, of Knoxville, Tenn., was sentenced on Oct. 12, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 37 months in federal prison. Blair was also ordered to forfeit a money judgment in the amount of $2.5 million to the United States.
In May 2016, Blair pleaded guilty to conspiracy to defraud the United States through the submission of fraudulent federal income tax returns and conspiracy to commit money laundering. Blair’s offenses were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers.
Agencies involved in this investigation included the Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr., and Jennifer Kolman represented the United States.
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Justice Department Seeks to Shut Down Detroit-Area Tax Return PreparersRead the Press Release
Preparers Allegedly Fabricate Businesses Losses, Claim Fraudulent Credits In Order to Understate Their Customers’ Tax or Overstate their Refunds
Tax R Us, a Detroit-area tax return preparation business, unlawfully understates its customers’ income tax liabilities and overstates refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Detroit, asks the court to permanently bar Tax R Us, Vannak Long, Rosalind Warnock, Jasmine Jackson and Mary Jackson from preparing tax returns for others. The suit also asks the court to order each of them to turn over a list of all of the tax returns they have prepared.
According to the complaint, Long, the owner of Tax R Us, frequently understated his customers’ gross receipts and overstated their business deductions to minimize their income subject to tax. The complaint also alleges that Warnock, a past Tax R Us preparer, and current Tax R Us preparers Jasmine Jackson and Mary Jackson prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. In addition to this improper conduct, Warnock, Jasmine Jackson and Mary Jackson claimed education credits the customers are not entitled to receive, according to the complaint.
In the complaint, the government states that Warnock, Jasmine Jackson and Mary Jackson pleaded guilty to charges of preparing false tax returns. Jasmine Jackson was sentenced in August. Mary Jackson and Warnock are awaiting sentencing. According to the complaint, Long, Warnock, Jasmine Jackson and Mary Jackson’s fraudulent tax preparation caused more than $3 million of harm to the United States. The government alleges that Tax R Us has had many locations throughout the Detroit-area including: 7635 E. 8 Mile Road, Warren; 16900 E. Warren Street, Detroit; 6900 East 7 Mile Road, Detroit; 3157 Woodward Avenue, Detroit; 21234 Van Dyke Avenue, Warren; 14621 W 8 Mile Road, Detroit; and 143 South Telegraph Road, Pontiac.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Iowa Farmer Sentenced to Federal Prison for Farm Loan FraudRead the Press Release
An Iowa farmer who pledged assets as collateral for a United States Department of Agriculture (USDA) farm operating loan but later sold the assets and subsequently defaulted on the loans was sentenced today to six months’ in federal prison.
Leroy Jones, age 59, from Floyd, Iowa, received the sentence after a guilty plea to one count of conversion of property pledged to a farm credit agency.
At the guilty plea, Jones admitted that he pledged over 100,000 bushels of corn worth more than $300,000 to the USDA as security on two Farm Services Agency loans worth nearly $200,000. Jones further admitted that over the course of the next year he sold all of the grain he had pledged without notifying the USDA and that he did so with intent to defraud that agency. Court records show that Jones had actually sold over 10,000 bushels of corn before he had even pledged that corn as collateral.
Jones was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. He was sentenced to six months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $137,682.20 in restitution to the Farm Service Agency. Jones must also serve a two-year term of supervised release after his prison term. Because Jones was convicted of a felony, he can no longer legally possess firearms or ammunition.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the United States Department of Agriculture.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 16-CR-2026.
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INTERPOL Washington’s Interns Experience U.S. Law Enforcement TrainingRead the Press Release
As part of INTERPOL Washington’s - U.S. National Central Bureau (USNCB) - internship program, the interns participate in field trips that help them gain valuable experience with law enforcement agencies. USNCB interns are generally U.S. citizens who want to gain insight into the growing nexus of transnational crime as well as law enforcement in the United States and around the world. Recently, interns from all USNCB divisions participated in two exciting field trips.
During the week of September 27, USNCB interns helped the U.S. Marshal Service with active shooter training drills. The Marshals play important roles in stopping criminal activity, and during this field trip the interns experienced some of the dangerous work the Marshals are trained to do.
