Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 September 2016
Federal Officials Close Review into the Death of Darrius StewartRead the Press Release
Memphis, TN – The Justice Department has announced that the independent federal review into the fatal shooting of Darrius Stewart on July 17, 2015, in Memphis, Tennessee, found insufficient evidence to support federal criminal civil rights charges against Memphis Police Department (MPD) Officer Connor Schilling.
Officials from the U.S. Attorney’s Office of the Western District of Tennessee met today with Stewart’s family and their representatives to inform them of this decision.
The U.S. Attorney’s Office for the Western District of Tennessee, the Department of Justice’s Civil Rights Division, and the Federal Bureau of Investigation (FBI) conducted a comprehensive independent review of the circumstances related to Stewart’s death. This included a review of witness statements, video footage, and other information obtained during the 2015 investigation conducted by the MPD and the Tennessee Bureau of Investigation (TBI). Additionally, federal investigators consulted with the Shelby County Medical Examiner and a TBI forensic scientist.
In conducting the review, federal authorities were tasked with determining whether Schilling violated federal law by willfully using unreasonable force against Stewart. Under the applicable federal criminal civil rights statute, Title 18, United States Code, Section 242, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard imposed by law. Mistake, misperception, negligence, or poor judgment is not sufficient to establish a federal civil rights violation.
In this case, civilian witnesses saw a physical confrontation between Schilling and Stewart. It is uncontroverted that Schilling and Stewart engaged in a violent struggle for several minutes before Schilling shot Stewart. Video evidence shows that at one point Stewart was able to get on top of Schilling. Based on these eyewitness accounts, the statement of the officer involved, the video, and the physical evidence, there is insufficient evidence to disprove Schilling’s assertion that he needed to use deadly force against Stewart.
Federal authorities further determined that there is insufficient evidence to prove beyond a reasonable doubt that Schilling’s second shot was unreasonable. Much of the evidence tends to show that the second shot followed only a few seconds after the first. Since eyewitness accounts and physical evidence both indicate that the second shot came very soon after Stewart stood up in close proximity to Schilling, the evidence cannot establish that the threat initially posed by Stewart had abated at the time of the second shot. Under the law, the use of deadly force is justified when an officer has reasonable cause to believe that a suspect poses a threat of serious physical harm, either to the officer or to others. In this particular matter, the evidence does not disprove Schilling's account that he used no more force than he reasonably believed necessary to protect himself and to stop a perceived threat.
Based on a careful and thorough review, federal investigators determined that there is insufficient evidence to establish beyond a reasonable doubt that Schilling violated Section 242. Accordingly, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident.
The U.S. Attorney’s Office for the Western District of Tennessee, along with its law enforcement partners, remains committed to investigating allegations of excessive force and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Justice Department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Defendant in Los Angeles-Area Synthetic Drug Ring Sentenced to 16 Months in Federal Prison for Manufacture and Distribution of ‘Spice’Read the Press Release
LOS ANGELES – A Glendale man has been sentenced to 16 months in federal prison for his role in the large-scale manufacture and distribution of synthetic drugs that are commonly called “spice.”
Yesterday afternoon, Faisal Iqbal, 34, one of 16 defendants arrested in connection with a synthetic drug ring operating out of Los Angeles, was sentenced by U.S. District Court Judge Manuel L. Real. Iqbal and his co-conspirators were charged with conspiring to manufacture and distribute synthetic cannabinoids, which are designed to mimic the effects of THC, the psychoactive agent in marijuana, and with structuring financial transactions. Iqbal pled guilty to conspiracy to distribute synthetic cannabinoids and to structuring a financial transaction to avoid a reporting requirement.
“Although these are called ‘synthetic’ drugs, the dangers they pose are very real,” said United States Attorney Eileen M. Decker. “Without controls on the ingredients and manufacture of these drugs, the defendant’s products could cause severe harm to users, including death.”
Over the past several years, the DEA has identified more than 400 new designer drugs in the United States – most of which are manufactured in rogue labs in China and sold on the Internet or in retail outlets such as smoke shops, gas station convenience stores and bodegas. These substances are generally sold in brightly colored packaging, marketed to young people, and billed as “safe” alternatives to marijuana or dangerous party drugs such as MDMA (ecstasy). The synthetic drugs are commonly marked with the disclaimer “not for human consumption” and/or “DEA compliant” which is an attempt to shield distributors from prosecution. Abuse of these psychoactive substances has resulted in increasing numbers of overdose incidents, emergency room visits and even deaths.
A total of 16 defendants were charged in three separate indictments with manufacturing and distributing synthetic cannabinoids. The chemicals are mixed with agents – often acetone – to create a mixture that is sprayed onto plant material – typically marshmallow leaf or damania leaf – to create synthetic marijuana, which is commonly referred to as “spice” or “herbal incense.” Such synthetic cannabinoids are smoked or orally ingested, and are referred to in three indictments as smokable synthetic cannabinoids (SSCs). The SSCs discussed in the indictment were sold under brand names that included “Sexy Monkey,” “Crazy Monkey,” “Scooby Snax,” “Bizarro” and “Mad Hatter.”
The case was investigated by agents from the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Karen Escalante.
More information about synthetic designer drugs can be found on the Drug Fact Sheets at www.DEAdiversion.usdoj.gov.
DARKODE Member from Kentucky Sentenced for Role in Compromising Others ComputersRead the Press Release
PITTSBURGH - A resident Hampton, Kentucky of has been sentenced in federal court to two years of probation, with 50 hours of community service and computer monitoring on his conviction of one count of a violation of the CAN-SPAM Act, in violation of 18 U.S.C. §§1037(a)(1) and (b)(2)(A), United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Ryan Neil Green, age 32, of Hampton, KY.
According to information presented to the court, Green knowingly accessed a protected computer without authorization, namely a computer that had been infected by the Facebook Spreader and Slenfbot, and did intentionally initiate the transmission of multiple commercial electronic mail messages from or through such computer.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Green.
Corpus Christi Man Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi man has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
In February 2016, authorities learned that Jesus Villalobos had been communicating via cellular telephone text messages and a social media application with an 11-year-old female. During those communications, Villalobos enticed the victim into sending him sexually explicit photographs of herself.
In April 2016, law enforcement executed a search warrant at the Villalobos residence and seized various electronic devices. A forensic analysis on those devices led to the discovery of several photographs of the child that were sexually explicit in nature.
Senior U.S. District Judge Hayden Head accepted the guilty plea today and set sentencing for Dec. 13, 2016. At that time, Villalobos faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, Villalobos also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Villalobos was arrested on federal charges in July 2016 and has been in custody since that time where he will remain pending his sentencing hearing.
The charges are the result of an investigation conducted by Immigration and Customs Enforcement’s Homeland Security Investigations with the assistance of the Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clarksburg woman pleads guilty to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Danna J. Hern, 30, of Clarksburg, West Virginia, pled guilty to heroin distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Hern pled guilty to one count of “Conspiracy to Possess With the Intent to Deliver Heroin.” She faces up to twenty years in prison and a fine up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Castor couple plead guilty to roles in converting rifle into a machine gunRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Castor couple pleaded guilty to charges related to converting a rifle into a machine gun.
