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Thursday 11 August 2016
25-Count Indictment Charges Pair with Drug Trafficking, Bank FraudRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a 25-count indictment charging Robert Wilkins, 25, and Christian M. Domenech, 23, of West Warwick, with trafficking heroin, cocaine and crack cocaine, and with bank fraud, announced United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The indictment charges Wilkins and Domenech with one count each of conspiracy to distribute heroin and crack cocaine; one count each of possession with intent to distribute heroin, crack cocaine and cocaine; fifteen counts of distribution of crack cocaine; three counts of distribution of heroin; and one count of bank fraud. The defendants have been detained since their arrest on July 12, 2016, on a federal criminal complaint charging them with drug trafficking and bank fraud.
According to court documents, it is alleged that a three-month investigation by the FBI Safe Streets Task Force into the defendants alleged drug trafficking activity included numerous purchases from the defendants of between one gram and seven grams of crack cocaine and heroin for between $80 dollars and $350 dollars. Each alleged transaction was monitored by law enforcement.
Additionally, according to court documents, a Rhode Island State Police Financial Crimes Unit investigation determined that beginning in December 2015, the defendants allegedly created and deposited bogus checks into bank accounts each established, and withdrew some of those funds. It is alleged that Christian Domenech deposited a total of $10,000 in bogus checks and withdrew $2,000 in cash. It is alleged that Robert Wilkins deposited a total of $10,000 in bogus checks and withdrew at total of $2,099.55.
On July 12, 2016, FBI Safe Street Task Force agents, with the assistance of the West Warwick Police Department and the DEA, executed a court authorized search of the defendants’ Church Street, West Warwick residence. Varying quantities of cocaine, crack cocaine, and heroin was seized, along with approximately $800 in cash. Law enforcement also seized two vehicles.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, and Central Falls Police Departments and the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Wednesday 10 August 2016
Washington Man Sentenced to Prison and Ordered to Forfeit $500,000 for Distributing Marijuana Throughout United States from SeattleRead the Press Release
BOISE – Walter Terry, 57, of Seattle, Washington, was sentenced today to spend one year in federal prison for distributing 146 kilograms of marijuana, U.S. Attorney Wendy J. Olson announced. Terry pleaded guilty to one count of distributing marijuana on January 6, 2016. Senior U.S. District Judge Edward J. Lodge, also sentenced Terry to serve three years of supervised release, pay a $2,000 fine, and forfeit $500,000 in cash proceeds and his Seattle residence valued at $700,000, which served as the operational center for his multi-state marijuana distribution operation.
According to arguments at today’s sentencing, Terry began advertising marijuana for sale over the internet in 2011. Terry admitted to distributing approximately 146 kilograms of marijuana throughout the United States, including Idaho, Massachusetts, New Hampshire, New York, New Jersey, Rhode Island, Virginia, Tennessee, Georgia, Florida, Illinois, Wisconsin, West Virginia, Pennsylvania, Connecticut, and Texas.
An undercover DEA special agent contacted Terry in January 2013, and Terry agreed to mail marijuana from Seattle, Washington, to the undercover agent in Boise, Idaho. Between January 2013, and March 2014, Terry sent six shipments of marijuana to Idaho. In May 2014, Terry agreed to sell the undercover agent five pounds of marijuana. Terry met the undercover agent in Seattle and was arrested after providing the undercover agent with the five pounds of marijuana. Terry told DEA agents that he began his marijuana distribution operation out of his residence in Seattle in 2010 or 2011. Terry stated that after the state of Washington legalized medicinal marijuana, his business was negatively affected and he began advertising his marijuana distribution business on websites to out-of-state customers. Terry consented to a search of his residence in Seattle, and law enforcement seized approximately 15 pounds of marijuana and $30,000 in drug proceeds.
The case was investigated by the Drug Enforcement Administration, the Seattle Police Department, King County Sheriff’s Office, and the United States Postal Inspectors.
Washington County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, 31, of Granville, New York, pled guilty yesterday to one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and James C. Spiro, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations (HSI).
As part of his guilty plea, Shaw admitted that between November 26, 2009 and November 26, 2013, while in his Granville, New York residence, he used the Internet and a peer-to-peer file sharing program to receive approximately 200 still image files containing child pornography.
As a result of his conviction, Shaw faces a minimum sentence of five (5) years imprisonment, a maximum term of twenty (20) years imprisonment, a fine of up to $250,000, a term of supervised release of at least five (5) years and up to life, and mandatory registration as a sex offender. Sentencing is scheduled for December 5, 2016 at 10 a.m. in Albany, New York, before Senior U.S. District Judge Gary L. Sharpe.
This case was investigated by Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Richard Belliss.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Vermont Man Charged with Distributing HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont today announced federal criminal charges against Michael Prescott, 52, of Chittenden County, Vermont. Prescott is charged with distributing heroin on March 2 and March 7, 2016.
Prescott was arrested by law enforcement on July 18, 2016, appeared before Chief U.S. District Judge Christina Reiss in Burlington the same day, and entered a not guilty plea to the charges. At a detention hearing on July 19, 2016, Judge Reiss ordered Prescott detained pending his criminal trial. Judge Reiss denied the defendant’s motion to reconsider the detention order on August 9, 2016. If he is convicted, Prescott’s sentence will be advised by the federal sentencing guidelines. The pending charges against the defendant are merely accusations, and he is presumed innocent until and unless he is proven guilty.
United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
This case is being investigated by the Drug Enforcement Administration. The United States is represented by Assistant United States Attorney Timothy C. Doherty, Jr. Prescott is represented by Federal Public Defender Michael Desautels.
US Attorney for the Northern District of Texas Announces Efforts to Enhance the District's Civil and Criminal Civil Rights WorkRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced today that his office is bolstering its efforts in the protection of civil rights by hiring an Assistant U.S. Attorney who will be dedicated exclusively to his office’s work in that area. This new Assistant U.S. Attorney will enhance the work already being done by his office in both its criminal and civil prosecutions.
“Through a combination of criminal and civil enforcement, my office is committed to safeguarding the civil rights of each and every one of the more than seven million residents of the Northern District of Texas,” said U.S. Attorney Parker. “I’m delighted to have this added resource to further expand our ability to ensure those protections.”
The FY 2016 Appropriations Act provided funds for U.S. Attorneys to hire additional Civil Rights Assistant U.S. Attorneys. The Northern District of Texas was one of 42 federal districts and the only one in Texas selected to receive funding for the position. Parker has selected a candidate for the position who is currently undergoing the standard pre-employment adjudication process.
The U.S. Attorney’s Office, in its partnership with the Department of Justice’s Civil Rights Division, has historically worked to advance civil rights through a variety of affirmative civil enforcement practice areas, such as housing and fair lending, Americans with Disabilities Act (ADA) enforcement, allegations related to the Civil Right of Institutionalized Persons Act, voting rights, service members’ rights, pattern and practice policing investigations, and employment discrimination. The U.S. Attorney’s Office also protects vulnerable populations through its criminal civil rights work, including human trafficking, hate crimes, and color of law prosecutions.
The U.S. Attorney’s Office for the Northern District of Texas is the principal federal prosecution authority for the North Texas area with staffed offices in Dallas, Fort Worth, Lubbock, and Amarillo. The Criminal Division of the U.S. Attorney’s Office prosecutes all federal crimes in our jurisdiction including acts of terrorism, public corruption, white-collar crime, organized crime, narcotics trafficking, firearms crimes, internet-related crimes, civil rights violations, and many other criminal offenses. The Civil Division of the U.S. Attorney’s Office is charged with defending agencies of the United States, enforcing regulatory agency authority and affirmative civil rights enforcement, and recovering funds from violators of U.S. statutes and other regulations.
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Two KCK Men Sentenced to 12 Years in Conspiracy to Rob Drug HouseRead the Press Release
KANSAS CITY, KAN. - Two Kansas City, Kan., men were sentenced Monday to 12 years in federal prison for taking part in a plot to commit an armed robbery at a drug house, Acting U.S. Attorney Tom Beall said.
Enoch Clark, III, 26, Kansas City, Kan., and Dalevon L. Dixon, 24, Kansas City, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. In their pleas they admitted that in October 2014 they agreed with an undercover agent to rob a narcotics stash house where they believed they would obtain more than 10 pounds of cocaine.
They took part in several meetings in which the crime was planned and it was decided that anyone resisting would be shot. They were arrested Nov. 14, 2014, at a storage lot in Kansas City, Kan. Investigators seized three pistols and a rifle at the scene.
Co-defendants include:
Cornell Jones, who was sentenced to 135 months in federal prison.
Devronn H. Sportsman, who was sentenced to 24 months in federal prison.
Dwone C. Heard, who was sentenced to 12 months on supervised release.
Julian Rodriguez, who is set for sentencing Dec. 19.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Terra Morehead for their work on the case.
Two Indicted for Stealing $2.5 Million from Plattsburgh CompanyRead the Press Release
ALBANY, NEW YORK – Two men were arraigned today on charges that they conspired to steal $2.5 million that they had agreed to maintain in a bank account, but quickly spent instead.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Keith Eric Jergensen, age 56, of Salt Lake City, Utah, and Debashis Ghosh, age 52, of Chicago, Illinois, were arraigned today in Albany before U.S. Magistrate Judge Christian F. Hummel, and released pending a trial before U.S. District Judge Brenda K. Sannes.
According to the indictment (copy attached), Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), which was in the business of helping companies obtain funding sources for construction and energy projects. In November 2010, Verdant was retained by a Plattsburgh, New York, company – identified in the indictment as “Company A” – to raise funds for the construction of an airplane maintenance, repair and overhaul facility in Plattsburgh.
Jergensen and Ghosh asked Company A to invest $2.5 million as seed money for the project. They and Company A agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Company A. Company A wired $2.5 million into the account on December 3, 2010. Five days later, Jergensen and Ghosh began transferring the money out of the account, and by March 18, 2011 they had transferred all of the $2.5 million out of the account.
According to the indictment, Jergensen and Ghosh used Company A’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct home energy services company that Verdant had agreed to raise money for; a $55,000 “loan” to an acquaintance; and transfers of at least $40,000 to Jergensen’s company Contour Composites, Inc.
Once Company A’s executives discovered that the $2.5 million had been transferred, they began asking Jergensen and Ghosh where it had gone. According to the indictment, Jergensen and Ghosh repeatedly and falsely assured Company A that its money was safe in another Wells Fargo account.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
Jergensen and Ghosh are each charged with one count of wire fraud conspiracy, and, if convicted, face up to 20 years in prison, 2 years of supervised release, and a $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Two Charged in Pharmacy RobberiesRead the Press Release
PITTSBURGH – A Pennsylvania man and a West Virginia man have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit robbery of a pharmacy, robbery of a pharmacy, brandishment of a firearm in relation to a crime of violence, and possession with the intent to distribute Schedule II controlled substances, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on August 9, named Stephan Edward Corrick, 65, of Pittsburgh, Pennsylvania, and Dana Lee Shipley, 51, of Fairmont, West Virginia, as the defendants.
According to the indictment, on or about March 11, 2016, and continuing thereafter to on or about April 28, 2016, both defendants conspired to rob two different pharmacies (Palmer’s Drug Store in Russleton, Pa., and Keystone Pharmacy in New Alexandria, Pa.), brandished a firearm in relation to those crimes of violence, and possessed with intent to distribute Schedule II controlled substances.
The law provides for a maximum total sentence of twenty years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Police and the West Deer Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Taylorville Man to Serve 4 1/2 Years in Prison for Manufacture of MethamphetamineRead the Press Release
Springfield, Ill. - A Taylorville, Ill., man, Jamal Shehadeh, 33, has been ordered to serve 54 months (4 years, 6 months) in federal prison for manufacturing methamphetamine. U.S. District Judge Richard Mills sentenced Shehadeh on Aug. 9, 2016.
On March 28, 2016, Shehadeh pled guilty to manufacturing methamphetamine in Christian county on or about Feb. 28, 2014.
Shehadeh was arrested in November 2014 and was released on bond in December 2014. He was arrested on June 28, 2016, on a petition to revoke his pretrial release. Since then, he has been detained in the custody of the U.S. Marshals Service.
The case was investigated by the Illinois State Police, the Taylorville Police Department, and the Christian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris.
