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Thursday 18 August 2016
Wilmington Man Indicted on Charges of Threatening Arson to Boston’s Largest MosqueRead the Press Release
BOSTON – A Wilmington man was indicted today in connection with making threats over Facebook to burn a local mosque and with unlawfully possessing ammunition.
Patrick Keogan, 44, of Wilmington, was indicted on two counts of making a threat over Facebook to injure or intimidate another individual or to unlawfully damage or destroy a building by means of fire and one count of being a convicted felon in possession of ammunition. Keogan was previously charged in a criminal complaint and arrested in July 2016.
According to charging documents, on or about Nov. 14, 2015, Keogan threatened the Islamic Society of Boston Cultural Center (ISBCC), a Roxbury-based cultural center that offers a mosque and educational, spiritual, and social services to the New England Muslim community. Keogan posted on the ISBCC’s Facebook page an image depicting a mosque in flames with lettering superimposed that stated “Burn your local mosque,” along with the statement “Hello scumbags,” next to a smiley face emoji. Keogan allegedly posted the same threatening image on the Facebook page of the Islamic Society of Northeastern University (ISNU).
Through a warrant authorizing a search of Keogan’s Facebook account, law enforcement investigators found posts that approved burning mosques as early as 2013. For example, in 2013 Keogan shared a post with the following summary: “On July 4th, Joplin, Missouri's Islamic Center — the city's only mosque — suffered roof damage after an unidentified man set it on fire by tossing a burning object onto the building.” Keogan wrote in response: “Somewhere out there is an unknown hero. The people’s champion. A true God amongst mortal men. May your days be many & troubles be few my good man.” On or about Nov. 17, 2015, Keogan posted a status update saying, “Canada enters the Mosque Burning Winter Olympics of 2016 early! Who will take the Gold? Who will take the Silver? and WHO will take the Bronze??? We'll have to wait til the snow clears to find out folks but lets keep our fingers crossed for some fierce competition! And remember- you (yes you) are a qualified competitor of your own nation- so get out there and help your Country be number one in this winter’s Mosque Burning Olympics!”
According to court documents, Keogan’s Facebook account also showed that, despite his statutory prohibition as a convicted felon from possessing firearms and ammunition, Keogan continued to buy, sell, trade, build, modify, possess and shoot firearms and ammunition. After obtaining a warrant to place a GPS tracking device on Keogan’s car, federal agents tracked Keogan to a gun store in New Hampshire on or about May 1, 2016. Keogan allegedly purchased two boxes of 8mm rifle ammunition and two bags of loose 8mm rifle ammunition, and then drove the ammunition directly back to his residence in Wilmington.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Wilmington Police Chief Michael Begonis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Scott Garland of Ortiz’s Civil Rights Enforcement Team.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wheeling man charged with failing to register as a sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Joseph J. Weidman, 49, of Wheeling, West Virginia with failure to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Weidman allegedly failed to register and update his registration as a sex offender in Ohio County, WV, after having moved from Massachusetts to West Virginia in May, 2016. Weidman is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is handling the case on behalf of the government. The United States Marshals Service and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Attorney Ortiz to Probe Islamic Cemetery Proposal in DudleyRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts has opened an investigation into whether there have been violations of a federal civil rights law by the town of Dudley, Mass.
The U.S. Attorney’s Office is seeking to determine whether the Town has infringed on the Islamic Society of Greater Worcester’s right to religious exercise by placing unreasonable barriers to, and ultimately denying, their request for a conditional use permit to establish an Islamic cemetery in the Town.
“We are committed to protecting the rights of Americans of all faiths,” said U.S. Attorney Ortiz. “All Americans have the right to worship and to bury their loved ones in accordance with their religious beliefs, free from discrimination. We are opening this investigation to assess whether there have been violations of federal civil rights laws in connection with the request to establish an Islamic cemetery in Dudley.”
The U.S. Attorney’s Office is authorized to investigate allegations of discriminatory treatment under the Religious Land Use and Institutionalized Persons Act (RLUIPA), which, among other things, prohibits discrimination against any assembly or institution on the basis of religion. The U.S. Attorney’s Office has not made any determination whether RLUIPA has been violated.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two sentenced for cocaine, morphine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Two men were sentenced for their role in the distribution of cocaine and morphine, United States Attorney William J. Ihlenfeld, II, announced.
Robert Montalvo Laureano, 33, of San Lorenzo, Puerto Rico, previously of Moorefield, West Virginia, was sentenced to 21 months in prison for distributing cocaine. Laureano pled guilty in June 2015 to one count of “Cocaine Distribution – Aiding and Abetting.”
Samuel Lee Winebrenner, 29, of Petersburg, West Virginia, was sentenced to 6 months in prison for distributing morphine. Winebrenner pled guilty in February 2016 to one count of “Aiding and Abetting Distribution of Morphine.”
Assistant United States Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Two men appear in Federal court for heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court today for heroin crimes, announced United States Attorney Carol Casto. Kevin Brown, 32, of Huber Heights, Ohio, was sentenced to two years and three months in federal prison for possession of heroin with intent to distribute. In a separate drug prosecution, Christopher E. Butts, 42, of Charleston, pleaded guilty to distribution of heroin.
On June 29, 2015, an officer with the Metropolitan Drug Enforcement Network Team conducted a traffic stop on a rental vehicle Brown was driving. Brown gave a false name and false identification to the officer, but consented to a search of the vehicle. Inside the vehicle, the officer found heroin, cocaine, and marijuana, along with empty capsules and a Magic Bullet mixer which had been used to process heroin for distribution.
In a separate prosecution, Butts admitted that on May 24, 2016, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place at the corner of Delaware Avenue and Randolph Street in Charleston. Butts further admitted that he sold drugs to a confidential informant again the next day. On May 26, 2016, law enforcement executed a search warrant at the residence where Butts was staying. During the search, officers seized over six grams of heroin from Butts that was in his pocket, a firearm located near his feet, and cash from the residence. Officers additionally located approximately 75 grams of heroin behind the couch in the residence. All of the heroin recovered in the search was field tested by law enforcement and came up positive for the presence of fentanyl, which is anywhere from 25 to 50 times more potent than heroin. Butts faces up to 20 years in federal prison when he is sentenced on November 10, 2016.
The Metropolitan Drug Enforcement Network Team investigated these cases. Assistant United States Attorney Haley Bunn is in charge of the prosecution of Brown. United States District Judge Thomas E. Johnston imposed Brown’s sentence. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution of the Butts case. The plea hearing for Butts was held before United States District Judge Joseph R. Goodwin.
These cases are 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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Two Men Collectively Sentenced to More Than 20 Years for Possessing Large Quantities of Multiple Controlled Substances, FirearmsRead the Press Release
Memphis, TN – Two Memphis men have been collectively sentenced to more than 240 months in federal prison for conspiring to distribute large quantities of heroin, cocaine, marijuana and oxycodone. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, 40-year-old Freeman Monger and 45-year-old Jeffrey Ingram, both of Memphis, possessed with intent to distribute large quantities of heroin, cocaine, marijuana and oxycodone. Ingram also unlawfully possessed multiple handguns and rifles.
In April 2013, Shelby County Sheriff’s Office deputies conducted a traffic stop on Ingram and found a large quantity of cocaine in his vehicle. Deputies later executed a search warrant at Ingram’s residence, as well as storage units he maintained. Eleven handguns and two rifles were recovered from the storage units.
Over two years later, in August 2015, deputies executed a search warrant on a residence owned by Monger. Upon entering the residence, law enforcement located Monger and Ingram in separate parts of the house. A subsequent search of the residence yielded hundreds of grams of heroin, cocaine, marijuana, as well as 50 oxycodone pills. The residence was reportedly used to stash and distribute narcotics.
A search warrant was also conducted on Ingram’s residence in August 2015. Deputies recovered a Beretta 9mm pistol during the search.
In February 2016, both Ingram and Monger pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to multiple offenses.
Ingram pleaded guilty to two counts of possessing with the intent to distribute cocaine; individual counts of aiding and abetting a co-conspirator in possession with the intent to distribute multiple grams of heroin, cocaine, marijuana and oxycodone; felony possession of 13 firearms; felony possession of 12 firearms in furtherance of a drug trafficking crime; and felony possession of a Beretta 9mm pistol.
Monger pleaded guilty to aiding and abetting a co-conspirator in unlawful possession with the intent to distribute heroin, cocaine, marijuana and oxycodone.
In June 2016, Judge Fowlkes sentenced Monger to 78 months in federal prison.
On Thursday, August 18, Judge Fowlkes sentenced Ingram to 168 months in federal prison.
This case was investigated by the Shelby County Sheriff’s Office.
Assistant U.S. Attorney Lorraine Craig prosecuted this case on the government’s behalf.
Two Former Community Council of South Central Texas Officials Admit to Stealing over $188,000 in Government FundsRead the Press Release
In San Antonio this morning, 65-year-old former Executive Director Robert James Lucio and 55–year-old former Chief Financial Officer Monica Lynn Russ (aka “Monica Lynn Gourley”) admitted to stealing over $188,000 from the Community Council of South Central Texas (CCSCT) announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Fred Biery, Lucio and Russ pleaded guilty to one count of theft from a program receiving federal funds. As a result, Lucio and Russ face up to ten years in federal prison.
According to court records, in 2012, CCSCT received over $4 Million in federal funding administered by the U.S. Department of Health and Human Services through the Comprehensive Energy Assistance Program and the Community Services Block Grant program. In 2012, Lucio and Russ schemed to provide themselves with unauthorized salary increases, bonuses and incentive payments despite policies and procedures put in place by CCSCT Board of Directors to prevent such actions. An internal audit completed in 2013 revealed that the total amount of unauthorized overpayments to Lucio totaled $92,881; Russ, $95,590.
Lucio and Russ remain on bond pending sentencing scheduled for January 6, 2017.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Three Gang Members Charged in Federal Court with Racketeering Offenses, Including Murder and Firearm OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the charges against three members of the Sex Money Murder gang (“SMM”), COREY BROWN, a/k/a “CB,” JOSNEL RODRIGUEZ, a/k/a “DO,” and CHRISTOPHER CANADA, a/k/a “Brabs,” with racketeering and firearms charges, including the gang-related murder of Vincent Davis on July 15, 2012.The case has been assigned to United States District Judge Denise L. Cote. RODRIGUEZ was presented before Judge Cote yesterday; BROWN was presented before Judge Cote today.