Michael Deen Reeves, 58, and Crissy Lawson Reeves, 37, of Castor, La., and who are married pleaded guilty before U.S. District Judge Elizabeth E. Foote. Michael Reeves pleaded guilty to one count of manufacturing an unregistered firearm, and Crissy Reeves pleaded guilty to one count of transferring an unregistered firearm. According to the guilty pleas, a cooperating witness informed law enforcement officials that he had met with Michael and Crissy Reeves in October of 2015 to purchase a fully automatic SKS rifle. They negotiated a price, and Crissy Reeves agreed to retrieve a previously pawned rifle from a pawn shop in Natchitoches, La. Law enforcement recorded the defendants on October 30, 2016 in their home selling the rifle to the witness. Law enforcement agents also recorded Michael Reeves converting the Norinco SKS 7.62 x 39 mm rifle to a fully automatic rifle.
They face up to 10 years in prison, three years of supervised release, forfeiture of the seized items and a $10,000 fine. A sentencing date of January 20, 2017 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Bienville Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jonathan S. Drucker is prosecuting the case.
California Woman Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Latricia Newell was sentenced to 48 months in prison involving her use of counterfeit credit cards to purchase gift cards in the St. Louis area.
According to court documents, on January 31, 2016, a Chesterfield, Missouri, police officer received a call that Latricia Newell had used a credit card embossed in her name to purchase gift cards. However, when the receipt was printed, it revealed that the account number used to make the purchase had been issued to an individual other than Newell. When the officer approached her vehicle, he noticed 20 cards had fallen out of her purse. By searching her car, the officer found 51 gift cards that had been fraudulently purchased, and 64 credit/debit cards embossed in Newell’s name. The 64 credit/debit cards were similar to the card which triggered the investigation in that the magnetic strips on the back of the cards were encoded with the account numbers of others. Newell advised the arresting officers that she had traveled to the St. Louis metropolitan area from California with the cards in her possession.
After her arrest, law enforcement officers discovered her use of re-encoded credit cards to purchase gift cards and other merchandise in the Missouri cities of St. John, Brentwood, Clayton, and Hazelwood. When the magnetic strips found on the back of the cards in defendant’s possession were scanned by law enforcement officers, the officers discovered that the account numbers had been issued by financial institutions to more than 60 individuals. Further investigation by the United States Secret Service revealed that on February 21, 2014, airport authorities in Austin, Texas, discovered more than 323 gift cards and 39 re-encoded cards during a routine screening of baggage that was to be flown from Austin, Texas, to Los Angeles, California. Of the 39 counterfeit cards discovered, 38 were embossed in Newell’s name. Newell was on the manifest for the flight.
Newell, Harbor City, CA, pled guilty in June to one felony count of possession of 15 or more counterfeit credit cards, two felony counts of aggravated identity theft and one count of use of unauthorized access devices. She appeared today for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the Missouri police departments of Chesterfield, St. John, Brentwood, Clayton and Hazelwood and the United States Secret Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
Bureau of Prisons inmate pleads guilty to assaultRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Fleming, 30, currently incarcerated at Federal Correctional Institution Gilmer, pled guilty today to assaulting a correctional officer, United States Attorney William J. Ihlenfeld, II, announced.
In June 2014, Fleming intentionally assaulted a correctional officer with the intent to inflict bodily harm. Fleming pled guilty today to one count of “Assaulting, Resisting, and Impeding Certain Officers or Employees.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Federal Bureau of Prisons Special Investigations Services Unit investigated.
U.S. District Judge Irene M. Keeley presided.
Buffalo Woman Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Ashley Hollins, 29, of Buffalo, NY, pleaded guilty today to bank fraud before U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Maura K. O’Donnell, and Elizabeth R. Moellering, who are handling the case, stated that between 2010 and 2015, the defendant opened bank accounts in her name, and in the names of others, at various area banks. Hollins then wrote and negotiated, or attempted to negotiate, over 200 checks against these bank accounts, totaling approximately $55,860. The defendant knew that the bank accounts did not have sufficient funds to cover the amounts of the checks. Hollins also withdrew funds from some of the accounts before the banks realized that the checks would not clear or that the accounts on which they were drawn had been closed.
The plea is the culmination of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division.
Sentencing is scheduled for January 5, 2017 before Judge Vilardo.
Branson, Springfield Men Indicted for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., man and a Springfield, Mo., man were indicted by a federal grand jury today in separate and unrelated cases related to the sexual exploitation of minors.
USA v. Adams
Samuel Lynn Adams, 28, of Branson, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Adams on Sept. 1, 2016, which charged him with the same offense.
The federal indictment alleges that Adams received and distributed child pornography from Jan. 1 through July 21, 2016.
According to an affidavit filed in support or the original criminal complaint, law enforcement officials received a CyberTip from the National Center for Missing and Exploited Children on March 4, 2016, regarding a video file of suspected child pornography posted on Adams’s Gmail account.
On July 21, 2016, Branson police officers were contacted by Motel 9, an extended stay motel where Adams had been residing. According to the owner of the motel, a housekeeper found an SD memory card that contained suspected child pornography while cleaning the room vacated by Adams earlier that day.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force and the Branson, Mo., Police Department.
USA v. Dunn
Mark Damon Dunn, 30, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Dunn used the Internet and a cell phone to attempt to persuade, induce and entice a minor victim (less than 17 years of age) to engage in illicit sexual activity from June 1, 2016, to July 13, 2016.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Bonner County Man Sentenced for Counterfeiting CurrencyRead the Press Release
COEUR D’ALENE – Daniel Keith Snyder, 51, of Hope, Idaho, was sentenced yesterday for manufacturing counterfeit obligations, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Snyder to twelve months and one day, to be followed by three months home confinement, and three years supervised release. Snyder was also ordered to pay $1,150 in restitution to counterfeit victims. Snyder was indicted by a federal grand jury in Coeur d’Alene on January 20, 2016.
According to the arguments made in court, Snyder admitted that in late 2015, and early 2016, he manufactured counterfeit $50 notes that were passed at businesses in Sandpoint and Ponderay. In mid-January 2016, the Bonner County Sheriff’s Office and a U.S. Secret Service agent served a search warrant at Snyder’s residence. During this search, investigators seized a computer printer and other items that had been used to manufacture counterfeit currency. At least forty-six notes were passed in north Idaho before Snyder was apprehended.
“This conviction is the culmination of a collaborative effort by the Bonner County Sheriff’s Office, Ponderay Police Department, U.S. Attorney’s Office and U.S. Secret Service,” said Resident Agent in Charge of the Spokane Office of the Secret Service Greg Ligouri. Ligouri went on to say, “the Secret Service truly believes in the partnership approach to policing. By working together, law enforcement has a greater impact on our communities and in stopping those who prey on them.”
The case was investigated by the Bonner County Sheriff’s Office, Ponderay Police Department, and the Spokane office of the United States Secret Service.
