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5 October 2016
Illinois Attorney General Madigan & U.S. Attorney Lewis Meet with Kankakee County State's Attorney's Office to Ensure Fair, Open and Legal Election in Kankakee CountyRead the Press Release
Chicago – Attorney General Lisa Madigan, U.S. Attorney James A. Lewis for the Central District of Illinois and officials with the Illinois State Board of Elections today met with Kankakee County State’s Attorney Jamie Boyd and an official from the Kankakee County Clerk’s office to ensure a fair, open and legal election this fall that allows all residents to vote equally without obstacles or intimidation by law enforcement officials or offers in exchange for votes, all of which are prohibited by law.
“We are committed to ensuring that we hold a fair, open and legal election and that all voters’ rights are protected,” Madigan said.
“The voting process is central to our democratic system,” Lewis said. “We came to Kankakee County today and had a good discussion with the State’s Attorney and other officials intended to ensure that each and every person can vote fairly and properly.”
They discussed complaints, including allegations of some minority voters being subject to unnecessary requirements and misinformation about their ability to cast their vote, law enforcement officials intimidating voters and questioning people who drove them to vote, and offers in exchange for casting ballots.
Voters and county election officials are reminded that current law allows for voters to register to vote and cast their ballot at the same time during both the early voting process and on General Election Day following a Tuesday ruling by the U.S. Court of Appeals for the 7th Circuit.
Attorney General Madigan also reminded voters of some of their basic voting rights during the early voting process:
- Voters have the right to register to vote and cast their vote at the same time.
- If your registration is active and current, you do not need to show identification to cast your vote. If your registration is not active, there are circumstances in which you are required to show identification in order to vote.
- If your voter registration is in “inactive” status and your address has changed, in order to vote the same day you may be asked to show identification of your current address.
- If your voter registration is “canceled,” you will need to re-register and must show two forms of identification. The most common forms of identification include a driver’s license or a utility bill, one of which must show your current address.
- If a voter makes a mistake or “spoils” a paper ballot and the voter has not cast the ballot, the voter has the right to receive a replacement ballot (10 ILCS 5/17-11).
- If a voter cannot read, has trouble understanding English, or has a disability, that voter has the right to request assistance from anyone other than his or her employer, an agent of his or her employer, or an officer or agent of his or her union (10 ILCS 5/17-14).
- No one is allowed to try to influence a voter within 100 feet of the polling place (10 ILCS 5/17-29).
IMPD recognized by the Department of Justice for their work with officer wellness and safetyRead the Press Release
IMPD invited to the Hall of Justice for its efforts to support community policing week
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that the Indianapolis Metropolitan Police Department will once again be recognized by Attorney General Loretta Lynch in the Hall of Justice for their work with officer wellness and safety.
“I am proud to call Chief Riggs and the entire IMPD a partner in our work to help keep this community safe,” said Minkler. “IMPD continues to be on the cutting edge of innovation and leadership in the law enforcement field. They deserve the continued recognition and I am happy to be a part of it.”
Attorney General Lynch has designated October 2-8, 2016, as the inaugural National Community Policing Week. During that week, the Department will hold its very first Community Policing Awards Ceremony—recognizing outstanding innovators and public servants who embody the spirit of community policing. The ceremony will take place in the Great Hall of Main Justice at 2:00 pm on Thursday, October 6, 2016. U.S. Attorney Minkler and IMPD Sgt. Aaron Snyder will attend the ceremony. For additional information regarding the Attorney General’s Community Policing Awards, please visit https://www.justice.gov/ag/community-policing-award
U.S. Attorney Minkler hosted Attorney General Lynch during her twelve-city Community Policing Tour in April of this year. The tour showcased the innovative work IMPD is doing in the field of officer wellness and safety as part of successful community policing. The President’s Task Force on 21st Century Policing is organized around six pillars:
Building trust and legitimacy Community policing and crime reduction
Training and education Technology and social media
Officer wellness and safety Policy and oversight
While visiting Indianapolis, Attorney General Lynch met with Mayor Hogsett, Chief Riggs and officers who have benefited from the IMPD Wellness and Safety programs along with counselors and community members who support the program. Many of the officers brought their spouses who described the significant changes they observed in the officers as a result of the job, particularly the impact on the officers’ families. AG Lynch also hosted a roundtable discussion at the IMPD East District roll call and discussed a number of topics including career longevity, stress on the job, procedural justice and officer recruitment.
The IMPD has taken an innovative approach to officer safety and wellness which serves as a national model for other jurisdictions aiming at improving its programs and policies focused on this important issue. The leadership at IMPD recognizes that taking care of its officers and encouraging them to take care of themselves from recruitment to retirement makes for a more professional police department.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NATANAEL MORALES-TRINIDAD, a/k/a SAMAEL MORALES, a/k/a NATANAEL K. MORALES, a/k/A NATHANIEL MORALES, age 46, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry.
U.S. District Judge Susie Morgan sentenced MORALES-TRINIDAD to twelve months imprisonment followed by two years of supervised release, and a $100 special assessment.
According to the Bill of Information, on or about May 1, 2016, MORALES-TRINIDAD was found in the United States after having been officially deported and removed on or about May 8, 2013.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Hazleton Man Pleads Guilty to Pill Distribution ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton man pleaded guilty on October 4, 2016 before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to conspiring with others to distribute and possess with intent to distribute Tramadol, Ambien, Xanex, and other Schedule IV drugs.
According to United States Attorney Bruce D. Brandler, the defendant, Azim Hosein, age 45, admitted to regularly receiving parcels of Schedule IV pills at his residence in Hazleton, and providing them to a co-conspirator who distributed them to customers. The illegal conduct occurred between November 2014 and January 29, 2016. The drugs were obtained from suppliers in India.
Hosein was charged in a criminal information filed by the United States Attorney’s Office in August 2016. The charge stemmed from an investigation by the Drug Enforcement Administration (DEA), U.S. Postal Inspectors, and Hazleton Police.
Judge Mehalchick ordered a presentence investigation to be completed. Senior U.S. District Court Judge Richard P. Conaboy will schedule sentencing after the pre-sentence investigation is completed. Hosein faces a potential maximum sentence of five years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenbrier County man sentenced to federal prison for oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man was sentenced today to a year and two months in prison for a federal drug crime, announced United States Attorney Carol Casto. Edgar Crislip, 48, of Ronceverte, previously pleaded guilty to distribution of oxycodone.
Crislip admitted that on November 30, 2015, he distributed oxycodone pills to a confidential informant in Ronceverte. He further admitted that he sold oxycodone pills on three other occasions.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative, 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 pills and heroin in communities across the Southern District.
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Government Contractor Charged with Removal of Classified Materials and Theft of Government PropertyRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Harold Thomas Martin III, age 51, of Glen Burnie, Maryland, with theft of government property and unauthorized removal and retention of classified materials by a government employee or contractor. According to the affidavit filed in support of the criminal complaint, Martin was a contractor with the federal government and had a top secret national security clearance. Martin was arrested late on August 27, 2016. The complaint was filed on August 29, 2016, and unsealed today.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General for National Security John P. Carlin; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit, on August 27, 2016, search warrants were executed at Martin’s residence in Glen Burnie, including two storage sheds, as well as upon his vehicle and person. During execution of the warrants, investigators located hard copy documents and digital information stored on various devices and removable digital media. A large percentage of the materials recovered from Martin’s residence and vehicle bore markings indicating that they were property of the United States and contained highly classified information of the United States, including Top Secret and Sensitive Compartmented Information (SCI). In addition, investigators located property of the United States with an aggregate value in excess of $1,000, which Martin allegedly stole.
The complaint alleges that among the classified documents found in the search were six classified documents obtained from sensitive intelligence and produced by a government agency in 2014. These documents were produced through sensitive government sources, methods, and capabilities, which are critical to a wide variety of national security issues. The disclosure of the documents would reveal those sensitive sources, methods, and capabilities.
The documents have been reviewed by a person designated as an original classification authority, and in each instance, the authority has determined that the documents are currently and properly classified as Top Secret, meaning that unauthorized disclosure reasonably could be expected to cause exceptionally grave damage to the national security of the United States.
If convicted, Martin faces a maximum sentence of one year in prison for the unauthorized removal and retention of classified materials, and ten years in prison for theft of government property. An initial appearance was held for Martin in U.S. District Court in Baltimore on August 29, 2016. Martin remains detained. A criminal complaint is not a finding of guilt.
An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers, Harvey E. Eisenberg and Trial Attorney David Aaron of the Justice Department’s National Security Division, who are prosecuting the case.
FranklinWoman Sentenced to Probation for Social Security FraudRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Tonya Dailey, 44, of Franklin, New Hampshire, was sentenced to one year of probation. Dailey pleaded guilty to one count of Social Security Fraud on June 24, 2016.
According to the indictment, statements made in court, and other public records in the case, Dailey began receiving Social Security disability benefits in 1999. Dailey returned to self-employment in June 2010, earning sufficient income each month to render her ineligible to receive any disability benefits. Although she reported her receipt of nominal earnings as a bartender during a review with the Social Security Administration (SSA) in 2014, Dailey did not report her significant monthly income from self-employment to SSA. Upon questioning by investigators in May 2015, Dailey admitted that she concealed her work activity from SSA because she knew her earnings would have disqualified her from receiving Supplemental Security Income disability benefits. Applicants for Supplemental Security Income benefits must have limited income and resources in order to qualify for assistance. As a result of her concealment, Dailey received $30,230.78 in disability benefits that she would not have received if she had properly disclosed her self-employment income.
Dailey was sentenced by United States District Court Judge Steven J. McAuliffe.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Four Californians Plead Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GEOFFREY RICKETTS, age 48; his wife, MARLA RICKETTS, age 38; SAMUEL KIM, age 41, all of Porter Ranch, California, and his cousin, SUNYUP KIM, age 40, of Granada Hills, California pled guilty to conspiracy to commit health care fraud.
GEOFFREY RICKETTS, MARLA RICKETTS, SAMUEL KIM, and SUNYUP KIM were indicted on June 11, 2015, for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested. The defendants operated Care Concepts, LLC, which was based in Metairie and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. According to court documents, the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. From 2007 through 2015, the defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
Each defendant faces a maximum term of ten years’ imprisonment, a fine of $250,000, and a term of three years supervised release. In addition, GEOFFREY RICKETTS owes restitution in the amount of $1,338,210; MARLA RICKETTS in the amount of $39,880; SAMUEL KIM in the amount of $988,593 and SUNYUP KIM in the amount of $93,927. U.S. District Judge Eldon E. Fallon set sentencing for January 5, 2017.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services for investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Jordan Ginsberg, and DOJ Trial Attorney William Kanellis are in charge of the prosecution.
Former Suffolk University Employee Sentenced for Stealing over $40,000 in Student Loans by Changing GradesRead the Press Release
BOSTON – A Suffolk University employee was sentenced today in U.S. District Court in Boston in connection with fraudulently obtaining over $40,000 in federal student loan funds by falsifying her own records to make it appear that she was a Suffolk University graduate student when in fact she was not.
Ashley Ciampa, 28, of Medford, was sentenced today for student loan fraud. U.S. District Court Judge F. Dennis Saylor, IV sentenced Ciampa to two years of probation including six months of home detention with electronic monitoring and restitution in the amount of $47,453. Ciampa pleaded guilty in June 2016.