Manhattan U.S. Attorney Preet Bharara said: “The Sex, Money, Murder gang has terrorized residents of the Bronx for years with drug dealing, gang violence, and even murder. Today’s charges against three alleged members of this notoriously violent gang – possible only because of the work of the FBI and the NYPD – is another step toward keeping our communities free from drugs and gang violence.”
FBI Assistant Director in Charge Diego Rodriguez said: “The drugs these inner city gangs push end up on the streets everywhere in our cities and communities, not just in the areas they control. As long as there is a market for their products, these gangs will continue to commit crimes to maintain control. Unfortunately in this case, murder has become the normal course of their business day. The FBI New York Metro Safe Streets Task Force will continue to go after the heads of these gangs in the hope that one day the demand for their drugs will go away.”
As alleged in the Indictment and in other court papers[1]:
SMM is a criminal enterprise that operates mainly in and around several housing developments in the Bronx, New York. From 2011 up to and including 2016, members and associates of SMM enriched themselves by selling drugs, such as crack cocaine, cocaine, and heroin, and engaged in acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and fellow gang members.
On July 15, 2012, SMM members BROWN and RODRIGUEZ participated in the murder of Vincent Davis, in the vicinity of 566 Pugsley Avenue, Bronx, New York, in order to maintain and increase their standing within SMM. CANADA later assisted his fellow SMM members avoid arrest by disposing of the murder weapon after Davis was shot.
Count One charges BROWN, RODRIGUEZ, and CANADA with participating in a racketeering conspiracy for their involvement in the SMM gang, which carries a maximum sentence of life in prison.
Count Two charges BROWN and RODRIGUEZ with murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of death, or life in prison.
Count Three charges BROWN and RODRIGUEZ with conspiracy to commit murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of 10 years in prison.
Count Four charges BROWN and RODRIGUEZ with murder through the use of a firearm, in connection with the murder of Davis, which carries a maximum sentence of death, or life in prison.
Count Five charges CANADA with being an accessory after the fact to murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of 15 years’ imprisonment.
Mr. Bharara thanked the FBI and the NYPD, in particular, the New York Metro Safe Streets Task Force, as well as the Criminal Investigators at the United States Attorney’s Office for their work on the investigation.
RODRIGUEZ, 26, of the Bronx, New York, and BROWN, 37, of the Bronx, New York, were taken into custody yesterday. CANADA, 27, of Bronx, New York, remains at large.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Brooke Cucinella, Rebekah Donaleski, and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
Three Brothers Charged with Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERRELL TATE, age 26, GEREME TATE, age 24, and MICHAEL TATE, age 30, three brothers from New Orleans, were indicted on today a federal grand jury with being felons in possession of firearms.
According to the Indictment, the TATE brothers, all of whom had been previously convicted of felonies in Orleans Parish Criminal District Court, possessed a Glock 19C semiautomatic pistol, and a Taurus PT111 9mm pistol on July 4, 2016.
If convicted, each defendant faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
Third Defendant in Fraud Scheme Pleads GuiltyRead the Press Release
COLUMBUS, Ohio – Richard Morin, 48, of Portland, Connecticut pleaded guilty in U.S. District Court here today to one count of conspiracy, a crime punishable by up to five years in prison, for his role in a scheme that defrauded a Columbus-based company out of between $250,000 and $1,500,000 over the course of a year.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered before U.S. District Judge Algenon L. Marbley.
Morin is the final defendant to plead guilty in connection with the fraud. On August 16, 2016, Frank Damico, 52, of Sunbury, Ohio pleaded guilty before U.S. Magistrate Judge Kimberly A. Jolson to defrauding Damico’s employer by working for both his employer and a competitor at the same time and using a hunting buddy’s name to hide the fact that he was working for the two competing companies simultaneously.
Damico pleaded guilty to one count of conspiracy to commit wire fraud, a crime punishable by up to 20 years in prison and a $250,000 fine, and one count of subornation of perjury, punishable by up to five years in prison and a $250,000 fine.
According to a statement of facts presented during Damico’s hearing, Damico was national service manager for Cranel, Inc., a Columbus company that sells and services imaging equipment. In November 2011, Damico agreed to go into business with Morin, who owned Pro Image, a Connecticut company and competitor of Cranel’s. Damico transferred Cranel company documents containing trade secrets and confidential customer data to Pro Image.
Early in 2012, Damico asked Morin set up a Pro Image email account under the name of Josh Fetter, whom court documents describe as a hunting buddy of Damico’s. Fetter agreed after the fact to allow his name to be used, and has admitted to lying to FBI agents and a federal grand jury during the investigation of the fraud.
As “Josh Fetter”, Damico emailed and called existing Cranel customers in other states, persuading approximately 12 of them either switching their business to Pro Image or seeking much lower prices from Cranel.
Fetter, 32, of Ashley, Ohio pleaded guilty before U.S. Magistrate Judge Norah McCann King on June 29, 2016 to one count of criminal contempt and is awaiting sentencing.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Deborah A. Solove, who is representing the United States in this case.
St. Thomas Man Pleads Guilty to Firearms TraffickingRead the Press Release
St. Thomas, USVI – Naeem Akil Smith, 24, of St. Thomas, pleaded guilty on August 11, 2016, in federal court on St. Thomas to trafficking 18 firearms in interstate and foreign commerce, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for December 15, 2016.
According to the plea agreements filed with the court, on April 27, 2016, at the Cyril E. King Airport, a law enforcement K-9 alerted to the presence of firearms inside of luggage checked in Smith’s name. CBP officers examined Smith’s luggage, which revealed one Taurus pistol, 15 Glock pistols, and two AK-47 assault rifles. His luggage also contained two AK-47 magazines, 36 other pistol magazines with capacities ranging from 9 to 15 rounds, 10 speed loaders, twenty .40 caliber Smith and Wesson rounds, and a storage box.
Smith faces a maximum term of imprisonment of not more than five years, and a $250,000.00 fine. Smith was remanded to the custody of the United States Marshals Service pending sentencing.
This case was a result of Operation Gun Dog formed by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Transportation Security Administration, Virgin Islands Port Authority and Virgin Islands Police Department to interdict contraband travelling through the Cyril E. King Airport and deter criminal activity during the St. Thomas Carnival. It was prosecuted by Assistant United States Attorney Delia Smith.
Springfield Latin Kings Leader Sentenced for Cocaine Distribution and Firearm ChargeRead the Press Release
BOSTON – The former “enforcer” of the Massachusetts Latin Kings gang was sentenced today in U.S. District Court in Springfield for distributing cocaine and illegally possessing a firearm.
Bienvenido Nuñez, 38, of Springfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In May 2016, he pleaded guilty to being a felon in possession of a firearm and distributing cocaine.
In October 2014, an investigation was initiated in an effort to disrupt and dismantle the Latin Kings’ criminal activity in Springfield and Holyoke. Members and associates of the Latin Kings were engaged in the distribution of narcotics. In addition, disputes with rival gangs over criminal activity and drug turf were on the rise and resulted in serious crimes of violence, including armed assaults with firearms and murder. The investigation led to the arrest of 12 alleged Latin Kings members, including Nuñez, in connection with drug and firearms offenses in November 2015.
As alleged in court documents, Nuñez held the position of “enforzador,” or “enforcer,” of the Massachusetts chapter of the Latin Kings gang at the time of his arrest on Nov. 9, 2015. Nuñez pleaded guilty today to distributing seven grams of cocaine in Chicopee on Aug. 4, 2015, and to possessing a .40 caliber Beretta pistol on the day of his arrest.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Sex Offender Pleads Guilty to Failing to Update His Registration StatusRead 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 Shawn Peterkin, 39, formerly of South Carolina, pleaded guilty before U.S District Judge Charles J. Siragusa to failure to update his sex offender registration status. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in 2011, the defendant was convicted of Taking Indecent Liberties with a Child in the State of North Carolina and was required to register as a sex offender. In October 2014, the defendant relocated to South Carolina and registered as a sex offender. However, in June 2015, Peterkin failed to update his registration. In November 2015, a warrant was issued for his arrest by South Carolina authorities. The United States Marshal’s Service found the defendant residing in Rochester, NY in February 2016. Peterkin admitted to being wanted in South Carolina for failure to register as a sex offender. He also admitted to not registering with any authorities in the State of New York.
The plea was the culmination of an investigation on the part of the United States Marshal’s Service, under the direction of Charles Salina.
Sentencing is scheduled for November 29, 2016 at 10:00 a.m. before Judge Siragusa.
San Francisco Resident Sentenced to More Than Eight Years in Prison for Brandishing A Firearm and Assaulting Persons Assisting A Federal OfficerRead the Press Release
SAN FRANCISCO – Donnie Bell was sentenced to 97 months and one day in prison today after pleading guilty to assaulting a person assisting a federal officer in the performance of official duties and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Brian J. Stretch and U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
As part of his plea agreement, Bell, 34, of San Francisco, admitted he met with two individuals at a gas station in San Francisco and later learned that the individuals were working as confidential informants on behalf of special agents of the ATF. He then entered the back seat of the informants’ car and brandished a firearm in such a way as to put the informants in fear of immediate bodily harm.
Bell was originally charged by complaint on April 29, 2015. On March 16, 2016, he was charged by superseding information with one count of assault on a person assisting a federal officer or employee in the performance of official duties, in violation of 18 U.S.C. § 111(b); and one count of brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c). On March 24, 2016, Bell pleaded guilty to both counts in the superseding information.
Judge Orrick also sentenced Bell to a five-year period of supervised release, to commence after Bell completes his prison sentence. Bell has been in custody since his arrest in April of 2015. He will begin serving his sentence immediately.
Assistant U.S. Attorney Scott Joiner prosecuted the case with assistance from Ponly Tu. The prosecution is the result of an investigation by the ATF.