Associate of Decavalcante Crime Family Sentenced to More Than Two Years in Prison for Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 30 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
John Capozzi, 36, of Union, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of more than 500 grams of cocaine. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Capozzi was arrested and charged by complaint in March 2015, along with nine members of the DeCavalcante crime family. He admitted that between Dec. 12, 2014 and March 2015, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
In addition to the prison term, Judge Walls sentenced Capozzi to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: Neil G. Duffy III Esq., Union, New Jersey
Arizona Agencies Awarded over $9 Million in Federal Grants to Combat Crime, Assist Victims, and Promote Public and Officer Safety.Read the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that over $9 million in federal grant funds have been awarded to a variety of Arizona-based state, local, and non-profit organizations. The federal grant awards, which are individually summarized below, are intended to combat crime, assist victims of crime, and promote public and officer safety:
• Rocky Mountain Information Network: Awarded $4,740,957 to offer support to regional law enforcement agencies, critical analytical and investigative support services, and de-confliction to enhance officer safety. (Grant No. 2015-RS-CX-0003)
• Maricopa County: Awarded $1,064,609 to support its probation, prosecution, enforcement, forensic, and prevention programs, with the goal of preventing and controlling crime and increasing officer safety. (Grant No. 2016-DJ-BX-0801)
• Arizona Governor’s Office: Awarded $828,727 to support its Juvenile Justice and Delinquency Prevention program. (Grant No. 2016-JF-FX-0013)
• Arizona Department of Corrections: Awarded $742,528 to assist in formulating a comprehensive response to the increasing number of people who are released from prison and jails. (Grant No. 2016-RV-BX-0001)
• Against Abuse, Inc.: Awarded $599,494 to improve the response of civil and criminal systems to families of domestic violence. (Grant No. 2016-FJ-AX-00002)
• Southwest Center for Law and Policy: Awarded $450,000 to assist and support victims of crime. (Grant No. 2016-TA-AX-K014)
• National Advocacy & Training Network: Awarded $349,445 to provide aid to victims of sexual assault, domestic violence, and stalkers. (Grant No. 2016-WH-AX0013)
• Arizona Coalition To End Sexual Assault And Domestic Violence: Awarded $239,532 to administer the State and Territorial Sexual Assault and Domestic Violence Coalition Program. (Grant No. 2016-MU-AX-0002)
“These funds support the basic operational needs of each of the individual agencies named in this release, within our District,” said U.S. Attorney John S. Leonardo. “These grants will enhance our District’s efforts to reduce crime and increase public safety. We encourage all agencies to be proactive and apply for future law enforcement grant funding through our Office of Justice Programs.”
The grant funds identified above were supplied by a variety of federal awarding agencies, all of which are components of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about Office of Justice Programs and its components can be found at:
http://www.ojp.usdoj.gov
Information about Bureau of Justice Assistance and its programs can be found at: https://www.bja.gov/Default.aspx
Information on the Office on Violence against Women can be found at:
https://www.justice.gov/ovw/grant-programs
Information on the Office of Juvenile Justice and Delinquency can be found at:
http://www.ojjdp.gov/
RELEASE NUMBER: 2016-085_GEN GRANTS _1
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
American Living in Australia Charged in Securities Fraud Case Involving Scheme to Fraudulently Inflate by Nearly $100 Million the Cost of Santa Monica Software Company Being Purchased by Computer Sciences Corp.Read the Press Release
LOS ANGELES – A former executive at Commonwealth Bank of Australia (CBA) was charged today in federal court with participating in a scheme to fraudulently generate revenue for a software company that was being purchased by Computer Sciences Corporation (CSC), which was misled into paying a $98 million incentive bonus as a result of the scheme.
Keith Hunter, 62, of Surrey Hills, Australia, a United States citizen who was the executive general manager in charge of infrastructure and operations at CBA, was named in a two-count criminal information filed this morning. The information charges Hunter with two counts – conspiracy to commit securities fraud and wire fraud, and wire fraud.
The information alleges a scheme in which Hunter and several co-conspirators in Australia and the United States developed a plan to defraud CSC by inflating revenues for a Santa Monica-based company that CSC was purchasing – ServiceMesh, Inc., which provided cloud computer management software. In the scheme, members of the conspiracy in late 2013 and early 2014 caused CBA to purchase $10 million in goods and services from ServiceMesh. According to the court documents filed today, CBA employees, including Hunter, received undisclosed kickbacks from a senior executive of ServiceMesh in exchange for awarding the $10 million in contracts to ServiceMesh.
“Schemes like the one charged today compromise the integrity of our financial system, and this defendant’s fraud caused significant harm to CSC and its shareholders, all for his own personal profit,” said United States Attorney Eileen M. Decker. “Everyone who invests in American companies, especially American workers investing their hard-earned money directly or through a retirement plan, deserves protection from this kind of fraud.”
Solely as a result of the scheme described in the information, ServiceMesh reached a performance goal that triggered CSC to pay a $98 million “earnout payment” to ServiceMesh shareholders in March 2014. The information alleges that a portion of the “earnout payment” received by the senior executive of ServiceMesh who was involved in the scheme funded the kickbacks paid to CBA employees, including payments to Hunter of approximately $630,000.
“This scheme resulted in CSC, a publicly traded company, overpaying $98 million dollars to purchase ServiceMesh. Today's announcement sends a clear message to executives that accepting bribes with the intent to inflate revenue and generate a business advantage is a crime with serious consequences," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "International boundaries do not limit the FBI from working with our foreign and domestic partners to hold accountable individuals who engage in commercial bribery and securities fraud."
The scheme allegedly caused CSC to suffer nearly $100 million in losses when it made the unwarranted earnout payment that followed a base payment of $163 million for ServiceMesh.
Hunter has pleaded guilty and is currently pending sentencing on bribery charges in an Australian court. Authorities in the United States expect Hunter to face the charges filed today after he completes any sentence he receives in Australia.
An information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The two counts in the information together carry a statutory maximum penalty of 45 years in federal prison.
The United States Securities and Exchange Commission today filed a civil complaint against Hunter charging him with securities fraud, along with a consent and proposed judgment.
The United States Attorney’s Office would like to thank the New South Wales Police Force, Fraud and Cybercrime Squad, in Australia for its assistance in this investigation.
The case against Hunter is the product of an ongoing investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Stephen A. Cazares and Ann C. Kim of the Major Frauds Section.
Albany Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Salvatore Commisso, age 33, of Albany, New York, pled guilty yesterday to conspiring to distribute the controlled substance oxycodone.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Commisso faces up to 20 years in prison and 3 years of post-imprisonment supervised release when he is sentenced on January 24, 2017 by U.S. District Judge Mae A. D’Agostino. 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.
As part of his plea, Commisso admitted that from at least December 2015 through February 2016, he obtained approximately 745 oxycodone tablets from a co-conspirator for resale in the Northern District of New York.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
26 September 2016
“Babysitter” Gets 30 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mathis woman who was supposed to care for a young child but who instead recorded her sexual assault has been ordered to federal prison, announced U.S. Attorney Kenneth Magidson. Rosa Linda Ganceres, 54, entered a guilty plea June 8, 2016, to sexual exploitation of a child, otherwise known as production child pornography.
Today, U.S. District Judge Nelva Gonzales Ramos handed Ganceres the maximum terms of 360 months in federal prison to be immediately followed by 10 years of supervised release, during which time she will have to comply with numerous requirements designed to restrict her access to children and the Internet. She will also be ordered to register as a sex offender. The court took into consideration a letter read in court by the mother of the victim, in which she described the impact the sexual abuse has had on the child. In handing down the sentence, Judge Ramos stated “The facts of this case are horrendous. What you did to those children is unimaginable.”
At the time of her plea, the court heard that Ganceres and her boyfriend and registered sex offender - Daniel Benson Billman, 43, of Aransas Pass, placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child. Instead, Billman sexually assaulted the two-year-old girl while Ganceres recorded the assault.
In August 2015, authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres recorded.