Tampa Man Sentenced for Disposing Human Waste into A StreamRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew yesterday sentenced Merlando Corlis (48, Tampa) to three years of probation for unlawful discharge of a pollutant. The Court also ordered him to pay a fine of $25,000 and to make a community service payment of $25,000 to the National Fish & Wildlife Foundation.
Corlis pleaded guilty on May 4, 2016.
According to court documents, from at least June 2012 through December 2013, at a property that he owned located at 4509 Orient Road in Tampa, Corlis and others acting at his direction used a vacuum tank to remove human waste from a septic tank and then unlawfully discharged the sewage into a stream, which ran from the East Lake to the Palm River.
“Our nation’s environmental laws are designed to protect public health and safety,” said Andy Castro, Assistant Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in Florida. “Untreated sewage contains bacteria, parasites, and viruses. These pathogens can cause a wide variety of acute illnesses in both humans and animals. Today’s sentencing demonstrates that the EPA and its law enforcement partners will take action to protect communities and their local water supplies from pollution.”
This case was investigated by the Environmental Protection Agency, the Hillsborough County Sheriff’s Office, and the Environmental Protection Commission of Hillsborough County. It was prosecuted by Assistant United States Attorney Megan K. Kistler.
Stoneham Trash Hauler Sentenced for Tax EvasionRead the Press Release
BOSTON – A Stoneham businessman was sentenced today in U.S. District Court in Boston in connection with under-reporting more than $800,000 in gross receipts.
Robert Sinclair, 72, owner of Sinclair Trucking in Stoneham, Mass., was sentenced by U.S. District Judge Richard G. Stearns to two years of probation, the first six months of which is to be served in home confinement, and ordered to perform 250 hours of community service. Sinclair also has agreed to pay the tax loss of $239,446 plus interest and penalties to the IRS. In May 2016, he pleaded guilty to attempting to evade taxes.
For many years, Sinclair owned and operated a waste management and trash hauling business in Stoneham. Some of his larger customers reported the payments they made to Sinclair on tax return form 1099 which they submitted to the IRS and to Sinclair, while smaller customers did not report the payments they made to Sinclair on Forms 1099. When Sinclair filed his tax returns, he generally reported only the amounts he had been paid by customers who provided Forms 1099, but not the payments from his customers who did not produce a Form 1099.
During audits of his tax returns in 2005, 2007, 2008, and 2009, IRS agents questioned Sinclair about discrepancies between the amounts he reported on his tax returns and the amounts he deposited into his business bank account. Sinclair falsely told the agents that the discrepancies were due to cash loans from a relative, when in fact, all of the deposits into the business bank account during these tax years were checks from customers. As a result, Sinclair evaded $239,446 in taxes.
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 the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Smithfield Man Sentenced for Felon in Possession of A FirearmRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced DONTRELL KHALI MCDONALD, 24, of Smithfield, North Carolina to 30 months imprisonment, followed by 3 years of supervised release.
MCDONALD was named in an Indictment filed on January 5, 2016 charging him with being a felon in possession of a firearm. On March 7, 2016, MCDONALD pled guilty to that charge.
On October 31, 2015, officers with the Smithfield Police Department, responded to a call of an individual walking the streets waving two firearms. When officers approached the area, MCDONALD began running through a housing complex in an attempt to elude arrest. The chase ensued, and MCDONALD ran into a crowded flea market. A bystander, who had observed the chase, tripped MCDONALD, who fell to the ground. As MCDONALD hit the pavement, a firearm flew from his waistband. Officers also seized another firearm from MCDONALD.
Law enforcement seized a Bersa .380 firearm and a Lorcin .380 firearm, which was later determined to be stolen. Both firearms were loaded with one bullet in the chamber and two additional rounds in a magazine.
Investigation of this case was conducted by the Smithfield Police Department, Johnston County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette represented the government.
Six Tax Return Preparers Sentenced for Filing False Tax Returns with the IRS Using Stolen IdentitiesRead the Press Release
Six additional tax return preparers were sentenced for filing false tax returns with the Internal Revenue Service (IRS) in a scheme that claimed more than $6,663,976 in fraudulent tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
On August 8, 2016, Danny Horne, 30, was sentenced to 51 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $200,484. On July 29, 2016, Artravette Thomas, a/k/a Artravette Wilson, 41, was sentenced to 51 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $538,765. On July 22, 2016, Tomeka Anderson, a/k/a Tomeka Owens, 36, was sentenced to 65 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $774,320. On July 21, 2016, Natalie Mitchell, 42, and Artrice Reid, a/k/a Artrice Nelson, 40, were each sentenced to 57 months in prison, to be followed by three years of supervised release, and were ordered to pay joint and several restitution in the amounts of $954,557 and $880,457, respectively. On July 20, 2016, Tiffany Gaines, a/k/a Tiffany Morris, 38, was sentenced to 61 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $607,377. Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1).
Four additional co-conspirators previously pled guilty and were sentenced for their participation in the fraudulent scheme. On December 15, 2015, Tameka Walker, 38, Celia Cromer, 43, and Maritynque Cromer, 25, were sentenced to 78 months, 50 months, and 36 months in prison, respectively, followed by three years of supervised release, and were all ordered to pay joint and several restitution in the amount of $796,535. On September 29, 2015, Marlin Mejia, 29, was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $17,428.
Co-defendant Paganini Fleurantin, a/k/a Hu’Ra Al’Dey, 28, pled not guilty. A trial date has not been set.
According to court documents, from September 2010 through May 22, 2013, the defendants conspired to defraud the IRS by filing fraudulent tax returns claiming fraudulent tax refunds. Defendant Walker owned and operated Family Tree Taxes, Inc., a tax preparation business in Miami Gardens. Walker purchased stolen personal identification information (PII) from various sources, including defendant Mejia, to file fraudulent tax returns. Mejia worked as a radiology transporter at a hospital and stole documents (face sheets) containing patients’ PII (including names, dates of birth, and Social Security numbers) from patient files at the hospital. Mejia knew the PII belonged to real people who did not authorize him to possess their personal information. Mejia sold the face sheets to Walker knowing that Walker would use the stolen PII to file fraudulent tax returns.
Defendants Mitchell, Reid, Anderson, Gaines, Thomas, Horne, Fleurantin, Celia Cromer and Maritynque Cromer were employed by Walker as tax preparers at Family Tree Taxes. The employees filed tax returns using stolen identities to claim fraudulent tax refunds, and also filed tax returns claiming fraudulent overinflated tax refunds. Specifically, the stolen PII of 95 hospital patients was used by the employees to claim over $76,757 in fraudulent tax refunds. And in 2012, Mejia authorized Walker to file a tax return for him claiming a fraudulent overinflated tax refund of $3,452.
As part of the conspiracy, the defendants collectively filed tax returns claiming over $6.6 million in fraudulent tax refunds.
A defendant is presumed innocent unless he is proven guilty beyond a reasonable doubt in a court of law.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and the USPIS. The case is being prosecuted by Assistant United States Attorney Vanessa Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sex Trafficker Sentenced to 10 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Reginald Chaney, a/k/a “Reggie,” 21, of East Providence, was sentenced today to 10 years in federal prison for conspiring to transport minors for the purpose of sex trafficking, announced United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; Providence Police Chief Colonel Hugh T. Clements, Jr.; East Providence Police Chief Christopher J. Parella; and Seekonk, Mass., Police Chief Craig A. Mace.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Chaney to serve 5 years supervised release upon completion of his prison term. On May 10, 2016, Chaney admitted to the court that in January 2015, he conspired with two juveniles to transport two females, ages 15 and 16, to motels in Seekonk, Mass., and to locations in Providence, Warwick, Charlestown and Narragansett for the purpose of sex trafficking.
United States Attorney Peter F. Neronha commented, “Make no mistake, this defendant preyed on children with one motivation – making money. He sold children for sex, plain and simple. Nothing is more reprehensible, and he deserves every day of his ten year sentence. Yet my thoughts today are less than with him than with his victims, who have shown such courage in the face of such despicable conduct. It is my hope that, with ongoing support from our many non-governmental partners, they can continue to rebuild their promising young lives.”
“This case is a stark reminder that sex trafficking can and does happen in every community, and is often perpetrated by individuals not much older than their victims. It is disturbing to think that anyone as young as the three defendants in this case could be capable of manipulating and forcing young women into sex trafficking, yet it happens quite frequently,” said Attorney General Peter Kilmartin. “I commend the cooperative efforts of local, state, and federal law enforcement to save these young victims. We have come a long way in the past few years in both getting help for the victims and putting the traffickers behind bars for a long time. That cooperation between agencies is critical to shutting down these types of operations.”
According to information presented to the court, on January 28, 2015, Providence Police responded to Hasbro Childrens’ Hospital for a report of sexual exploitation offenses involving a 16 year-old female. As a result of information provided to the officers, and a subsequent investigation by Providence Police and Homeland Security Investigations, law enforcement learned that on January 16, 2015, Chaney and two juvenile males conspired to take photographs of the 16 year-old female and a 15 year-old female in various stages of undress, and posted the photographs on Backpage.com. Between January 16 and January 28, 2015, Chaney and the two juvenile males conspired to transport the teenage girls from Chaney’s East Providence residence to locations in Massachusetts and Rhode Island for the purpose of offering the girls for prostitution.
Chaney was arrested by East Providence Police on January 29, 2015, and ordered detained in state custody as a Superior Court probation violator on a 5-year suspended sentence imposed on January 14, 2015, on a weapons charge.
Two juvenile males from East Providence identified as co-conspirators in this matter were arrested on January 29, 2015, and prosecuted in Family Court by the Rhode Island Attorney General’s Office. Brian Desmarais, who was 17 at the time of his arrest, pleaded nolo contendere on November 2, 2015, to two counts of sex trafficking of a minor and one count of conspiracy to commit sex trafficking of a minor. Under the terms of the plea agreement, Desmarais received a certified sentence of 10 years with 19 months plus two days to serve, the remainder suspended with probation. He is serving his sentence at the Rhode Island Training School until a “modification hearing” takes place at which time a Family Court judge will determine if the sentence should be modified or continued to be served at the Adult Correctional Institution.
The second juvenile offender, J’Maire Wray, who was 15 at the time of his arrest, pleaded nolo contendere before Family Court Judge Kathleen A. Voccola to two counts of sex trafficking of a minor, one count of conspiracy to commit sex trafficking of a minor, and one count of felony assault. Under the terms of a plea agreement, Wray received a certified sentence of 15 years, with six years to serve.
Under certification, both Desmarais and Wray are convicted and their sentences will extend into adulthood.
The cases were jointly prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General Daniel Carr Guglielmo.
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Schenectady Heroin Distributor Sentenced to 16 YearsRead the Press Release
ALBANY, NEW YORK – Raymond P. Baker, age 37, of Schenectady, New York, was sentenced today to 16 years in prison after a jury found him guilty in December 2015 of participating in a heroin distribution conspiracy.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Senior United States District Judge Thomas J. McAvoy also sentenced Baker to serve 8 years of supervised release, to begin after Baker is released from prison.
In December 2015, a jury convicted Baker following a 4-day trial. The evidence at trial demonstrated that from January 2015 to June 2015, Baker worked with another person to sell heroin at two locations in Albany County, and that the amount of heroin involved in the conspiracy was 100 grams or more.
This case was investigated by the DEA. It was prosecuted at trial by Assistant U.S. Attorney Michael Barnett, and was prosecuted to indictment by Assistant U.S. Attorneys Wayne A. Myers and Elizabeth R. Rabe.
Roanoke Man Sentneced on Federal Gun ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Roanoke man, who came to be in possession of firearms stolen from a local home last summer, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, United States Attorney John P. Fishwick Jr. announced.
Brian Collins, 43, of Roanoke, Virginia, previously pled guilty to one count of being a previously convicted felon illegally in possession of a firearm. Today in District Court he was sentenced to 180 months in federal prison.
“We must continue to do all we can to keep guns out of the hands of prohibited users,” United States Attorney Fishwick said today. “I firmly believe that keeping illegal guns off our streets is an important step in keeping our communities safe and we continue to work every day toward that goal.”