Sacramento Man Pleads Guilty to False Claims and Identity Theft ChargesRead the Press Release
SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, pleaded guilty today to mail fraud, conspiracy to submit false claims, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. The defendant and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Co-defendants Tracy Hartway and Audrey Johnson are scheduled for a status hearing on September 1, 2016. Co-defendant Lejohn Windom Jr. is scheduled for a status hearing on December 1, 2016. The charges as to the co-defendants are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Windom Sr. is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on November 10, 2016. Windom faces a maximum statutory penalty of 20 years in prison for mail fraud, 10 years in prison for conspiracy to submit false claims, and a mandatory sentence of two consecutive years in prison for aggravated identity theft. He also faces a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ponchatoula Woman Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 28, of Ponchatoula, pled guilty today to Theft of Mail.
According to court records, the investigation was initiated in September 2015, by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the Northshore. Postal inspectors determined BERTHELOT stole approximately 1,428 items of mail.
BERTHELOT faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Lance M. Africk set sentencing on November 17, 2016.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Owner Boston-Area Fried Chicken Restaurant Charged in Second Tax Fraud SchemeRead the Press Release
BOSTON – A man who operated a Boston-area fried chicken restaurant has been charged with conspiring to file false tax returns as part of a long-running scheme to avoid paying payroll and income taxes.
Hazrat Khan, 56, of Middletown, NY, was indicted on one count of conspiracy to defraud the United States and 11 counts of willful failure to account for and pay taxes. Khan was previously indicted in April 2016 on similar charges relating to two other Boston-area fried chicken restaurants that he operated.
According to the indictment, Khan used a variety of means to avoid paying payroll and income taxes owed by his restaurant, New York Fried Chicken, located on River Street in Hyde Park. As part of the conspiracy, Khan directed a co-conspirator to manage the restaurant and took steps to conceal his ownership interest. Khan provided tax preparers with false information about the restaurant’s payroll and income. Federal law requires employers to withhold payroll taxes and pay them to the IRS. As part of the scheme, Khan falsely reported the number of employees, some of whom were undocumented, and wages paid to the IRS. He also paid employees under the table and filed income tax returns under penalties of perjury that falsely described their sales, total income, compensation of officers, salaries, wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of failure to account for and pay taxes provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and the costs of prosecution and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Assistant U.S. Attorneys John A. Capin and Eric P. Christofferson of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Okaloosa County Man Arrested and Charged with Online Enticement of A Child, Traveling with Intent to Engage in Sex with A Child, and Other Child Pornography OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Chad Theodore Dillon (44, Okaloosa County) with 11 counts related to the sexual abuse of children. These charges include coercion and enticement of a minor, traveling with the intent to engage in sexual conduct with a minor, production of child pornography, transportation of child pornography, advertising for child pornography, and receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in federal prison on four of the counts, and a maximum of life in federal prison on two of the counts.
On August 3, 2016, Dillon was arrested in Jacksonville pursuant to a criminal complaint. He is being held in federal custody.
According to court documents, between July 6 and July 13, 2016, Dillon engaged in a series of graphic online conversations with a 15-year-old child. During the course of these conversations, he discussed his desire and intention to travel to Georgia to have sex with the child, which he later did. Dillon took a photo of himself engaged in sexual activity with the child and sent it to her. He also sent the child explicit photos of himself.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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, 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.
Oakland Resident Sentenced to Twelve Years in Prison for Armed Bank RobberyRead the Press Release
OAKLAND – Shawn Hermann McGee, AKA Shawn Burris, was sentenced today to 12 years in prison, and ordered to pay $7,200 in restitution for an armed bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence, imposed by Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, follows a guilty plea entered by McGee on April 7, 2016.
According to the plea agreement, on May 16, 2015, McGee, 52, of Oakland, entered the Wells Fargo bank located inside a Safeway in Antioch. He was wearing a hard hat, a blue jumpsuit, dark sunglasses, and gloves. McGee placed a note demanding money on the teller counter, pointed a gun at the victim teller’s chest, ordered her to give him money, and threatened to shoot her if she pushed the silent alarm button. McGee fled the bank using a bicycle in the parking lot, then threw the bicycle into a pickup truck and led police on a high speed chase toward East Oakland. After reaching speeds of over 100 miles per hour, McGee eventually crashed his truck. McGee then ran toward an apartment complex in Oakland and, in an attempt to evade capture, entered one of the apartments. Inside the apartment, McGee found a resident who he told to keep quiet, remain on the sofa, and not alert the police. McGee remained inside the apartment with the resident for several hours. McGee eventually was arrested at the entrance to the apartment and officers collected the proceeds of the robbery near the location where McGee crashed his truck. McGee, was indicted by a federal grand jury on July 2, 2015. He was charged with armed bank robbery, in violation of 18 U.S.C. § 2113, and forced accompaniment, in violation of 18 U.S.C. § 2113.
In addition to the prison term, Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release. McGee, who has been in custody since his May, 2015 arrest, will begin serving his 12-year sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant, Melissa Dorton, and Patty Lau. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Antioch Police Department, Oakland Police Department and California Highway Patrol.
Northwest Arkansas Pair Sentenced to 71 Months in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Sherri Vanderpool, age 38, of Harrison, Arkansas, and Helen Smith, age 49, of Marble Falls, Arkansas were sentenced today for drug trafficking charges. Vanderpool was sentenced to 41 months in federal prison followed by three (3) years of supervised release on one count of Distribution of Methamphetamine. Smith was sentenced to 30 months in federal prison followed by three (3) years of supervised release on one count of Aiding and Abetting in the Distribution of Methamphetamine. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
Vanderpool: According to the plea agreement, on February 3, 2016, the Drug Enforcement Administration arranged for a controlled purchase of two ounces of methamphetamine from Sherri Vanderpool. On that same day, Vanderpool sold approximately 2 ounces of methamphetamine for $2,600. The suspected substance was sent to the DEA Laboratory where it was confirmed to be a mixture containing 44.0 grams of actual methamphetamine.
Smith: According to the plea agreement, on December 8, 2015 during a controlled purchase arranged by the Drug Enforcement Administration, Helen Smith provided methamphetamine in exchange for $500. The suspected substance was sent to the DEA Laboratory where it was determined to be a mixture of 6.7 grams of actual methamphetamine.
Vanderpool and Smith were both indicted by a federal grand jury on March 16, 2016, and both pleaded guilty on April 25, 2016.
These cases were investigated by the Drug Enforcement Administration. Assistant United States Attorney Denis Dean prosecuted the cases 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
Northwest Alabama Pharmacies Owner Pleads Guilty to Obstructing Medicare AuditRead the Press Release
BIRMINGHAM – The owner of two northwest Alabama pharmacies pleaded guilty today to obstructing a Medicare audit and agreed to pay a $2.5 million penalty to the government.
U.S. Attorney Joyce White Vance, Department of Justice Criminal Division Assistant Attorney General Leslie Caldwell, FBI Special Agent in Charge Roger C. Stanton, Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson, and Food and Drug Administration Office of Criminal Investigation Special Agent in Charge Robert J. West announced the guilty plea. The sentencing date has not been set.
RODNEY DALTON LOGAN, 63, of Muscle Shoals, pleaded guilty to one count of obstructing a 2012 federal audit of Medicare claims submitted by a pharmacy he owned, as charged by the U.S. Attorney’s Office for the Northern District of Alabama. Logan, a registered pharmacist, owned Leighton Pharmacy Inc., which did business as Sheffield Pharmacy and Homecare in Sheffield, and Russellville Pharmacy in Russellville. At various times, according to Logan’s plea agreement with the government, he was the lead pharmacist at both Sheffield and Russellville.
The Sheffield and Russellville pharmacies operated as both compounding and retail pharmacies. A compounding pharmacy is one that prepares customized medications for individual patients, usually by mixing ingredients in order to create a prescription. The two pharmacies sold compounded prescriptions to patients in Alabama and other states.
According to the charges and plea agreement, Logan obstructed a 2012 audit of the Sheffield pharmacy’s claims for Medicare reimbursement on compounded prescriptions as follows:
CVS/Caremark Inc. administered prescription drug claims for Medicare Part D and served as an auditor on Medicare’s behalf. Part D prohibited reimbursement to pharmacies for compounded medications made using bulk pharmaceutical powders. Russellville and Sheffield nonetheless sought Part D reimbursement after February 2009 for compounded medications, primarily topical pain creams, made from bulk powders. The pharmacies, however, used the billing code for the tablet or capsule form of the ingredient.
In response to the 2012 audit, Logan caused Sheffield to submit falsified and misleading documents stating that medications in tablet or capsule form were used as ingredients for the compounded prescriptions.
The maximum penalty for obstructing a federal audit is five years in prison and a fine of $250,000 or twice the amount improperly gained through the defendant’s conduct.
FBI, HHS-OIG and FDA-OCI investigated the case, which Assistant U.S. Attorney Chinelo Diké-Minor and Trial Attorney William S.W. Chang of the Justice Department’s Criminal Division Fraud Section are prosecuting.
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North Side Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Aug. 17, named Maurice Tinsley, age 35, of Pittsburgh, PA.
According to the indictment, on July 15, 2016, Tinsley possessed with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. The indictment further alleges that on July 15, 2016, Tinsley conspired with others to distribute and to possess with intent to deliver 100 grams or more of heroin. On July 15, 2016, Tinsley also possessed a loaded 9 mm caliber semi-automatic S&W pistol, and 9 mm caliber ammunition in furtherance of those drug offenses, after having been convicted of crimes punishable by more than one year in prison. Those cases include one conviction for Illegally Carrying a Firearm Without a License and one conviction for a Felony Drug offense.
The law provides for a minimum of 10 years and a maximum of life imprisonment, a fine of up to $10,500,000, and the forfeiture of the firearm, ammunition, and money. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Miami Beach Resident Pleads Guilty to Possessing 225 Stolen IdentitiesRead the Press Release
A North Miami Beach resident pled guilty to possessing 225 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Vicky Egalite Pierre, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for November 3, 2016 before U.S. District Court Judge Kathleen M. Williams. At sentencing, Pierre faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a probation compliance check of Pierre’s residence, law enforcement located a small notebook in her night stand that contained over 225 names, social security numbers and date of births. The notebook containing the personal identifying information was processed for latent prints, and six latent prints from various pages in the notebook belonged to the defendant.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the notebook, and confirmed that he/she did not authorize Pierre to be in possession of the personal identifying information. The defendant knew that the names, dates of birth, and social security numbers belonged to real persons.