Billman has also pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Winthrop Man Sentenced to 57 Months on Drug and Gun ChargesRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Chad Goucher, 38, of Winthrop, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 57 months in prison and three years of supervised release for possessing with the intent to distribute heroin, possession of a firearm by a felon, and possession of an unregistered sawed-off shotgun. Goucher pleaded guilty to these charges on February 1, 2016.
According to court records, on March 6, 2015, law enforcement officers executed a search warrant at Goucher’s Winthrop residence. Officers recovered heroin, drug paraphernalia, and three firearms, including a .12 gauge Iver Johnson sawed-off shotgun. Goucher had a prior felony conviction which prohibited him from possessing firearms. Goucher admitted to law officers that he intended to distribute some of the heroin and he also admitted that he knew that he was not permitted to possess firearms.
At sentencing, Judge Woodcock noted that Goucher was a significant drug dealer, called his actions “disgraceful,” and said that he had disgraced his family’s name by turning his own mother’s home into a drug den.
The investigation was conducted by the Winthrop Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wife of Bookmaker Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
BOSTON – The wife of Joseph Yerardi, Jr., a previously convicted bookmaker, pleaded guilty and was sentenced today in U.S. District Court in Boston in connection with hiding funds in overseas accounts to evade forfeiture payments to the U.S. Government.
Rafia Feghi, 69, who was born in Iran and lives in Newton, was sentenced by U.S. District Judge Richard G. Stearns to one year and two days in prison, and all of the funds in a Liechtenstein account (now worth more than $1 million) were signed over to the United States government. According to the terms of the plea agreement, Feghi also pleaded guilty today to conspiracy to defraud the United States and to obstruct justice.
Over a period spanning more than 25 years, Feghi hid hundreds of thousands of dollars that her husband, Joseph A. Yerardi, Jr., earned from illegal bookmaking and loansharking, to evade a $916,000 forfeiture order and a $50,000 fine that were imposed on Yerardi when he was sentenced in 1995 on a federal racketeering conviction. Feghi was charged with using multiple accounts under various names, first in Canada, and eventually in Liechtenstein, to hide the money from the United States government.
In 2010, the government of Liechtenstein notified the United States of a suspicious account that contained more than $800,000 and was controlled by Feghi, who had been convicted in 2009 of money laundering in connection with Yerardi’s illegal businesses. Liechtenstein froze the suspicious account, and the United States filed court papers to obtain the money to satisfy Yerardi’s longstanding forfeiture order and fine. From 2010 to July 2016, Feghi and co-conspirators repeatedly lied to the courts in Liechtenstein and the United States in attempts to hide the true ownership and source of the funds.
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 was prosecuted by Assistant U.S. Attorney Michael L. Tabak of Ortiz’s Organized Crime and Gang Unit.
West Haven Man Charged with Illegally Distributing XanaxRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that CLARENCE BELL, also known as “Solo,” 20, of West Haven, was arrested today on a criminal complaint charging him with possession with intent to distribute, and distribution of, Xanax, a Schedule IV controlled substance.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in the complaint, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male. Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related. The investigation, which includes witness interviews and analysis of phone records and surveillance cameras, has revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL. The victim them crushed approximately three of pills and snorted the powder.
The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.
BELL appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
The charge of possession with intent to distribute, and distribution of, controlled substances, carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Washington, Pa., Man Sold Event Tickets on Craigslist He Never DeliveredRead the Press Release
PITTSBURGH – A resident of Washington, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
Jamie J. McNamara, 32, of Washington, PA pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from on or about March 1, 2014 to March 17, 2014, McNamara falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but McNamara did not provide any tickets.
Judge Fischer scheduled sentencing for February, 3, 2017 at 9:00 a.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000.00, 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 Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of McNamara.
Washington County Man Sentenced to 9 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Washington County, Pennsylvania, has been sentenced in federal court to 108 months imprisonment, followed by 15 years supervised release, on a charge of Distribution of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Denis A. Dille, age 53, of Prosperity, Pennsylvania.
According to information presented to the court, on or about June 9, 2015 and October 5, 2015, Dille distributed videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Immigration & Customs Enforcement, Homeland Security Investigations and the United States Postal Inspection Service for conducting the investigation that led to the successful prosecution of Dille.
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.
Wall Man Indicted for Illegal Use of InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wall, South Dakota, man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Receipt of Child Pornography.
Dustin Christopher Scott, age 33, was indicted on August 23, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on September 19, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment, a $250,000 fine, lifetime supervised release, and a $5,000 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Scott using a cell phone and a computer to attempt to engage in sexually explicit conduct with undercover agents posing as the father of a minor female. The charges are merely an accusation and Scott is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Scott was detained pending trial. A trial date has not been set.
Utica Man Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Daniel Beal, 56, of Utica, New York, pled guilty today in Syracuse before United States District Judge Brenda K. Sannes to two counts of distribution of child pornography, one count of receipt of child pornography, and seven counts of possession 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. Beal, who was ordered held in custody pending his sentencing, faces a term of at least five (5) years and up to 20 years of imprisonment on each of the distribution and receipt counts, and up to ten (10) years imprisonment on the possession counts. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Beal will be required to register as a sex offender. 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.
As part of his guilty plea, Beal admitted that he distributed images of child pornography through a Peer-to-Peer file sharing program. On July 29, 2015, investigators searched Beal’s business, Dacobe Enterprises, LLC, and recovered thousands of images and hundreds of videos depicting child pornography. Sentencing is scheduled for January 26, 2017, in Syracuse, New York.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Attorney's Office Hosts Peer Court Training for High School Students from Chemawa Indian SchoolRead the Press Release
PORTLAND, Ore. – On September 26, 2016, Billy J. Williams, United States Attorney for the District of Oregon, welcomed 45 high school students from the Chemawa Indian School’s Youth Peer Court Program to the U.S. Attorney’s Office in Portland for a day of interactive training on the principles of restorative justice. The Chemawa Youth Peer Court is a program designed to divert young, first-time offenders away from formal juvenile court proceedings into an informal peer-based process in a culturally appropriate setting.
The program is designed to incorporate components of restorative justice to hold youth accountable for their offenses and prevent future delinquency. The juvenile offenders assume responsibility for their behavior and accept the consequences of their actions through community service work, a punishment sanctioned by a peer court jury, and by serving on a future peer court jury themselves.
U.S. Attorney Williams said that “in addition to giving the students a second chance, and a meaningful opportunity to make reparation, the Chemawa Youth Peer Court promotes self-esteem, motivation for self-improvement, and respect for the opinions of others. It also provides valuable challenges and opportunities for the peer court jurors to experience self-government and responsible citizenship.”
The distinguished faculty for the training included Warm Springs Tribal Judge Lisa Lomas, Tribal Prosecutor Nancy Seyler, and Tribal Juvenile Prosecutor Cecelia Collins; Marion County Deputy District Attorney David Wilson and Deputy Sheriff David White; Mr. Don Kelley, a Silverton-based attorney who brings more than a decade of volunteer experience with the Silverton Peer Court; Lewis and Clark Law School students Dayna Jones, Nic Sanchez, and Katie Gargan from the Native American Law Student Association; and the Chemawa Indian School’s Peer Court Coordinator Cynthia Schaeffer and Vice Principals Ryan Cox and Joel Chavez. Assistant United States Attorneys Suzanne Hayden, Jennifer Martin, and Paul Maloney organized the training and also served as faculty.