In 2009, Ciampa began working in the Registrar’s Office at Suffolk University. In 2013, she enrolled in Suffolk’s MBA program free of charge as an employee. In a first-semester business ethics class, Ciampa failed to attend class or complete the required coursework, but instead used her computer access in the Registrar’s Office to assign herself an “A” for the course. In subsequent semesters, she repeatedly assigned herself passing grades for classes she never attended. By maintaining the appearance that she was a graduate student, she was able to borrow $47,453 in federal student loans beginning in 2014, which she spent for vacations and other personal expenses.
United States Attorney Carmen M. Ortiz and Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Former Philadelphia Doctor Sentenced to 30 Years for Running Pill Mill and Distributing Oxycodone Resulting in Patient DeathRead the Press Release
PHILADELPHIA – Today, a federal judge sentenced William J. O’Brien III, a former doctor of osteopathic medicine, to 30 years in prison for illegal distribution of controlled substances resulting in death and additional charges arising from O’Brien’s operation of a pill mill. United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve five years of supervised release upon release from prison; pay restitution of $342,504 to the bankruptcy trustee in connection with his conviction for conspiracy to commit bankruptcy fraud; and pay a special assessment of $12,300. The court also entered a judgment of forfeiture.
“We are pleased with the substantial sentence imposed on the defendant in this case,” said United States Attorney Zane David Memeger. “Those doctors who distribute dangerous prescription drugs for no legitimate medical purpose need to be held fully accountable when their irresponsible conduct leads to death and addiction among patients.”
On July 14, 2015, a grand jury in Philadelphia charged O’Brien and nine codefendants in a 139-count Second Superseding Indictment (‘the indictment”) with conspiring to distribute controlled substances and other crimes. O’Brien was also charged with 121 separate counts of distribution of controlled substances, and distribution resulting in death. In addition to O’Brien, the defendants charged in the indictment included members and associates of the Pagans Motorcycle Club (“Pagans”), an outlaw gang known for violence and drug dealing. O’Brien and his paramour Elizabeth Hibbs were charged with conspiracy to engage in money laundering, conspiracy to commit bankruptcy fraud, and making false statements under oath in bankruptcy proceedings.
On June 28, 2016, after a six-week trial, a jury found O’Brien guilty of all charges in the indictment except for four distribution counts. All codefendants in the case have pleaded guilty and are awaiting sentencing.
The evidence at trial showed that O’Brien worked together with Pagans and their associates to operate a “pill mill” out of O’Brien’s medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates resold the pills on the street. The trial evidence showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by O’Brien in furtherance of the conspiracy. O’Brien generated for himself an estimated $2 million in cash proceeds from the drug trafficking conspiracy.
In connection with his operation of the pill mill, and as proven at trial, O’Brien intentionally distributed, for no legitimate medical purpose, oxycodone, methadone, and cyclobenzaprine, a muscle relaxer, to Joseph Ennis, 38, of Bucks County. Mr. Ennis had initially sought treatment from O’Brien following a car accident. On December 17, 2013, O’Brien prescribed oxycodone and methadone without a legitimate medical purpose, which combined with the cyclobenzaprine, led to Mr. Ennis’ death. Mr. Ennis died five days later on December 22, 2013 from the combination of these substances. At sentencing, Mrs. Bridget Shaw, Mr. Ennis’ sister, asked the Court to consider “the countless victims [O’Brien] fooled who are not here to represent themselves. The patients he turned into addicts for his profit and their families who are now left swimming in hospital bills or worse, wondering how this hell came to be . . . Rather than save lives, according to the oath he took, he chose to ruin them.”
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.
Former NASA Employee Pleads Guilty to Making False Statements Concerning His Interactions with ContractorsRead the Press Release
Greenbelt, Maryland –Nathaniel Wright, age 55, of Silver Spring, Maryland, pleaded guilty today to making false statements in connection with an investigation into his interactions with contractors.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Inspector General Paul K. Martin, NASA Office of Inspector General.
According to the plea agreement, Wright worked as a NASA employee at Goddard Space Flight Center. In late 2009 and early 2010, while still employed full-time at NASA, Wright also worked as a contract employee for a friend’s small business that performed work for several government agencies. Wright assisted the small business in the preparation and submission of bids to other government agencies.
According to admissions made in connection with his plea agreement, from 2009 through 2012, Wright’s official duties at NASA included significant responsibilities with respect to three contracts, including an $800 million contract, a $450 million contract and a $1.2 billion contract.
Wright admitted that, while working in his official capacity with NASA, he provided his resume to one of the contractors and said that he was looking for a position with their company. Wright suggested that he would wait to consider the contractor’s proposals until a position had been considered. Wright also admitted that he pressed a contractor to use his friend’s business to perform work on a specific task order, even though that businesses had no experience in the area.
Wright further admitted that he pressed additional contractors on a separate contract to direct work to his friend’s business. At a meeting in October 2012, Wright also instructed a contractor to include his friend’s business in a task order proposal and suggested that they include a document to justify the business’s involvement, even though the business had no expertise in the type of work called for under the contract.
NASA’s Office of Inspector General (OIG) opened an investigation into Wright’s conduct. As part of the investigation, on Oct. 23, 2012, three NASA OIG agents interviewed Wright. According to his plea agreement, Wright made a number of false statements during the interview regarding the circumstances surrounding his provision of his resume to the contractor and his pressuring of contractors to use his friend’s company. Wright admitted that he knew that these statements were false when he made them.
Wright faces a maximum penalty of five years in prison for making false statements. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 25, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein thanked NASA OIG for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Thomas M. Sullivan, Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section (PIN), who are prosecuting the case. Chief Kevin Driscoll of the Criminal Division’s Asset Forfeiture Money Laundering Section Policy Unit previously handled the case for the Public Integrity Section.
Former NASA Employee Pleads Guilty to Making False Statements Concerning His Interactions with ContractorsRead the Press Release
A former NASA employee pleaded guilty today to making false statements in connection with an investigation into his interactions with contractors, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and NASA Inspector General Paul K. Martin.
Nathaniel Wright, 55, pleaded guilty before U.S. District Judge Theodore D. Chuang of the District of Maryland. He is scheduled to be sentenced on Jan. 25, 2017.
According to the plea agreement, Wright worked as a NASA employee at Goddard Space Flight Center. In late 2009 and early 2010, while still employed full-time at NASA, Wright also worked as a contract employee for a friend’s small business that performed work for several government agencies. Wright assisted the small business in the preparation and submission of bids to other government agencies.
According to admissions made in connection with his plea agreement, from 2009 through 2012, Wright’s official duties at NASA included significant responsibilities with respect to three contracts, including an $800 million contract, a $450 million contract and a $1.2 billion contract.
Wright admitted that, while working in his official capacity with NASA, he provided his resume to one of the contractors and said that he was looking for a position with their company. Wright suggested that he would wait to consider the contractor’s proposals until a position had been considered. Wright also admitted that he pressed a contractor to use his friend’s business to perform work on a specific task order, even though that businesses had no experience in the area.
Wright further admitted that he pressed additional contractors on a separate contract to direct work to his friend’s business. At a meeting in October 2012, Wright also instructed a contractor to include his friend’s business in a task order proposal and suggested that they include a document to justify the business’s involvement, even though the business had no expertise in the type of work called for under the contract.
NASA’s Office of Inspector General (OIG) opened an investigation into Wright’s conduct. As part of the investigation, on Oct. 23, 2012, three NASA OIG agents interviewed Wright. According to his admissions, Wright made a number of false statements during the interview regarding the circumstances surrounding his provision of his resume to the contractor and his pressuring of contractors to use his friend’s company. Wright admitted that he knew that these statements were false when he made them.
NASA OIG investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland are prosecuting the case. Chief Kevin Driscoll of the Criminal Division’s Asset Forfeiture Money Laundering Section Policy Unit previously handled the case for the Public Integrity Section.
Former Mendon Ballroom Owner Pleads Guilty to False Tax ReturnsRead the Press Release
BOSTON – The former owner of the Myriad Ballroom in Mendon, Mass., pleaded guilty today in U.S. District Court in Worcester to tax fraud charges.
Jon “Eddie” Rouleau, 63, pleaded guilty to Information charging him with one count of intentionally aiding in the preparation of a false tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for January 12, 2017.
Rouleau owned and operated the Myriad Ballroom for decades until he sold the business and property in 2014. Federal agents initiated an investigation in 2013 when Rouleau advertised that the Ballroom was for sale. Rouleau told the agents, who posed as potential buyers, that the annual gross receipts and profits of the Ballroom were significantly greater than reported on the Ballroom’s tax returns, including the gross receipts and profit reported in 2012.
The charging statute provides for a sentence of no greater than three years in prison to be followed by one year of supervised release and a fine of up to $100,000 plus the costs of prosecution. 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 and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of U.S. Attorney Ortiz’s Worcester Branch Office.
Former Financial Advisor Sentenced to 41 Months in Federal Prison for Stealing More Than $1.2 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT N. TRICARICO, 60, formerly of Darien, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 41 months of imprisonment, followed by three years of supervised release, for stealing for than $1.2 million from an elderly client.
Until April 2015, TRICARICO was a registered securities broker with the Financial Industry Regulatory Authority. He was formerly employed or associated with various financial firms, including RNT Wealth Management, Northstar Wealth Partners, LPL Financial, and Wells Fargo Advisors Financial Network.
According to court documents and statements made in court, from January 2010 to June 2013, TRICARICO acted as a financial advisor for an elderly and infirm victim who had substantial assets. TRICARICO misappropriated more than $1.1 million from the victim by writing numerous checks to himself or for his benefit without the victim’s authorization. TRICARICO also liquidated a coin collection belonging to the victim, and he misappropriated checks made payable to the victim. TRICARICO used the stolen funds to make personal expenditures.
TRICARICO also defrauded two additional victims of $20,000 by falsely representing to them that he would use their investments for a business venture and guaranteed a rate of return. In fact, TRICARICO used the victims’ funds for his own personal use.
Judge Shea ordered TRICARICO to pay restitution in the amount of $1,220,763.90.
On June 16, 2016, TRICARICO pleaded guilty to one count of wire fraud.
At the conclusion of today’s sentencing, TRICARICO, who had been released on bond, was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the Greenwich Police Department and Connecticut Department of Banking. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Former Bondsman Pleads Guilty to FraudRead the Press Release
Jackson, Miss – Lance Scott, 46, of Brandon, pled guilty on October 4, 2016, before Senior U.S. District Judge David Bramlette, to an Indictment charging him with mail fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway. Scott is a former bondsman licensed with the Mississippi Department of Insurance who worked in the Hinds, Rankin, and Madison Counties.
During the plea hearing, Scott admitted that he solicited premium payments from individuals that bonded out of jail on fraudulent bonds he created from October 2014 through May 2015. Scott took the money in exchange for submitting fraudulent bonds in Hinds County to have individuals released from jail. These bonds were never secured by American Surety Company, the surety insurer, because Scott failed to notify or send any portion of the premiums to American Surety. Scott submitted approximately $1,085,000 in fraudulent bonds in Hinds County during the scheme.
Scott will be sentenced by Senior United States District Judge David Bramlette on January 10, 2017 at 10:30 am. He faces a maximum penalty of 20 years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Mississippi Insurance Commissioner’s Office. The case is being prosecuted by Assistant United States Attorney Mary Helen Wall.
Former Bank Officer Sentenced for EmbezzlementRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Michael Johnson (56, Odessa) to 18 months in federal prison for embezzlement and misapplication of funds. As part of his sentence, the Court also entered a money judgment in the amount of $152,783, the proceeds of the charged criminal conduct. Johnson was adjudicated guilty on July 8, 2016.