The intended loss in this case is more than $95,000 but less than $150,000.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, ICE-HSI, and the NMBPD, and thanked the State of Florida Probation Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Norfolk Man Sentenced for Possessing Marijuana Inside Federal PrisonRead the Press Release
ABINGDON, VIRGINIA – A Norfolk man, serving a federal prison sentence for illegally possessing a firearm, will serve additional federal time for illegally possessing marijuana inside a federal prison after being sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Terrance Edward Brown, 34, of Norfolk, pled guilty in January 2015 to one count of possessing a prohibited object, marijuana, while being an inmate as the United States Penitentiary Lee (USP Lee). Today in District Court, Brown was sentenced to imprisonment for a term of five years.
“Mr. Brown has repeatedly shown that he has no desire to follow the laws of the United States, whether it is outside the walls of the federal penitentiary or inside,” United States Attorney Fishwick said today.
Brown previously admitted to possessing marijuana on March 3, 2015, while being housed as an inmate at USP Lee.
The investigation of the case was conducted by the Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Norfolk Man Sentenced for Illegally Distributing InsulinRead the Press Release
ABINGDON, VIRGINIA – A Norfolk, Virginia man, who sold insulin on Craigslist to an undercover FDA agent, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Patrick Simanjuntak, 41, of Norfolk, Virginia, previously pled guilty to one count of misbranding a drug and selling a drug outside of a legitimate supply chain. Today in District Court, Simanjuntak was sentenced to five years of probation. The defendant, who is an Indonesia native in the United States on an expired 1998 visa, has 30 days to leave the U.S. and is not permitted to return to the country until after he has successfully completely his sentence.
“The public must be sure the drugs they consume are safe, have been properly inspected and are only being used under the care of a licensed physician,” United States Attorney Fishwick said today. “When individuals like Mr. Simanjuntak put lives at risk by selling prescription drugs on the black market, without a prescription or the umbrella of Food and Drug Administration [FDA] oversight, we will hold them accountable.”
“FDA’s oversight of prescription drugs is intended to ensure that consumers are taking prescription drugs that are both safe and effective, and only under a practitioner’s supervision. When criminals attempt to market stolen prescription drugs directly to consumers, they put the public’s health at risk,” said Special Agent in Charge Mark A. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to protect consumers by bringing to justice any criminal who sells potentially harmful prescription drugs.”
In November 2015, the FDA learned that a person, later identified as the defendant, was advertising the sale of insulin on multiple Craigslist sites in the mid-Atlantic region. In these advertisements, Simanjuntak claimed the insulin had been obtained from medical facilities, specifically nursing homes.
On November 16, 2015, an undercover FDA agent contacted Simanjuntak at the telephone provided in the ads. Subsequent to this contact, the agent made five separate purchases of pre-filled insulin injection pens from the defendant. Cumulatively, between November 2015 and February 2016, FDA’s undercover agent purchased 17 boxes of pre-filled insulin pens, each box containing five pens, for which the agent paid a total of $1,870 to the defendant through Paypal. At no time during these transactions did Simanjuntak ask for, or require, the special agent to provide a valid prescription for the insulin. On two occasions, the agent received boxes of insulin from the defendant which still had affixed to them prescription labels for other patients. Simanjuntak is neither a licensed medical professional nor licensed to distribute prescription medication.
The investigation of the case was conducted by the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
New Jersey Resident Sentenced to 5 Years in Federal Prison for Role in Multi-State Burglary SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIONIS PEREZ, 40, a citizen of Cuba last residing in New Jersey, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by three years of supervised release, for participating in a multi-state burglary spree.
According to court documents and statements made in court, on August 2, 2013, PEREZ and others traveled from New Jersey to Connecticut. The next day, they broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole watches valued at approximately of $250,000. Following the burglary, they returned to New Jersey with the stolen merchandise.
On August 18, 2013, PEREZ and others attempted to break into the Movado store located in Kittery, Maine.
On September 19, 2013, PEREZ and others broke into the Fossil store located in Miramar Beach, Fla., and stole watches valued at approximately of $170,000.
On October 4, 2013, PEREZ and others broke into the Fossil store located in Hagerstown, Md., and stole watches valued at approximately $750,000.
On October 24, 2013, PEREZ and others broke into the Fossil store located in Grove City, Penn., and stole watches valued at approximately $195,000.
On November 22, 2013, PEREZ and others traveled from New Jersey to Massachusetts and stole a van. The next day, they broke into the Michael Kors store in Lee, Mass., disabled the alarm system and stole watches and bag valued at approximately $500,000. The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.
During the evening of August 7 or early morning hours of August 8, 2014, PEREZ and others burglarized a Radio Shack store located in Chesterfield, Mo. However, the burglary was interrupted and they were able to steal only a small amount of cash.
The following evening, PEREZ and others burglarized a Sunglass Hut Store located in Leawood, Kan., and stole 623 pairs of sunglasses valued at approximately $113,000.
In the early morning hours of August 10, 2014, PEREZ and others burglarized a Radio Shack in Franklin, Tenn., and stole approximately 50 smartphones valued at approximately $28,000. Later that day, PEREZ and his co-conspirators were arrested in a hotel room in Nashville, Tenn. The property stolen from the Sunglass Hut in Kansas and Radio Shack in Tennessee was recovered in connection with the arrest.
PEREZ has been detained since his arrest on August 10, 2014. On May 23, 2016, he pleaded guilty to two counts of conspiracy to engage in the interstate transportation of stolen property.
Judge Chatigny ordered PEREZ to pay restitution in the amount of $1.865 million.
This investigation is being conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department, Berkshire County (Mass.) Sheriff’s Office, Franklin (Tenn.) Police Department and Nashville (Tenn.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry in the District of Connecticut, and Assistant U.S. Attorney Lee Deneke in the Middle District of Tennessee.
Mortgage Company President Charged with Defrauding Ginnie MaeRead the Press Release
BOSTON – The president and founder of a Falmouth mortgage company was charged in U.S. District Court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of nearly $3 million.
Robert Pena, 67, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges. Pena was arrested today and will appear in before U.S. District Court Magistrate Judge Marianne B. Bowler this afternoon.
The charges arise out of Pena’s alleged scheme to defraud Ginnie Mae, the government-run corporation which makes housing more affordable by injecting capital into the U.S. housing market. Ginnie Mae guarantees the timely payment of principal and interest to investors in bonds backed by government-sponsored mortgage loans, such as those offered by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA).
According to court documents, MSI was contracted with Ginnie Mae to pool eligible residential mortgage loans and then sell Ginnie Mae-backed mortgage bonds to investors. MSI was responsible for servicing the loans in the pools it created, including collecting principal and interest payments from borrowers, as well as loan payoffs, and placing those funds into accounts held in trust by Ginnie Mae, which would ultimately pass them along to investors. Among other things, Ginnie Mae required issuers like MSI to provide regular reports to Ginnie Mae concerning the status of the loans in the pools.
According to the indictment, beginning in 2011, Pena began diverting money that borrowers were sending to MSI. Specifically, he is alleged to have deposited large-dollar, loan-payoff checks into secret accounts unknown to Ginnie Mae and then using those funds for his own personal and business uses. Pena also diverted borrowers’ escrow funds and mortgage-insurance premiums for his own use. In total, Pena took nearly $3 million, which Ginnie Mae then had to pay the investors whose investments it had guaranteed. Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing.
The charge of conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office wishes to acknowledge the invaluable assistance of the U.S. Department of Veterans Affairs, Office of Inspector General, the U.S. Department of Agriculture, Office of Inspector General and the Falmouth Police Department. The case is being prosecuted by Assistant U.S. Attorneys Eric P. Christofferson and Brian LaMacchia of Ortiz’s Economic Crimes Unit and Civil Division, respectively.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Morehead Man Sentenced to 35 Years for Coercing Minor to Engage in Sexually Explict ConductRead the Press Release
LEXINGTON, Ky. – A Morehead, Ky., man has been sentenced to 35 years in federal prison for video recording himself engaged in sexually explicit conduct with a minor, under the age of 12 years old.
On Monday, August 15, U.S. District Judge David L. Bunning sentenced Steven Michael Rose, 44, for the offense. Under federal law, Rose must serve at least 85 percent of his prison sentence. Upon his release, he will then be under the supervision of the U.S. Probation Office for 15 years.
At his guilty plea, in April of this year, Rose admitted that he coerced the minor to engage in sexually conduct with him and he made a video of the encounter on his cell phone.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
Montana U.S. Attorney's Office, Reentry Task Force, and Great Falls Chamber Host Reentry SymposiumRead the Press Release
GREAT FALLS – The U.S. Attorney’s Office for the District of Montana, the Montana Reentry Initiative Task Force, and the Great Falls Area Chamber of Commerce will present a program addressing offender reentry initiatives on Friday, August 19, 2016.
Montana has a very high recidivism rate, which impacts communities and families throughout the state. This problem is not unique to Montana, but is prevalent throughout the country, and the work being done in Montana on reentry issues is consistent with the principles of the Justice Department’s national initiative to address reentry issues. These principles include the formulation of individualized reentry plans; educational, employment, life skills, and substance abuse programs during incarceration; resources to maintain and build family relationships for inmates while incarcerated; establishment of halfway house and supervised release programs that cater to the needs of individuals; and the provision of comprehensive reentry-related information and resources necessary for former offenders to succeed as citizens.
The State of Montana has taken a timely and innovative approach to this issue through entities such as the Reentry Initiative Task Force, special drug courts, and veterans’ courts, as well as individualized tribal reentry programs that address the unique needs of former offenders reentering tribal communities. The US Attorney’s Office, representing the Justice Department, is fully committed to assisting in the development and growth of these state and tribal programs.
Friday’s program will cover a broad range of reentry issues, and will include presentations by US Attorney Mike Cotter on the Justice Department’s “Roadmap to Reentry” and related programs, Eighth Judicial District Court Judge Greg Pinski, who will present on veterans’ and drug court programs, and many others.
The program will take place on Friday, August 19, at Heritage Hall at the Great Falls College MSU from 1:00pm-4:30pm.