The Chemawa Indian School in Keizer, Oregon, is one of four off-reservation boarding schools for American Indians and Alaska Natives in the nation. Over 300 students from 19 states and more than 13 federally-recognized tribes attend the Chemawa Indian School. For more information about the school, please visit www.chemawa.bie.edu.
U.S. Attorney Ortiz Concludes Investigation into Civil Rights Allegations at Boston Latin SchoolRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that the U.S. Attorney’s Office’s independent investigation of alleged civil rights violations at Boston Latin School (BLS) has concluded. A resolution agreement has been reached with the Boston Public School District (BPS), home of the nation’s oldest public school. The investigation focused on alleged incidents of racial harassment of BLS students and the school’s response to those alleged incidents.
In the resolution announced today, BPS has agreed to implement measures aimed at ensuring that complaints of racial discrimination at BLS are handled appropriately. The resolution is the product of a months-long investigation in which BPS Superintendent Tommy Chang and other BPS and BLS personnel cooperated fully with the USAO.
After interviewing over 200 people including BLS administrators, faculty, parents, students, and alumni, as well as BPS Central Office employees, and after reviewing thousands of pages of documents from BPS, the USAO determined that there was one violation of Title IV of the Civil Rights Act. Title IV of the Civil Rights Act of 1964 prohibits discrimination against students based on race, among other bases, by public schools.
The violation involved BLS’s mishandling of its review of allegations that a male student addressed a female black student during class using profanity and a racial slur and threatened to lynch her with an electrical cord.
The investigation also raised concerns about BLS’s response to two other racially charged incidents and the overall effectiveness of its efforts to create an inclusive school climate for all of its students. Finally, the USAO found that BLS did not consistently apply policies and procedures relating to student discipline.
“Boston Latin School is one of the most prestigious public high schools in the nation. Its rich history and well-deserved reputation for academic excellence make it vital that the school provide a supportive learning environment where students of all races can learn without fear of harassment or discrimination,” said U. S. Attorney Carmen M. Ortiz. “All students should feel welcome and safe at BLS regardless of their racial background. Today’s resolution will help ensure that Boston Latin responds thoroughly and appropriately to complaints of race-based discrimination and provides a dynamic and racially and ethnically sensitive learning space for the extraordinary students who pass through its doors. We commend Boston Public Schools for its cooperation and we are confident that the District will continue its work to foster an inclusive climate for all students.”
On February 26, 2016, several civil rights advocacy groups and community members, including the Boston Branch of the National Association for the Advancement of Colored People, the American Civil Liberties Union Foundation of Massachusetts, and the Lawyers’ Committee for Civil Rights and Economic Justice, sent a letter to the USAO alleging a racially hostile learning environment at BLS, racially disparate discipline, and an inadequate response to these concerns by BLS administrators.
Under the agreement, Boston Public Schools will adopt a comprehensive strategy to address and prevent racial harassment at, or affecting students at, BLS. Among other things, the District will:
- Develop mandatory annual trainings for students, faculty and staff at BLS covering racial harassment, retaliatory conduct, reporting procedures and policies, and cultural competence;
- Institute a system of restorative justice at BLS;
- Establish a Diversity/Non-Discrimination Officer at BLS responsible for monitoring complaints of harassment, discrimination, and retaliation; and
- Conduct an annual school-wide survey of the racial climate at BLS.
This matter was investigated by Jennifer A. Serafyn, Chief of Ortiz’s Civil Rights Unit, Assistant U.S. Attorneys Doreen M. Rachal, Deana K. El-Mallawany, Shelbey D. Wright, Annapurna Balakrishna, and Abraham R. George of Ortiz’s Civil Rights Division.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sentenced for Using Harris County Inmate Stolen Identities to Commit Tax FraudRead the Press Release
HOUSTON – Two men from Houston have been ordered to prison following their convictions of using personal identifying information stolen from Harris County inmates to submit false and fraudulent individual income tax returns to the IRS, announced U.S. Attorney Kenneth Magidson. Brandon Banks, 35, and Cal Williams, 30, admitted they used the names, dates of birth and Social Security numbers of unsuspecting Harris County inmates and others in Houston to submit false tax returns claiming refunds of several thousand dollars. Both pleaded guilty to the conspiracy April 25, 2016, while Banks also pleaded to one count of aggravated identity theft.
Today, U.S. District Judge Kenneth M. Hoyt handed Banks a sentence of 15 months for conspiracy to commit wire fraud as well as an additional 24 months for the aggravated identity theft, to be served consecutively. The total 39-month sentence will be immediately followed by three years of supervised release. Williams was ordered to serve a 24-month term of probation. In handing down the sentence, Judge Hoyt ordered Banks and Williams to pay restitution to the IRS in the amount of $69,827, and $3,742, respectively.
The men devised and executed the scheme beginning in approximately January 2012 and continuing until December 2013. Specifically, in February 2013, Banks provided Williams with lists containing the means of identification of individuals for the purpose of electronically filing false federal tax returns by interstate wire. Shortly thereafter, Williams provided the stolen personal identifying information to a person who was cooperating with law enforcement and instructed that individual to electronically submit a fraudulent claim for a tax refund.
The next month, at the direction of law enforcement agents, the person cooperating with law enforcement met with Williams and gave him approximately $1,942, his purported share of the false tax refund.
Banks and Williams were permitted to remain on bond. Banks will voluntarily surrender to a U.S. Bureau of Prisons facility on a date to be determined in the near future.
IRS-Criminal Investigation, U.S. Postal Inspection Service, Houston Police Department, Harris County Sheriff’s Department and U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Topsham Couple Sentenced to Five Months for Social Security FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Thomas Gerken, 63, and Jill Gerken, 62, of Topsham, Maine were sentenced today in U.S. District Court by Chief Judge Nancy Torresen to five months in prison and three years of supervised release (the first five months of which is to be served on home detention) for conspiracy to defraud the Social Security Administration (“SSA”) by diverting Supplemental Security Income (SSI) benefits. SSI benefits are paid to people who are blind, disabled or elderly and whose income is below specified levels and are to be used to pay for the needs of the beneficiary. The Gerkens were also ordered to pay $98,830 in restitution.
According to court records, the defendants are the parents of two disabled children. In 2004, on the basis of those disabilities, the defendants applied for and were granted SSI benefits for the children. Jill Gerken was designated as the representative payee for each child. As such, she was required to use the funds for their benefit, to annually account for her expenditure of the funds, and to periodically submit information to SSA to allow SSA to determine whether the children remained eligible for benefits.
Between January 2007 and July 2013, during a period of time that the children resided on a full-time basis at an assisted living facility, the defendants diverted SSI benefits and used them to pay for household expenses, including, but not limited to, their mortgage, a home equity loan, utilities, groceries, travel, restaurant meals and books. Over that period of time, they also failed to pay the assisted living facility even though Jill Gerken falsely certified to SSA each year that she spent the SSI benefits on food and housing at the assisted living facility.
In pronouncing sentence, Judge Torresen described the Gerkens as greedy and said that a period of incarceration was necessary to reflect the seriousness of their offense, promote respect for law and provide adequate deterrence.
Scott Antolik, the Special Agent-in-Charge of the Boston Division of the SSA’s Office of Inspector General, Office of Investigations (“OIG”) stated that "representative payee fraud is an egregious offense, not only because it involves the misuse of Social Security funds, but because it affects some of the most vulnerable members of society who cannot manage their own affairs," "The SSA OIG is committed to upholding the integrity of Social Security's programs and protecting its beneficiaries, and our office is grateful to work with partners like the U.S. Attorney's Office in Maine in these efforts."