In an abandoned office building, the interns played multiple roles to help train the Marshals, including victims, active shooters, and fellow police officers. The first drill consisted of interns running through the hallways past the Marshals, yelling about an active shooter. This was designed to teach the Marshals how to deal with frantic witnesses and large crowds when approaching an active shooter situation.
The second drill involved Marshals finding an active shooter solely based on locating the sound of gunshots. This drill also measured friendly fire potential, as the Marshals had to identify an intern dressed as a fellow police officer as an ally and then work with that person to catch the shooter.
The last drill was also the most extreme. Teams of two Marshals were required to infiltrate a dark hallway that was filled with smoke, yelling interns, and distracting noises like sirens and screaming. They then had to locate two active shooters and take them out. While these types of drills can be intense, they prepare the Marshals to assess numerous active shooter scenarios and react to whatever they might find. This field trip taught the interns a lot about the important responsibilities the U.S. Marshals have in their daily jobs. According to INTERPOL Operations and Command Center intern Rachelle Tugade, “The U.S. Marshals field trip was an unforgettable experience. I enjoyed having the opportunity to interact with the Marshals and really appreciated the valuable career advice they had to share with us."
The following week, the INTERPOL Washington interns took a trip to the Federal Bureau of Investigation (FBI) marine base in Quantico, Virginia to watch explosives drills. First, the FBI explosion instructors explained the importance of identifying different types of explosives. The instructors then set off multiple controlled explosions and explained in detail the uses and purposes of each one. The interns were then able to walk around the explosion sites and see the differences in damages between them, which taught them valuable lessons on how to analyze and identify explosion sites that resemble those dealt with by the FBI.
“It’s one thing seeing stories about explosions in TV shows and newspapers, but it’s completely different to experience them in real life,” said Public and Congressional Affairs intern Kimberly Campbell. “The field trip was really eye-opening and it was a privilege to see firsthand some of the incredible work done by FBI bomb technicians.”
The INTERPOL Washington six-month internship program offers an excellent opportunity for those interested in law enforcement to gain experience and connections, as evidenced by these two field trips. The application deadline for the July - December 2017 internship is February 15, 2017.
For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Husband of Former U.S. Embassy Official in Morocco Pleads Guilty to Sexually Abusing Household Staff MemberRead the Press Release
The husband of the former Deputy Chief of Mission in Rabat, Morocco, pleaded guilty today to sexually abusing a former household staff member from 2010 to 2013.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
Labib Chammas, 65, of Reston, Virginia, pleaded guilty to one count of abusive sexual conduct before U.S. District Judge Christopher R. Cooper of the District of Columbia. Sentencing was set for Jan. 4, 2017.
In pleading guilty, Chammas admitted that between August 2010 and February 2013, while living in State Department-owned housing in Rabat, he sexually abused a woman who had worked at the residence for 16 years. According to the plea agreement, Chammas supervised the staff at the residence and repeatedly threatened to fire staff members. Out of fear that she would lose her job, the victim complied with Chammas’s requests that she massage his legs, hip and back, and then with his subsequent demands that she “massage” his genitalia. On at least five occasions, Chammas took the victim by her head or hair and attempted to force her to perform oral sex.
DSS investigated the case. Assistant U.S. Attorney Andrea Hertzfeld of the District of Columbia and Special Counsel Stacey Luck and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Husband of Former U.S. Embassy Official in Morocco Pleads Guilty of Sexually Abusing Household Staff MemberRead the Press Release
WASHINGTON – The husband of the former Deputy Chief of Mission in Rabat, Morocco, pleaded guilty today to sexually abusing a former household staff member from 2010 to 2013, announced U.S. Attorney Channing D. Phillips, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS).
Labib Chammas, 65, of Reston, Virginia, pleaded guilty to one count of abusive sexual conduct before U.S. District Judge Christopher R. Cooper of the District of Columbia. Sentencing was set for Jan. 4, 2017.