According to the plea agreement and court proceedings, Johnson was employed as a Senior Vice President/Special Assets Officer at American Momentum Bank, an FDIC insured institution that was a member bank of the Federal Home Loan Bank of Dallas. In this capacity, he was responsible for marketing and selling bank-owned properties to investors in order to remove these troubled assets from American Momentum Bank’s balance sheet. Johnson signed the closing documents, including the HUD-1 Settlement Statement, on behalf of American Momentum Bank.
Beginning around June 2012, and continuing through November 2014, Johnson devised a scheme to misapply and embezzle funds provided by American Momentum Bank. After the sale of bank-owned property had been approved by American Momentum Bank, Johnson set up closings with real estate settlement agents. Johnson then contacted the settlement agents and ordered additions and/or changes to the disbursement side of the HUD-1. After closing, funds from American Momentum were misapplied by directing checks to be written or the wiring of funds to bank accounts that were controlled by Johnson’s family members.
This case was investigated by the Unites States Secret Service, the Tampa Police Department, and the Federal Housing Finance Agency – Office of Inspector General. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Flowood Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss – Jonathan Hilliam McDougal, age 34, of Flowood, Mississippi, was sentenced by U.S. District Judge Henry T. Wingate to 28 months in federal prison followed by 3 years of supervised release for possession with intent to distribute cocaine base, commonly referred to as "crack", announced U. S. Attorney Gregory K. Davis and DEA Special Agent in Charge Stephen G. Azzam. McDougal was also ordered to pay a $1500.00 fine.
McDougal was charged as a result of a narcotics investigation dubbed "Operation Jackson Crackdown". He was stopped by the Mississippi Highway Patrol and the Leake County Sheriff’s Department at a safety checkpoint. A search of the vehicle revealed a quantity of crack cocaine concealed in the compartment above the center console.
This case was investigated by the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Leake County Sheriff’s Department and Mississippi Highway Patrol. It was prosecuted by Assistant United States Attorney Erin O. Chalk.
Felon Responsible for Three State Police Chase Sentenced to 71 Months Imprisonment on Firearm ChargeRead the Press Release
Contact Person: Jamie Scoen (864) 282-2100
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Mark Anthony Stone, age 32, of Rabun, Georgia was sentenced today in federal court in Anderson, South Carolina, for one count of Felon in Possession of a Firearm, a violation of 18 U.S.C. § 922(g). United States District Judge Timothy M. Cain of Anderson sentenced Stone to seventy-one months imprisonment, three years of supervised release, and a one-hundred dollar special assessment.
Evidence presented at the change of plea hearing established that on June 29, 2015, Macon County, Georgia law enforcement officers attempted to pull Stone over for speeding. Stone fled from police, beginning a chase through Georgia, North Carolina, and South Carolina, jeopardizing the lives of members of law enforcement and the public. Stone was eventually arrested in Oconee County, South Carolina, where he fled from officers on foot. Inside Stone’s vehicle, officers found a loaded .22 caliber rifle with a round in the chamber. Due to Stone’s prior convictions, including burglaries and aggravated assault, Stone was prohibited from carrying firearms at the time of his arrest.The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Macon County, Georgia Sheriff’s Office; the Rabun County, Georgia Sheriff’s Office; Highland, North Carolina Police Department; and the Oconee County Sheriff’s Office. Assistant United States Attorney Jamie Schoen of the Greenville office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Federal Indictments Charge 80 Defendants in Alleged Racketeering Conspiracy at Maryland’s Eastern Correctional InstitutionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted 80 defendants in two separate indictments for a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. The indictments charge 18 correctional officers (COs), 35 inmates and 27 outside “facilitators,” for their roles in the conspiracy, which allegedly involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The indictments were returned on September 29, 2016, and unsealed today.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Prison corruption is a longstanding, deeply-rooted systemic problem that can only be solved by a combination of criminal prosecutions and policy changes,” said U.S. Attorney Rod J. Rosenstein. “We will continue to work closely with state officials to prosecute correctional officers who bring cell phones, drugs and other contraband into correctional facilities, and to propose appropriate changes in prison policies and practices.”
“Few things threaten our society more than public servants who betray their oath for personal gain,” said Special Agent in Charge Gordon B. Johnson of the FBI's Baltimore Division. “It was extremely courageous of the Maryland Department of Public Safety and Correctional Services to allow the access required to conduct this type of investigation. The state of Maryland and the FBI together have made this community safer.”
“After taking office last year, I assigned eight investigators to work directly with the federal agencies to root out corruption, which is my chief priority,” said Maryland Department of Public Safety and Correctional Services Secretary Stephen T. Moyer. “Today’s actions, which are a result of the extraordinary partnership of the DPSCS Investigative Unit, the FBI, and our other state and federal partners, send a strong message that we will no longer tolerate corruption committed by a few tarnishing the good work of our 10,500 dedicated and committed department employees.”
“Today’s arrests by Postal Inspectors and our law enforcement partners serve as a warning to street criminals and corrupt public servants that the nation’s mail system is not a tool for use by those who traffic in drugs and illegal contraband,” said Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division. “We are committed to safeguarding the interests of law abiding citizens and our Postal Service employees by working to eliminate these dangerous substances from the U.S. mail.”
According to the indictments, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. The East and West Compounds are further divided into Housing Units, 1 through 4 in the West and 5 through 8 in the East.
The first indictment covers the West Compound at ECI and charges a total of 39 defendants, including nine COs, 17 ECI inmates, and 13 outside suppliers or “facilitators.” The second indictment covers the East Compound at ECI and charges a total of 41 defendants, including nine COs, 18 ECI inmates and 14 facilitators.
The indictments allege that the COs accepted payments from facilitators and/or inmates, or engaged in sexual relations with inmates, to smuggle contraband into ECI, including narcotics, cell phones and tobacco. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and some COs charged less. According to the indictments, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI. Inmates also received payments from other inmates for contraband through PayPal, often with the assistance of facilitators.
The indictments allege that the defendants conspired to smuggle and traffic in narcotics within ECI, including heroin, cocaine, MDMA, commonly referred to as “molly” or ecstasy, buprenorphine, commonly referred to as “Suboxone,” a prescription opioid used to treat heroin addiction, marijuana and synthetic cannabinoids (otherwise known as “K2”), and other contraband, including cell phones, pornographic videos and tobacco, in order to expand their criminal operations. The profits made by the inmates by selling contraband in the prison far exceeded the profits that could be made by selling similar items on the street. For example, defendant inmates could purchase Suboxone strips for $3 each and sell them inside ECI for $50 each, a profit of more than 15 times the purchase price.
According to the indictments, although COs and other ECI employees were required to pass through security screening at the entrance to ECI, defendant COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerk’s offices, which were private offices within each housing unit where an inmate clerk worked; the officer’s dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms and other places where contraband could be hidden and then later retrieved by inmates. The indictment alleges that defendant inmates who had jobs that allowed them to move throughout the housing unit and elsewhere in the prison, commonly referred to as “working men,” took orders for contraband from inmates, provided orders to corrupt COs and delivered contraband to inmates. The affidavits filed in support of the search warrants discuss an inmate who admitted paying COs $3,000 per week to smuggle. According to the West indictment, another inmate said he aimed to make $50,000 before he was released.
The defendants allegedly used cell phones to communicate with one another and coordinate contraband smuggling and trafficking activities and some shared a “dirty” phone among themselves for contraband smuggling purposes. According to court documents, the conspirators rented post office boxes to send drugs and bribe payments to the COs.
The indictment alleges that COs warned inmates when the prison administration was planning cell searches so that the inmates could hide contraband or pass it to other inmates whose cells were not being searched. The COs also monitored inmates to determine if they were providing information to the prison administration about contraband smuggling. When the COs learned that inmates were providing information to the prison administration, they would allegedly try to prevent them from doing so or would alert defendant inmates so that they could retaliate against these inmates, sometimes violently.
According to the indictment, defendants used violence to obtain contraband once it was smuggled into the facility, to ensure that contraband paid for by an inmate was delivered to that inmate, and to retaliate against inmates that provided information, or attempted to provide information, to the prison administration about corrupt COs and contraband smuggling, or that otherwise interfered with their contraband trafficking activities. For example, the West Compound indictment alleges that an inmate was stabbed at the direction of a defendant CO after the inmate filed a complaint against the CO which caused the CO to be removed from the housing unit. At the time of his removal, the CO owed several inmates contraband that he had been bribed to smuggle into ECI.
Each defendant faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and for conspiracy to distribute and possess with intent to distribute drugs. Two correctional officers and two inmates charged in the indictment covering the West Compound at ECI also face a maximum of 10 years in prison for deprivation of rights under color of law for allegedly participating in the stabbing of two inmates in separate incidents. Initial appearances for the correctional officers and facilitators arrested today are being held in U.S. District Court in Baltimore. The inmates charged in the indictments will have initial appearances at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. The state/federal coordination was on display on October 5, 2016 when the execution of dozens of federal search warrants coincided with the simultaneous searches of cells of the more than 30 inmate defendants, some of whom are no longer at ECI.
U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the and other agencies who assisted in this investigation and prosecution, including: United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Maryland Attorney General Brian E. Frosh; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; Somerset County Sheriff Ronald Howard; Queen Anne’s County Sheriff Gary Hofmann; Wicomico County Sheriff Michael A. Lewis; Worcester County Sheriff Reggie T. Mason, Sr.; Salisbury Police Chief Barbara Duncan; Commissioner Kevin Davis of the Baltimore Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Somerset County State’s Attorney Dan Powell; Wicomico County State’s Attorney Matthew Maciarello; Worcester County State’s Attorney Beau Oglesby; Baltimore City State’s Attorney Marilyn Mosby; Anne Arundel County State’s Attorney Wes Adams; and the Wicomico, Somerset, Queen Anne’s and Worcester County Narcotics Task Forces.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
West Compound Indictment
Correctional Officers: Aaron Bohl, age 34, of Parksley, Virginia; Rozlyn Bratten, age 31, of Snow Hill, Maryland; Rachelle Hankerson, age 26, of Salisbury, Maryland; David Hearn, age 54, of Eden, Maryland; Xavier Holden, age 27, of Salisbury; Jesse James Jones, age 27, of Delmar, Maryland; Thomas Leimbach, age 32, of Pocomoke City, Maryland; Kimberly Rayfield, age 37, of Crisfield, Maryland; and
Stephen Wise, age 34, of Pocomoke, Maryland.Inmates: Mohammed Akram, age 34; Aaron Bell, age 34; Shawn Benbow, age 33; David Bond, age 30; Joseph Branch, age 35; Robert Costen, age 35; Michael Counts, age 37; Travis Gie, age 24; Jamar Hutt, age 27; Samuel Johnson, age 36; Troy Johnson, age 37; Demario King, age 37; Mark Lance, age 36; Michael Page, age 35; Ternell Lucas, age 42; Shawn Sullivan, age 41; Kevin Stanley, age 36.