Methamphetamine Conspirators SentencedRead the Press Release
ABINGDON, VIRGINIA – Three members of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest, Virginia, were sentenced this week in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Brandin Travis Hyde, 38, of Castlewood, Va., previously pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine and one count of possessing a firearm while being an unlawful user of a controlled substance. This week in District Court, Hyde was sentenced to 151 months in federal prison. Also in District Court this week, in separate hearings, two other members of the conspiracy, Jeffrey Bruce Bartley, 27, of Bristol, Tenn, was sentenced to 51 months in federal prison and Melissa Harless, 54, of Abingdon, Va., was sentenced to 151 months in federal prison.
“We must continue to be vigilant in our fight against methamphetamine being brought into the Western District of Virginia from elsewhere,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to dismantle large, wide-ranging distribution conspiracies like the one this defendant was involved with.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Hyde was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
In April 2015, Hyde was interviewed in Bristol, Virginia and admitted that on multiple occasions he accompanied Jeremy Bartley to Atlanta, Georgia to pick up five ounces of crystal methamphetamine. Hyde also admitted to carrying a firearm trafficking in methamphetamine. Hyde returned to Southwest Virginia with the methamphetamine and further distributed it to others.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Manchester Man Pleads Guilty to Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Zakee Stuart-Holt, 34, of Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to a federal indictment charging him with one count of conspiracy to distribute heroin and fentanyl and one count of money laundering, announced United States Attorney Emily Gray Rice.
According to court documents, the defendant distributed drugs in the Manchester, New Hampshire area since at least July of 2014. Pursuant to a search warrant, law enforcement recovered approximately 1.8 kilograms of fentanyl and $198,000 in drug proceeds from an apartment occupied by the defendant and another individual. In addition, law enforcement seized approximately $560,000 in drug proceeds from a safe deposit box in the defendant’s name. The defendant was not employed at the time of the conspiracy and the currency recovered by law enforcement constituted proceeds of the defendant’s drug distribution conspiracy.
Stuart-Holt’s plea agreement includes a binding stipulated sentence of 210 months’ incarceration. It also provides for the forfeiture of any property constituting or derived from the conspiracy. A sentencing hearing has been scheduled for 10 a.m. on November 29, 2016, in front of United States District Judge Landya B. McCafferty. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Stuart-Holt’s sentence.
“I commend the Manchester Police Department and the DEA on their thorough investigation of this case leading to the seizure of such a significant quantity of drugs and drug proceeds,” stated United States Attorney Emily Gray Rice. “Prosecuting those individuals who introduce dangerous narcotics into our community, and ensuring that they do not profit from doing so, is a critical priority of my office.”
“Those suffering from the disease of heroin addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin and fentanyl to the citizens of New Hampshire need to be held accountable for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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Local Man Admits to Counterfeiting $100 BillsRead the Press Release
HOUSTON – A 34-year-old Houston man has been convicted for his role in a conspiracy to distribute counterfeit $100 bills, announced United States Attorney Kenneth Magidson.
Clinton Walker, 34, of Houston, participated in the scheme between January and March 2016. He admitted he agreed and conspired with others to bring counterfeit U.S. Federal Reserve Notes from Nigeria to the U.S. to be sold, exchanged, transferred, received and delivered.
These counterfeit notes were sold at a price of 40 cents on the dollar and were distributed to multiple individuals. Specifically, Walker knowingly sold and delivered at least 11 counterfeit notes to a female minor in January 2016.
At the time of his arrest March 3, 2016, authorities found more than 300 counterfeit notes which Walker admitted he intended to sell as well. He knew they were counterfeit and intended them to be passed or used as genuine monies. In total, Walker distributed, or aided in the distribution of, at least $400,000 in counterfeit monies.
Walker faces up to 20 years for dealing in counterfeit securities as well as five years in prison for the conspiracy. He also faces the possibility of up to a $250,000 fine on both counts. U.S. District Judge Sim Lake, who accepted the guilty plea, has set sentencing for Nov. 9, 2016. He will remain in custody pending that hearing.
The Secret Service conducted the investigation. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Kooskia Man Pleads Guilty to Physically Abusing a ChildRead the Press Release
COEUR D’ALENE - Eben Paul Slickpoo, 30, of Kooskia, Idaho, pleaded guilty Tuesday in United States District Court in Coeur d’Alene, to assault resulting in substantial bodily injury, U.S. Attorney Wendy J. Olson announced. Slickpoo waived his right to an indictment and pleaded guilty to an information filed by the U.S. Attorney on July 7, 2016.
According to the plea agreement, Slickpoo admitted that in 2015, he injured a child by pulling out a section of hair from her scalp as a form of punishment. Teachers and other adults noticed the child missing hair and reported it to law enforcement.
Assault resulting in substantial bodily injury is punishable by up to five years’ imprisonment, a $250,000 fine, and a term of supervised release for up to three years. Sentencing is set is set for November 29, 2016, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and Nez Perce Tribal Police.
Kewa Pueblo Woman Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Camille Lovato, 19, a member and resident of Kewa Pueblo, entered a guilty plea yesterday in federal court in Albuquerque, N.M., to an assault charge. The guilty plea was entered without the benefit of a plea agreement.
Lovato was arrested on Jan. 13, 2016, on a criminal complaint charging her with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the criminal complaint, Lovato stabbed a Kewa Pueblo man in the chest with a knife on Jan. 9, 2016. The victim sustained a collapsed lung as a result of the assault, which took place at a residence in Kewa Pueblo.
On April 12, 2016, Lovato was indicted on assault with a dangerous weapon and assault resulting in serious bodily injury charges. During yesterday’s change of plea hearing, she entered a guilty plea to both offenses.
At sentencing, Lovato faces a statutory maximum penalty of ten years in prison. She will remain in federal custody pending her sentencing hearing, which has not been scheduled.
The case was investigated by the Albuquerque office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Joplin Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Jasper and Newton counties.
Vance W. Cooley, 60, of Joplin, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole.
On March 7, 2016, Cooley pleaded guilty to participating in a conspiracy to distribute methamphetamine in Jasper and Newton counties from Oct. 24, 2014, to March 13, 2015.
Co-defendant David B. Garrett, 60, of Joplin, pleaded guilty on March 8, 2016, and co-defendant Sheldon John Oliver, 60, of Carl Junction, pleaded guilty on March 7, 2016, to their roles in the drug-trafficking conspiracy. Cooley admitted that he supplied methamphetamine to Garrett and Oliver, who admitted they distributed methamphetamine to other persons in Jasper and Newton counties. Garrett was sentenced on Aug. 17, 2016 to 10 years in federal prison without parole; Oliver is scheduled to be sentenced on Friday, Aug. 19, 2016.
The investigation began on Oct. 24, 2014, when a Jasper County sheriff’s deputy saw two flashlights in a wooded area behind Cooley’s residence on Rabbit Run Road in Joplin. The deputy saw two people loading items into the back of a Chevrolet S10 truck. Cooley, who was one of the men, then got into the truck and started driving. When the deputy conducted a traffic stop, he arrested Cooley for driving with a revoked license. The deputy found a baggie containing 8.6 grams of methamphetamine and $1,608 in Cooley’s possession. After searching Cooley’s vehicle, deputies found a Mossberg 12-gauge sawed-off shotgun, a Mauser 7.65-caliber rifle, an EIG .22-caliber rifle, an EIG .22-caliber revolver and various rounds of ammunition in the bed of the truck.
On Dec. 10, 2014, Jasper County Drug Task Force officers met with a confidential source who provided information regarding illegal narcotics being sold from Cooley’s residence. Officers conducted surveillance on the residence and saw Oliver and Garrett leave in a Chevrolet Lumina. Deputies conducted a traffic stop and found a marijuana joint and two hypodermic needles in the vehicle; Oliver and Garrett were placed under arrest. Deputies searched Oliver and found approximately nine grams of methamphetamine in his watch pocket. Deputies searched Garrett and found approximately 32 grams of methamphetamine in his shirt pocket.
Task force officers executed a search warrant at Cooley’s residence on Dec. 10, 2014. Officers found 575 grams of methamphetamine, individually packaged in Ziploc baggies, inside a Chevrolet pick-up truck that was parked in a detached garage. They also found another Ziploc baggie containing approximately 58 grams of methamphetamine inside a leather-bound box in the truck. Approximately 633 grams of methamphetamine in total was found inside the truck.
On Jan. 13, 2015, members of the Jasper County Drug Task Force and the Joplin, Mo., Police Department executed a search warrant at Oliver’s residence. Oliver and his wife were detained in an RV located on the rear of the property. Officers found a black case on the floor of the RV that contained a bag with 2.8 grams of methamphetamine, several baggies (commonly used for distribution) and a spoon. Also discovered in the RV were two scales and syringes.
On Jan. 22, 2015, members of the Jasper County Drug Task Force executed a search warrant on a hotel room in Joplin occupied by Garrett. Garrett, who was inside the hotel room with an unidentified female, had approximately 10 grams of methamphetamine, approximately two grams of cocaine, and approximately 10 grams of marijuana on the nightstand.
Later that night, task force officers executed a search warrant at Garrett’s residence. They found a Thompson .50-caliber muzzle loader, a loaded Davis Industries .38-caliber pistol, a loaded Bridge 20-gauge sawed-off shotgun, a Stevens .410 sawed-off shotgun and various rounds of ammunition. Garrett admitted that he possessed the firearms and ammunition in connection with his involvement in the drug-trafficking conspiracy.
Cooley was arrested by Joplin police officers on March 13, 2015. At the time of his arrest, Cooley was in possession of approximately 3.6 grams of methamphetamine, two 10mg pills of Diazepam and three Acetaminophen and Oxycodone hydrochloride pills. A police detective searched Cooley’s vehicle and found a clear plastic baggie containing approximately 7.2 grams of methamphetamine underneath the driver’s seat. The police detective also found a loaded Taurus .38-caliber revolver and a loaded Thompson Auto Ordinance .45-caliber handgun inside a green bag in the trunk.
Approximately 650 grams of methamphetamine, in total, was seized from Cooley during the investigation of this case.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Jody Larison. It was investigated by the Drug Enforcement Administration, the Joplin, Mo., Police Department, the Jasper County Drug Task Force (now the Ozarks Drug Enforcement Team), the Jasper County, Mo., Sheriff’s Department and the Newton County, Mo., Sheriff’s Department.