The investigation was conducted by the SSA’s OIG’s Office of Investigations.
Three men sentenced for firearm chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three men were sentenced in federal court today for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Dione Aliquan Taylor, 29, of Martinsburg, West Virginia, was sentenced to 120 months in prison for illegally possessing a firearm. Taylor, who was previously convicted of a felony in Essex County, New Jersey, was discovered to be in possession of a .45 caliber pistol in Charles Town, West Virginia. Taylor pled guilty in June 2016 to one count of “Felon in Possession of a Firearm.”
Thomas James King, 27, of Clarksburg, Maryland, was sentenced to 110 months in prison for illegally possessing a firearm. King, who was previously convicted of a felony in Montgomery County, Maryland, was discovered to be in possession of a 9mm pistol in Martinsburg, West Virginia. King pled guilty in June 2016 to one count of “Felon in Possession of a Firearm.”
Willie Joyner, 32, of Sterling, Virginia, was sentenced to 46 months in prison for illegally possessing a firearm. Joyner, who was previously convicted of a felony in Loudoun County, Virginia, was discovered to be in possession of a .32 caliber revolver in Charles Town, West Virginia. Joyner pled guilty in June 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the Taylor case; Assistant U.S. Attorney Paul T. Camilletti prosecuted the King case; and Assistant U.S. Attorney Anna Z. Krasinski prosecuted the Joyner case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated all three cases. In addition, the Drug Enforcement Administration, the Federal Drug Administration, the West Virginia State Police, and the Jefferson County Sheriff’s Office assisted on the Taylor investigation and the Martinsburg State Police assisted on the King investigation.
Chief U.S. District Judge Gina M. Groh presided.
Thirteen Charged in Miami Lakes and California Boiler Rooms Securities Fraud Scheme that Defrauded over 700 InvestorsRead the Press Release
A Miami grand jury indicted thirteen people for their participation in two telephone sales room (“boiler room”) fraud schemes that targeted investors throughout the nation and defrauded them out of approximately $23 million. The fraud schemes operated out of Miami Lakes, Florida, and Marina Del Ray, California.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director, U.S. Securities and Exchange Commission (SEC), Miami Regional Office, made the announcement.
Craig Sizer, 48, of Miami, Keith Houlihan, 48, of Boca Raton, Miguel Mesa, 56, of Miami Lakes, Charles K. Topping, 39, of North Bay Village, Anita Sgarro, 49, of Marina Del Ray, California, Jack Willard Sini, 57, of Miami and Boynton Beach, Juan M. Perez Ortega, 46, of Miami Lakes, Charles David Smigrod, 41, of Coconut Grove, Matthew William Wheeler, 32, of Miami, Martin Miller, 74, of Miami Beach, Jason David Hershberger, 39, of Fort Lauderdale, James Wayne Long, 60, of Miramar, and Shawna Leigh Lynch, 44, of Fort Lauderdale, were charged with conspiracy to commit mail fraud and substantive count(s) of mail fraud. Sizer, Houlihan, Mesa, Topping and Sgarro were also charged with a substantive count of wire fraud.
“Those who operate locally or from afar to target unsuspecting investors will continue to be prosecuted,” stated U.S. Attorney Wifredo A. Ferrer. “We implore the community to be cautious about solicitations that promise unsubstantiated returns and to report all suspected fraudulent schemes to law enforcement.”
“This group of cross country scam artists bilked hundreds of unsuspecting investors out of over $21 million dollars and will now be held accountable for their devious actions,” said George L. Piro, Special Agent in Charge, FBI Miami. “If you are an individual investor, exercise due diligence before you invest your first dime. Do not fall prey to fantastic claims from investment sales people. Ask yourself: Does it seems too good to be true? If the answer is ‘Yes,” then it probably is!”
“We allege that Sizer and Mesa fraudulently touted Sanomedics and Fun Cool Free stocks as profitable investments while in fact only Sizer and Mesa and the sales agents were profiting at the expense of investors, many of whom were seniors,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.
The indictment charges two, overlapping mail fraud conspiracies involving the fraudulent sale of stock shares for two companies, Sanomedics International Holdings, Ince. (“Sanomedics”) and Fun Cool Free (“FCF”).
According to the indictment, from April 2009 to August 2015, Sizer, Houlihan, Mesa, Topping, Sgarro, Sini, Ortega, Smigrod, Wheeler, Hershberger, and Lynch used false and fraudulent claims to solicit investors throughout the United States to buy shares of stock in Sanomedics, a company that sold non-contact infrared thermometers for home healthcare and for dogs. In 2009, Sizer and Houlihan allegedly hired Mesa to run a boiler room that sold restricted shares of Sanomedics stock. Mesa and Sizer prepared scripts for the sales agents that worked under Mesa, in the telephone sales room. Mesa later hired Sgarro to operate her own boiler room in California, selling Sanomedics stock. Sizer and Houlihan also sold Sanomedics stock directly to investors. In order to conceal their true identities and to further the fraud scheme, several of the co-conspirator sales agents used false names and aliases. The sales agents used sales pitches that included several materially false statements, including, but not limited to, that: stock sales did not include commissions or fees; sales agents were compensated with stock or paid by the hour; the sales agents worked directly for Sanomedics; stock purchases were safe and secure; and famous and wealthy invididuals, such as a former CEO of Apple Inc., PepsiCo, and IVAX Corp., and the “Dog Whisperer,” were either heavily invested in the company or were company representatives. In truth, the co-conspirator sales agents worked for Mesa and Sgarro, not for Sanomedics. Approximately 80% of investor proceeds were used by the co-conspirators to cover commissions and fees. The co-conspirators were not paid by the hour and did not receive stock options, but were in fact paid hefty commissions. Additionally, there were no actual endorsements by celebrities or wealthy individuals. The investors relied on the fraudulent statements. As a result of the scheme, the co-conspirators defrauded over 700 people out of approximately $21 million.
The indictment also charges that from August 2014 to December 2105, Sizer, Mesa, Topping, Sini, Perez, Smigrod, Wheeler, Miller, Long, and Lynch used a fraud scheme, similar to the one described above, to sell shares of stock in FCF, a company that claimed to own a smartphone gaming portfolio with over 500 gaming applications. Mesa oversaw the boiler room that was utilized to facilitate the fraudulent scheme. The co-conspirators used false claims, including assertions that they worked directly for the company, to defraud over 70 other investors out of $1.5 million.
On September 26, 2016, the SEC filed similar civil charges against Sizer and Mesa in federal district court in Miami.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Mr. Ferrer commended the investigative efforts of the FBI and the assistance of FINRA. Mr. Ferrer also that the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz, and Trial Attorneys Rebecca D. Ryan and Kevin B. Hart from the Antitrust Division of the Department of Justice.
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.
Third Marijuana Cultivator Sentenced in Sierra National Forest Marijuana GrowRead the Press Release
FRESNO, Calif. — Alejandro Ramirez-Rojo, 31, of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to 27 months in prison and ordered to pay $8,752 in restitution to the U.S. Forest Service for conspiring to manufacture, distribute, and possess with intent to distribute marijuana in the Sierra National Forest, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, co-defendant Humberto Ceballos-Rangel, 37, of Mexico, was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants and a loaded firearm. Ramirez-Rojo, Francisco Javier Gomez-Rodriguez, 38, of Pihuamo, Jalisco, Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, were found a short time later approaching the grow site in a vehicle that agents had previously identified as a vehicle used to deliver supplies to the grow site. A .22-caliber rifle was found in the vehicle, along with .40-caliber rounds of ammunition.