Facilitators: Reggie Fosque, age 26, of Princess Anne, Maryland; Cammay Gray, age 31, of Los Angeles, California; Chastity Harmon, age 40, of Princess Anne; Leondrus Higgins, age 29, of Salisbury, Maryland; Deonya Johnson, age 34, of Baltimore; Terrell King, age 23, of Chestertown, Maryland; Markayla Reynolds, age 23, of Salisbury; Chavia Savage, age 23, of Salisbury and Baltimore; Ronald Stewart, age 33, of Baltimore; Tyeacha Thomas Counts, age 34, of Columbia, Maryland; Kevin Thompson, age 37, of Baltimore; Trina Williams Johnson, age 44, of Baltimore; and
Angel Whittington, age 35, of Salisbury.East Compound Indictment
Correctional Officers: Sherima Bell, age 37, of Pocomoke, Maryland; Erin Burfield, age 32, of Salisbury, Maryland; Jocelyn Byrd, age 39, of Salisbury; Erica Cook, age 32, of Snow Hill, Maryland; Travis Dennis, age 27, of Pittsville, Maryland; Aaron Ennis, age 35, of Hebron, Maryland; Dnte Harris, age 26, of Kennisburg, Colorado; Jessica Vennie, age 27, of Crowley, Texas; and
Robert Waters, age 32, of Salisbury.Inmates: Michael Andrews, age 27; Artie Bailey, age 31; Orlando Bowen, age 25; Jamar Butler, age 33; *Ramel Chase, age 34, of Glen Burnie, Maryland; Alexander Crippen, age 42; Maurice Fox, age 36; Stewart Gough, age 38; Darian Holmes, age 38; Marty Imes, age 35; Reginald Johnson, age 37; Zachary Martin, age 36; Devon Matos, age 33; Vincent Middleton, age 31; Michael Null, age 31; Sean Smith, age 25; Darrell Timms, age 32; and
Alvin Williams, age 35.Facilitators: Keisha Barksdale, age 30, of Baltimore, Maryland; Eugene Bowen, age 51, of Salisbury, Maryland; Nicole Carpenter, age 29, of Denton, Maryland; Katrina Crippen, age 38, of Ft. Washington, Maryland; Darren Dale, age 29, of Salisbury, Maryland; Antoine Gray, age 44, of Ft. Washington, Maryland; Elvia Hall, age 46, of Baltimore, Maryland; Marcus Lisbon, age 37, of Brooklyn, Maryland; Miguel Matos, age 46, of Ft. Washington, Maryland; Samantha Oliver, age 28, of Baltimore, Maryland; **Apryl Robinson, age 32, of Baltimore, Maryland; Rahman Shabazz, age 50, of New York, New York; Rose Thomas, age 56, of Brooklyn, Maryland; and
Dameshia Vennie, age 34, of West Palm Beach, Florida.* recently released
**a former correctional officer who served with DPSCS from 2004 to 2007Federal Indictment Charges Seth Pickering with First Degree MurderRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Asheville has returned a criminal indictment against Seth Pickering, charging him with one count of first degree murder for allegedly killing his daughter, Lila Pickering. Seth Pickering, 36, of Leicester, N.C. was arrested on state charges on September 9, 2016 for Lila Pickering’s murder. On September 13, 2016, a criminal complaint was filed by the U.S. Attorney’s Office, bringing federal charges against Seth Pickering in connection with Lila Pickering’s death.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Sheriff Van Duncan of the Buncombe County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
The criminal bill of indictment alleges that on September 9, 2016, Seth Pickering did unlawfully kill a human being within the boundaries of the Blue Ridge Parkway, that person being his daughter, Lila Pickering, who had not attained the age of 18 years and was under his care and control. The indictment further alleges that Seth Pickering killed Lila Pickering willfully, deliberately, maliciously and with premeditation, and in the perpetration of child abuse, that being knowingly and intentionally causing death and bodily injury to a child.
Seth Pickering is currently in federal custody. He is scheduled to appear in federal court today. The penalty for first-degree murder is life in prison or death. The indictment includes a Notice of Special Sentencing Factors which could permit the United States to seek the death penalty. The Department of Justice has not yet announced whether it will seek the death penalty.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the FBI, the National Park Service and the Buncombe County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorneys Don Gast and David Thorneloe of the U.S. Attorney’s Office in Asheville are prosecuting the case.
Federal Grand Jury Indicts Gonzales District Fire Chief on Child Pornography ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging KRISTOPHER JOHNSON, age 36, of Gonzales, Louisiana, with distributing and possessing child pornography in an ongoing investigation.
According to the Indictment, JOHNSON distributed child pornography via text messages on four different occasions between November 6 and 7, 2015. The Indictment further alleges that JOHNSON possessed child pornography which contained images of pre-pubescent minors and minors who were under 12 years of age.
This matter is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (DHS-HSI) and the Cyber Crime Unit of the Louisiana Attorney General’s Office, with assistance from the Ascension Parish Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan R. Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Downtown Newark Heroin and Oxycodone Dealer Gets 65 Months in Prison for Drug Distribution Conspiracy, Firearms OffensesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 65 months in prison for distributing large quantities of heroin and oxycodone in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.
Lamont Vaughn a/k/a “Mont,” a/k/a “True V,” 33, previously pleaded guilty before U.S. District Judge Jose L. Linares to Count One and Count Fourteen of an indictment charging him with conspiracy to distribute 100 grams or more of heroin and oxycodone and being a felon in possession of a firearm. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between August 2012 and August 7, 2013, Vaughn conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Over the course of the conspiracy, Vaughn and others sold drugs out of Ballas Boutique to a confidential source more than 35 times. The majority of the sales were audio and video recorded.
Additionally, law enforcement intercepted conversations of Vaughn and his conspirators pursuant to court orders. The intercepted conversations revealed that Vaughn had multiple employees who sold drugs for him at Ballas Boutique. The intercepted conversations further revealed that Vaughn had multiple, established sources of supply for heroin and oxycodone.
On August 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn’s home in Newark. When law enforcement officers announced their presence and entered Vaughn’s home, they found Vaughn attempting to flush drugs down the toilet. Among the items recovered from Vaughn’s bedroom were dozens of oxycodone pills, two firearms, and a large amount of cash.
In addition to the prison term, Judge Linares sentenced Vaughn to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the N.J. State Police Street Gangs North Unit with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Margaret Ann Mahoney and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lamont Vaughn, Pro Se
Department of Justice Awards $9.85 Million to Identify and Prevent Gender Bias in PolicingRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department’s Office on Violence Against Women (OVW) and Office for Victims of Crime (OVC) have awarded a total of 10 grants worth $9.85 million to various national and local organizations that will use the funding to implement the department’s Guidance on Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence.
The department’s guidance reflects input from a wide array of stakeholders and experts, including police leaders, victim advocates and civil rights advocates. The guidance intends to both examine how gender bias can undermine law enforcement’s response to sexual assault and domestic violence, as well as provide key principles to help ensure that gender bias does not impede efforts to keep victims safe and hold offenders accountable. Law enforcement agencies are encouraged to incorporate the guidance into clear policies, comprehensive training and effective supervision protocols.
The ten grant awards announced today will provide enhanced training and technical assistance nationally, support research and evaluation and provide resources to law enforcement agencies to implement the guidance.
Technical Assistance Awards:
- OVW award to International Association of Chiefs of Police (IACP), $599,742: IACP, in partnership with Futures Without Violence, will implement the Technical Assistance Initiative to Prevent Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence. This project is designed to provide national technical assistance in order to build law enforcement capacity through trainings, highlighting promising practices and developing assessment tools and additional resources to assist local law enforcement agencies in implementing the guidance.
- OVW award to Police Executive Research Forum (PERF), $599,983: PERF, in partnership with End Violence Against Women International with the support of expert practitioners, will provide training and technical assistance to up to five law enforcement agencies and their partner advocacy organizations in implementing the principles identified in the department’s guidance. The project will also develop and disseminate a guidebook to help other law enforcement agencies implement the guidance.
- OVW award to End Violence Against Women International (EVAWI), $450,000: EVAWI will provide training and technical assistance for law enforcement on identifying and preventing gender bias, with a focus on sexual assault cases. The target audience for this project includes grantees and potential grantees of the Improving Criminal Justice Responses (ICJR) Grant Program, the Rural Grant Program, the STOP Violence Against Women Formula Grants Program, and the Grants to Tribal Governments Program.
OVC Demonstration Initiative Award to IACP, $5 million: With this award, IACP will lead the Identifying and Preventing Gender Bias in Law Enforcement Response to Victims Demonstration Initiative. The overall goal of this initiative is to build law enforcement’s capacity to develop sustainable strategies to address and eliminate the impact of gender bias on police response to, and investigation of, sexual and domestic violence; and implement agency-wide procedures that are trauma-informed and victim-centered. IACP, in collaboration with the National Crime Victims Law Institute and federal partners, will competitively select, provide oversight and manage awards for up to six demonstration sites to implement the department’s guidance and improve services to sexual assault and domestic violence victims, including underserved populations. The National Institute of Justice will assist in developing the evaluation plan and research model for the demonstration initiative.
OVW Research Award to Sam Houston State University, Texas, $393,049: The team will evaluate a training program based on the department’s guidance for all sworn law enforcement personnel in an urban police department.
OVW Improving Criminal Justice Response Awards: Five grantees under OVW’s Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence and Stalking Grant Program identified plans to integrate the principles outlined in the department’s guidance as part of the implementation of their grant project: the city of Salem, Massachusetts, $450,000; St. Louis County, Missouri, $750,000; the YMCA of Greater Cincinnati, Ohio, $450,000; the South Dakota Office of the Attorney General, $750,000; and Human Options, California, $450,000.
Attorney General Lynch made this announcement during a Town Hall at Howard University with youth and law enforcement on increasing diversity in policing and building trust, as part of National Community Policing Week, which President Obama designated as Oct. 2 through 8, 2016, in a proclamation issued on Friday, Sept. 30. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report. As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice is leading nearly 400 events in support of community policing efforts around the country.
For more information, please visit National Community Policing Week or the Attorney General’s Community Policing Tour.
***The information regarding the grant awards was revised on Oct. 28, 2016, to reflect an additional award that had been made.
Deming Man Sentenced to 13 Years for Conviction on Meth Trafficking and Witness Tampering ChargesRead the Press Release
ALBUQUERQUE – Ramiro Trevizo-Granillo, 34, of Deming, N.M., was sentenced on Oct. 3, 2016, in federal court in Las Cruces, N.M., to 156 months in prison followed by three years of supervised release for trafficking in methamphetamine and conspiring to tamper with a witness.
Trevizo-Granillo was arrested on July 30, 2015, on a criminal complaint charging him with participating in a methamphetamine trafficking conspiracy and conspiracy to tamper with a witness. According to the complaint, Trevizo-Granillo provided an individual with 30 grams of methamphetamine on July 4, 2014, with the understanding that the purchaser would be selling the drugs to others. While Trevizo-Granillo was detained on the methamphetamine distribution charge, he engaged in a recorded telephone conversation with another person during which he discussed a scheme to prevent a witness from testifying against him.
Trevizo-Granillo was subsequently indicted on Oct. 15, 2015, and charged with participating in a methamphetamine distribution conspiracy on July 4, 2014, in Luna County, N.M., and conspiracy to tamper with a witness on July 4, 2015.
On May 18, 2016, Trevizo-Granillo pled guilty to the indictment and admitted that on July 4, 2014, he sold 30 grams of methamphetamine to another person. Trevizo-Granillo further admitted that on July 5, 2015, he had a conversation with a friend about making a cooperator involved in his case “disappear” so the cooperator would not testify against him.
This case was investigated by the Deming office of Homeland Security Investigations and the Deming Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Deming Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Andy Garcia, Jr., 43, of Deming, N.M., pled guilty yesterday in federal court in Las Cruces, N.M. to a methamphetamine trafficking charge. Under the terms of his plea agreement, Andy Garcia will be sentenced to ten years in prison followed by a term of supervised release to be determined by the court.