Jackson Man Convicted of Possession with Intent to Distribute More Than 6,000 Prescription PillsRead the Press Release
Jackson, TN – A federal jury has found a Jackson man guilty of unlawfully possessing with intent to distribute more than 6,000 prescription pills. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, George Ward, 49, of Jackson, Tennessee, unlawfully possessed with intent to distribute large quantities of Morphine, Amphetamine, Zolpidem(Ambien), Hydrocodone, Methadone, Alprazolam(Xanax), and Hydromorphone.
In February 2013, the Jackson Police Department (JPD) Gang Enforcement Team and the Jackson-Madison County Narcotics Unit executed a search warrant at a house as part of an ongoing narcotics investigation involving the defendant. Ward was present at the location during the search warrant’s execution. Law enforcement agents determined that he was staying in the house’s guest bedroom. While searching the room, law enforcement discovered approximately 6,600 pills contained in several different bags. The seized pills included: 2,317 Morphine pills; 2,247 Amphetamine pills; 684 Zolpidem pills; 482 Hydrocodone pills; 456 Methadone pills; 260 Alprazolam pills; and 89 Hydromorphone pills.
The pills were packaged in numerous Ziploc bags, indicative of pills that are being distributed. There were also numerous pills in wholesale pharmacy bottles that individuals are prohibited from possessing, indicative of pills for resale. Drug ledgers were also seized in Ward’s room, which referenced certain strengths of the narcotics, pills with certain markings, as well as the number of pills and prices.
At the time of the search, Ward was on parole for a state conviction of possession of cocaine with intent to sell.
On Wednesday, August 17, a federal jury convicted Ward of seven counts of unlawful possession with intent to distribute prescription pills — individual counts for Morphine, Amphetamine, Zolpidem, Hydrocodone, Methadone, Alprazolam and Hydromorphone.
Five of the counts carry individual penalties of up to 30 years in federal prison and a fine of up to $2 million. Two of the counts carry individual penalties of up to 10 years in federal prison and a fine of up to $500,000.
This case is being investigated the Drug Enforcement Administration; the JPD Gang Enforcement Team; and the Jackson-Madison County Metro Narcotics Unit.
Assistant U.S. Attorney Beth Boswell is prosecuting this case on the government’s behalf.
Jackson County Man Sentenced for Illegally Purchasing Native American Human RemainsRead the Press Release
COLUMBUS, Ohio – Mark M. Beatty, 57, of Wellston, Ohio, was sentenced in U.S. District Court today for violating the Native American Graves Protection and Repatriation Act by purchasing human remains of Native Americans. The case is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd E. Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
Beatty was sentenced today to serve three years of probation including three months of home confinement, pay a $3,500 fine and pay $1,000 in restitution to the Miami Tribe of Oklahoma, to be used for re-burial of the Native American remains. The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
Beatty also agreed to publish an advertisement in a circulation warning others not to engage in illegal excavation of Native American bones and artifacts. He was also sentenced to perform 100 hours of community service for a program that protects or promotes the interests of Native Americans.
According to court documents, a witness saw people digging in a rock shelter on property on Sour Run Road in Jackson County, Ohio in November 2012 and chased them off. They left behind shovels, dirt sifters, buckets and trash. Sheriff Frazier’s investigators confirmed that three Wellston men – David E. Skeens, 40, Brian K. Skeens, 49, and Toby Lee Thacker, 56 – had been digging on the property and had unburied human remains and artifacts§ . Beatty pleaded guilty in August 2015 to illegally buying those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rock shelters were used extensively for burials in Southern Ohio and specifically in Jackson County. DNA testing confirmed a direct connection between tribes living thousands of years ago to present day Native Americans.
David Skeens was sentenced on July 21, 2016 to 30 days’ incarceration followed by a year of supervised release and ordered to pay $1,000 in restitution after pleading guilty to one count of illegal trafficking of Native American remains. Brian Skeens and Thacker have pleaded guilty to the same charge but have not yet been sentenced.
Acting U.S. Attorney Glassman commended the investigation by the Jackson County Sheriff’s Office and the Department of the Interior, and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University, Washington State University and the FBI, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Houston Man Sent to Federal Prison for Producing and Distributing Animal Crush VideosRead the Press Release
HOUSTON – The Houston man convicted of creating and distributing videos depicting the torture and killing of puppies, chickens and kittens has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Brent Justice, 55, was found guilty on three counts of producing and one count of distributing what is referred to as “animal crush videos” following a one-day bench trial May 23, 2016.
Today, U.S. District Judge Sim Lake, who presided over the trial, handed Justice a 57-month sentence. Justice also be required to serve a term of three years of supervised release following completion of the prison term.
Co-defendant Ashley Nicole Richards, 25, originally from Waco, but residing in Houston, was also convicted after opleading guilty in September 2015.
People For the Ethical Treatment of Animals (PETA) defines the “crush” fetish as a cruel and illegal genre of pornography in which women are videotaped or photographed mutilating small animals for the sexual gratification of viewers. In crush fetish materials, women are depicted, usually barefoot or in high heels, stepping on (or crushing), torturing and killing different species of animals, ranging from crawfish, crabs and insects to rodents, rabbits, kittens, puppies, cats, dogs and other mammals.
Under federal law, it is illegal to depict - via photograph, motion-picture film, video, digital recording or electronic image - actual conduct in which one or more living non-human mammals, birds, reptiles or amphibians is intentionally crushed, burned, drowned, suffocated, impaled or otherwise subjected to serious bodily injury, and is obscene.
These were believed to be the first individuals indicted on these offenses since the statute was amended in 2010.
Richards and Justice created and distributed videos that involve puppies, chickens and kittens being tortured and killed. The videos are titled “puppy1,” “puppy 2,” “whitechick1,” “whitechick2,” “whitechick3,” “blackluvsample,” “adammeetseve” and “adammeetseve2” and were created at varying times between February 2010 and August 2012. In the “puppy2” video, which is more than 13 minutes in length, Richards is seen torturing and killing a blue Pit Bull-mix puppy in a kitchen. The defenseless dog’s mouth is closed with duct tape and he struggles as Richards strikes the dog numerous times with a meat cleaver. In the video, Richards chops off one of the puppy’s paws, then hacks at his head and neck. Richards is later seen severing the dog’s head and urinating on its body. In another video, described in court, Richards steps on a cat’s eye with heel of her shoe.Previous court records also indicated that during the videos, Richards is often scantily clad and wearing a Mardi Gras-type mask. As she tortured the animals, she engaged in sexually charged dialogue meant to arouse the viewer.
The government contended that Justice was the cameraman in all of the videos in all the videos he was charged with producing. Richards testified during the bench trial that Justice introduced her to “crush” and that he was the person behind the marketing and distribution of the videos.
Authorities were alerted to the videos following an inquiry from PETA.
Richards was originally arrested on state charges on Aug. 15, 2012. A federal grand jury returned an indictment Nov. 28, 2012, and she was transferred to federal custody. However, the crush video charges were later dismissed on what the court cited as constitutionality issues. The government appealed that decision to the 5th Circuit Court of Appeals in New Orleans which subsequently overturned the decision of the District Court. The defense then filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the 5th Circuit’s ruling. The U.S. Supreme Court denied that petition and remanded the case back to the District Court for prosecution.
Justice was also found guilty after a bench trial in state court stemming from similar conduct in February 2016 and sentenced to 50 years. Richards also pleaded guilty to three charges in state court stemming from the same conduct and was sentenced to 10 years in prison.The Houston Police Department originally investigated the matter and worked in conjunction with the Houston Office of the FBI. Assistant U.S. Attorney Sherri L. Zack prosecuted the case, while trial attorney John Pellettieri of the Department of Justice’s Criminal Division handled the appeal.
Harley-Davidson to Stop Sales of Illegal Devices That Increased Air Pollution from the Company’s MotorcyclesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Harley-Davidson Inc., Harley-Davidson Motor Company Group LLC, Harley-Davidson Motorcycle Company Inc. and Harley-Davidson Motor Company Operations Inc. (collectively Harley-Davidson), that requires the companies to stop selling and to buy back and destroy illegal devices that increase air pollution from their motorcycles and to sell only models of these devices that are certified to meet Clean Air Act emissions standards. Harley-Davidson will also pay a $12 million civil penalty and spend $3 million to mitigate air pollution through a project to replace conventional woodstoves with cleaner-burning stoves in local communities.
The government’s complaint, filed today along with the settlement, alleges that Harley-Davidson manufactured and sold approximately 340,000 illegal devices, known as “super tuners,” that, once installed, caused motorcycles to emit higher amounts of certain air pollutants than what the company certified to EPA. Aftermarket defeat devices like these super tuners alter a motor vehicle’s emissions controls and are prohibited under the Clean Air Act for use on vehicles that have been certified to meet EPA emissions standards. Harley-Davidson also made and sold more than 12,000 motorcycles that were not covered by an EPA certification that ensures a vehicle meets federal clean air standards.
“Given Harley-Davidson’s prominence in the industry, this is a very significant step toward our goal of stopping the sale of illegal aftermarket defeat devices that cause harmful pollution on our roads and in our communities,” said Assistant Attorney General John C. Cruden, head of the Justice Department’s Environment and Natural Resources Division. “Anyone else who manufactures, sells, or installs these types of illegal products should take heed of Harley-Davidson’s corrective actions and immediately stop violating the law.”
“This settlement immediately stops the sale of illegal aftermarket defeat devices used on public roads that threaten the air we breathe,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “Harley-Davidson is taking important steps to buy back the ‘super tuners’ from their dealers and destroy them, while funding projects to mitigate the pollution they caused.”
Since January 2008, Harley-Davidson has manufactured and sold two types of tuners, which when hooked up to Harley-Davidson motorcycles, allow users to modify certain aspects of a motorcycles’ emissions control system. These modified settings increase power and performance, but also increase the motorcycles’ emissions of hydrocarbons and nitrogen oxides (NOx). These tuners have been sold at Harley-Davidson dealerships across the country.
The Clean Air Act requires motor vehicle manufacturers to certify to EPA that their vehicles will meet applicable federal emissions standards to control air pollution and every motor vehicle sold in the U.S. must be covered by an EPA-issued certificate of conformity. The Clean Air Act prohibits manufacturers from making and selling devices that bypass, defeat, or render inoperative a motor vehicle’s EPA-certified emissions control system. The act also prohibits any person from removing or rendering inoperative a motor vehicle’s certified emissions control system and from causing such tampering. The complaint alleges violations of both these provisions.