In pleading guilty, Chammas admitted that between August 2010 and February 2013, while living in State Department-owned housing in Rabat, he sexually abused a woman who had worked at the residence for 16 years. According to the plea agreement, Chammas supervised the staff at the residence and repeatedly threatened to fire staff members. Out of fear that she would lose her job, the victim complied with Chammas’s requests that she massage his legs, hip and back, and then with his subsequent demands that she “massage” his genitalia. On at least five occasions, Chammas took the victim by her head or hair and attempted to force her to perform oral sex.
DSS investigated the case. Assistant U.S. Attorney Andrea Hertzfeld of the District of Columbia and Special Counsel Stacey Luck and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Fugitive Drug Trafficker Sentenced to More Than 12 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced yesterday Reginald Glenn Patterson to 151 months in prison on drug conspiracy and money laundering charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Patterson, 45, of Los Angeles, California, was also ordered to serve 10 years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to filed documents and statements made in court, Patterson was indicted in 2003 for his involvement in a drug conspiracy operating in the Charlotte area. He was arrested on federal charges in Los Angeles, California, in May 2003, and was subsequently released on a $50,000 bond. Court records show that in June 2005, Patterson failed to appear for his sentencing hearing in Charlotte and was declared a fugitive. According to court records, law enforcement obtained information on Patterson’s whereabouts over the course of an unrelated drug trafficking investigation and arrested Patterson in June 2015 in central California. Patterson previously admitted in court to trafficking over 3,000 kilograms of marijuana in and around Charlotte.
Patterson will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was led by HSI and CMPD. Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fraud Charges Filed Against Owner of Budget Finance CompanyRead the Press Release
WHEELING, WV – A bill of information charging Donna S. Brown, 65, of Clarington, Ohio with wire fraud, mail fraud and money laundering has been filed in U.S. District Court for the Northern District of West Virginia. Brown owns Budget Finance Company in New Martinsville, West Virginia.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Raymond P. Duda, Assistant Special Agent in Charge, Federal Bureau of Investigation (FBI), Pittsburgh Field Division; Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office; Tommy Coke, Inspector in Charge, U.S. Postal Inspection Service; West Virginia Attorney General Patrick Morrisey, West Virginia State Auditor and Securities Commissioner Lisa Hopkins; Commissioner Andrea Seidt of the Ohio Division of Securities; Acting Commissioner Dawn Holstein of the West Virginia Division of Financial Institutions; and Wetzel County Prosecutor Tim Haught announced the charges filed today.
The document charges Brown with one count each of wire fraud, mail fraud and money laundering. Each crime is punishable by a maximum sentence of 20 years in prison, a fine of up to $250,000, three years of supervised release and restitution to the victims of the crimes.
The document alleges that Brown owned and operated Budget Finance company which was both a licensed consumer loan company and an unlicensed investment company. Between 2005 and 2015, she lured potential investors into investing funds with Budget Finance by promising annual returns of between 8 and 12 percent.
Brown mailed checks to investors who requested periodic payments and sent them fraudulent quarterly investment statements reflecting their account balances and interest paid. She also mailed investors IRS 1099 forms, but never sent those forms to the IRS.
“Because no substantial investment source existed to account for well over 800 investment accounts with investments exceeding $31 million, she used money from new investors to pay the existing ones,” U.S. Attorney Glassman said. “This type of scheme is known as a Ponzi scheme.”
Budget Finance closed suddenly in November 2015.
A plea agreement was filed along with the Bill of Information, indicating that Brown will admit to the crimes. The plea agreement says the loss in this case is more than $9.5 million and less than $25 million. The crimes resulted in substantial financial hardship to 25 or more victims.