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, on August 24, 2015 a home in Vinton, Virginia was burglarized and at least six firearms were stolen. Following a thorough investigation by the Bedford County Sheriff’s Office, the Virginia State Police, the Rockbridge County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives, it was determined that Collins, who was not involved in the burglary, was in possession of some of the firearms taken during the burglary.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bedford County Sheriff’s Office, the Rockbridge County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Repeat Sex Offender Sentenced to 24 Years for Third ConvictionRead the Press Release
NEWPORT NEWS, Va. – William Rollie Armstrong, 50, of Hampton, was sentenced today to 293 months in prison for coercion and enticement of a child, and receipt of child pornography. Upon release from prison Armstrong will serve 25 years of supervised release.
Armstrong pleaded guilty on February 22. According to the statement of facts filed with the plea agreement, the parents of Jane Doe, a 12 year-old child from Michigan, contacted law enforcement to report that Armstrong was having inappropriate chats with their daughter. During the course of the investigation, federal agents were able to determine that the Armstrong befriended Jane Doe through a social networking site, InterPals, by pretending to be a 13 year-old boy from New York. Armstrong sent Jane Doe sexually explicit photos and also asked the child to engage in sexual conduct that would be a crime in Virginia. Agents executed a search warrant on Armstrong’s home in Hampton and seized electronic devices. Armstrong cooperated with agents and admitted that he used a profile picture of a young boy on InterPals. He also admitted to chatting with young girls, including Jane Doe, on various social media websites, and asked them to send him nude pictures of themselves. A forensic exam of the electronic devices revealed that Armstrong had images of child pornography as well as images of Jane Doe.
This is Armstrong’s third conviction for sexual crimes involving minors. He was convicted of sexual assault in 1992 after engaging in sexual intercourse with a 15 year-old child, and in 1999 he was convicted of possession with the intent to distribute child pornography in Virginia Beach.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-85.
Rapper Young Buck Sentenced to Seven Months in Prison for Violating Conditions of Supervised Release and ProbationRead the Press Release
David Darnell Brown aka “Young Buck,” 35, of Murfreesboro, Tenn., admitted violating the conditions of his supervised release and probation in two federal felony cases today. He was sentenced to seven months in prison for those violations and was immediately taken into custody, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
In July 2013 Brown was convicted of two felonies in U.S. District Court; being a convicted felon in unlawful possession of a firearm and being a convicted felon in unlawful possession of ammunition. Brown was sentenced to 18 months in prison and to a 3-year term of supervised release for these offenses. He completed his prison sentence and began his term of supervised release in November 2013. A condition of supervised release required Brown to participate in drug testing and urinalysis to detect illegal drug use.
In August, 2015, Brown pleaded guilty to willfully falsifying, concealing, and covering up by trick, scheme, and device, material facts regarding his possession and use of marijuana, by providing a false urine sample and by falsely telling a United States Probation Officer that he had not used a controlled substance. According to the statement of facts, Brown used a device, consisting of a plastic bag containing another person’s urine, to provide a urine sample as part of required drug testing. Brown was sentenced by U.S. District Judge Todd J. Campbell to serve 18 months’ probation, pay a $7,500 fine; perform 100 hours of community service; and submit to mandatory drug testing and treatment.
Brown then continued to violate the conditions ordered by the Court, leading to his hearing today for violation of his terms of supervision in both those cases. Brown admitted that he had violated supervision in at least three ways.In March 2016, Brown received text messages from the fiancée of the mother of one of Brown’s children. In those text messages, the fiancée told Brown that he was in violation of a state court child support/visitation order, and that he could face state jail time for contempt. Brown then called the victim in this incident various derogatory and racial epithets and threatened him with physical harm.
On March 29, 2016, Brown was summoned to court for his initial appearance and was ordered to comply with conditions, including not violating any law while pending a final hearing on that violation.
On July 20, 2016, another of Brown’s ex-girlfriends obtained an Ex Parte Order of Protection in state court and arrest warrants were issued against Brown based on an incident in which Brown wanted to get certain property out of that woman’s house and was told that the property was not there. He then kicked in the door of the residence and threatened that woman. Brown was arrested for violating his supervision, and was detained pending a detention hearing. After that hearing, the federal magistrate determined Brown could be released pending the final hearing on this incident and the previous March 2016 incident, but ordered Brown not to have any direct or indirect contact with this victim. Brown was released under those conditions on August 1, 2016.
After being released on those conditions, Brown violated the conditions of his release by contacting and attempting to contact that woman over 100 times in violation of the Magistrate’s release order.
This case was prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy.
Raleigh Attorney Sentenced for Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Raleigh attorney Joseph Lee Levinson was sentenced on August 9, 2016, for conspiracy to make false statements to federally insured financial institutions, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Levinson was sentenced to 15 months imprisonment; 2 years supervised release, $100.00 special assessment, and $230,079 in restitution by Senior United States District Judge James A. Beaty, Jr. Levinson had pleaded guilty on January 12, 2016.
From 2005 until 2010, Jotham Walker Pruitt and other individuals operated a marijuana "grow" operation in Orange County, North Carolina. The operation involved the production of marijuana inside houses in the vicinity of the Town of Hillsborough, Orange County, North Carolina. Levinson was a licensed attorney practicing in Raleigh and is a college friend of Jotham Pruitt. Levinson conspired with Jotham Pruitt to obtain mortgage funding for properties to be used as "grow houses," knowing full well that banks would not loan money to Jotham Pruitt if they knew that the houses were to be used for illegal purposes. Levinson and Jotham Pruitt prepared loan applications to Long Beach Mortgage Corporation and SunTrust Bank falsely representing that the properties would be used for legal purposes, such as a residence or as rental property, when in fact both knew that the houses would be used to grow marijuana. Levinson acted as closing attorney for purchase of the first two grow houses used in the operation.
Levinson also conspired with Jotham Pruitt to present false leases to Countrywide Bank, N.A., to support Pruitt’s application for mortgage funding to purchase a third grow house. Levinson provided Jotham Pruitt with a sample lease to use as a template in creating false leases to present to Countrywide Bank, N.A., showing that previous properties purchased by Jotham Pruitt were rental properties occupied by tenants. In fact, these properties were being used to grow marijuana.
The grow operation ceased in December 2010. Upon completion of the business, Jotham Pruitt ceased making payments on the mortgages on the grow houses, including those he had purchased with the aid of Levinson. The houses were foreclosed on by the lending banks at a total loss of over $230,000.
Jotham Pruitt, Aubrey Pruitt, and Dustin Fisher have pleaded guilty in the United States District Court for the Middle District of North Carolina to related charges.
The case was investigated by the Orange County Sheriff’s Office and Internal Revenue Service - Criminal Investigations in conjunction with the United States Attorney’s Office for the Middle District of North Carolina.
Case Number 1:15CR413-1
Ponemah Man Sentenced to 20 Years in Prison for Aggravated Sexual AssaultRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of DANA LEE COBENAIS, 24, an enrolled member of the Red Lake Band of Chippewa, for aggravated sexual abuse. Following a three-day trial before Senior U.S. District Judge Richard Kyle, a jury on November 19, 2015 found COBENAIS guilty. COBENAIS was sentenced today before Judge Kyle in Duluth, Minn. to 20 years in prison.
As proven at trial, on March 14, 2015, COBENAIS brutally assaulted a woman on the Red Lake Indian Reservation, after forcing her to give him a ride in her car. COBENAIS grew angry during the ride and punched the victim several times in the face before sexually assaulting her. When the Red Lake Police responded to a call for help they found substantial amounts of blood in the car and on the victim. COBENAIS’ sexual violence was so severe that the victim needed surgery to repair the lacerations.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
This case is the result of an investigation conducted by the FBI and Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
DANA LEE COBENAIS, 24
Ponemah, Minn.
Convicted:
- Aggravated sexual abuse, 1 count
Sentenced:
- 20 years in prison
- Lifetime supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Office of Justice Programs’ Office for Civil Rights Enters into Agreement with the Richland County Sheriff’s Department to Ensure Civil Rights Protections for StudentsRead the Press Release
Contact: (202) 598-9457
WASHINGTON – The Office of Justice Programs’ (OJP) Office for Civil Rights (OCR) today entered into an agreement with the Richland County Sheriff’s Department (RCSD) to resolve a compliance review of its School Resource Officer (SRO) program. The agreement was reached in order for RCSD to promptly enact changes to ensure full compliance with federal civil rights laws prohibiting discrimination against students based on race, color, national origin and disability.
The agreement requires RCSD to undertake a comprehensive assessment and overhaul of its SRO program, including:
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Developing policies to minimize school-based arrests and meet the needs of students with disabilities;
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Providing intensive, annual training for all SROs on de-escalation, bias-free policing, and youth development;
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Conducting detailed data collection and analysis; and
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Establishing a community working group to recommend program improvements.
The OJP Diagnostic Center, a technical assistance resource that uses data-driven approaches to help communities address criminal justice and public safety issues, will support RCSD in implementing the terms of the agreement.
“The Office for Civil Rights is committed to working with communities like Richland County to ensure that students’ civil rights are protected and school-based law enforcement responses are safe and fair,” said OJP Assistant Attorney General Karol V. Mason. “By working with our Diagnostic Center to examine their data and identify the appropriate evidence-based practices, we hope these communities can enhance the services school resource officers provide and strengthen their relationships with students and families.”
OCR is responsible for ensuring recipients of federal financial assistance from OJP and the Department of Justice’s Office of Community Oriented Policing Services, such as RCSD, comply with applicable federal civil rights laws. Specifically, OCR’s SRO Compliance Review Initiative seeks to diminish the disproportionate impact school-based law enforcement actions have on students of color and students with disabilities by evaluating whether federally-funded SRO programs comply with these laws. OCR selected the RCSD SRO program for review in May 2015 based on several factors, including data collected by the Justice Department and other federal agencies on the county’s juvenile population and arrest rates, school-based arrests, and school-based referrals to law enforcement.
A link to the resolution agreement along with OCR’s resolution letter can be found at www.ojp.usdoj.gov/about/ocr/pdfs/RCSD-SRO-ComplianceReview-08102016.pdf.
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North East, Pa., Man Indicted on Child Pornography OffenseRead the Press Release
ERIE, Pa. - A resident of North East, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The one-count indictment named Gregory A. Doyle, 53, as the sole defendant.
According to the indictment presented to the court, Doyle possessed computer images depicting minors under the age of 12 engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Sentenced for Fake Lottery ScamRead the Press Release
BOSTON – A New York man was sentenced today in U.S. District Court in Boston in connection with his role in a bogus lottery scheme in which the victims were told they had won millions of dollars in lotteries and must first pay the taxes in order for their winnings to be released to them.
Wilder Vladimir Merelan, of West Hempstead, NY, 29, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 51 months in prison and ordered to pay $733,999 in restitution. In April 2016, he pleaded guilty to an Information charging him with one count of conspiracy to commit mail and wire fraud.
From 2012 to 2015, Merelan’s Jamaican co-conspirators solicited victims, who ranged in age from 69 to 91. The victims were told that they had won millions of dollars in a lottery but had to pay taxes on their winnings to the IRS before the funds could be released to them. Victims mailed checks or wired funds to Merelan, who kept a portion for himself and then distributed the rest as directed by his co-conspirators. Merelan was described to these victims as a “sub agent” for the IRS. Approximately 16 victims, including a Massachusetts man, sent more than $830,000 to Merelan in an effort to secure their supposed lottery winnings. Some of the funds were stopped by banks or intercepted by the U.S. Postal Service. However, Merelan received $733,999.
After depositing the checks and receiving the wire transfers into his bank accounts, Merelan withdrew cash, wired funds to individuals in the United States and Jamaica, and purchased reloadable prepaid cards, essentially draining his accounts of the funds he had received.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the Postal Inspection Service; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
New Jersey Man Sentenced to Life in Prison for Robbing and Murdering Ossining ResidentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY GRECCO was sentenced today to life in prison for robbing and murdering Ryan Ennis, a resident of Ossining, New York, and conspiring to distribute marijuana and heroin. In January 2016, following a nine-day trial in White Plains federal court before the Honorable Kenneth M. Karas, a jury found that on August 26, 2014, GRECCO traveled from New Jersey to Ossining, where he robbed and murdered Ennis in furtherance of GRECCO’s narcotics trafficking activities. Judge Karas imposed today’s sentence.