Under the settlement, Harley-Davidson will stop selling the illegal aftermarket defeat devices in the United States by August 23. Harley-Davidson will also offer to buy back all such tuners in stock at Harley-Davidson dealerships across the country and destroy them. The settlement requires the company to obtain a certification from the California Air Resources Board (CARB) for any tuners it sells in the United States in the future. The CARB certification will demonstrate that the CARB-certified tuners do not cause Harley-Davidson’s motorcycles to exceed the EPA-certified emissions limits. Harley-Davidson will also conduct tests on motorcycles that have been tuned with the CARB-certified tuners and provide the results to EPA to ensure that its motorcycles remain in compliance with EPA emissions requirements. In addition, for any super tuners that Harley-Davidson sells outside the United States in the future, it must label them as not for use in the United States.
The complaint also alleges that Harley-Davidson made and sold more than 12,000 motorcycles from model years 2006, 2007 and 2008 that were not covered by an EPA certificate of conformity. A certificate of conformity covers only the motorcycle models that were included in the certification application and that are listed on the certificate. These 12,000 motorcycles were models that were not included in Harley-Davidson’s applications and that were not listed as covered by the relevant certificate. Under the consent decree, Harley-Davidson will ensure that all of its future motorcycle models intended for sale in the United States are fully certified by EPA.
Hydrocarbon and NOx emissions contribute to harmful ground-level ozone and NOx also contributes to fine particulate matter pollution. Exposure to these pollutants has been linked with a range of serious health effects, including increased asthma attacks and other respiratory illnesses. Exposure to ozone and particulate matter has also been associated with premature death due to respiratory-related or cardiovascular-related effects. Children, the elderly and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants. The woodstove project, which Harley-Davidson will undertake in conjunction with an independent third party, will eliminate excess air pollution caused by using the illegal tuners by providing cleaner-burning stoves to designated local communities, thereby assuring better air quality in the future.
EPA discovered the violations through a routine inspection and information Harley-Davidson submitted after subsequent agency information requests.
The settlement, a proposed consent decree lodged in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period before it can be entered by the court as final judgment. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
More information about today’s settlement: https://www.epa.gov/enforcement/harley-davidson-clean-air-act-settlement.
Grand Jury Indicts Felon who Shot and Wounded Law Enforcement OfficerRead the Press Release
A grand jury in Seattle today indicted RANDY LEE HALL, 31, on four new charges for shooting at law enforcement officers who were trying to arrest him in Auburn, Washington on June 28, 2016, announced U.S. Attorney Annette L. Hayes. The superseding indictment charges HALL with assault of a person assisting federal officers, assault on a federal officer, using a firearm during a crime of violence, unlawful possession of ammunition and unlawful possession of a firearm. HALL will be arraigned on the superseding indictment September 1, 2016.
According to records in the case, in the spring of 2016, HALL was linked to multiple firearms and incidents where gunshots were fired. On June 28, 2016 agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) were joined by officers from the Seattle Police Department and the Washington State Department of Corrections in order to arrest HALL on an outstanding warrant. Law enforcement officers located a vehicle Hall had rented, and were waiting outside the Auburn apartment where the car was parked. When HALL came out, the officers – dressed in clothing identifying their respective agencies -- verbally identified themselves as law enforcement officers and attempted to arrest HALL. HALL brandished a pistol and fired at several officers: two ATF agents and two Department of Corrections (DOC) officers. One DOC officer was hit but has since recovered. HALL was also shot and was treated at Harborview Medical Center. HALL made his first appearance on federal charges in U.S. District Court on July 5, 2016.
The charges in the superseding indictment carry maximum penalties of twenty years in prison. Using a firearm during a crime of violence is punishable by a mandatory ten year prison term to run consecutive to any prison term on the other charges.
HALL’s prior felony convictions prohibit him from possessing firearms.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Fresno Man Previously Convicted of Tax Fraud Indicted for Failing to Surrender to Serve His SentenceRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Leroy Donovan Combs, 75, of Fresno, charging him with failure to surrender for service of sentence, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents and trial testimony, Combs participated in a tax refund scheme claiming more than $33 million in false tax refunds. Following a three-week trial, Combs was convicted of one count of filing a false claim against the United States.
On March 7, 2016, Combs was sentenced to three years and nine months in prison. He was required to self‑surrender to begin serving that sentence on August 11, 2016, but failed to do so. On August 15, 2016, the U.S. Marshals Service arrested Combs.
This case is the product of an investigation by the U.S. Marshals Service. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III are prosecuting the case.
If convicted, Combs faces a maximum statutory penalty of five years in prison to be served consecutive to the original sentence and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Ziggies Owner Sentenced for $1.3 Million Tax SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the former owner of Ziggies restaurants in Springfield and elsewhere has been sentenced in federal court for failing to pay more than $1.3 million in federal payroll taxes.
Agim Zendeli, 43, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, Aug. 17, 2016, to three years and one month in federal prison without parole. The court also ordered Zendeli to pay $1,330,708 in restitution to the IRS.
On Jan. 20, 2016, Zendeli pleaded guilty to failing to pay over to the IRS the payroll taxes he collected from his employees.
Zendeli operated a chain of restaurants under the name “Ziggies” in Springfield, Republic, Willard, Marshfield, Nevada, West Plains, Rolla, Carthage and Poplar Bluff in Missouri, and in Fort Scott and Pittsburg in Kansas, from 1998 to 2014.
From March 2004 through December 2014, Zendeli opened and closed 18 companies he formed to operate as Ziggies. For each such company, Zendeli withheld federal income taxes and Social Security and Medicare taxes from his employees’ pay, and the employees believed those amounts had been paid over the IRS on their behalf. However, Zendeli admitted today, he did not pay those amounts over to the IRS as he was required to do.
From 2004 through 2014, Zendeli diverted substantial amounts of money from the restaurant LLCs he owned and operated. During this period, Zendeli lived a lavish lifestyle, and spent substantial sums on vacations, gambling trips, entertainment and luxury vehicles, including three BMWs, two Cadillac Escalades, two Infiniti QX56s, a 2009 Mercedes, a 2008 Acura and a 2004 Land Rover.
In order to avoid IRS collection of past due employment taxes, Zendeli repeatedly formed new entities to continue restaurant operations. Once each company accumulated a large tax debt to the IRS, Zendeli ceased operating under that company’s name and opened a new entity, often in the name of a family member, partner, or employee. Zendeli, however, maintained custody and control of the businesses.
The total tax loss resulting from the scheme for all entities controlled by Zendeli totals $1,330,708, which includes $741,099 in payroll taxes he deducted from his employees’ pay, plus the required employer’s contributions to Social Security, Medicare and unemployment taxes.
In addition, Zendeli attempted to avoid payment of approximately $654,260 in past due federal and state employment taxes by filing bankruptcy on March 26, 2010. Prior to the bankruptcy, Zendeli divorced his wife and transferred the trademarked name “Ziggies®” to his father, for a token payment. (Funds from the 2011 sale of trade name “Ziggies®” were remitted through Zendeli’s bankruptcy proceedings, after the trustee determined a fraudulent transfer of assets had occurred.)
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Former U.S. Army Reservist Sentenced for Production of Child PornographyRead the Press Release
Christopher Mailloux, 25, of Reading, PA, was sentenced today to 15 years’ imprisonment, following his guilty plea to two counts of production of child pornography and two counts of possession of child pornography, announced United States Attorney Zane David Memeger. The Honorable Lawrence F. Stengel also sentenced the defendant to 15 years’ supervised release, restitution in the amount of $5062, and a $400 special assessment.
According to court papers, Mailloux, who served in the U.S. Army Reserves in Afghanistan, was apprehended in the course of an investigation of his roommate, Danny Ray Evans, Jr., for the online harassment of minors. Mailloux’s computer contained thousands of images of child pornography depicting infants and toddlers, and he manufactured images of an infant and toddler who were being babysat in his residence by a female housemate.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Berks County Detectives, with assistance from the Berks County District Attorney's Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Former Treasurer of Labor Union Pleads Guilty to Embezzling Union Dues and Filing False Report with Department of LaborRead the Press Release
Jeffrey Magelitz, 44, of Chester, Illinois, entered pleas of guilty to a two-count Indictment that charged embezzlement and theft from a labor union and for filing a false report with the Department of Labor, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Magelitz was the former treasurer of the American Federation of State, County and Municipal Employees, Local 415 in Vienna, Illinois from January of 2012 through June of 2013. AFSCME Local 415 represents employees at the Vienna Correction Center, located in Vienna, IL Magelitz embezzled approximately $30,000 and prepared and cashed unauthorized checks for himself and forged the signatures of the president and vice-president of the union on the checks. Magelitz also submitted a false annual report for the union which contained the forged signature of the president and falsely reported the amount of money that he received during the year. Magelitz faces a prison sentence of up to 6 years, a fine of up to $350,000, and up to 3 years’ supervised release. Sentencing is scheduled for December 7, 2016.
The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, with the assistance of the labor union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Pharmacy Technician Indicted for Attempting to Entice A Minor Online and Child Pornography OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today the return of a superseding indictment charging Matthew Bryan Caniff (33, Gainesville) with attempted online enticement of a minor, advertising for child pornography, and attempted production of child pornography. If convicted, he faces a minimum mandatory penalty of 10 years, up to life, in federal prison on the attempted enticement charge. He faces a minimum mandatory penalty of 15 years, up to 30 years, in prison for each of the enticement, advertising, and attempted production charges.
According to court documents, between March 31 and April 1, 2016, Caniff engaged in a series of online text conversations with a person he believed to be a 13-year-old child. This "child" was actually an undercover FBI agent. During the course of these conversations, Caniff discussed in graphic detail his desire to have sex with the “child” at “her” home. He also sent several explicit photos of himself to the “child,” and told “her” that he would bring prescription drugs with him to share with “her.” During the early morning hours on April 1, 2016, Caniff drove from Gainesville to a home in St. Johns County to meet the “child” for sex. He was arrested by deputes from the St. Johns County Sheriff’s Office, and several prescription pills were found in his possession.