“For years, Donna S. Brown preyed upon investors and defrauded them out of their hard-earned money in order to support her personal lifestyle,” said Special Agent in Charge Robert Johnson, of the FBI’s Pittsburgh Field Office, “As a result of the scheme devised by Brown, many of the victims in this case lost everything, including their livelihoods and the retirement savings they worked throughout their lives to secure. The FBI is committed to pursuing financial predators like Donna Brown, and her conviction today reflects the resolve of the FBI; IRS-Criminal Investigation; U.S. Postal Inspection Service; the U.S. Attorney’s Office, and our partners in state and local government in pursuing those who commit financial crimes and steal from trusting individuals.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. "Ponzi schemes can thrive for a time on false claims but that time is gone. As today’s actions have shown, it's time for Donna Brown to be held responsible for her criminal actions. IRS Criminal Investigation is committed to using our financial expertise to identify and trace laundered funds that are used to perpetuate these types of investor fraud schemes.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating Mail Fraud crimes and protecting the US Postal Service and its customers,” said Tommy Coke, Inspector in Charge, U.S. Postal Inspection Service. “Today’s challenging economy deems it critical that consumers guard against losing their hard-earned assets to fraud. Relying on the reputation of a financial advisor or their relationship with a friend or family member, is not enough. Investors must still verify information, especially if there are claims of outperforming the market.”
Glassman suggested victims monitor the progress of the case through the “Budget Finance Company, Inc.” tab on the home page of the U.S. Attorney’s Office website (www.justice.gov/usao/ohs), or call the hotline established for victims, 866-532-9098.
U.S. Attorney Glassman commended the investigation of this case by the agencies and Assistant United States Attorney Daniel A. Brown and Deputy Criminal Chief Brenda Shoemaker, who are representing the United States in this case.
Four Texas Companies Agree to Pay $3.5 Million for Criminal Violations of the Clean Air Act at Two Oil and Chemical Processing FacilitiesRead the Press Release
The Department of Justice, U.S. Attorney’s Office for the Eastern District of Texas and the U.S. Environmental Protection Agency (EPA) announced today that four Texas companies pleaded guilty and agreed to pay a total of $3.5 million dollars for criminal violations of the Clean Air Act at two oil and chemical processing facilities in Texas.
The information filed in federal court in the Eastern District of Texas charges KTX Limited and KTX Properties Inc., with negligently releasing hazardous air pollutants after a tank explosion at their chemical and petroleum processing facility located in Port Arthur, Texas, on March 31, 2011. The explosion killed one worker at the plant and severely injured two others.
According to the factual basis of the plea agreement, KTX Limited and KTX Properties Inc, authorized two contract workers to perform welding or “hot work” on piping connected to a tank at their Port Arthur facility. Prior to beginning the welding, the defendants falsified the “hot work” permit issued to the workers and failed to properly drain, isolate and decontaminate the tank and connecting equipment as required by Occupational Safety and Health Act (OSHA) regulations. As a result, the welding work ignited vapors causing the tank to explode and release hazardous air pollutants to the environment. Because the defendants had failed to properly inspect and maintain the tank pursuant to generally accepted industry standards, the exploding tank collapsed spilling burning product which severely injured two workers. A third worker was killed when the rails and ladder from the collapsing tank fell on his head.
The information also charges Crosby LP and Ramsey Properties LP with failing to monitor leaks of ground-level ozone (smog) producing air pollutants at their chemical processing facility in Crosby, Texas, from 2008 until 2012. Pursuant to the factual basis, the defendants also admitted that they falsified records and reports for these Title V permit requirements to EPA and the Texas Commission of Environmental Quality certifying the facility was complying with the permit requirements.
“The dishonest and outright failure to adhere to workplace standards and practices can lead to death and injury to American workers who deserve better, as this case tragically shows,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to enforcing environmental and workplace safety laws that protect workers from this kind of egregious behavior and to help ensure it doesn’t happen again.”
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of the worker and the surrounding communities,” said Acting U.S. Attorney Brit Featherston for the Eastern District of Texas. Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
The plea agreement requires the companies to pay a total of $3.3 million in criminal fines. In addition, the companies will make a $200,000 community service payment to the Southern Environmental Enforcement Network (SEEN). The payment will be used by SEEN for hazardous air release prevention and emergency response training to state and local environmental and law enforcement agencies.