U.S. Attorney Preet Bharara stated: “Anthony Grecco violently murdered Ryan Ennis, repeatedly stabbing him and slashing his throat, all for a few thousand dollars Ennis had for marijuana he thought Grecco was delivering. The significant sentence imposed on Grecco today reflects the horrific and cold-hearted nature of his crime.”
As established by the evidence at trial:
GRECCO was a marijuana dealer based in New Jersey. As of the spring of 2014, one of his customers was Ryan Ennis, 25, who had been purchasing marijuana from GRECCO and reselling it in the area around Ossining, New York. By late summer 2014, GRECCO’s marijuana supply had dried up and he became desperate for cash.
GRECCO set up a meeting with Ennis, on the pretense that he would be bringing more marijuana for Ennis. In fact, GRECCO intended to rob Ennis, and kill him if necessary, in order to get money. He wanted that money not only because he was strapped for cash, but because he intended to invest in the heroin business of another drug dealer in New Jersey. In preparation for the meeting with Ennis, GRECCO obtained a knife and stuffed a backpack full of linens so that Ennis would not realize that GRECCO had arrived without any marijuana.
On August 26, 2014, GRECCO drove with two accomplices from New Jersey to an apartment complex in Ossining, where Ennis was waiting alone in his father’s apartment. After arriving in Ossining, while the other two individuals waited outside, GRECCO went into the apartment and robbed Ennis. In the course of the robbery, GRECCO stabbed Ennis repeatedly and slashed his throat, killing him. GRECCO took $8,900 – the cash that Ennis had prepared for the marijuana deal – as well as a cellphone and a hat, from Ennis. After the murder, GRECCO returned to New Jersey, where he showered and threw away the blood-stained clothes that he had been wearing in an attempt to cover his tracks.
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GRECCO, 35, is from Manville, New Jersey.
U.S. Attorney Bharara praised the outstanding work of the Village of Ossining Police Department and the FBI’s Westchester County Violent Crimes Task Force, which is comprised of investigators from the FBI, the Westchester County Police Department, the Westchester County District Attorney’s Office, the City of Peekskill Police Department, the New York City Police Department, and the City of Yonkers Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael Gerber, Scott Hartman, and George Turner are in charge of the prosecution.
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Multiple Arrests Made in Drug Distribution ConspiracyRead the Press Release
FORT WAYNE –United States Attorney David A. Capp announced five indictments and six criminal complaints against 18 individuals allegedly involved in a large-scale drug distribution network. This network involved the movement of cocaine, methamphetamine and heroin in a geographic area encompassing Fort Wayne to Elkhart and South Bend, Indiana.
Federal, state and local law enforcement officers, beginning yesterday morning, arrested 17 of the named individuals. One is a fugitive at this time. In addition, law enforcement officers executed 20 federal search warrants in conjunction with this investigation.
The principal indictment alleges a conspiracy to distribute cocaine, methamphetamine and heroin against the following, all from Fort Wayne:
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Jose C. Razo, age 43; also charged with maintaining 2720 Winter St., Ft. Wayne as a drug distribution place and eight specific alleged distributions;
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Carlos Silva-Ponce, age 39; also charged with maintaining 2720 Winter St. as a drug distribution place and two specific alleged distributions;
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Patricia S. Quinones, age 48;
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Samuel J. Gemple, age 48;
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Marco A. Garcia, age 29, and
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Allan C. Chiprez-Garcia, age 20.
In addition, other indictments were returned against:
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Baltazar Fernandez, age 44, Fort Wayne; conspiracy to distribute cocaine;
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Juan M. Gonzalez, age 33, Fort Wayne; conspiracy to distribute heroin and cocaine;
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Frederick Moore, age 42, Fort Wayne; conspiracy to distribute heroin and cocaine and with maintaining 2526 Baywood Trail, Ft. Wayne as a drug distribution place; arrested yesterday in South Dakota;
- Javier Orozco, age 28, Fort Wayne; conspiracy to distribute heroin; currently a fugitive, anyone with information as to his whereabouts should contact the FBI;
- Edy A. Montoya-Echeverria, age 34, Fort Wayne; conspiracy to distribute heroin, and
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Larmondo Watts, age 44, Fort Wayne; possession with intent to distribute cocaine.
In addition to the above indictments, federal criminal complaints were issued for the following individuals:
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Jesus Montes-Perez, age 47, Fort Wayne; distribution of methamphetamine;
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Rene A. Del-Rio Salazar, age 30, South Bend; distribution of cocaine;
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Fernando G. Garcia, age 30, Fort Wayne; distribution of heroin;
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Carlos Prado, age 36, Fort Wayne; distribution of methamphetamine;
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Jonathan A. Galindo, age 25, Fort Wayne; conspiracy to distribute cocaine along with using a telephone to facilitate distribution, and
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Enrique Cordova Campos, age 41, Elkhart, conspiracy to distribute cocaine.
Federal search warrants were executed at the following addresses:
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3033 Winter Street, Fort Wayne, IN;
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2720 Winter Street, Fort Wayne, IN;
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2808 Taylor Street, Fort Wayne, IN;
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2715 Hoagland Avenue, Fort Wayne, IN;
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2724 Winter Street, Fort Wayne, IN;
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2311 Whitmore Avenue, Fort Wayne, IN;
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50773 CR 11, Elkhart, IN;
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1331 Ebeling Drive, South Bend, IN;
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8711 Voyager Drive, Fort Wayne, IN;
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2526 Baywood Trail, Fort Wayne, IN;
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205 West Wallace Street, Fort Wayne, IN;
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9723 Tumbleweed Blvd., Fort Wayne, IN;
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9525 Woodstream Dr., Fort Wayne, IN;
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1135 Eliza Street, Fort Wayne, IN;
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13814 Piedmont Cove, Fort Wayne, IN;
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2531 Sandpoint Road, Fort Wayne, IN;
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4005 Reed Street, Fort Wayne, IN;
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1112 Wabash Avenue, Fort Wayne, IN;
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1714 South Coliseum Blvd, Fort Wayne, IN, and
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4501 Smith Street, Fort Wayne, IN.
This investigation was directed by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force (FWSSTF). Partners in the FBI FWSSTF are the Allen County Sheriff’s Department, Fort Wayne Police Department, and the Indiana State Police. In addition, the FBI FWSSTF was assisted by the Internal Revenue Service-Criminal Investigation Division, U.S. Drug Enforcement Administration, U.S. Marshal’s Service, Elkhart Police Department, and the South Bend Police Department. This case is being prosecuted by Assistant United States Attorneys Anthony Geller and Stacey Speith.
The United States Attorney's Office emphasized that an Indictment or Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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More Federal Charges Filed Against Two Former Crystal City OfficialsRead the Press Release
In Del Rio today, the Federal Grand Jury returned a superseding indictment adding new charges against two former Crystal City, TX, officials announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In February 2016, the federal grand jury indicted 54-year-old former City Manager and City Attorney William James Jonas, III, with one count of conspiracy to commit bribery and three substantive federal programs bribery charges. The original indictment also charged 40-year-old former Crystal City Mayor Ricardo Lopez with one count of conspiracy to commit bribery and one substantive federal programs bribery charge
Today’s superseding indictment incorporates those original charges and adds 10 new charges against Jonas and five charges against Lopez. The new charges against Jonas include one count of conspiracy to commit wire fraud and theft of honest services; five substantive counts of wire fraud and theft of honest services; and, four counts of wire fraud. The new charges against Lopez include one count of conspiracy to commit wire fraud and theft of honest services; and, four substantive counts of wire fraud and theft of honest services.
The superseding indictment alleges that between May 2012 and February 2016, Jonas and Lopez allegedly used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. The superseding indictment also alleges that Jonas and Lopez used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
The superseding indictment also alleges that Jonas was involved in a wire fraud scheme in connection with a multi-million-dollar contract in May 2014 for various improvements to the City’s infrastructure including replacing the City’s water meters, certain heating and air conditioning equipment, and lighting. Under the contract, Crystal City agreed to place approximately $2,124,389 in a specific escrow account and only use those funds to pay the provider as phases of the work were completed. Crystal City subsequently issued Certificates of Obligation and raised $2.25 million specifically for the improvements and for costs related to the issuance of the certificates. Those monies were deposited into the City General Fund in December 2014.
The superseding indictment further alleges that Jonas, despite contract requirements, directed City employees to leave the monies in the City’s General Fund which was then used to pay Jonas’ salary as City Manager and City Attorney, reimburse Jonas for certain expenses, and pay certain favored contractors, among other uses. According to the indictment, the balance in the City’s General Fund after the deposit of the raised funds was $2,207.050.62. The balance in the City’s General Fund on or about October 31, 2015, was $2,199.95. On November 6 2015, Crystal City still owed approximately $735,048.79 in payments under the contract.
Upon conviction, Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both are out on bond at this time.
Three other defendants in this case—former Mayor Pro-Tem Rogelio Mata, former City councilman Roel Mata, and businessman Ngoc Tri Nguyen have each already entered guilty pleas to a federal programs bribery charge and are awaiting sentencing. All three remain on bond and face up to ten years in federal prison and up to a $250,000 fine at sentencing.
A fourth defendant, former City Councilman Gilbert Urrabazo is scheduled to have a re-arraignment hearing at 1:30pm on August 25, 2016, in front of U.S. District Judge Alia Moses in Del Rio. Urrabazo, who remains on bond, is charged by the initial indictment with one count of conspiracy to commit bribery and one substantive federal programs bribery charge.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Minneapolis-Based Gang Leader Sentenced to 15 Years in Prison for Distribution of Crack Cocaine and Possession of a Firearm During a Drug Trafficking CrimeRead the Press Release
United States Attorney Andrew M. Luger yesterday announced the sentencing of LOUIS LEE FRASIER BANKS, 26, a leader of a known Minneapolis gang, the Taliban/Young N’ Thuggin (YNT) gang. On March 4, 2015, BANKS was charged in a seven-defendant indictment with conspiracy to distribute cocaine base (crack) and distribution of crack. On October 13, 2015 BANKS pleaded guilty to a two count information charging him with conspiracy to distribute crack cocaine and possessing a firearm during a drug trafficking crime. The defendants include other members of the gang. BANKS appeared yesterday before U.S. District Judge Patrick J. Schultz.
According to the defendant’s guilty plea and documents filed in court, between January and December 2014, the defendants named in the indictment were organizers and members of two closely associated street gangs, the Taliban and the YNT. BANKS had more influence in the gangs, based on seniority and criminal activity. The Taliban/YNT gangs claim an area of north Minneapolis as their territory, and other north Minneapolis gangs, including the 1-9 Dipset and Stick Up Boys, as enemies. The members carry guns to protect themselves and their money against their rivals, in order to further their ability to sell illegal drugs.
According to the defendant’s guilty plea and documents filed in court, the Taliban/YNT are organized for the purpose of making money by trafficking illegal drugs, among other criminal activity. Members of the Taliban/YNT frequently travel to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban/ YNT could sell in Minneapolis for $20 could be sold for $50 in Greater Minnesota and in North Dakota. Similarly, an amount of crack cocaine sold for $150 in the Metro area would sell for between $220 and $250 in Greater Minnesota.The other defendants in this case were sentenced as follows: CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 26, was sentenced to 120 months in prison and 5 years of supervised release. DEJUAN PIERRE DARKYSE WASHINGTON, a/k/a “DJ,” 25, was sentenced to 120 months in prison and 3 years of supervised release. LAQUEDRICK LEMEL AS-SIDIQ, a/k/a “Quady,” a/k/a “C,” 26, was sentenced to 120 months in prison and 3 years of supervised release. DONTE TRAMAYNE SMITH, a/k/a “Five,” 26, was sentenced to 18 months in prison and 3 years of supervised release. CORTEZ DAVON BLAKEMORE, a/k/a “Tez,” 26, was sentenced to 21 months in prison and 3 years of supervised release. Defendant TERRELL VONSHAY ROBERSON, a/k/a “Get Right,” a/k/a “Slim,” is awaiting sentencing.
This case is the result of an investigation conducted by the Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, Minneapolis Police Department, Minnesota Bureau of Criminal Apprehension and St. Paul Police Department. The St. Cloud Violent Crimes Task Force and the St. Cloud Police Department were a critical part of this investigation.
This case was prosecuted by Assistant U.S. Attorney David Steinkamp.