This case was investigated by the St. Johns County Sheriff’s Office, the Alachua County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Former Nevada Liquor Store Owner Convicted of Conspiracy to Defraud the United States, Assisting in Filing False Corporate Returns and Tax EvasionRead the Press Release
Skimmed Cash and Gave Preparer False Set of Books to Evade Reporting Nearly $4 Million in Sales
A federal jury sitting in the District of Nevada found the former co-owner of three Las Vegas, Nevada, liquor stores guilty of conspiracy to defraud the United States, assisting in filing false corporate tax returns and tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
According to the evidence at trial, Jeffrey Nowak and his co-defendant, Ramzi Suliman, jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman conspired to skim cash receipts and maintain a double set of books in order to underreport income to their accountant and tax return preparer. One set of books was an accurate accounting of sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts skimmed from the business. Nowak and Suliman provided the fraudulent books to their accountant-return preparer, causing the return preparer to create false corporate tax returns that underreported gross receipts and taxable income. Nowak and Suliman also had their individual income tax returns prepared to falsely underreport their income and tax owed. For tax years 2006 to 2009, Nowak reported a total income tax owed of only $313, when in fact Nowak owed more than $400,000. The total tax loss from the conspiracy is nearly $1 million.
“Cash sales are not an opportunity for business owners to shortchange the government or produce multiple sets of books,” said Principal Deputy Assistant Attorney General Ciraolo. “Owners are subject to the same legal obligations that their W-2 employees comply with every pay period – they must accurately report their income to the IRS and pay their fair share of taxes. As Mr. Nowak learned today, if they refuse to do so, the Department of Justice and the IRS will work to see that they are identified and held accountable.”
“When business owners willfully skim cash and cause their true income to be underreported to the IRS, they are stealing from the U.S. Treasury,” said U.S. Attorney Bogden. “The IRS and our office take these cases seriously, and we will continue to seek judgments, injunctions, and criminal convictions that often carry substantial prison sentences, restitution and financial penalties.”
“The license to run a business is not a license to avoid paying taxes,” said Special Agent in Charge Tara Sullivan for the Internal Revenue Service’s Criminal Investigations (IRS-CI). “Mr. Nowak’s misconduct, skimming nearly $4 million from his business and filing false tax returns, cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”
A sentencing date has been scheduled for Nov. 17. Nowak faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the United States, five years on each charge of tax evasion and three years on each charge of assisting in the preparation and filing of false tax returns. He also faces supervised release and substantial monetary penalties. Suliman pleaded guilty in July 2014 to conspiring to defraud the United States and is awaiting sentencing.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Kathryn C. Newman for the District of Nevada and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Gary Firefighter’s Association Secretary-Treasurer SentencedRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that John T. Springer 54, of Indianapolis, Indiana, was sentenced in Hammond Federal Court before Senior Judge James Moody for three counts of wire fraud.
Springer was sentenced to 3 years’ probation to include 3 months of home detention and he was ordered to pay restitution in the amount of $30,315.99 to the victim.
According to court filings, Springer was the Secretary-Treasurer of the Gary Professional Firefighters Association and an authorized signatory on general, holding and retiree bank accounts. Per the union’s by-laws, expenditures of funds were for sanctioned bills and no member or officers were to derive personal profit from goods or services unless approved by the membership on a (2/3) vote during any regular or special meeting. At no time was Springer authorized by vote of the union or any official to spend union funds for any personal expense or to fund any personal loan. Nonetheless, from January 10, 2008 to September 25, 2012, Springer utilized $30,315.99 in union funds to pay for various items of a purely personal nature, including automotive-related loans and repairs, his home mortgage, attorney’s fees, and school tuition for his children.
This case was investigated by the United States Department of Labor, Office of Inspector General. This case was handled by Assistant United States Attorney Jill R. Koster.
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Five indicted for selling heroin or fentanyl that caused Lorain County overdosesRead the Press Release
Five Lorain County men were indicted in federal court for selling heroin and/or fentanyl that resulted in overdoses.
Three of the overdoses were fatal while the users were revived in the other two cases. All five indictments carry sentencing enhancements for selling drugs that resulted in death or serious bodily injury.
Those indicted are: Delante Lunn, 36, of Elyria; Russell Davis, 47, of Lorain; Cecil Shelton, 22, of Elyria; Jesus D. Cruz, 35, of Elyria, and Leon Hale, 35, of Elyria.
The indictments were announced by U.S. Attorney Carole S. Rendon, FBI Special Agent in Charge Stephen D. Anthony, Elyria Police Chief Duane Whitely, Lorain County Prosecutor Dennis Will and Lorain Police Capt. Roger Watkins.
Lunn is charged in a five-count indictment with distributing heroin and fentanyl, including on Feb. 18, when he sold a heroin and fentanyl mixture in Elyria that resulted in a fatal overdose, according to the indictment.
Davis is charged in a two-count indictment with distributing fentanyl and cocaine. Davis sold fentanyl in Lorain on March 7 that resulted in a fatal overdose, according to the indictment.
Shelton is charged in a four-count indictment with distributing heroin, including selling heroin on March 18 in Elyria that resulted in a fatal overdose, according to the indictment.
Cruz is charged in a six-count indictment with distributing fentanyl and heroin, as well as being a felon in possession of firearm. Cruz sold drugs several times in March, including on March 2 in Elyria, which resulted in a fentanyl overdose. He also illegally possessed a .357 revolver despite a prior conviction for heroin trafficking, according to the indictment.
Hale is charged in a four-count indictment with distributing heroin, fentanyl and cocaine. Hale sold heroin and fentanyl on Feb. 21 in Elyria that resulted in an overdose, according to the indictment.
In an unrelated case, Ryan Sumlin, 27, of Akron, was charged in a superseding indictment with selling a mix of heroin and fentanyl that caused a fatal overdose in Akron on March 28, 2015. The U.S. Attorney’s Office has now indicted 16 cases with enhanced sentencing provisions for selling heroin or fentanyl that caused death or serious injury.
“Aggressively targeting dealers who sell heroin and fentanyl that kills people is one of several tools required to turn the tide on the opioid epidemic,” Rendon said. “We need to continue to work to make treatment more available to those who want help, work with our medical community to decrease the availability of opioids, and talk to our children about how dangerous these drugs can be.”
“It is almost a daily occurrence to hear of a death due to heroin or fentanyl,” Anthony said. “Law enforcement will continue to work collaboratively to hold accountable those that bring this poison and destruction to our communities.”
“The entire country is dealing with a surge of overdose deaths as a result of the heroin epidemic,” Whitely said. “Lorain County Ohio is no exception. Lorain County law enforcement agencies have been attacking this epidemic for several years. Selling drugs that result in the someone's death needs to be pursued as a murder. It is no different than killing someone with a gun. Our relationship with the U.S. Attorney's Office has proved to be a winning partnership. By working together, we are able to put these murderers in prison for a long time.”
“The City of Lorain is well aware of the urgent need to combat the heroin and fentanyl crises which plagues our city, and communities throughout this area,” Watkins said. “Today’s indictments are a step in the right direction. We will continue our proactive efforts, while working together with our local, state, and federal partners, to combat this epidemic.”
These cases are being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Vasile Katsaros following investigations by the FBI, Elyria Police Department and Lorain Police Department. The Sumlin case was investigated by the Drug Enforcement Administration and Akron Police Department.
If convicted, the defendant’s sentence 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.
Final Two Defendants in Tax King Case Plead GuiltyRead the Press Release
Donald S. Boyce, Acting United States Attorney for the Southern District of Illinois, has announced that Edric A. Russell, 35, and Pierre J. Carter, 34, both of East St. Louis, IL, pled guilty yesterday to filing false tax returns. Both Russell and Carter worked at the East St. Louis location of a tax return preparation business known as "Tax King."
Tax King was owned and operated by co-defendant Eyob Tilahun. In addition to the East St. Louis location, Tilahun operated several Tax Kings in St. Louis, Missouri. On May 20, 2016, Tilahun pled guilty to conspiring to submit false claims for tax refunds. Tilahun admitted that Tax King’s return preparers were trained and instructed to increase their customers’ refunds by falsifying certain information on their tax returns. The false information that was placed on the returns included: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; (3) false education expenses which enabled the clients to qualify for American opportunity education credits; and (4) false information regarding fuel taxes which qualified the clients for federal fuel tax credits.
Tilahun admitted that he profited from the scheme by charging Tax King’s clients fees which ranged from approximately $400 to $650. The indictment in the case alleges that the return preparers also profited by requesting cash "tips" from the clients that ranged from approximately $100 to $1,000.
In their guilty pleas, Russell and Carter both admitted that they prepared false tax returns while working at Tax King. Both admitted that they placed false Schedule C income on their clients’ returns in order to qualify them for higher refunds. Russell also admitted that he placed false education expenses on his client’s return, which also fraudulently increased her refund amount. Both admitted that they requested tips from their customers for preparing the false returns. The charge of preparing a false income tax return carries a maximum sentence of 3 years of imprisonment, a $250,000 fine, and restitution.
In addition to Russell, Carter, and Tilahun, four other defendants in the case have previously pled guilty. Those defendants are: Mason B. Richmond, 31, of St. Louis, MO; Lakesha R. Wilson, 28, of East St. Louis, IL; Tanesa L. Beverly, 32, of East St. Louis, IL, and Melissa L. Wiley, 34, of Granite City. Wilson, Beverly, and Wiley all worked as return preparers at the East St. Louis Tax King. Richmond worked as a return preparer at a Tax King on North Grand in St. Louis.
Tilahun, Beverly, and Wiley are scheduled to be sentenced on September 9, 2016. Sentencing for Wilson and Richmond will be October 7, 2016. Russell and Carter will be sentenced on January 27, 2017.
The investigation is being conducted by agents from both the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman. The United States Attorney’s Office for the Eastern District of Missouri has also prosecuted several return preparers who worked at Tax King locations in St. Louis, MO.
Felon Charged with Illegally Possessing Guns and AmmunitionRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Aug. 17, named Erick Lamont Griffin, Jr. a/k/a Ericc Bucc, age 22, of Penn Hills, PA, as the sole defendant.
According to the indictment, Griffin, Jr. possessed four firearms and ammunition at various times between March and July of 2016, after having previously been convicted in state court of possession with intent to deliver heroin.
The law provides for a maximum total sentence of up to 40 years in prison, a fine of up to $1,000,000.00, and the forfeiture of the firearms and ammunition. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.