Andy Garcia was charged together with co-defendants Leslie Frank Williams, 52, and Domingo Rodriguez, 46, both of Deming, Oscar Garcia, 46, of Okla., and Estella Aguilar, 44, of Tucson, Ariz., in a nine-count indictment filed on April 21, 2016. The indictment alleged that the five co-defendants conspired to distribute methamphetamine from July 2015 through April 2016. It also charged Williams with distributing methamphetamine on four occasions between Jan 2015 and Sept. 2015; Williams and Rodriguez with distributing methamphetamine in Nov. 2015; and Rodriguez, Oscar Garcia and Andy Garcia with possessing methamphetamine with intent to distribute in Jan. 2016. The indictment charged Rodriguez, Oscar Garcia and Aguilar with conspiring to commit money laundering offenses in Feb. 10, 2016; and Aguilar with money laundering on Feb. 10, 2016. According to the indictment, the crimes took place in Luna County, N.M. The indictment included forfeiture allegations requiring the co-defendants to forfeit $1,000,000 to the United States.
During yesterday’s proceedings, Andy Garcia pled guilty to a felony information charging him with conspiracy to distribute methamphetamine. In entering the guilty plea, Andy Garcia admitted that on Jan. 4, 2016, he traveled by bus from Deming to California to pick up two pounds of methamphetamine. He further admitted that on Jan. 6, 2016, law enforcement agents seized his bag, which contained the methamphetamine while he was on the bus returning to Deming. Andy Garcia remains in custody pending a sentencing hearing, which has yet to be scheduled.
Rodriguez previously entered a guilty plea on Sept. 13, 2016, and Williams entered a guilty plea on Sept. 20, 2016. Sentencing hearings have yet to be scheduled. The remaining two co-defendants have entered pleas of not guilty to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Luna County Sheriff’s Office. Assistant U.S. Attorneys Mark A. Saltman and Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Delaware Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
A Wilmington, Delaware, man pleaded guilty today to one count of distribution of child pornography for his membership in a website dedicated to the sexual exploitation of children, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
Roy Harvender Jr., 59, pleaded guilty before U.S. District Court Judge Leonard P. Stark of the District of Delaware. Sentencing has been scheduled for Feb. 1, 2017.
According to admissions made in connection with the plea agreement, the FBI identified Harvender during the investigation of an online bulletin board whose primary purpose was the advertisement and distribution of child pornography. This website had a total of over 105,000 users and required its members to continually share child pornography in order to gain and keep membership.
Harvender admitted that he was an active member of this website for a period of several months in 2014 and made approximately 190 postings to the board, including images and videos of child pornography and links to images and videos of child pornography. After identifying Harvender, agents executed a search warrant at his residence and found images of child pornography on electronic devices they seized. Harvender was interviewed by FBI agents and admitted that he uploaded child pornography images to other users of the website and that he owned the devices that contained child pornography.
The FBI’s Baltimore Division investigated the case. Trial Attorney Herbrina D. Sanders of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware are prosecuting the case.
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 U.S. Attorneys’ Offices and 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.justice.gov/psc.
Court Shuts Down Mississippi Tax Return PreparerRead the Press Release
Today a federal court in Jackson, Mississippi permanently barred Christopher Chamberlin from preparing federal tax returns for others. In addition to enjoining Chamberlin from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered Chamberlin to deliver a copy of the injunction to all customers for whom he prepared a return after Jan. 1, 2014, and deliver a list of those customers to the United States. The court also ordered Chamberlin to turn over copies of all returns he prepared since Jan. 1, 2014, to the United States.
On April 8, the government filed suit against Chamberlin and alleged that he prepared federal income tax returns for customers that claimed fabricated business losses for customers who did not have a business and fictitious losses from farming businesses for customers who did not own farms. The government alleged that Chamberlin reported the fictitious losses and expenses to generate and/or increase the Earned Income Tax Credit or to create a larger refund than his customers otherwise would have been able to claim.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Court Shuts Down Mississippi Tax Return PreparerRead the Press Release
WASHINGTON – Today a federal court in Jackson, Mississippi permanently barred Christopher Chamberlin from preparing federal tax returns for others. In addition to enjoining Chamberlin from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered Chamberlin to deliver a copy of the injunction to all customers for whom he prepared a return after Jan. 1, 2014, and deliver a list of those customers to the United States. The court also ordered Chamberlin to turn over copies of all returns he prepared since Jan. 1, 2014, to the United States.
On April 8, the government filed suit against Chamberlin and alleged that he prepared federal income tax returns for customers that claimed fabricated business losses for customers who did not have a business and fictitious losses from farming businesses for customers who did not own farms. The government alleged that Chamberlin reported the fictitious losses and expenses to generate and/or increase the Earned Income Tax Credit or to create a larger refund than his customers otherwise would have been able to claim.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Company Pays $1 Million for Concealing Violation of the Clean Water ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHAMPION ES HOLDINGS, INC., (CHAMPION), a Texas corporation, pled guilty today before the Honorable Susie Morgan to a one-count Bill of Information for misprision of a felony, and was sentenced to a one-year term of probation and ordered to pay a $1 million fine and a $250,000 community service payment to the Barataria-Terrebonne Estuary Foundation.
According to court documents, on or about February 23, 2010, CHAMPION’s former affiliate, Champion Technologies, Inc., entered into a Master Service Agreement with the facility operator of the Innovator, an offshore oil and gas production facility that was located 80 miles south of Empire, Louisiana, to provide chemical management services. Between October 2010 and March 2012, CHAMPION, however, failed to report to law enforcement its knowledge that the Innovator’s operator was violating the National Pollutant Discharge Elimination System General Permit No. 290000 by discharging one of the chemicals CHAMPION sold it into the Gulf of Mexico to hide oil sheens. Despite the fact that CHAMPION knew the facility operator was discharging the chemical, known as Cleartron ZB-103, into the Gulf of Mexico to use as a dispersant to hide oil sheens, it nevertheless continued to supply Cleartron ZB-103 to the operator. Between October 2010 and March 2012, production foremen on the Innovator ordered a total of 4,025 gallons of Cleartron ZB-103 from CHAMPION that was injected into the produced water piping past the floatcell of the production facility and used as a dispersant to hide oil sheens from the produced water coming from the Innovator.
As part of its plea agreement, CHAMPION agreed to discontinue the sale of Cleartron ZB-103 and to provide offshore personnel with training on the Clean Water Act and its restrictions governing the use of dispersants and surfactants on offshore oil and gas platforms.
U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and Department of Interior-OIG in investigating this matter. Assistant United States Attorney Emily K. Greenfield of the National Security Unit was in charge of the prosecution.
Columbus Division of Police Officers to Receive U.S. Attorney General’s Award for Distinguished Service in Community PolicingRead the Press Release
WASHINGTON – Lawrence E. Geis and Scott B. Clinger with the Columbus Division of Police in Ohio will receive the U.S. Attorney General’s Award for Distinguished Service in Community Policing for innovations in community policing.
Community Liaison Officers Clinger and Geis are being recognized for their work in innovations in community policing. The officers have worked diligently to address residents’ and business owners’ concerns regarding a rash of criminal activity and their success has led to an examination of several problem hotels and businesses in Columbus. The officers were instrumental in the adoption of a new city ordinance establishing safety rules for hotels and motels. As a result, crime and calls for service at hotels and motels have decreased significantly.
“The work by these two Columbus Police officers demonstrates the impact effective community policing can have on a community,” Acting U.S. Attorney Benjamin C. Glassman said. “These officers are two of only 12 officers nationwide to receive this recognition from Attorney General Lynch.”
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local, or tribal sworn police officers and deputies for exceptional efforts in community policing. The winning officer(s) or deputy and/or deputies have demonstrated active engagement with the community in one of three areas: 1) Innovations in Community Policing; 2) Criminal Investigations; or 3) Field Operations. The ceremony will be livestreamed through the Department of Justice website at www.justice.gov.
WHAT: U.S. Attorney General’s Award for Distinguished Service in Community Policing Awards Ceremony
WHO: Attorney General Loretta Lynch
WHEN: Thursday, October 6, 2016
2:00 p.m. EDT
WHERE: United States Department of Justice
Great Hall
950 Pennsylvania Avenue, NW
Washington, DC 20530
Chinese National Sentenced to Prison for Conspiracy to Steal Trade SecretsRead the Press Release
Mo Hailong, a/k/a Robert Mo, 46, a Chinese national, was sentenced to 36 months in prison for conspiracy to steal trade secrets. Mo Hailong was also ordered to serve three years of supervised release following his term of imprisonment and was ordered to pay restitution in an amount to be determined at a later date. In addition, the Court ordered the forfeiture of two farms in Iowa and Illinois that were purchased and utilized by Mo Hailong and others during the course of the conspiracy. Mo Hailong is a Chinese national who became a lawful permanent resident of the United States.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Kevin E. VanderSchel. The sentence was issued by U.S. District Judge Stephanie M. Rose.
During the course of the conspiracy, Mo Hailong was employed as the Director of International Business of the Beijing Dabeinong Technology Group Company, commonly referred to as DBN. DBN is a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed.
According to the plea agreement entered on January 27, Mo Hailong admitted to participating in a long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Mo Hailong participated in the theft of inbred corn seeds from fields in the Southern District of Iowa and elsewhere for the purpose of transporting the seeds to DBN in China. The stolen inbred, or parent, seeds were the valuable trade secrets of DuPont Pioneer and Monsanto.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto were fully cooperative throughout the investigation.
“Mo Hailong stole valuable proprietary information in the form of seed corn from DuPont Pioneer and Monsanto in an effort to transport such trade secrets to China. Theft of trade secrets is a serious federal crime, as it harms victim companies that have invested millions of dollars and years of work toward the development of propriety technology. The theft of agricultural trade secrets, and other intellectual property, poses a grave threat to our national economic security,” said U.S. Attorney Kevin E. VanderSchel. “The Justice Department and federal law enforcement partners are committed to prosecuting those who in engage in conduct such as Mo Hailong.”
This matter was investigated by the FBI. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section, with assistance from the Computer Crime and Intellectual Property Section.
Chattanooga Police Department Recognized in Newly Released Justice Department and Equal Employment Opportunity Commission Advancing Diversity in Law Enforcement ReportRead the Press Release
CHATTANOOGA, Tenn. – The Justice Department and the Equal Employment Opportunity Commission (EEOC) released a comprehensive report today that examines barriers and promising practices – in recruitment, hiring and retention – for advancing diversity in law enforcement. The report, developed with support from the Center for Policing Equity, aims to provide law enforcement agencies, especially small and mid-size agencies, with a resource to enhance the diversity of their workforce by highlighting specific strategies and efforts in place in police departments around the country.
The Chattanooga Police Department was recognized for its retention efforts, using community partnerships and stakeholder engagement to help retain officers of color and women by better understanding the unique challenges they face in the profession. By partnering with stakeholders outside of the agency just as they do in recruitment, law enforcement agencies can diagnose the barriers in their practices, policies, or systems that too often prevent or discourage officers from staying on the job. Such partnerships allow the agency to take a holistic and comprehensive approach to diversity, often drawing connections and replicating outreach efforts in retention that they use in recruitment. By demonstrating that the law enforcement agency is invested in, and connected with the community, it can help improve public trust and allow officers to view their jobs as a meaningful and honorable long-term career.
The Chattanooga Police Department uses its Recruiting, Engagement, Selection, Transfer, Assignment, and Retention Team (RESTART) to bring together community members, academics, officers, command staff, union officials, and human resource professionals to “ensure equity and aggressively support diversity” in a range of practices, including those related to retention, assignment, and transfer practices. Through this effort, the department is currently in the process of reforming its promotion standards.