“When handled or stored improperly, chemicals can result in severe injuries or even death, so protecting communities from the harmful effects of hazardous chemicals is a priority for EPA,” said Special Agent in Charge Christopher R. Brooks of EPA’s criminal enforcement program for Texas. “This case emphasizes the importance of having – and following – a plan to manage risks associated with storing hazardous chemicals, which help companies avoid accidents and enable local emergency responders to be better prepared.”
“Employee safety is of paramount importance as there is no excuse for workers not returning to their families at the end of the day,” said Regional Administrator Kelly Knighton for OSHA Region 6. “Resulting from an initial OSHA fatality investigation, I commend the Federal and State partners for holding accountable, to the fullest extent of the law, those employers that take shortcuts and endanger the safety and health of their workers.”
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Trial Attorneys Richard Powers and David Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case was investigated by EPA’s Criminal Investigation Division and assisted by the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department and OSHA.
Four Texas Companies Agree to Pay $3.5 Million for Criminal Violations of the Clean Air Act at Two Oil and Chemical Processing FacilitiesRead the Press Release
WASHINGTON – The Department of Justice, U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Protection Agency (EPA) announced today that four Texas companies pleaded guilty and agreed to pay a total of $3.5 million dollars for criminal violations of the Clean Air Act at two oil and chemical processing facilities in Texas.
The Information filed in federal court in the Eastern District of Texas charges KTX Limited and KTX Properties Inc., with negligently releasing hazardous air pollutants after a tank explosion at their chemical and petroleum processing facility located in Port Arthur, Texas on March 31, 2011. The explosion killed one worker at the plant and severely injured two others.
According to the factual basis of the plea agreement, KTX Limited and KTX Properties Inc, authorized two contract workers to perform welding or “hot work” on piping connected to a tank at their Port Arthur, Texas, facility. Prior to beginning the welding, the defendants falsified the “hot work” permit issued to the workers and failed to properly drain, isolate and decontaminate the tank and connecting equipment as required by Occupational Safety and Health Act (OSHA) regulations. As a result, the welding work ignited vapors causing the tank to explode and release hazardous air pollutants to the environment. Because the defendants had failed to properly inspect and maintain the tank pursuant to generally accepted industry standards, the exploding tank collapsed spilling burning product which severely injured two workers. A third worker was killed when the rails and ladder from the collapsing tank fell on his head.
“The dishonest [and outright] failure to adhere to workplace standards and practices can lead to death and injury to American workers who deserve better, as this case tragically shows,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to enforcing environmental and workplace safety laws that protect workers from this kind of egregious behavior and to help ensure it doesn’t happen again.”
The information also charges Crosby LP and Ramsey Properties LP with failing to monitor leaks of ground-level ozone (smog) producing air pollutants at their chemical processing facility in Crosby, Texas, from 2008 until 2012. Pursuant to the factual basis, the defendants also admitted that they falsified records and reports for these Title V permit requirements to EPA and the Texas Commission of Environmental Quality certifying the facility was complying with the permit requirements.
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of the worker and the surrounding communities,” said Acting U.S. Attorney Brit Featherston for the Eastern District of Texas. Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
The plea agreement requires the companies to pay a total of $3.3 million in criminal fines. In addition, the companies will make a $200,000 community service payment to the Southern Environmental Enforcement Network (SEEN). The payment will be used by SEEN for hazardous air release prevention and emergency response training to state and local environmental and law enforcement agencies.
“When handled or stored improperly, chemicals can result in severe injuries or even death, so protecting communities from the harmful effects of hazardous chemicals is a priority for EPA,” said Special Agent in Charge Christopher R. Brooks of EPA’s criminal enforcement program for Texas. “This case emphasizes the importance of having – and following – a plan to manage risks associated with storing hazardous chemicals, which help companies avoid accidents and enable local emergency responders to be better prepared.”
“Employee safety is of paramount importance as there is no excuse for workers not returning to their families at the end of the day,” said Regional Administrator Kelly Knighton for OSHA Region 6. “Resulting from an initial OSHA fatality investigation, I commend the Federal and State partners for holding accountable, to the fullest extent of the law, those employers that take shortcuts and endanger the safety and health of their workers.”
Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Trial Attorneys Richard Powers and David Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case. The case was investigated by EPA’s Criminal Investigation Division and assisted by the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department, and the Occupational Safety and Health Administration.
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Four Men Involved in Lakewood Kidnapping Indicted by Federal Grand JuryRead the Press Release
DENVER – The four men involved in the late August early September kidnapping of an individual have been indicted by a federal grand jury in Denver, the U.S. Attorney’s Office and the Federal Bureau of Investigation (FBI) announced today, in conjunction with the Jefferson County District Attorney’s Office, the Lakewood Police Department and the Jefferson County Sheriff’s Office. The four were originally charged in state court after being arrested for the kidnapping. The state charges were recently dismissed following the federal grand jury returning an indictment focused on the kidnapping. The date and time when the defendants will appear in U.S. District Court in Denver has not yet been determined.
The Indictment, returned by the grand jury on September 27, 2016, was sealed until the court recently granted a motion to unseal. According to that Indictment, beginning in August 2016, and continuing through September 5, 2016, defendants Marco Cota-Tamaura, age 36, Raymundo Maldonado-Salgado, age 22, Jonatan Maldonado-Salgado, age 19, and Hernando Aguilar-Banuelos, age 30, conspired to kidnap a victim, namely A. F.-P., while using a cellular telephone. As a manner and means of the conspiracy, the defendants, acting interdependently; Discussed possible ways to abduct A. F.-P., and to conduct visual surveillance of A. F.-P. in order to carry out the abduction; equipped themselves with weapons and tactical equipment in order to carry out the kidnapping; arranged for, and permitted the use of, various residences and vehicles in order to carry out the kidnapping; used cellular telephones to communicate with each other and make ransom demands; and distributed the ransom money among one another in shares.
In furtherance of the conspiracy, on August 30, 2016, Raymundo and Jonatan Maldonado-Salgado and Marco Cota-Tamaura, and others known and unknown to the federal Grand Jury, traveled to and entered a place of business in Lakewood, Colorado, carrying weapons and wearing masks, forcefully kidnapping A. F.-P. by binding A. F.-P.’s hands and forcing A. F.-P. to exit the store and enter a vehicle driven by the conspirators; between August 30, 2016 and September 3, 2016, A. F.-P. was forcibly held at the residence of Hernando Aguilar-Banuelos, which Hernando Aguilar-Banuelos agreed to vacate so that his co-conspirators could use his residence to hold the victim; between August 30, 2016 and September 2, 2016, Raymundo Maldonado-Salgado used cellular telephones to make ransom demands to A. F.-P.’s father, demanding $200,000 in United States currency; on September 3, 2016, after having made ransom demands, Raymond Maldonado-Salgado and Jonatan Maldonado-Salgado drove to where the demanded ransom money of $200,000 had been placed, and took the money; and on September 3, 2016, after receiving $200,000 in ransom, Raymond Maldonado-Salgado and Jonatan Maldonado-Salgado took A. F.-P. to A. F.-P.’s fathers home and released A. F.-P.
“An elite team from the Lakewood Police Department, the FBI, the Jefferson County Sheriff’s Office, and the Jefferson County District Attorney’s Office worked tirelessly to solve this case and rescue the victim,” said Acting U.S. Attorney Bob Troyer. “The professionalism and partnership of this kind of team are things violent criminals should fear and the public should be proud of.”
All four defendants face one count of Conspiracy to Kidnap and one count of Kidnapping, with both counts carrying a penalty of not more than life in federal prison, and up to a $250,000 fine. All but Marco Cota-Tamaura also face one count of Receipt of Ransom Money, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine. Finally, Raymundo Maldonado-Salgado also faces one count of unlawful reentry in the United States, which carries a penalty of not more than 2 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Lakewood Police Department, the Jefferson County Sheriff’s Office, and the FBI, with substantial support from the Jefferson County District Attorney’s Office.