Defendant Information:
LOUIS LEE FRASIER BANKS, a/k/a “G.I.,” 26
Anoka County Jail
Convicted:
- Conspiracy to distribute Cocaine Base, 1 count
- Felon in Possession of a Firearm in furtherance of a drug trafficking crime, 1 count
Sentenced:
- 15 years in prison
- 5 years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Middleburgh Man Sentenced for Receipt of Child PornographyRead the Press Release
ALBANY, NEW YORK – Edward Werner, 51, of Middleburgh, New York, was sentenced yesterday to serve one hundred and twenty-one (121) months in federal prison in connection with his conviction for receipt of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Edward Werner pled guilty on March 2, 2016, to a one-count information charging him with receiving child pornography. As part of his guilty plea, Werner admitted that between January 26, 2015 and March 3, 2015, he visited a website that provided for the display and sharing of child pornography, and accessed and viewed a series of images and videos depicting minors engaged in sexually explicit conduct.
United States District Judge Mae D’Agostino also imposed a fine in the amount of $3,000 and a fifteen (15) year term of supervised release, which will start after Werner is released from prison. As a result of his conviction, Werner will be required to register as a sex offender after leaving prison.
This case was investigated by the FBI and the Colonie, New York Police Department, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mexican Citizen Pleads Guilty to Illegal ReentryRead the Press Release
ROANOKE, VIRGINIA – A citizen of Mexico, who has been removed from the United States multiple times in recent years, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to Federal immigration charges, United States Attorney John P. Fishwick Jr. announced.
Martin Alvarez-Torres, 38, of Mexico, pled guilty today to one count of illegally reentering the United States after being previously deported without having obtained the express consent of the Attorney General of the United States and the Secretary of the Department of Homeland Security to apply for admission into the United States.
“The United States is a country that welcomes immigrants from all corners of the world but those who come here must do so within the letter of our immigration laws,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom III, Alvarez-Torres has been removed from the United States multiple times, most recently on April 17, 2014. The defendant was indicted in 2014 and remained at-large until his arrest in Roanoke, Virginia in June 2016.
The investigation of the case was conducted by the Department of Homeland Security, Immigration and Customs Enforcement. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.
Medical Device Company and Executives Plea to an Information Relating to Misbranded Medical DevicesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that two Vermont men pled guilty on June 30, 2016 in U.S. District Court in Rutland to information charging them with Class A Misdemeanors relating to the introduction of misbranded medical devices into interstate commerce. AADCO Medical, Inc., a medical device supply company operating out of Randolph, has additionally pled guilty to the same charge.
According to the information and plea agreements filed with the Court, from May 2011 through August 2012, AADCO Medical, Robert Marchione, and Anthony Skidmore allegedly introduced and caused the introduction and delivery of six medical lamps as surgical lamps without having complied with the Food and Drug Administration’s requirements that notice be submitted to the FDA prior to the introduction of such devices into interstate commerce. The misbranded lamps were sold to medical providers in New York, N.Y., Buffalo, N.Y., and Chapel Hill, N.C.
AADCO was ordered to pay a total of $53,070, which included restitution to the victims of $47,945.00, a criminal fine of $5,000.00, and an assessment of $125.00. Mr. Marchione and Mr. Skidmore were each fined $5,000.00.
“The FDA’s regulatory requirements for medical devices are designed to ensure the health and safety of patients,” said Jeffery J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “The FDA will continue to aggressively pursue those who place patient’s health at risk for their own profit by compromising the integrity of the legitimate supply chain.” United States Attorney Eric S. Miller commended the investigative efforts of the FDA and Homeland Security.
The matter was investigated by Special Agent Matthew Carbone of the FDA’s Office of Criminal Investigations, and by a Special Agent from Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Owen C.J. Foster and FDA Associate Chief Counsel Scott Kaplan. AADCO Medical was represented by Kevin Henry, Mr. Marchione was represented by George Ostler, and Mr. Skidmore was represented by Paul Volk.
McKees Rocks Man Pleads Guilty to Fraud ChargeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania pleaded guilty in federal court to a charge of access device fraud, United States Attorney David J. Hickton announced today.
Joseph E. Placzek, 25 of McKees Rocks, PA, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was informed that Placzek opened credit cards in the name of another person at Capital One bank, which he used to purchase cruise vacations at Carnival Cruise, as well as merchandise at Amazon.com and Home Depot, among other retailers totaling approximately $69,000.
Judge McVerry scheduled sentencing for Nov. 11, 2016 at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Inspectors from Homeland Security Investigations and the United States Postal Inspection Service, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the Pittsburgh Bureau of Police and the Pennsylvania State Police.
Maryland Man Pleads Guilty to Transporting Stolen GoodsRead the Press Release
Baltimore, Maryland – Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland, pleaded guilty today to interstate transportation of stolen goods in connection with a scheme to sell property stolen from shopping mall kiosks online.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from October 7, 2014 through March 29, 2016, Halsey used online accounts opened in different names and identities to sell stolen items, including designer sunglasses, and shipped the items nationwide from his home in Dundalk, Maryland.
Specifically, Halsey’s co-conspirator broke into kiosks and stores in shopping malls in Cape Girardeau, Missouri; Fairview Heights, Illinois; and Myrtle Beach, Wilmington, Columbia, and Florence, South Carolina, and stole merchandise which he brought to Halsey in Maryland. Halsey sold the property through an online market, and used the U.S. Postal Service and commercial carriers to ship the stolen property to the buyers. Halsey provided cash from the sale of the stolen property to his co-conspirator and also helped to finance the co-conspirator’s travel and travel expenses to other states to commit thefts in order to obtain more property for sale. Halsey maintained multiple online market accounts, online payment accounts, and bank accounts under different names and identities during the scheme.
On August 28, 2015, law enforcement searched Halsey’s residence and recovered over $200,000 worth of stolen designer sunglasses, as well as a printing and labeling system, and a large number of documents related to selling sunglasses through an online market. Law enforcement also recovered lock-pick kits and numerous atlases and street maps.
Halsey admitted that more than five individuals participated in the scheme, helping Halsey to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting in the thefts. Halsey organized the sale of items online and their shipment to buyers outside Maryland. The estimated loss from the scheme was approximately $500,000.
Halsey faces a maximum sentence of 10 years in prison. As part of his plea agreement, he will also be required to pay restitution in the full amount of the victims’ losses. U.S. District Judge Richard D. Bennett has scheduled sentencing for November 15, 2016 at 3:00 p.m. Halsey remains detained.
United States Attorney Rod J. Rosenstein commended FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
MS-13 Gangsters Sentenced to Life in Prison for MurderRead the Press Release
ALEXANDRIA, Va. – Jose Lopez Torres, 26, of Falls Church, and Jesus Alejandro Chavez, 25, of Alexandria, were both sentenced today to life in prison for their roles in two murders and one attempted murder in Northern Virginia, among other charges.
According to court records and evidence presented at trial, on Oct. 1, 2013, Torres, along with co-conspirator Jaime Rosales Villegas and others drove to Gar-Field High School in Woodbridge to murder a fellow gang member. However, one of the gang members in the car had not only alerted police to the murder plot, he also recorded phone calls and a meeting during which gang members, including Torres, Villegas, and Pedro Anthony Romero Cruz, who participated from prison on a contraband cell phone, planned the murder. The gang members’ vehicle was under surveillance that night, the victim had been warned to not be at school, and the informant was wearing a body wire.
According to court records and evidence presented at trial, on Oct. 7, 2013, Torres, Omar DeJesus Castillo, Juan Carlos Marquez Ayala, Araely Santiago Villanueva, Jose Del Cid, and three others murdered fellow gang member Nelson Omar Quintanilla Trujillo. The gang believed Trujillo was a snitch, and so the gang members lured him to Holmes Run Park in Falls Church, and brutally killed him by stabbing him with knives and slashing him with a machete. When they were done they buried Trujillo in a shallow grave. Several gang members returned a short time later and, with the assistance of Alvin Gaitan Benitez, reburied the body of Trujillo.
According to court records and evidence presented at trial, on June 19, 2014, Jesus Alejandro Chavez, along with Del Cid and Genaro Sen Garcia murdered Julio Urrutia. Several gang members including Chavez, who had been released from prison a mere eight days earlier, were out looking for rival gang members when they approached a group of young men, flashed their gang signs, and challenged them about their gang affiliation. During the exchange Chavez pulled out a gun and shot Urrutia in the neck at point blank range. Urrutia died from the gunshot wound two days later.
A total of 13 defendants were charged in this case. Of those, six defendants went to trial and were convicted of all charges on May 9. Six defendants pleaded guilty prior to trial, and one defendant was severed from the case and will have a separate trial at a later date. Each defendant convicted at trial faces a mandatory sentence of life in prison. Please see the table at the end of this press release for additional information on each defendant.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Chief of Police, Fairfax County Police Department; Earl L. Cook, Chief of Police, Alexandria City Police Department; and Barry M. Barnard, Chief of Police, Prince William County Police Department, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case. The case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department’s Gang Investigations Unit, the Prince William County Police Department, and the Alexandria City Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Pedro Anthony Romero Cruz
30, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
30 years in prison
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
Life sentence plus 30 years
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
272 months in prison
Juan Carlos Marquez Ayala
23, Falls Church
Murder in Aid of Racketeering
Life sentence
Omar Dejesus Castillo
27, Arlington
Two Counts of Murder in Aid of Racketeering
Two life sentences
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
September 9
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
September 9
Araely Santiago Villanueva
20, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
September 9
Jose Del Cid
20, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
26, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
Two life sentences plus 10 years
Genaro Sen Garcia
21, unknown
Murder in Aid of Racketeering
Life sentence
Long Island Investment Advisor and Law Firm Attorney Indicted in Insider Trading SchemeRead the Press Release
A two-count indictment was unsealed this morning in federal court in Central Islip, New York, charging Tibor Klein, the founder and president of investment advisory firm Klein Financial Services (Klein Financial); and Robert Schulman, a former partner in a Richmond-based global law firm (the law firm), with securities fraud and securities fraud conspiracy.[1] Schulman tipped Klein about the pending merger between Pfizer, Inc. (Pfizer) and King Pharmaceuticals, Inc. (King) that Schulman had learned through his representation of King, and Klein used that material non-public information to engage in securities transactions ahead of the merger announcement. Klein will be arraigned later today before United States Magistrate Judge Gary Brown at the U.S. Courthouse, 100 Federal Plaza, Central Islip, New York. Schulman’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the Albert V. Bryan U.S. Courthouse, 401 Courthouse Square, Alexandria, Virginia.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“As alleged, Robert Schulman and Tibor Klein were licensed professionals who used their positions of trust to fraudulently enrich themselves. Schulman, an attorney, violated the trust and confidence of his client for personal gain by passing along his client’s sensitive and economically valuable information to Klein, his investment advisor, and Klein exacerbated this crime by using the fraudulently-obtained information to trade in a number of his clients’ accounts,” stated United States Attorney Capers. “The charges and arrests announced today reflect our steadfast commitment to hold accountable licensed professionals who use their positions to defraud the financial markets.” Mr. Capers thanked the Securities and Exchange Commission (SEC) for their cooperation and assistance during the investigation.
“These individuals allegedly used proprietary information available solely through their trusted positions for an unfair advantage in the financial market to satisfy their appetite for money. The arrest of Robert Schulman and Tibor Klein exemplifies the commitment of the United States Postal Inspection Service and its law enforcement partners to maintain a fair trading environment for all investors,” stated Inspector-in-Charge Bartlett.
As detailed in the indictment, in May 2009, Schulman began representing King, a pharmaceutical company then based in Bristol, Tennessee, in a patent litigation in the Western District of Virginia on behalf of the law firm. Between July 12, 2010 and August 4, 2010, through his representation of King, Schulman learned of a pending merger between King and Pfizer. On the weekend of August 13, 2010, Klein traveled to Schulman’s residence in McLean, Virginia, to discuss Schulman’s investment portfolio. During that trip, Schulman revealed to Klein that there was a pending merger between King and Pfizer. The following Monday, August 16, 2010, Klein began purchasing King stock for himself, Schulman, and other clients of Klein Financial. Over the next month, Klein purchased more than $585,000 of King stock for himself and his clients.