Ceballos-Rangel was sentenced on February 18, 2016, to three years in prison; Gomez-Rodriguez was sentenced on July 2, 2016 to three years and five months in prison; and Santibanez is scheduled to be sentenced on October 3, 2016.
The cultivation operation encompassed at least five acres of national forest land. Throughout the grow site, natural vegetation had been cut to accommodate the marijuana plants, related trails, and cooking and sleeping areas. A water reservoir had been dug into the soil to store water for use in the marijuana cultivation operation. The water in the reservoir had been diverted from a nearby creek. The soil had significant disturbance throughout the impacted area. There were also several trash pits that had mostly been covered in dirt. Two large net loads of trash, two five-gallon propane tanks, and 2,000 feet of irrigation hose were removed, along with the marijuana plants. Law enforcement agents also found insecticide at the site.
This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Third Defendant Pleads Guilty in Fraudulent Identification Document ConspiracyRead the Press Release
FRESNO, Calif. — Veronica Rosales-Capitaine, 49, of Fresno, pleaded guilty today to conspiring to produce, transfer, possess, and sell false identification documents, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 2016, Rosales-Capitaine conspired with others to manufacture fraudulent identification documents, including social security cards and alien registration receipt cards, for customers who placed orders and paid as much as $150 for a set of the fraudulent documents. In March 2010, Rosales-Capitaine was convicted of the same offense and sentenced to six months’ imprisonment, admitting that between January 2009 and October 2009, she conspired with others to manufacture fraudulent identification documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Rosales-Capitaine and five co-defendants were arrested for the scheme. Co-defendants Francisco Javier Hidalgo-Flores and Lizet Amairani Ramirez-Zazueta, also of Fresno, pleaded guilty on September 19, 2016; charges are pending against the remaining co-defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rosales-Capitaine is scheduled to be sentenced by Chief Judge Lawrence J. O'Neill on December 19, 2016. Rosales-Capitaine faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Spokane, Washington Man Sentenced to 25 Years in Federal Prison for Attempted Production of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Steven Harris, of Spokane, Washington, was sentenced today after having previously pleaded guilty on June 28, 2016, to attempted production of child pornography. United States District Judge Salvador Mendoza, Jr. sentenced Harris to a 25-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. In addition, Harris will be required to register as a sex offender.
According to information disclosed during the court proceedings, an investigation began in September, 2015 after Harris, a registered sex offender who had served as a volunteer with the Boy Scouts of America, uploaded a file containing child pornography from a specific Internet Protocol address to Omegle.com (a free online video chat website that randomly pairs users in one-on-one chat sessions where they chat anonymously using the names "You" and "Stranger”). The Internet Protocol address was linked to Harris’ residence. Law enforcement officers executed a search warrant at Harris’s residence and seized several electronic devices – officers discovered Harris not only possessed and distributed child pornography, he produced it, using websites like Omegle and Skype.
Officers discovered that Harris produced a library of child pornography which consisted primarily of juvenile boys masturbating. Harris utilized more than one means to get the children to masturbate, so that he could produce the recordings. For example, some of the victims were made to believe that Harris was a minor-aged girl. Harris maintained a series of webcam videos of a teenage girl, which he would use to entice juvenile boys to masturbate. Harris had the video files divided into several sections to include “brunetteshow,” “brunettetalk,” “brunettetalk2,” “Brunettetease,” “brunettewave,” and so on. All of the videos portrayed the same pubescent female waiving, communicating, exposing her chest, and dancing nude. Harris purported to be the teenage girl himself and would play the clips in a logical order that made sense with the conversation. The conversation was typed, as Harris informed his juvenile victims his computer’s microphone did not work. Harris would type that if the boys would get naked or masturbate, the teenage girl would do certain things of a sexual nature in return. When the children would eventually masturbate, Harris would record the acts and store the video on his computer.
Harris also used virtual webcam software to play child pornography over Omegle. The internet users he was randomly paired with on Omegle would either see the pornography and immediately move on or stay and watch the video. If juveniles stayed they were encouraged to engage in sexually explicit acts. If they did so, Harris would capture the acts on video and save the video.
Harris captured videos of children masturbating for a period of approximately two years. Harris’s desktop computer contained two folders of pictures which stored illegal images. One folder was for raw video he captured. The other was entitled, “Record.” Within that folder was a subfolder called “Save” which contained child pornography Harris produced, and within that folder was yet another subfolder, indicative of Harris’s goal in meeting the children on Omegle, entitled, “Win,” which contained over 500 videos nearly exclusively of boys masturbating. Harris shared some of the videos he created with other internet users, in exchange for other child pornography.
At sentencing a very contrite Harris told the judge that he understood the sentencing to be “less about me and more about the people that I’ve hurt, and I think that is right. I think your consideration should be more about the victims.” Harris detailed his remorse and stated, “Had I not been caught, I probably would have accelerated into more and more dangerous behaviors.”
When imposing the 25 year sentence, Judge Mendoza stated that Harris’s actions would have “far reaching consequences for the victims,” noting that “we are talking about real children here. These are real people, and not just real people, real children.” He went on to state, “The fact you were assisting in the creation of this material and assisting in the marketplace for this material is very concerning.”
Michael C. Ormsby said, “This case is a fine example of the great work that can be done when state and federal law enforcement work together. Harris fully exploited the anonymity the video chat site afforded him to the great harm of unsuspecting children. Today’s sentence should serve as a warning to those who think they are acting with immunity online; such criminals will be actively and aggressively pursued by federal and state law enforcement.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation in conjunction with the Spokane County Sheriff’s Office. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
Seventy-Two (72) Individuals Charged for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, Puerto Rico – Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced that on September 23, 2016, a federal grand jury in the District of Puerto Rico returned a six count indictment against seventy-two (72) individuals charged with conspiracy to possess with intent to distribute controlled substances, aiding and abetting in the possession /distribution of Heroin, cocaine base, cocaine, marijuana, conspiracy to possess firearms in furtherance of a drug trafficking crime. The U.S. Immigration and Customs Enforcement (ICE) and the Police of Puerto Rico Strike Force are in charge of the investigation.
During the span of the conspiracy, in order to be able to operate a drug point at Vista Hermosa Public Housing Project, “rent” would be paid to the leaders of the drug trafficking organization and their family members. As part of the manner and means of the conspiracy high level members of the DTO would order and authorize, the use of force and violence against members of their own DTO suspected of providing information to law enforcement.
The indictment alleges that the conspirators had many roles in order to further the goals of the drug trafficking organization. They served as “leaders”, “drug point owners”, “runners”, “sellers”, “drug processors”, among other roles. Also, as part of the conspiracy, armed conspirators provided security to the drug point at the Vista Hermosa PHP. Members of the DTO were under the rules dictated by the leaders regarding the location from where controlled substances could be sold, how conflict resolution between members of the drug trafficking organization was to be handled, how conflict resolution between Vista Hermosa residents not related to the DTO was to be handled. If said rules were violated, the leader or high level members of the DTO would use force, violence, and intimidation against the offenders in an effort to maintain order within Vista Hermosa.