The defendants are being prosecuted by Assistant U.S. Attorney Garreth Winstead with cooperation from the Jefferson County District Attorney’s Office.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty
Former Vice President of Health Care Company Sentenced to Prison for Fraud Scheme Worth over $7.5 MillionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that United States District Judge John deGravelles sentenced MICHAEL DAVID PITTS, age 41, for his wire fraud conviction in connection with a scheme to defraud Amedisys, Incorporated, a home health and hospice care company formerly headquartered in Baton Rouge, Louisiana. PITTS pled guilty to stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 36 states, the District of Columbia, and Puerto Rico.
Judge deGravelles sentenced PITTS to a term of 48 months in the Bureau of Prisons, to be followed by a term of 3 years supervised release. PITTS was also sentenced to pay total restitution of $7,861,679 to Amedisys, Inc., its insurer (Ace Westchester Chubb) and Amedisys Political Action Committee. Additionally, PITTS was ordered to forfeit assets of $7,641,528.
According to the Bill of Information to which PITTS pled guilty, he was the Vice President of Tax for Amedisys for the period January 2005 through July 2014. In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business. The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.
According to the Bill of Information, PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits. As part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business. PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.
In order to carry out his scheme, PITTS opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives. PITTS created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits. Once approved, PITTS then purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys.
According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment. During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment.
U.S. Attorney Walt Green stated: “Today Mr. Pitts’ insatiable greed landed him in jail for the next four years. He violated the trust that Amedisys placed in him for over nine years. During this extended period, he stole over $7.5 million dollars from a company who was duped by this unscrupulous individual. I want to convey my great appreciation to the prosecutors and the FBI for their excellent work and to the victim, Amedisys, who provided valuable cooperation and support in this important matter.”
SAC Jeffrey S. Sallet stated: “The FBI New Orleans Division, in conjunction with its partners at the USAO, will aggressively pursue individuals, irrespective of their position, who attempt to use the tax credit system to defraud Louisiana businesses and residents. The FBI is committed to the protection of Louisiana's residents and businesses and will relentlessly investigate those responsible for violating federal criminal law."
This matter was prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc. and their representatives. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former President & CEO of Monarch Mortgage Pleads Guilty to Concealment of Bankruptcy AssetsRead the Press Release
NORFOLK, Va. – The former president and chief executive officer of Monarch Mortgage, which is a part of Monarch Bank in Virginia Beach, pleaded guilty today to concealing approximately $350,000 in bankruptcy assets.
According to the statement of facts filed with the plea agreement, Edward O. Yoder, 50, of Virginia Beach, filed a voluntary bankruptcy petition on July 11, 2011. In a filing a month later, Yoder listed that he owned 153,000 shares of Sirius stock valued at $350,000. In October of 2012, Yoder sold the Sirius stock for approximately $339,000, and transferred $330,000 to co-defendant Susan Spearman’s Monarch Bank account.
According to the statement of facts filed with the plea agreement, on Dec. 5, 2012, Yoder again filed a chapter 7 bankruptcy petition and a chapter 7 trustee was appointed. During the course of the bankruptcy case, Yoder did not disclose his sale of the Sirius stock and the wiring of the proceeds to his bank account and subsequent transfer to Spearmen’s account, as required. On Dec.19, 2012, Spearman transferred $350,000 from her Monarch Bank account to her account with Infinex Financial Group, Virginia Asset Group, brokerage account. From Dec. 5, 2012, and Jan. 24, 2014, Yoder disbursed or caused to be disbursed, over $310,000 from Spearman’s Infinex Financial Group, Virginia Asset Group, brokerage account for his own benefit.
Yoder faces a maximum penalty of five years in prison and a $250,000 fine when sentenced on Feb. 8, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Jonathan F. Trimble, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Stephen W. Haynie is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-83.