In addition, on August 16, 2010, Klein informed a registered broker in Florida that he had obtained inside information regarding the King-Pfizer merger and directed the broker to purchase King stock and call options.[2] Between August 16, 2010 and August 23, 2010, the registered broker purchased both King stock and call options. On October 12, 2010, Pfizer’s acquisition of King was publicly announced. The same day, Klein sold all of the King shares he had acquired and generated a profit of more than $300,000 for himself, Schulman, and Klein Financial clients. Also, on October 12, 2010, at Klein’s direction, the broker exercised all of the unexpired call options and sold all of the King stock the broker had purchased, generating a profit of more than $100,000, which the broker split with Klein.
* * *
If convicted, Klein and Schulman each face a maximum sentence of twenty years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David Pitluck is in charge of the prosecution.
* * *
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendants:
TIBOR KLEIN
Age: 43
Residence: Melville, New YorkROBERT SCHULMAN
Age: 58
Residence: McLean, VirginiaE.D.N.Y. Docket No. 16-CR-442
[1] The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[2] A call option is the right to purchase 100 shares of a stock at a predetermined price before a deadline in exchange for a premium.
Lincoln Military Housing Agrees to Pay $200,000 to Settle Servicemembers Civil Relief Act ViolationsRead the Press Release
Case Marks First Time the Justice Department has Filed Suit Alleging Unlawful Eviction of Active-Duty Servicemembers
The Justice Department announced today that Lincoln Military Housing, which owns and operates dozens of on-base and off-base military housing communities throughout Southern California, has agreed to pay $200,000 to resolve allegations that it unlawfully evicted active-duty servicemembers and their families by obtaining default judgments against them, in violation of the Servicemembers Civil Relief Act (SCRA). This is the first case that the Justice Department has filed alleging the unlawful eviction of servicemembers from their homes.
The SCRA provides servicemembers with protections against certain transactions that could adversely affect their civil legal rights while they are in military service. Under the SCRA, if a tenant who is on active duty is sued for eviction and does not make an appearance in the case for any reason, the landlord must file an affidavit with the court stating whether the tenant is in military service, showing necessary facts to support the affidavit. To evict a tenant in California, a landlord must first obtain a court order. The complaint alleges that Lincoln Military Housing requested default judgments against servicemembers without filing the affidavits required by the SCRA to alert the court of the tenants’ military status. As a result, servicemembers were put at risk of being evicted without having an opportunity to participate in the case and without having an attorney assigned to represent them.
Despite the fact that the servicemembers who are receiving compensation under the settlement were all in military service at the time of their evictions, Lincoln Military Housing filed affidavits stating that no defendants were in military service.
Under the consent order, which is still subject to approval by U.S. District Court for the Southern District of California, Lincoln Military Housing must pay each aggrieved servicemember $35,000, vacate the eviction judgment, forgive any deficiency balance and ask the credit bureaus to remove the evictions from their credit reports. In addition to compensating the servicemembers, Lincoln Military Housing must pay a civil penalty of $60,000 to the United States.
“Lincoln Military Housing unlawfully evicted active duty servicemembers and their families from their homes,” said Principal Deputy Associate Attorney General Bill Baer. “This settlement rights that wrong and serves as a powerful reminder that we will protect and defend the rights of those who protect us all.”
“Our servicemembers, who risk their lives to protect our freedom, should never return from duty to find their civil rights violated and their families evicted,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue our vigorous and robust enforcement of the SCRA to safeguard the rights of those who defend us.”
“The Servicemembers Civil Relief Act was designed to protect our servicemembers and their dependents answering our nation’s call to duty,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Servicemembers should not have to worry about their families being evicted while they are serving the United States. We will continue to enforce the laws that protect our warfighters.”
The settlement also requires Lincoln Military Housing to make systemic changes to its business practices, including providing SCRA training to its employees and developing new policies and procedures consistent with the SCRA. The policies and procedures will require Lincoln Military Housing and its agents to review the Department of Defense Manpower Data Center (DMDC) database and file a proper affidavit of military service before seeking a default judgment against a tenant in an eviction action.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
This matter resulted from a referral to the Justice Department by the Legal Services Support Team at Marine Corps Air Station Miramar.
This matter was jointly handled by the U.S. Attorney’s Office of the Southern District of California and the Civil Rights Division’s Housing and Civil Enforcement Section. The department’s investigation was done in coordination with the California Office of the Attorney General, which filed its own case today in state court under California’s Rosenthal Fair Debt Collection Practices Act.
KC Man Sentenced for Bank Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man who was shot by police officers was sentenced in federal court for bank robbery and using a firearm in an attempted carjacking.
Steven Marquain Davis, 30, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 12 years in federal prison without parole.
On Nov. 19, 2015, Davis pleaded guilty to bank robbery and to using a firearm during a violent crime (carjacking). Davis admitted that he used a simulated bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Jan. 9, 2015. Davis entered the bank between 4:10 and 4:20 p.m. Davis, holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it, similar in appearance to the remote used on remote control toys. Davis told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis pulled on the door handle and ordered the driver to open the door. When she refused, he pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun and she drove away from the area.
A witness confronted Davis in the street. Davis pointed a handgun at the witness and stated, “What are you looking at?” Davis tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that was designed to look like a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and rendered the device safe.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Revises Regulations to Implement Requirements of ADA Amendments Act of 2008Read the Press Release
A final rule revising the Justice Department’s Americans with Disabilities Act (ADA) Title II and Title III regulations to implement the requirements of the ADA Amendments Act of 2008 (ADAAA) was made available for public inspection by the Federal Register today. The final rule will be published in the Federal Register tomorrow and will take effect 60 days after publication, which will be Oct. 11, 2016.
Congress passed the ADAAA in response to several Supreme Court decisions that narrowly interpreted the ADA’s definition of disability, leading ultimately to the exclusion from coverage of individuals with cancer, diabetes, epilepsy, attention deficit hyperactivity disorder, learning disabilities and other disabilities. The ADAAA made a number of significant changes to the meaning and interpretation of the ADA definition of disability to ensure that the term would be broadly construed and applied without extensive analysis so that all individuals with disabilities could receive the law’s protections.
Although the ADAAA is already in effect and applies to entities covered under Title II and III of the ADA, the department’s changes to its Title II and III regulations will help clarify the interpretation and application of the ADAAA. These changes also satisfy the Attorney General’s responsibility to publish regulations that are consistent with any congressional changes to the ADA.
“This final rule clarifies Congress’s original mandate that eliminating discrimination against people with disabilities requires an expansive definition of what disability means and who the law covers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department’s regulation sets forth clear new rules, new examples and detailed guidance to ensure that courts, covered entities and people with disabilities better understand the ADAAA.”
The ADAAA’s provisions addressing the definition of disability also apply to Title I of the ADA, for which the Equal Employment Opportunity Commission issued regulations in 2011. The publication of the Title II and Title III rule tomorrow will ensure that the definition of disability is interpreted consistently for these three titles of the ADA.
For more information about the ADAAA, please visit the department’s ADA website or call the ADA Information Line (1-800-514-0301, 1-800-514-3083, TTY). A copy of the preview of the final rule posted by the Federal Register on its public inspection desk can be found today at: https://www.federalregister.gov/articles/2016/08/11/2016-17417/amendment-of-americans-with-disabilities-act-regulations-to-implement-the-americans-with. Once the final rule is published in the Federal Register tomorrow, a copy will be available on the department’s ADA website.
Justice Department Announces Findings of Investigation into Baltimore Police DepartmentRead the Press Release
Justice Department Finds a Pattern of Civil Rights Violations by the Baltimore Police Department
The Justice Department announced today that it found reasonable cause to believe that the Baltimore City Police Department (BPD) engages in a pattern or practice of conduct that violates the First and Fourth Amendments of the Constitution as well as federal anti-discrimination laws. BPD makes stops, searches and arrests without the required justification; uses enforcement strategies that unlawfully subject African Americans to disproportionate rates of stops, searches and arrests; uses excessive force; and retaliates against individuals for their constitutionally-protected expression. The pattern or practice results from systemic deficiencies that have persisted within BPD for many years and has exacerbated community distrust of the police, particularly in the African-American community. The city and the department have also entered into an agreement in principle to work together, with community input, to create a federal court-enforceable consent decree addressing the deficiencies found during the investigation.
“Public trust is critical to effective policing and public safety,” said Attorney General Loretta E. Lynch. “Our investigation found that Baltimore is a city where the bonds of trust have been broken, and that the Baltimore Police Department engaged in a pattern or practice of unlawful and unconstitutional conduct, ranging from the use of excessive force to unjustified stops, seizures and arrests. The results of our investigation raise serious concerns, and in the days ahead, the Department of Justice will continue working tirelessly to ensure that all Baltimoreans enjoy the safety, security and dignity they expect and deserve. I am grateful to all of the community members, local officials, faith leaders and current and former police officers who spoke with us during the course of our inquiry, and whose input will remain critical to our efforts as we move forward. Additionally, I commend the city and BPD for its proactive and collaborative approach to our inquiry and for demonstrating a strong commitment to restoring public confidence by already taking steps to make needed changes. I look forward to continuing our work together to implement urgent and necessary reforms.”
“We found that BPD has engaged in a pattern or practice of serious violations of the U.S. Constitution and federal law that has disproportionately harmed Baltimore’s African-American community and eroded the public’s trust in the police,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The agency also fails to provide officers with the guidance, oversight and resources they need to police safely, constitutionally and effectively. In communities across America, even in communities where trust has been broken, we’ve seen transformative reform rebuild relationships and advance public safety. In the weeks ahead, as we negotiate our consent decree with the city, we will seek input from law enforcement and community members. With the city and commissioner’s commitment to reform, I am optimistic that we will work to drive that same progress in Baltimore.”
In May 2015, Attorney General Lynch announced the comprehensive investigation into the BPD after considering requests from city officials and hearing directly from community members about a potential pattern or practice of constitutional violations. The investigation focused on BPD’s use of force, including deadly force; stops, searches and arrests; and discriminatory policing.
In the course of its pattern or practice investigation, the department interviewed and met with city leaders and police officials, including BPD Commissioner Kevin Davis, former commissioners and numerous officers throughout all ranks of the police department; accompanied line officers on dozens of ride-alongs in every police district; conducted hundreds of interviews and participated in meetings with community members, activists, and other stakeholders; reviewed hundreds of thousands of pages of police documents, including all relevant policies and training materials; and analyzed BPD’s data on internal affairs, use of force, sexual assault cases and pedestrian stops, searches and arrests.
During the course of its investigation, the department found that the legacy of “zero tolerance” street enforcement, along with deficient policies, training and accountability systems, resulted in conduct that routinely violates the Constitution and federal anti-discrimination law. Throughout the investigation, the department heard consistently from both the community and law enforcement that BPD requires significant reforms to address problems that undermine its efforts to police constitutionally and effectively.
The department found reasonable cause to believe that BPD engages in a pattern or practice of:
- Conducting stops, searches and arrests without meeting the requirements of the Fourth Amendment;
- Focusing enforcement strategies on African Americans, leading to severe and unjustified racial disparities in violation of Title VI of the Civil Rights Act and the Safe Streets Act;
- Using unreasonable force in violation of the Fourth Amendment;
- Interacting with individuals with mental health disabilities in a manner that violates the Americans with Disabilities Act; and
- Interfering with the right to free expression in violation of the First Amendment.
The department also identified serious concerns about other BPD practices, including an inadequate response to reports of sexual assault, which may result, at least in part, from underlying gender bias. Another significant concern identified by the department was transport practices that place detainees at significant risk of harm.
In the agreement in principle, both parties agreed that compliance with the consent decree will be reviewed by an independent monitor. The agreement in principle highlights specific areas of reform to be included in the consent decree, including:
- Policies, training, data collection and analysis to allow for the assessment of officer activity and to ensure that officers’ actions conform to legal and constitutional requirements;
- Technology and infrastructure to ensure capability to effectively monitor officer activity;
- Officer support to ensure that officers are equipped to perform their jobs effectively and constitutionally; and
- Community policing strategies to guide all aspects of BPD’s operations and help rebuild the relationship between BPD and the various communities it serves.
The agreement in principle provides a framework for change, but the department will be doing community outreach to solicit input in developing comprehensive reforms. Comments may be provided by email at [email protected].