The department and EEOC engaged with dozens of law enforcement leaders, officials and officers; researchers; civil rights advocates and other experts to produce the report. The report, which builds on the recommendations of the President’s Task Force on 21st Century Policing, notes that while greater workforce diversity alone cannot ensure fair and effective policing, a significant – and growing – body of evidence suggests that diversity can make policing more effective, more safe and more just. For example, among other benefits, increasing diversity can improve relations with the communities the agencies serve, address language barriers to serve all residents, make agencies more open to reform and potentially reduce racial bias.
The promising practices highlighted in this report vary considerably. The report demonstrates, however, that successful diversity-building efforts by law enforcement agencies share several common themes, including:
- ensuring that the agency’s organizational culture is guided by community policing, procedural justice and cultural inclusivity;
- engaging stakeholders – both from within and outside the law enforcement agency – to help create a workforce that reflects the diversity of the community; and
- being willing to re-evaluate employment criteria, standards and benchmarks to ensure that they are tailored to the skills needed to perform job functions and consequently attract, select and retain the most qualified and desirable sworn officers.
The entire report is available through the following link: www.justice.gov/crt/case-document/file/900761/download.
From October to December, the department and the EEOC will continue engaging with law enforcement by partnering with U.S. Attorneys around the country to host “Diversity Dialogues” in Madison, Wisconsin; Savannah, Georgia; and San Francisco. These sessions will facilitate working-group discussions with local law enforcement agencies about how to address the barriers and implement the promising practices outlined in the report. Members of law enforcement who would like to learn more about the Advancing Diversity in Law Enforcement initiative or the Diversity Dialogues, should email [email protected].
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Businessman Convicted of Fraud and Money Laundering Involving $1.2 Million School Construction ContractRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that NATHIAN D. HOSSLEY, age 50, of Baton Rouge, has been convicted of wire fraud and money laundering in connection with a contract worth over $1.2 million that his construction company entered to build a charter school in Baker, Louisiana. His sentencing date has not yet been set.
This morning, HOSSLEY plead guilty before U.S. District Judge John W. deGravelles to multiple counts of wire fraud and money laundering. These convictions arose from HOSSLEY’s ownership and operation of First Millennium Construction (“First Millennium”), a local commercial construction company headquartered in Baton Rouge, and Spice Bistro, a local restaurant that HOSSLEY co-owned.
During the guilty plea hearing, HOSSLEY admitted to a factual summary which detailed his crimes. According to that summary, HOSSLEY submitted a bid to Bouma Construction (“Bouma”) for First Millennium to work as a subcontractor on construction of the Impact Charter School in Baker, Louisiana, in 2014. During the bidding process, HOSSLEY submitted an application for the job (called a “Qualification Statement”) to Bouma in which he represented that he had never been indicted or convicted of a crime, when, in fact, he had multiple federal convictions for wire fraud, bank fraud, conspiracy to commit bank fraud, and providing a false statement in connection with a bank loan. HOSSLEY also represented that there were no civil matters pending in which he was involved, when, in fact, he was in civil litigation with a former business partner.
Bouma ultimately hired First Millennium for the Impact Charter School project and the companies entered into a contract for $1,221,163.00. Bouma’s payments to First Millennium were to be made in installments. The payment arrangement between the HOSSLEY’s company and Bouma required that HOSSLEY submit a payment application each time he wanted a new installment payment. HOSSLEY submitted multiple payment applications to Bouma which falsely understated or omitted money owed to certain sub-subcontractors or vendors he had hired to work on the job. Because of this, HOSSLEY was able to conceal from Bouma that he was using money paid to him by Bouma for the project on personal expenditures such as American Express card bills, cash withdrawals, and money transfers to a restaurant he had recently opened and co-owned, called Spice Bistro.
Then, in October of 2014, HOSSLEY contacted an executive with Bouma and told him that four sub-subcontractors which HOSSLEY had hired to assist him on the Impact Charter School project needed to immediately be paid $96,125, collectively. Because Bouma had already paid First Millennium over $849,000 on the project, the executive insisted that the payments be issued as joint checks to First Millennium and each individual sub-subcontractor. He additionally insisted that HOSSLEY obtain lien waivers and signed “Joint Check Agreements” from the four sub-subcontractors. HOSSLEY agreed to this arrangement, but rather than obtaining the signatures of the four sub-subcontractors on these documents, he and one of his employees forged the signatures on the documents themselves, including the endorsements on the joint checks. HOSSLEY then caused the checks to be deposited into First Millennium’s bank account.
After the checks were deposited into First Millennium’s bank account, HOSSLEY made a $29,474.34 payment on his American Express card from the First Millennium bank account, and then, on October 30, 2014, he made a $22,000 transfer of funds from the First Millennium bank account to the bank account of his restaurant, Spice Bistro. The total of these two transactions exceeded the amount of money in the account previous to the deposit of the four joint checks by over $10,000. These transactions formed the basis of HOSSLEY’s money laundering conviction.
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell, Rene Salomon, and Cal Leipold.
Baton Rouge Man Indicted for Spree of Armed RobberiesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against KEITH MIGUAL WILLIAMS, age 45, of Baton Rouge, Louisiana. The indictment charges WILLIAMS with six counts of violating the Hobbs Act, Title 18, United States Code, Section 1951(a), and three counts of using, carrying, and brandishing a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
The Indictment alleges that on six different occasions in an eleven-day period, from July 28, 2016 to August 7, 2016, WILLIAMS robbed Baton Rouge convenience stores, specifically, Circle K convenience stores located at 10221 Coursey Boulevard, 7475 Jefferson Highway, and 5313 Nicholson Drive; a Walgreens located at 4485 Perkins Road; and a Cracker Barrel located at 9530 Hooper Road. The Indictment further alleges that WILLIAMS used a firearm to commit three of these robberies, and mace in a fourth. In the course of these robberies, WILLIAMS allegedly stole cash and merchandise.
This matter is being investigated by the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Cal Leipold.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Aryan Brotherhood Member Convicted of Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Michael Wilson (43, New Port Richey), also known as “Moon Lake Mike,” guilty of possessing a firearm and ammunition as a convicted felon. Wilson faces a minimum mandatory sentence of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 12, 2017. Wilson was indicted on July 26, 2016.
According to evidence presented at trial, on December 11, 2015, the Pasco County Sheriff’s Office SWAT team executed a search warrant at a residence in Hudson where Wilson was found barricaded in a bedroom surrounded by drugs, cash, white supremacist-related items, and a loaded .45 caliber firearm. Several witnesses testified that the firearm belonged to Wilson and that he carried it with him as he sold methamphetamine to others in the area. Wilson, an admitted member of the Aryan Brotherhood, is a previously convicted felon and therefore was prohibited from carrying a firearm or ammunition under federal law. His priors include two convictions for aggravated assault on a law enforcement officer, four convictions for grand theft, as well as convictions for armed burglary, sale and possession of cocaine, felonious possession of a firearm, and fleeing and eluding.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN) - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also part of the PSN Comprehensive Anti-Gang Initiative (CAGI). CAGI’s objective is to reduce criminal gangs, violent crime, and illegal drugs and guns through swift, thorough enforcement and prosecution, along with prevention and re-entry efforts.
Armed Felon ConvictedRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that DEONTEZ K, MAYFIELD, age 27, of Baton Rouge, Louisiana, pled guilty today before U.S. District Judge John W. deGravelles to possessing a firearm while a convicted felon. His sentencing date has not yet been set.
MAYFIELD’s conviction arises from a chain of events that occurred in the early morning hours (1:40 am) of July 6, 2016. MAYFIELD approached a fully marked East Baton Rouge Parish Sheriff’s Office unit with his high beams on and proceeded to tailgate within a few feet of the vehicle and then backed off of the vehicle about 50 feet repeatedly. The EBRSO sergeant driving the unit changed lanes several times and MAYFIELD changed lanes also, each time staying directly behind the EBRSO unit. The sergeant maneuvered his unit and was able to get behind MAYFIELD and activated his emergency lights to initiate a traffic stop. MAYFIELD fled briefly before slowing his vehicle to a coast and exiting out of the driver’s side door, as he approached the dead end of the street. As MAYFIELD exited, he dropped a Ruger, Model 9E, 9mm pistol, equipped with laser sights and loaded with 16 rounds of ammunition.
At the time of his illegal possession of the firearm, MAYFIELD had previous convictions for simple burglary. He was convicted of Simple Burglary on September 9, 2008 in the 19th Judicial District of Louisiana, case number 05-08-0868; 12 counts of Simple Burglary on March 2, 2010 in the 18th Judicial District of Louisiana, case number 095263; and 8 counts of Simple Burglary on March 2, 2010 in the 18th Judicial District of Louisiana, case number 095826.
U.S. Attorney Green stated: “The circumstances of this case are deeply troubling. It takes little imagination to appreciate how badly things could have gone that night. Armed felons represent a clear danger to our entire community and will be aggressively pursued by our office, together with the ATF and our other federal, state, and local partners.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated: “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the cooperation of the District Attorney’s Office for the Nineteenth Judicial District. The matter is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter who serves as a Deputy Criminal Chief.
Ansonia Man Admits Role in Steroid and Prescription Pill Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY GENTILE, 34, of Ansonia, pleaded guilty today in Hartford federal court to one count of using a telephone to facilitate the distribution of amphetamine, a Schedule II controlled substance.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. Certain members of the conspiracy also distributed prescription pills, including oxycodone, as well as cocaine.
The investigation revealed that Alex Kenyhercz, of Ansonia, purchased anabolic steroids from Santucci and distributed them to others. Kenyhercz also illegally distributed prescription medication, including Roxicodone, Oxycodone, Suboxone and Opana.
In pleading guilty, GENTILE admitted that he obtained steroids from Kenyhercz by paying him, in part, with Adderall, which is an amphetamine.
At the time of this offense, Gentile was a Connecticut Juvenile Detention Officer.
GENTILE was arrested on April 29, 2015. When he is sentenced, he faces a maximum term of imprisonment of four years and a fine of up to $250,000.
Santucci and Kenyhercz each pleaded guilty. On August 25, 2016, Santucci was sentenced to 16 months of imprisonment, six months of home confinement, 120 hours of community service and a $5,000 fine. Kenyhercz awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
American and Dutch Teenagers Arrested on Criminal Charges for Allegedly Operating International Cyber-Attack-For-Hire WebsitesRead the Press Release
CHICAGO — Federal authorities in Chicago have charged two suspected computer hackers for allegedly operating cyber-attack-for-hire websites that launched attacks on companies and individuals around the world.
ZACHARY BUCHTA, 19, of Fallston, Md., and BRADLEY JAN WILLEM VAN ROOY, 19, of Leiden, the Netherlands, are charged with conspiring to cause damage to protected computers. The charges are the result of an international investigation into the computer hacking groups “Lizard Squad” and “PoodleCorp,” according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Buchta and van Rooy allegedly conspired with others to launch destructive cyber attacks around the world, and trafficked payment accounts that had been stolen from unsuspecting victims in Illinois and elsewhere.
Buchta was arrested last month in Maryland. He is scheduled to make an initial court appearance in Chicago today at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert. Authorities in the Netherlands arrested van Rooy last month and he remains in custody there.
The complaint and arrests were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. Substantial assistance was provided by the Office of International Affairs of the Justice Department’s Criminal Division; the Dutch Regional Criminal Investigation Service; the Dutch Prosecutor’s Office; and U.S. Attorney’s Offices in the District of Maryland, the District of New Jersey, and the Southern District of Ohio.