Former Employee of Charitable Organization Sentenced to Prison for Stealing over $140,000 in FundsRead the Press Release
WASHINGTON- Floyd L. Middleton, 47, of Washington, D.C., was sentenced today to 15 months in prison on a federal charge involving the theft of over $140,000 from a religious charity where he worked in an administrative capacity, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Middleton pled guilty in July 2016, in the U.S. District Court for the District of Columbia, to a charge of interstate transportation of stolen property. He was sentenced by the Honorable Christopher R. Cooper. Following his prison term, Middleton will be placed on three years of supervised release. He also must pay $142,484 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, the scheme took place between February 2009 and October 2014, when Middleton was employed by an organization referred to in court documents as “Charity A,” a religious charity. During this period, Middleton embezzled $142,484 in funds through false representations and invoices. For example, he established the property management company that managed the apartment building where he resided in the charity’s computer system as a legitimate vendor. He then submitted false invoices leading to payments to that property management company for his personal benefit. Middleton also made false representations to secure reimbursement for personal funds that he never expended.
In announcing the sentence, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Angela Lawrence. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Kendra D. Briggs, and former Assistant U.S. Attorney Muyiwa Bamiduro, who prosecuted the matter.
Former Cleveland Housing Network official sentenced to prison for taking bribes and steering contractsRead the Press Release
A former Cleveland Housing Network official was sentenced to 30 months in prison for taking bribes and steering contracts, law enforcement officials said.
James Todt, 49, of Brecksville was sentenced to 30 months in prison by U.S. District Benita Y. Pearson. He previously pleaded guilty to one count of conspiracy to commit bribery and two counts of theft concerning programs receiving federal funds.
Todt worked at the Cleveland Housing Network between 2005 and 2014, where his duties included supervising inspectors and project managers, as well as awarding CHN contracts on various projects for the non-profit community development organization. Lizandro Orellana, 56, of Cleveland, owned and operated Modern Construction Group LLC. Chris Peterson, 42, of Macedonia, owned and operated Top Notch Construction, according to court documents.
Todt corruptly solicited and accepted things of value from Orellana and Peterson between 2009 and 2014. Orellana paid $8,222 to Todt’s personal credit account at a local business in exchange for CHN work awarded to Modern Construction. Peterson paid Todt up to $10,000 in cash in exchange for CHN work that Todt awarded to Top Notch, according to court documents.
On numerous occasions, Todt provided Orellana with CHN’s internal cost projections for various projects, which were used to evaluate a contractor’s bid.
Orellana paid another person to do $3,650 worth of electrical work at Todt’s home in November 2012. In October 2013, Todt asked Orellana for assistance building a deck and installing windows at his home. Orellana provided a crew of six Modern employees to construct the deck, and directed employees to install seven windows. The labor cost related to the deck and windows was valued at approximately $8,736, according to court documents.
In 2012, Peterson repaired the roof of a home in Seven Hills owned by one of Todt’s relatives, and performed repairs on a rental property owned by Todt in Brecksville, according to court documents.
Todt also submitted false invoices and caused two checks totaling $15,280 to be deposited into his personal account, according to court documents.
Additionally, Orellana had a lead abatement contractor license issued by the Ohio Department of Health, which allowed Modern Construction to bid on lead-based paint abatement projects for CHN homes. These projects often required Modern to gut a portion or all of a home’s interior, including the removal of doors, windows, walls, moldings and sometimes porches. Orellana understood the work was to be done by workers licensed to perform lead-based paint abatement and comply with federal and state standards, according to court documents.
Modern Construction was contracted to conduct lead-based paint abatement on several CHN properties between 2010 and 2012. Orellana, due to his workload and to save time, directed employees to gut homes containing lead-based paint. Items and components covered in lead-based paint were removed without following abatement procedures. The employees directed to gut the homes were not licensed to perform lead-based paint abatement, which Orellana knew, according to court documents.
Orellana, Peterson and Modern Construction have pleaded guilty to their roles in the case and are scheduled to be sentenced Thursday.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton and Special Assistant U.S. Attorney Brad Beeson. It comes following an investigation by the FBI, HUD-OIG, U.S. EPA, Ohio EPA, Ohio Bureau of Criminal Investigation, Ohio Department of Health – Environmental Compliance Program and the Cleveland Division of Police.