Throughout the department’s investigation, BPD leadership remained receptive to preliminary feedback and technical assistance, and started the process of implementing reforms. BPD leadership has proactively taken steps to address some of the findings, including updating its policies, instituting new trainings and responding to other issues identified by the department. While these measures are an important start to cooperative reform, a comprehensive agreement is still needed to remedy all of the department’s findings.
In October 2014, city and BPD leadership requested to enter a collaborative reform process with the Justice Department’s Office of Community Oriented Policing Services (COPS office). While the Civil Rights Division opened the pattern or practice investigation in May 2015, the COPS office, the Justice Department’s Office of Justice Programs and others have maintained their ongoing efforts to offer federal resources, such as technical assistance, to the BPD, city officials and community leaders.
This investigation was conducted by the Civil Rights Division’s Special Litigation Section with the assistance of law enforcement professionals pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. Over the last seven years, the Special Litigation Section has opened 23 investigations into law enforcement agencies. The section is enforcing 17 agreements with law enforcement agencies, including 14 consent decrees and one post-judgment order. For more information on the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt.
BPD Findings Report
BPD Agreement in Principle
BPD Executive Summary
SPL Police Accomplishments 8.10.16
Judge Sentences Altoona Man to 2 Years in Prison for Conspiring to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Altoona, Pa., has been sentenced in federal court to 24 months in prison and three years’ supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Matthew Fee, 34, of Altoona, Pa.
According to information presented to the court, from Jan. 9, 2014, to April 17, 2015, Fee conspired to distribute and possess with the intent to distribute a quantity of cocaine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Fee.
Investigation Leads to Federal Indictment of Former President of Devil’s Disciples Motorcycle ClubRead the Press Release
BOISE – Scott Arlis Thomas, 42, of Caldwell, Idaho, made an initial appearance today for the crimes of possession with intent to distribute methamphetamine and possession of firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. A federal grand jury indicted Thomas on July 14, 2016.
The two count indictment alleges that on May 13, 2016, Thomas, who had been convicted of trafficking in methamphetamine in 2011, possessed a rifle and on the same date, possessed methamphetamine with the intent to distribute it. At the time of the indictment, Thomas was the president of the local chapter of the Devil’s Disciples Motorcycle Club.
Thomas appeared in court for the first time today and entered not guilty pleas to both charges. Trial is scheduled for October 17, 2016, at the federal courthouse in Boise before Chief U.S. District Judge B. Lynn Winmill.
The charge of possession with intent to distribute methamphetamine is punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. The charge of unlawfully possessing or transferring a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms and other property used to commit the offenses.
The indictment is the result of an investigation by the Caldwell Police Department, the Treasure Valley Metro Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Task Force was created approximately eleven years ago and is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and Idaho Department of Probation and Parole. The Task Force conducts complex long-term investigation of criminal gangs.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indianapolis contractor prosecuted for illegal asbestos removalRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced that Paul Walker, 56, Indianapolis was prosecuted in federal court for illegally removing asbestos from an inhabited apartment building. Walker was charged with negligent endangerment under the federal Clean Air Act. On Monday, he pleaded guilty and was sentenced by U.S. Magistrate Judge Debra McVicker Lynch to four months of house arrest, two years of probation, and a $2,000 fine.
“Asbestos is a dangerous substance and putting people at risk by illegally removing it is a federal crime,” Minkler said. “If you must remove asbestos, do it the right way and follow the law. If you cut corners to try to save a buck, you will be caught and prosecuted.”
Walker was an Indianapolis-based contractor who performed maintenance and renovation work on an apartment building at 38th Street and Central Avenue in Indianapolis. In mid-2015, Walker agreed to a renovation project that involved removing asbestos insulation from piping and a boiler in the building’s basement. He told the building owner that the abatement work would be subcontracted to a licensed asbestos abatement company so that “all permits and all proper paperwork [would] be submitted to the state and everyone concerned.” He even obtained and sent the building owner a quote for the work from a licensed abatement company.
In July 2015, Walker removed the asbestos himself. Doing so saved him the expense of hiring the professional abatement firm, but it also put the residents of the building at risk for exposure to harmful asbestos fibers. Asbestos insulation, when left undisturbed, generally does not pose a risk. Removing asbestos, however, can release asbestos fibers into the air. Federal law describes in detail how asbestos must be safely removed, such as by wetting the asbestos material and carefully removing and disposing of it. Walker failed to follow these rules, and as a result, allowed asbestos fibers to be released.
Later testing revealed that although the asbestos fibers did not reach the inhabited floors of the building, Walker’s actions placed the residents at risk of exposure to asbestos fibers. The asbestos was eventually properly removed by a professional abatement firm, at Walker’s expense. Nevertheless, because Walker’s misconduct put residents at risk for exposure, he faced prosecution for Negligent Endangerment.
"The defendant was responsible for the renovation of an apartment building which he knew contained asbestos and endangered the health and safety of local residents by failing to follow proper asbestos removal procedures," said Jeffrey Martinez, Special Agent in Charge of the U.S. Environmental Protection Agency's criminal enforcement program in Indiana. "The public health dangers of asbestos exposure are well known, and this case demonstrates that those who fail to follow by the law will be held to account."
“The investigation began when the Indiana Department of Environmental Management (IDEM) received a complaint and sent to the site an air quality inspector,” said IDEM Commissioner Carol S. Comer. “The inspection report was evaluated by IDEM’s Office of Criminal Investigations which notified the U.S. EPA’s Criminal Investigations Division in Indianapolis. This conviction sends a clear message that people who willfully defy the law will be fully investigated to ensure human health and the environment are protected. We are grateful for the assistance of our federal partners in this joint investigation.”
Assistant United States Attorney Nick Linder prosecuted this case for the government.
Identity Document Supplier Pleads Guilty for Role in Identity Trafficking SchemeRead the Press Release
An identity document supplier pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Isaias Beltre-Matos, 44, a Dominican national and legal permanent resident formerly of Providence, Rhode Island, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Beltre-Matos was charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, six defendants have pleaded guilty, Alejandro Tello Rojas and Francisco Matos-Beltre await trial and six individuals remain fugitives.
According to the admissions made in connection with today’s plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, Beltre-Matos admitted. Beltre-Matos also admitted that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.
In addition, Beltre-Matos admitted that he sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreement.
The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
IRS Employee Sentenced to Nine Years and Two Months in Prison for Leading $1 Million ID Theft Tax Fraud SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced an IRS employee to nine years and two months in prison for using her access to taxpayer information to lead a complex, multi-year, $1 million stolen identity refund scheme involving hundreds of victims, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation, St. Louis Field Office, Special Agent in Charge Karl A. Stiften, and Treasury Inspector General for Tax Administration, Mid-States Field Division, Special Agent in Charge Ruben Florez.
NAKEISHA HALL, 40, pleaded guilty in February to theft of government funds, aggravated identity theft, unauthorized access to a protected computer and conspiracy to commit bank fraud and mail fraud affecting a financial institution. Chief U.S. District Judge Karon O. Bowdre sentenced Hall to nine years and two months in prison on the charges, ordered her to pay $438,187 in restitution to the Internal Revenue Service, and to forfeit the same amount to the U.S. government as proceeds of criminal activity. Bowdre’s sentence was based in large part on Hall’s role in the extensive scheme and the fact that she abused her position of trust as an IRS employee to commit it.
Hall is the daughter of a long time IRS employee and began working for the IRS in 2000. Hall worked in the IRS Taxpayer Advocate Service office in Birmingham from July 2007 to November 2011. After November 2011, she worked in TAS offices in Omaha, Neb., New Orleans, La., and Salt Lake City, Utah. TAS is responsible for assisting taxpayers who are having difficulties with the IRS. TAS works with victims of identity theft and assists them in removing fraudulent tax information from their accounts and in filing corrected tax returns, if necessary.
“This defendant abused her position of trust as an IRS employee, using her access to compromise taxpayers’ identities to attempt to steal more than $1 million from the agency. She successfully claimed more than $400,000 in fraudulent tax refunds,” Vance said. “Hall victimized United States taxpayers and jeopardized the reputation of the IRS and its division that is intended to assist taxpayers experiencing problems resulting from identity theft. Today’s sentence reflects the outrageous and serious nature of her crime.”
“Misusing her position with the Internal Revenue Service, Ms. Hall stole the identities of American taxpayers and filed false tax returns in their names,” Stiften said. “Today, Ms. Hall is being held accountable for her criminal actions. Refund fraud and identity theft of this magnitude and with this degree of dishonesty and deceit, deserves to be punished to the fullest extent of the law.”
“Violations of federal law, particularly those committed by IRS employees who are entrusted to protect taxpayers’ sensitive information, will not be tolerated and will be prosecuted to the fullest extent of the law,” Florez said. “TIGTA will continue to work closely with the United States Attorney's Office to identify, investigate and hold those individuals responsible for their illegal activities.”
Three co-conspirators have pleaded guilty in the case. Lashon Roberson, 36, of Birmingham, pleaded guilty to conspiracy to commit mail fraud affecting a financial institution and mail fraud affecting a financial institution. Roberson worked for many years in the financial services industry. She was sentenced in July to three years in prison and ordered to pay $119,185 in restitution to the IRS.
Jimmie Goodman, 37, of Birmingham, pleaded guilty to conspiracy to commit mail and bank fraud. Goodman, who had a prior identity-theft conviction, was sentenced in July to three years and five months in prison and was ordered to pay $82,802 in restitution to the IRS and to forfeit that amount to the government.
Abdulla Coleman, 40, also of Birmingham, pleaded guilty to conspiracy to commit mail fraud affecting a financial institution and bank fraud. He is scheduled for sentencing Sept. 14.
According to court records, Hall led Roberson, Goodman, Coleman and at least one other conspirator in the scheme operated out of Birmingham between 2008 and 2011 that involved stealing personal identity information from the IRS to create fraudulent tax returns, and collecting the stolen refunds that were generated.
The defendants conspired to defraud both the IRS and financial institutions, and used the U.S. mail to execute the fraud. The multi-year conspiracy was conducted as follows, according to court records.
Hall obtained individuals’ names, birth dates and Social Security numbers through unauthorized access to IRS computers. She used the personal identity information to prepare fraudulent income tax returns and submitted them electronically to the IRS. Hall requested that the IRS pay the refunds onto debit cards and directed that the cards be mailed to drop addresses that she controlled. Hall solicited and received drop addresses from Goodman, Coleman, Roberson and at least one other person. The co-conspirators also collected the refund cards from the mail.
Hall activated the cards by using the stolen personal identity information. She and her co-conspirators took the money off the debit cards at ATMs or used the cards for purchases. If the fraudulent returns generated U.S. Treasury checks rather than the requested debit cards, the group used fraudulent endorsements in order to cash the checks. Hall compensated Goodman, Coleman, Roberson and the fifth co-conspirator by giving them a portion of the refund money, or by giving them refund cards for their own use.
The theft, aggravated identity, and unauthorized access counts relate to two specific taxpayers’ information that Hall accessed and used in 2010.
IRS-CI and TIGTA investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
Hollister Man Sentenced for Cocaine ConspiracyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced RANDY LYNCH, 50, of Hollister, North Carolina, to 96 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. LYNCH previously pled guilty to this charge on November 9, 2015.
On July 1, 2015, undercover agents with the Department of Homeland Security arranged a delivery of 7 kilograms of cocaine to LYNCH at a truck stop off of Interstate 85 in Vance County. LYNCH drove a tow truck from his wrecker service business to the truck stop and met with agents. Agents arrested LYNCH after he took possession of the 7 kilograms. Agents seized $100,000 from LYNCH’S tow truck that LYNCH had brought to purchase the cocaine. During a search of LYNCH’S residence, agents recovered another $18,450 and two firearms.
LYNCH had been the subject of a long-term investigation conducted by several federal, state and local law enforcement agencies, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation Division, the United States Marshal Service, the North Carolina State Bureau of Investigation, the North Carolina Highway Patrol, the Halifax County Sheriff’s Office, the Vance County Sheriff’s Office, and the Warren County Sheriff’s Office. Agents determined during the investigation, which included interviews of LYNCH’S previous co-conspirators, that LYNCH was responsible for distributing 273 kilograms of cocaine since 1991.