In addition to the charges, a federal court in Chicago ordered the seizure of four domain names associated with the alleged conspiracy. The complaint identifies the seized websites as shenron.lizardsquad.org, lizardsquad.org, stresser.poodlecorp.org, and poodlecorp.org.
Lizard Squad initially drew the attention of U.S. authorities during an investigation into phonebomber.net, a website that enabled paying customers to select victims to receive repeated harassing phone calls from spoofed numbers, according to the complaint. One of the victims, who resided in Illinois, last fall received a phone call every hour for thirty days. When the victim answered the phone, an audio recording stated that the victim “better look over your [expletive] back because I don’t flying [expletive] if we have to burn your [expletive] house down, if we have to [expletive] track your [expletive] family down, we will [expletive] your [expletive] up [expletive].”
Soon after the launch of phonebomber.net, Buchta, van Rooy and other members of Lizard Squad began denial-of-service attacks and boasted about them on social media, the complaint states. The attacks targeted various victims, including gaming, entertainment and media companies, and relied on a massive network of compromised computers and devices, according to the complaint.
Buchta, who used the online screen names “@fbiarelosers,” “pein,” “xotehpoodle” and “lizard,” and van Rooy, who used the names “Uchiha,” “@UchihaLS,” “dragon” and “fox,” also conspired with other members of Lizard Squad to operate websites that provided cyber-attack-for-hire services, facilitating thousands of denial-of-service attacks, and to traffic stolen payment card account information for thousands of victims, according to the complaint.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
ComplaintAccountant Sentenced to 48 Months in Prison for Role in $50 Million Fraud SchemeRead the Press Release
WASHINGTON – An accountant who participated in and attempted to cover up a $50 million New Orleans-area Medicare fraud scheme was sentenced today to 48 months in prison for his involvement in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.
Christopher White, 50, of Destrehan, Louisiana, was sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana, who also ordered White to pay $2,272,241.96 in restitution.
According to admissions made in connection with his plea agreement, White was an accountant for multiple companies in a home health care fraud scheme carried out in and around New Orleans over the course of more than 10 years. Among other things, White coordinated the payment of illegal kickbacks to patient recruiters who canvassed the streets of New Orleans to collect Medicare numbers from elderly and disabled Medicare recipients. When a grand jury subpoena was issued to certain companies, he and others fabricated and backdated tax and employment records to conceal the fact that illegal kickbacks were being paid to these recruiters.
According to the plea agreement, from 2007 through 2014, the companies involved in the scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Fraud Section Trial Attorneys William Kanellis and Antonio Pozos prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
Accountant Sentenced to 48 Months in Prison for Role in $50 Million Fraud SchemeRead the Press Release
An accountant who participated in and attempted to cover up a $50 million New Orleans-area Medicare fraud scheme was sentenced today to 48 months in prison for his involvement in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.
Christopher White, 50, of Destrehan, Louisiana, was sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana, who also ordered White to pay $2,272,241.96 in restitution.
According to admissions made in connection with his plea agreement, White was an accountant for multiple companies in a home health care fraud scheme carried out in and around New Orleans over the course of more than 10 years. Among other things, White coordinated the payment of illegal kickbacks to patient recruiters who canvassed the streets of New Orleans to collect Medicare numbers from elderly and disabled Medicare recipients. When a grand jury subpoena was issued to certain companies, he and others fabricated and backdated tax and employment records to conceal the fact that illegal kickbacks were being paid to these recruiters.
According to the plea agreement, from 2007 through 2014, the companies involved in the scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Fraud Section Trial Attorneys William Kanellis and Antonio Pozos prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
4 October 2016
Yavapai Regional Medical Center to Pay $5.85 Million to Resolve False Claims AllegationsRead the Press Release
PHOENIX – Yavapai Regional Medical Center (Yavapai), an Arizona not-for-profit community health system, has agreed to pay the United States $5.85 million to resolve claims that it violated the False Claims Act by misreporting data about the hours worked by its employees on its annual cost reports, which improperly inflated the amount of money it received from the Medicare program.
“The United States Attorney’s Office has invested and will continue to invest significant time, effort, and resources in successfully enforcing the False Claims Act to hold health care providers, including hospital systems, accountable for false billings,” said U.S. Attorney John S. Leonardo. “False bills to the Medicare program threaten the viability and effectiveness of the program, undermine public confidence, waste precious taxpayer dollars, and will not be tolerated.”
“Falsifying records and extracting unwarranted funds from Medicare will be detected and stopped,” said Christian J. Schrank, Special Agent in Charge for the Los Angeles Region of the United States Department of Health and Human Services, Office of Inspector General. “Medicare funds are intended to care for patients, not line the pockets of providers who submit false claims.”
The United States alleged that between 2006 and 2009, Yavapai misreported the hours worked by its employees, which inflated the wage index for the Prescott, Arizona area. The United States alleged that the artificially inflated wage index was used by the Medicare program when it calculated the amount of the payments it made to Yavapai. The United States also alleged that as a result of Yavapai’s false claims, federal health care programs paid substantially more than was warranted. The settlement is neither an admission of liability by Yavapai, nor is it a concession by the United States that its claims are not well founded.
The settlement resolves a lawsuit filed in April 2016 by Gregory Kuzma under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Kuzma v. Yavapai Regional Medical Center (CV-16-08072-PCT-JAT). Mr. Kuzma will receive $1.17 million as his share of the settlement payment that resolves the qui tam suit he filed.
The case was handled by the Commercial Litigation Branch of the Justice Department’s Civil Division, the United States Attorney’s Office for the District of Arizona, and the United States Department of Health and Human Services’ Office of the Inspector General.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.
RELEASE NUMBER: 2016-088_ Yavapai Regional Medical Center
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Worcester Sex Offender Convicted of Child Pornography ChargesRead the Press Release
BOSTON – A jury convicted a previously-convicted sex offender yesterday in connection with possessing child pornography.
Neil Sweeney, 51, was convicted following a six-day jury trial in U.S. District Court in Worcester of possessing and distributing child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 10, 2016.
The charges arose from an federal online undercover operation. In April 2015, Sweeney used Gigatribe, an Internet file sharing program, to distribute dozens of videos and images of minors engaging in sexually explicit conduct to an undercover federal agent.
In 1995, Sweeney was convicted in Worcester Superior Court for the indecent assault and battery on two boys, both under the age of 14. As a result of those convictions, Sweeney was required to register as a Level 3 Sex Offender.
The charging statutes provide for a mandatory minimum sentence of 15 years and no greater than 40 years in prison, five 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 Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven Sargent, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Greg A. Friedholm and Karin M. Bell of Ortiz’s Worcester Branch Office.
Williamsport Man Convicted of Distribution of Heroin and CocaineRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antoine Paris Davis, age 39, a resident of Williamsport, Pennsylvania, was convicted on Friday of conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine. The jury also found Davis was responsible for the distribution of 100 grams or more of heroin. The four-day trial was held before U.S. District Court Judge Matthew W. Brann in Williamsport.
According to United States Attorney Bruce D. Brandler, from June 2014 through January 2015, Davis conspired with co-defendant, Rasheem Jarbar Ruley, age 24, a resident of Williamsport, to distribute heroin and cocaine to drug users and sellers in Williamsport and distributed and possessed those substances with the intent to distribute on four separate occasions. Ruley and Davis stored heroin and cocaine at their residence on Tinsman Avenue in Williamsport, including a large bag containing over 100 grams of heroin (136 small bags of heroin packaged for sale), 16 bags of cocaine, and digital scales. Pennsylvania State Police investigators also found approximately $1,300 in cash drug proceeds, digital scales used to weigh drugs, plastic bags, wax packets, and rubber bands used to package heroin and cocaine for distribution.
Davis is in custody. Ruley entered a guilty plea on September 8, 2016 before Judge Brann for conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine. Ruley also pled guilty to distributing cocaine to an undercover Pennsylvania State Police trooper on June 3, June 10, and June 16, 2015. Ruley is currently awaiting sentencing.
This matter was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, the Lycoming County Narcotics Enforcement Unit, and the Federal Bureau of Investigation Safe Streets Task Force. This case was prosecuted by Assistant U.S. Attorney George Rocktashel.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Weirton man charged with illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Jerod Kernen, 32, of Weirton, West Virginia with illegal possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Kernen, who had previously been convicted of felony offenses in South Carolina, was allegedly found in possession of a .44 caliber revolver in Hancock County, West Virginia.
Kernen was charged with one count of “Felon in Possession of Firearm,” and one count of “Possession of a Stolen Firearm.” He faces up to ten years in prison and a fine up to $250,000 for each count. 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 David J. Perri is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weirton, West Virginia Police Department, and the Steubenville, Ohio Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Washington State Law Enforcement Awarded Nearly $8 Million in Grant Funding to Enhance Policing and Forensic ScienceRead the Press Release
Law enforcement agencies in Western Washington are getting nearly $8 million in federal grant funding for a range of projects designed to enhance community safety and improve crime fighting technologies, announced U.S. Attorney Annette L. Hayes. The funded projects vary in size and scope, but all were proposed by local and state law enforcement based on needs in their departments. The grants were awarded by the Office of Justice programs in a number of different categories: Forensic Science; Justice Assistance; Criminal History Records Improvement and DNA Backlog Reduction.
“In awarding these grants the Office of Justice Programs looks for demonstrated need and a clear vision of how federal support can enhance community safety in our neighborhoods,” said U.S. Attorney Annette L. Hayes. “I congratulate our law enforcement partners who obtained grant funding.”
State and local law enforcement agencies will receive more than $4.7 million under the Edward Byrne Memorial Justice Assistance program. The largest grant of $3.4 million is administered by the Washington State Department of Commerce to fund various anti-gang and drug enforcement task forces. Other local law enforcement grants include:
- Seattle Police - $673,166 – for community policing, equipment and overtime.
- Tacoma Police - $287,469 – for community policing and prosecution programs.
- Snohomish County - $33,664 – for equipment to improve driving and training.
- Everett Police - $45,593 – for video systems and forensic software.
- Marysville Police - $12,956 – for two tracking and narcotics canines.
- Bellingham Police - $39,398 – for conversion of paper records to electronic data and ballistic helmets.
- Kitsap County - $38,053 – for new firearms equipment and technology.
- Bremerton Police - $23,752 – to preserve a community resource specialist position.
- Puyallup Police -$11,115 – for a camera system to enhance security in city parks.
- Thurston County - $25,982 – for computer equipment used in case records management.
- Olympia Police - $17,168 – for training and leadership development.
- Longview Police - $16,389 – to support the salary of school resource officer.
- Clark County - $91,717 – to enhance community policing, and equipment for officer safety.
The second group of grants is the Paul Coverdell Forensic Improvement grants. The Washington State Patrol was awarded $187,245 to purchase needed equipment in crime labs across the state (both state and local) and provide additional training to lab employees. The grant is aimed at reducing some of the backlog in lab reports. The Seattle Police Department also received a $249,999 grant to implement an electronic data system for its Latent Print Unit.
Finally, the Washington State Patrol received a number of grants aimed at improving forensic data collection and testing:
- WSP Crime Lab – $1,585,019 for equipment and overtime to reduce the time delay to process DNA in case submissions and to get DNA into the national database.
- WSP - $421,269 to pay for post-conviction testing of DNA to exonerate the innocent.
- WSP -$569,199 – to update criminal history records in the state database and the National Crime Information Center.