Judge Howard also ordered LYNCH to forfeit the two firearms seized from his residence and $500,000, representing the gross proceeds of the conspiracy. LYNCH satisfied the forfeiture order prior to sentencing by consenting to the forfeiture of the $100,000 seized upon his arrest and the $18,450 seized from his residence. LYNCH satisfied the remaining $381,550 by selling his salvage yard business located in Hollister.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission. The forfeiture was handled by Assistant United States Attorney Steve West.
Habitual Domestic Violence Offender from Zuni Pueblo Sentenced to Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Fabian Tsethlikai, 47, a member and resident of Zuni Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 21 months in prison followed by three years of supervised release for his conviction on a domestic assault by a habitual offender charge.
Tsethlikai was arrested on Feb. 10, 2016, on an indictment charging him with assault of an intimate partner by a habitual offender. The indictment alleged that Tsethlikai committed the offense on Dec. 10, 2014, on Zuni Pueblo in McKinley County, N.M. Tsethlikai was charged as a habitual offender based on his two prior domestic violence convictions in Zuni Pueblo Tribal Court. Zuni Pueblo Tribal Court records reflect that Tsethlikai’s prior convictions occurred in 2010 and 2011.
On May 13, 2016, Tsethlikai pled guilty to the indictment and admitted that on Dec. 10, 2014, he assaulted the victim, his intimate partner, by repeatedly striking her in the face with his fist while driving a vehicle within the Zuni Reservation. He also acknowledged his two prior tribal court convictions.
This case was investigated by the Zuni Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Grand Jury Returns Superseding Indictment in Deyoung CaseRead the Press Release
SALT LAKE CITY – A federal grand jury returned a superseding indictment Wednesday afternoon charging Curtis Lynn DeYoung, age 60, of Draper, Utah, who acted as president and Chief Executive Officer of American Pensions Services (APS), with obstruction of justice, false declaration before a court of the United States, and making a false statement.
The superseding indictment also includes the 15 counts of mail fraud included in the initial indictment, returned by a federal grand jury in February 2015. The indictment alleges DeYoung misappropriated more than $24 million from the accounts of more than 5,000 customers without their knowledge or consent.
The three new counts in the indictment, Count 16, 17, and 18, relate to alleged efforts DeYoung made to conceal approximately $50,000 worth of personal valuables including precious gems, minted coins, gold and silver coins, and jewelry. The valuables were found in an area above a suspended ceiling at a West Jordan business.
Count 16 alleges DeYoung obstructed justice by concealing, moving, and hiding the $50,000 worth of personal valuables in violation of an April 2014 court order freezing all of his assets. Count 17 alleges DeYoung made a false material declaration before a Court of the United States as a part of a case being litigated before the Court, concealing the $50,000 in personal valuables from the court during a discussion of assets owned by him, his spouse, or any other members of his household. Count 18 alleges DeYoung made a false statement while testifying under oath when he concealed the $50,000 worth of personal valuables from his statement of financial condition.
APS was a Utah corporation formed around 1983. It acted as a third-party administrator for self-directed individual retirement accounts. According to the indictment, beginning in 1998 and continuing until April 2014, DeYoung devised a scheme to defraud and obtain money from APS customers through the use of false and fraudulent representations, promises, and omission of material facts. The indictment alleges DeYoung misappropriated the funds of more than 5,000 APS customers held in two of the three APS bank accounts known as the “Master Trust” accounts which comingled all APS customer cash, including cash deposited into customer IRA accounts and cash generated from customer IRA investments.
The indictment alleges DeYoung used the misappropriated funds from the Master Trust accounts to make personal high-risk, unsecured investments. DeYoung misappropriated the money without notifying APS customers, knowing that the money did not belong to him and that he was using it for purposes not authorized by APS customers, the indictment charges. According to the indictment, neither APS nor DeYoung had discretionary authority or control over the APS customer funds. APS was responsible only to disburse funds as directed by the beneficiaries.
According to the indictment, around Oct. 31, 2009, DeYoung made a false accounting entry in APS records in the amount of $24,789,313.65 to conceal the fact that he misappropriated these funds. DeYoung continued to solicit new customers to engage APS as a third-party administrator and concealed the fact that the total cash balances in customer accounts did not equal the amount of cash available in the APS Master Trust accounts because he had misappropriated more than $24 million dollars, the indictment alleges.
In an effort to conceal his scheme, beginning in 1998 and continuing until January 2014, DeYoung mailed false APS account statements to all APS customers that contained inflated cash balances. These inflated cash balances did not equal the amount of cash actually available in the APS Master Trust accounts. The indictment alleges DeYoung knew that APS customers would rely on these statements in determining the value of their APS accounts.
The indictment also includes a notice of intent to seek forfeiture of a sum of money equal to the value of the proceeds of the scheme to defraud, which is approximately $24,789,313.65, upon conviction of any offense in the indictment.
The potential maximum penalty for each count of mail fraud in the indictment is 20 years in prison and a fine of $250,000. The potential penalty for obstruction of justice is 10 years in prison. Making a false declaration before a court of the United States and making a false statement each carry potential five-year sentences. A summons will be issued to DeYoung to appear in federal court for an arraignment on the new indictment.
The case is being investigated by special agents of the FBI and prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Forks Bank Robber Sentenced to Federal PrisonRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 10, 2016, Charlene Mae Corona, 40, Crookston Minn., was sentenced before US District Judge Ralph R. Erickson to serve 9 years in federal prison for two counts of Bank Robbery. Judge Erickson also ordered that Corona pay $21,890.26 in restitution, serve 3 years supervised release, and pay a $100 special assessment to the Crime Victims’ Fund.
At approximately 1:30 p.m. on September 30, 2015, Corona entered the Bremer Bank located at 921 North Washington St., Grand Forks, ND, and demanded money from the teller. Corona pulled out a knife and pointed it at one of the employees who then provided money to Corona, and Corona placed the money into a tote bag. An investigation was initiated by the FBI and Grand Forks Police Department.
On October 12, 2015, Corona entered the Citizens Community Credit Union located at 1215 N. 42nd St., Grand Forks, ND, and, while displaying a handgun, threw down a black bag and demanded money from a bank teller.
Surveillance video from each of the robberies showed that the same female committed both of the robberies. Law enforcement received tips that the robber was Charlene Mae Corona, who was later arrested in Moorhead, Minnesota.
This case is being investigated by the Federal Bureau of Investigation (FBI), Grand Forks Police Department, Grand Forks Sheriff’s Department, and the Moorhead Police Department.
First Assistant US Attorney Keith Reisenauer prosecuted the case.
Former insurance agent headed to prison for Federal arson and witness tampering crimesRead the Press Release
BECKLEY, W.Va. – A Hurricane man was sentenced today to a total of nine years in federal prison: seven years for a federal arson crime followed by a consecutive sentence of two years for an unrelated federal witness tampering crime, announced United States Attorney Carol Casto. Jimmie Arnold Harper, Jr., 36, previously pleaded guilty to aiding and abetting arson and conspiracy to tamper with a witness. As part of his sentence, he was also ordered to pay over $320,000 in restitution.
Harper was a Nationwide Mutual Insurance agent with an office in Winfield. Harper admitted that on September 14, 2015, he arranged for a fire to be set at his own residence at 7 Stonegate Drive in Scott Depot. Harper planned for the use of a long-range remote firing system to ignite the fire. He placed a chair with a tire in it in an interior room of his residence with the intent for that area to be the ignition spot of the fire. After staging the area, the drywall was knocked out so that the fire would spread farther into the framing of the house. Prior to setting the fire, Harper moved his valuables, such as furnishings and personal items, out of the residence and into a storage unit in the Winfield area. He also arranged to be out of town so the residence would be empty. Another individual drove by the residence in the early morning hours and hit the button on the remote firing system to ignite the fire. The Teays Valley Fire Department was dispatched to the residence, and one firefighter fell through the floor in the kitchen and sustained minor burns to his lower extremities. On September 15, 2015, Harper called in a fire claim to his insurance company, Auto Club Insurance Association, for $624,200 in structural damage and $468,150 in personal property loss.
On December 23, 2015, Seth T. Radcliffe, a longtime friend of Harper’s, was facing kidnapping charges in an unrelated case. Harper admitted that on January 24, 2016, he met with witnesses in Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper spoke to Radcliffe about the plan and obtained a letter written by Radcliffe that was read aloud during the meeting. The meeting took place in Harper’s vehicle in the parking lot of a convenience store in MacArthur in Raleigh County. During the meeting with the witnesses, Harper emphasized that the kidnapping charges against Radcliffe needed to go away because of the severe penalties. Harper also suggested limiting answers that could be damaging to Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper admitted that he knew Radcliffe’s letter was not factually correct and was intended to corruptly influence witness testimony. Unbeknownst to Harper, the passenger in the vehicle during the meeting was acting as a confidential informant for law enforcement and recorded the entire meeting.
On January 26, 2016, a federal grand jury sitting in Beckley returned an indictment against Seth T. Radcliffe for one count of kidnapping and one count of discharging a firearm during a crime of violence. On February 9, 2016, a grand jury subpoena was served on Harper for the letter written by Radcliffe. On January 24, 2016, prior to the meeting with the witnesses in Radcliffe’s case, Harper directed the confidential informant to remove the last page of the letter. This page contained 12 numbered paragraphs written by Radcliffe setting forth points Radcliffe wanted to make to defeat the charges. After receiving the grand jury subpoena, Harper instructed the confidential informant to throw the last page of the letter out of his car window along Interstate 77. Law enforcement recovered this page of the letter on February 9, 2016, from Interstate 77.
The West Virginia State Police Bureau of Criminal Investigation, the West Virginia State Fire Marshal’s Office, the West Virginia Office of the Insurance Commissioner, the FBI, and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Former Town Manager Sentenced on Bank Fraud ChargeRead the Press Release
ABINGDON, VIRGINIA – The former town manager of the Town of Coeburn, who previously admitted to fraudulently applying for and receiving credit in the town’s name and using the Town’s credit for personal expenses, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Loretta Ilene Mullins Mays, 49, of Coeburn, Virginia, previously pled guilty to one count of bank fraud. Today in District Court, the Hon. James P. Jones sentenced Mays to imprisonment for a term of one year and one day. In addition, the Court ordered Mullins to make restitution to the Town of Coeburn in the amount of $20,313.
“When public officials abuse the power placed in them by the citizens they serve for their own financial gain they must be held accountable,” United States Attorney Fishwick said today. “This United States Attorney’s Office will continue to prosecute instances of public corruption and ensure the integrity of those holding public offices.”
Mays was the Town Manager for the Town of Coeburn, Virginia from March 27, 2006 to February 14, 2013. While Town Manager, Mays applied for and received credit cards in the name of the Town of Coeburn and then used the credit cards for personal expenses. She also used the legitimate Town of Coeburn credit card and lines of credit, to fraudulently obtain personal goods and services.
The investigation of the case was conducted by the Virginia State Police and the Federal Bureau of Investigation with assistance provided by the Dickenson County Commonwealth’s Attorney’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former Staff Sergeant at Seymour Johnson Air Force Base Sentenced to 15 Years for the Receipt of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today STEVEN C. DAVIDSON, 36, of Pikeville, North Carolina, was sentenced to 180 months imprisonment followed by a lifetime of supervised release by United States District Judge Louise W. Flanagan, for one count of receipt of child pornography.
DAVIDSON was previously a member of the United States Air Force assigned as an Air Traffic Controller at Seymour Johnson Air Force Base at the time of his offense. On January 13, 2016 DAVIDSON pled guilty to the charge.
On November 5, 2014, the Air Force Office of Special Investigations at Seymour Johnson Air Force Base (SJAFB) in Goldsboro, North Carolina, initiated an investigation after a government computer was utilized to conduct online searches for material related to child exploitation and child pornography (CP). The individual was subsequently identified as DAVIDSON, a Staff Sergeant in the United States Air Force (USAF), based on his military login credentials. On November 19, 2014, agents seized four government computers that DAVIDSON accessed within the past year. On the same date, agents conducted a search of the defendant’s residence and seized a computer. Based on the investigation, DAVIDSON used a computer to receive, trade, and store CP. Forensic examination uncovered at least 720 images and 30 videos depicting CP.
The criminal investigation of this case was conducted by the Air Force Office of Special Investigations (AFOSI) and the Wayne County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.