The Coverdell National Forensic Sciences Act of 2000 was named in memory of Georgia Senator Paul Coverdell who fought tirelessly for better support for forensic science labs. The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22-years-old.
Additional information about each grant should be available from the grant recipient.
Washington Man Sentenced for Sending Threats to Placerville CompanyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Scott Anthony Orton, 57, of Puyallup, Washington, to one year and one day in prison today for transmitting interstate threats, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2015, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill an officer of the Placerville-based company, Stem Express LLC. On July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.” Orton also identified the target of his threats by name, and wrote “I’ll pay ten grand to whomever beats me to [the target].”
Acting U.S. Attorney Talbert stated: “Orton made explicit, public statements expressing his intent to kill the victim. His conduct caused the victim to fear for her life and the lives of her family members and colleagues. The sentence imposed by the court recognizes the seriousness of his offense and should act as a deterrent to similar conduct.”
“The FBI is committed to protecting the American people and thoroughly investigating threats of violence against them,” said Assistant Special Agent in Charge Tom Osborne of the FBI Sacramento field office. “Orton’s threats posed a serious threat to public safety and could have inspired a violent attack at StemExpress. We encourage the public to take such threats seriously and report them to prevent violent attacks in their communities.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty prosecuted the case.
United States Takes Actions to Address Alleged Renewable Fuel Standard Violations by NGL Crude Logistics and Western Dubuque BiodieselRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced the filing of a complaint against NGL Crude Logistics LLC (NGL) and Western Dubuque Biodiesel LLC and a settlement with Western Dubuque to address alleged violations of the Renewable Fuel Standard.
The complaint, filed in the U.S. District Court for the Northern District of Iowa in Cedar Rapids, Iowa, alleges that NGL entered into a series of transactions with Western Dubuque in 2011 that resulted in the generation of approximately 36 million invalid renewable identification numbers (RINs). RINs are credits created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements.
Under the settlement, Western Dubuque has agreed to pay $6 million to resolve alleged Renewable Fuel Standard program violations for generating RINs for renewable fuel that was produced using unapproved feedstocks and production processes. A feedstock is the basic material used in the production of renewable fuel. The consent decree does not resolve any claims against NGL.
“Congress passed the Renewable Fuels Standards program to incentivize production of biofuels in order to achieve substantial reductions in greenhouse gas emissions, reduce the United States’ dependence on foreign oil and modernize the United States’ renewable energy industry,” said Assistant Attorney General John C. Cruden for the Department of Justice Environment and Natural Resources Division. “The Justice Department is committed to ensuring that Congress’ goals are not undermined by entities that attempt to compromise the integrity of the incentive program.”
“These cases uphold the energy independence and greenhouse gas reduction purposes of the law that Congress passed,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to a level the playing field for responsible companies, and to ensuring that companies that illegally obtain an unfair competitive advantage are held to account.”
“The Department of Justice is committed to maintaining the integrity of the Renewable Fuel Standard program,” said U.S. Attorney Kevin W. Techau for the Northern District of Iowa. “Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent. This $ 6 million settlement supports that goal.”
The allegations in the complaint remain assertions until they are proved.
The complaint alleges that in 2011, NGL purchased more than 24 million gallons of biodiesel on the open market, and that approximately 36 million RINs had been assigned to the biodiesel. NGL sold most of the RINs to other entities. NGL then sold the biodiesel to Western Dubuque, but designated it as a “feedstock.” Western Dubuque reprocessed the biodiesel provided by NGL and generated a second set of RINs for the same fuel. Western Dubuque sold the reprocessed biodiesel and the second set of RINs back to NGL. NGL then sold most of these RINs to other entities.
The complaint asks the court to require NGL to retire 36 million RINs to offset the harm caused by the alleged violations and to pay a civil penalty.
EPA estimates that the generation of the second set of RINs alleged in this case resulted in excess greenhouse gas emissions equivalent to 151,319 metric tons of carbon dioxide.
EPA learned that Western Dubuque used improper feedstocks during a 2011 inspection of the company’s biodiesel facility, located in Farley, Iowa. EPA then conducted an extensive investigation into transactions between Western Dubuque and NGL and determined that the feedstocks that NGL supplied to Western Dubuque were biodiesel, which is not a permitted feedstock and that other companies had already generated RINs for the product. Western Dubuque informed EPA that it has not used biodiesel as a feedstock since 2011.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply and reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry and achieve greenhouse gas reductions.
Western Dubuque owns and operates a 30 million gallon biodiesel plant located in Farley, Iowa. NGL is an energy service company that transports fuel and other products. At the time of the alleged violations, NGL was known as Gavilon LLC.
The settlement with Western Dubuque is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
For more information about the settlement and the complaint, visit https://www.epa.gov/enforcement/western-dubuque-biodiesel-llc-clean-air-act-settlement.
United States Takes Actions to Address Alleged Renewable Fuel Standard ViolationsRead the Press Release
CEDAR RAPIDS, IOWA – The Department of Justice and the United States Environmental Protection Agency (EPA) announced today the filing of a complaint against NGL Crude Logistics LLC (NGL) and Western Dubuque Biodiesel LLC, and a settlement with Western Dubuque to address alleged violations of the Renewable Fuel Standard.
The complaint, filed in the U.S. District Court for the Northern District of Iowa alleges that NGL entered into a series of transactions with Western Dubuque in 2011 that resulted in the generation of approximately 36 million invalid renewable identification numbers (RINs). RINs are credits created when a company produces qualifying renewable fuel and can be traded or sold to refineries and importers to use for compliance with renewable fuel production requirements.
Under the settlement, Western Dubuque has agreed to pay $6 million to resolve alleged Renewable Fuel Standard program violations for generating RINs for renewable fuel that was produced using unapproved feedstocks and production processes. A feedstock is the basic material used in the production of renewable fuel. The consent decree does not resolve any claims against NGL.
“Congress passed the Renewable Fuels Standards program to incentivize production of biofuels in order to achieve substantial reductions in greenhouse gas emissions, reduce the United States’ dependence on foreign oil and modernize the United States’ renewable energy industry,” said Assistant Attorney General John C. Cruden for the Department of Justice Environment and Natural Resources Division. “The Justice Department is committed to ensuring that Congress’ goals are not undermined by entities that attempt to compromise the integrity of the incentive program.”
“The Department of Justice is committed to maintaining the integrity of the Renewable Fuel Standard program,” said United States Attorney Kevin W. Techau. “Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent. This $ 6 million settlement supports that goal.”
“EPA is committed to making sure companies use approved feedstocks and generate RINs legally – anything short of that compromises the integrity of the Renewable Fuel Standard program, said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The Renewable Fuel Standard relies on companies upholding fair market principles, Western Dubuque failed to do.”
The allegations in the complaint remain assertions until they are proved.
The complaint alleges that in 2011, NGL purchased more than 24 million gallons of biodiesel on the open market, and that approximately 36 million RINs had been assigned to the biodiesel. NGL sold most of the RINs to other entities. NGL then sold the biodiesel to Western Dubuque, but designated it as a “feedstock.” Western Dubuque reprocessed the biodiesel provided by NGL and generated a second set of RINs for the same fuel. Western Dubuque sold the reprocessed biodiesel and the second set of RINs back to NGL. NGL then sold most of these RINs to other entities.
The complaint asks the court to require NGL to retire 36 million RINs to offset the harm caused by the alleged violations and to pay a civil penalty.
EPA estimates that the generation of the second set of RINs alleged in this case resulted in excess greenhouse gas emissions equivalent to 151,319 metric tons of carbon dioxide.
EPA learned that Western Dubuque used improper feedstocks during a 2011 inspection of the company’s biodiesel facility, located in Farley, Iowa. EPA then conducted an extensive investigation into transactions between Western Dubuque and NGL and determined that the feedstocks that NGL supplied to Western Dubuque were biodiesel, which is not a permitted feedstock and that other companies had already generated RINs for the product. Western Dubuque informed EPA that it has not used biodiesel as a feedstock since 2011.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply and reduce the nation's dependence on foreign oil, help grow the nation's renewable energy industry and achieve greenhouse gas reductions.
Western Dubuque owns and operates a 30-million-gallon biodiesel plant located in Farley, Iowa. NGL is an energy service company that transports fuel and other products. At the time of the alleged violations, NGL was known as Gavilon LLC.
The settlement with Western Dubuque is subject to a 30-day public comment period and final court approval. A copy of the consent decree can be accessed at: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the settlement and the complaint, visit: http://go.usa.gov/xKuFM.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office Settles Disability Discrimination Allegations at Lexington Chinese SchoolRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a settlement agreement yesterday with the Lexington Chinese School resolving allegations that the school violated Title III of the Americans with Disabilities Act (ADA) by failing to provide reasonable modifications to students with disabilities.
“Children should never be turned away from an education because they have a disability,” said United States Attorney Carmen M. Ortiz. “More than 25 years ago, Congress passed the ADA to ensure that individuals with disabilities can fully participate in all parts of society. My office is committed to enforcing this law, and making sure that all places of public accommodation – from schools, to camps, to after school programs – provide children with the modifications they need so that they can participate alongside their peers.”
Lexington Chinese School is a private, non-profit, volunteer-run school in Belmont that provides weekly Chinese language classes and other extracurricular activities to approximately 400 students. The school allegedly discriminated against two students with disabilities (who are, in fact, siblings) by refusing to make reasonable modifications to serve them in class, and by eventually refusing to allow them to enroll in the school.
Under the terms of the settlement agreement, the school will implement a disability non-discrimination policy; implement a process by which reasonable modifications will be provided to students with disabilities; and facilitate training for teachers who are serving students with disabilities. Additionally, Lexington Chinese School will pay $7,000 in monetary relief to the family of the two students who were the subject of this alleged discrimination.
This matter was handled by Assistant U.S. Attorney Michelle Leung and Special Assistant U.S. Attorney Gregory Dorchak of Ortiz’s Civil Rights Unit.
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.
U.S. Attorney Polite Announces Local Events in Honor of National Community Policing WeekRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that his Office will observe National Community Policing Week through the following special events:
WEDNESDAY, OCTOBER 5, 2016
Event: New Orleans Police Department/Youth Basketball Game
Location: KIPP Central City Academy
2514 Third Street
New Orleans, LA 70113
Time: 12:00 pm – 12:45 pm
Participating Agencies: United States Attorney’s Office, Eastern District of Louisiana
New Orleans Police Department
KIPP New Orleans Schools
THURSDAY, OCTOBER 6, 2016
Event: Law Enforcement Meet and Greet
Body-Worn Camera Seminar
Location: Joe W. Brown Memorial Park
5601 Read Boulevard
New Orleans, LA 70127
Time: 5:00 pm – 8:00 pm (Meet and Greet) (Shelter #1);
7:00 pm – 8:00 pm (Seminar) (Recreation Center)
Participating Agencies: United States Attorney’s Office, Eastern District of Louisiana
Federal Bureau of Investigation
Drug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
United States Marshals Office
New Orleans Police Department
In addition to the law enforcement "Meet and Greet," representatives from the New Orleans Police Department will be holding a "Body-Worn Cameras" seminar that is open to the public. Evidence indicates that body-worn cameras help strengthen accountability and transparency, reducing community complaints, and can assist in de-escalating conflicts. There will be a short question and answer session, and attendees will have the opportunity to interact with the technology.
President Obama designated the week of October 2 – 8, 2016, as National Community Policing Week, with a mission to build on the Obama’s Administration engagement with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force Report. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.