According to the indictment Jaret Navedo-Meléndez, Julio González-Burgos, José Davier Carvente-Guzmán, Kilpatrick Acosta-Cruz, Sergio E. Santa-Otero, Jeancristh N. Reyes-Masso, Carlos R. Hernández-Rodríguez, Ángel Román-Ayala, Jessenia Díaz-Colón, Elba Iris Estrada-Negrón, Rafael O. Álvarez-Cruz, Noel Manzano-Cintrón, Carlos Luis Hernández-Rodríguez, and an individual known as “Alex Tota”, acted as leaders or drug point owners for the DTO. The organization also had six (6) defendants that acted as enforcers, two (2) drug processors, nine (9) runners, forty (40) sellers, and one (1) facilitator.
Assistant U.S. Attorney Vanessa E. Bonhomme and AUSA Kelly Zenon-Matos are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of ten (10) years and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
San Jose Resident Sentenced to Eight Years in Prison for Illegal Possession of A FirearmRead the Press Release
SAN JOSE – Bobby Wade was sentenced today to eight years in prison, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Ronald M. Whyte, United States District Judge, following a trial earlier this year.
On June 1, 2016, following a four-day trial, a jury convicted Wade, 36, of San Jose, of being a felon in possession of a firearm. During the trial, evidence showed that on June 29, 2015, San Jose police officers responded to a 911 call during which the caller reported two men brandishing guns in downtown San Jose. The officers spotted Wade and another man who matched the descriptions provided by the 911 caller. When ordered to stop, Wade fled on foot and threw a loaded semi-automatic pistol over a fence while briefly out of the sight of pursuing officers. The pistol was found and investigators later linked Wade to the pistol through DNA testing, incriminating text messages found on his cell phone, and recorded calls Wade placed from jail urging associates to go looking for the gun. Wade was indicted by a federal grand jury on September 17, 2015. He was charged with being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term, Judge Whyte sentenced Wade to a three-year term of supervised release. Wade was immediately remanded to custody after sentencing.
Special Assistant U.S. Attorney William J. Edelman and Assistant U.S. Attorney John C. Bostic prosecuted the case with the assistance of Patricia Mahoney, Elise Etter, Yolanda Singletary, and Sutton Peirce. The prosecution is the result of an investigation by the ATF.
Rochester Tax Preparer Charged with FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Frank Wilson, 55, of Tonawanda, NY, was arrested and charged by criminal complaint with preparing fraudulent tax returns. The charge carries a maximum penalty of three years in prison and a fine of $100,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Wilson operated an income tax return preparation business in Rochester. The defendant prepared at least 18 false tax returns claiming total refunds of at least $90,508. The complaint further states that Wilson’s conduct appears to be related to much larger, nationwide fraud scheme involving approximately 3,529 false tax returns that sought a total of approximately $12,361,498 in fraudulent refunds. Many of the taxpayers who hired Wilson to prepare tax returns did not review their tax returns, did not know that the defendant had included fraudulent information on their returns, and did not receive any refund from Wilson as result of the fraudulent returns.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released.
The criminal complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Shantelle P. Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Remarks by U.S. Attorney Zachary T. Fardon at City Club of Chicago, Sept. 26, 2016Read the Press Release
The following are remarks by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, as prepared for delivery to the City Club of Chicago on September 26, 2016:
Good afternoon. Thank you for having me. I’m honored to be here and grateful to all of you for coming.
No different than the first two times I was here, despite the mission-critical work my Office does in areas like public corruption, counter-terrorism, cybercrime, major frauds, and narcotics trafficking, I am going to focus my comments today on violent crime in Chicago.
But I am going to talk not just about violence and law enforcement today. I am going to talk about trust. I am going to talk about civil rights. I’m going to talk about the aspiration of bringing together all of the good and wonderful people who are fully committed to fixing what pains us in Chicago. About breaking barriers and finding pathways to change.
Everyone in this room knows that we’re in the midst of a brutal year. Homicides are up over 40%. Shootings are up 50%. There is civil unrest. Our police are under a constant microscope. Our streets are teeming in protest. There is anger, there is fear, there is distrust. And with the constant drumbeat of bad news, for some there is even a sense of depression, of hopelessness.
And yet, for all of that, let me tell you what breaks my heart, because my heart does break every single day in this job, but it’s not on account of what is happening this year. It’s deeper and wider than that. My heart breaks for reasons that I talked about in this room in 2014 and 2015 -- reasons that were just as real in 1996 and 2006 as they are today in 2016.
We have kids – babies, toddlers, adolescents, tweens and teens – shot as a matter of routine in this city. Thirty kids under 13 years old hit with bullets so far this year alone. These are just some of those kids.
Since 2010, over 2,800 kids shot, and 369 kids killed in the city of Chicago.
And that isn’t happening here in River North. It’s happening in a handful of neighborhoods -- otherwise great neighborhoods on the South and West Sides of Chicago. Neighborhoods that are isolated, traumatized and terrorized by gun violence.
This is our reality today. This was our reality last year, and the year before that. This has been our reality now for decades.
In my three years as United States Attorney, I’ve been asked more than a dozen times what I think of the term Chiraq. I usually take a pass on that question. The word itself is not important to me. But, in truth, Chiraq -- whatever else it may evoke -- is now a verbal symbol of the hard reality that Chicago is a tale of two cities – one safe and bucolic, the other dangerous and volatile.
Our challenge in Chicago isn’t measuring today’s violence statistics against yesterday’s. We’ve been doing that for decades, and fundamentally nothing has changed. The challenge we need to be talking about is the decades-old social justice concern of these neighborhoods set apart, and children put at risk.
That is a “right-versus-wrong” challenge. It is a “who do we want to be as a city, a community, a society” challenge. It’s a big challenge, but it’s ours. We need to be honest about it, own it, and start coming up with better ideas for long-term sustainable solutions.
I’m going to spend the next twenty minutes or so talking about two major moving parts, from my perspective, important to those solutions. First, I’m going to talk about civil rights and policing. Second, I’m going to talk about not-for-profit organizations operating in those most violence-afflicted neighborhoods.
Civil Rights Investigations
Starting with Civil Rights. Two years ago, in August 2014, 18-year-old Michael Brown was shot and killed by a police officer in Ferguson, Mo. That incident ignited a powder keg of pent-up anger. Issues of force, race and racism in policing were thrust onto the national stage in a way that had not happened since the Rodney King beating in the 1990s.
Unlike the era of Rodney King, we now live in a time when video cameras are ubiquitous; each of you has one in your pocket. And so we started seeing viral videos posted in a near constant stream:
- Eric Garner dying from a choke hold in Staten Island
- Tamir Rice, the 12-year-old shot and killed in Ohio
- Freddie Gray dying in the back of a police van in Baltimore
- Laquan McDonald shot 16 times, mostly on the ground
- And, more recently, Paul O’Neal shot in the back here in Chicago.
There are dozens and dozens more examples over these past two years. Two new examples in the past two weeks — one in Tulsa and one in North Carolina. One or more of these events a week, across the nation, it seems. And because of technology, those events are no longer just local concerns; they are national concerns -- they belong to us all.
Which brings me to today. We are now in the midst of a national reform movement around policing and trust. It’s a movement with no less at stake than public safety, effective self-governance, and belief in our systems of justice.
And nowhere is that more true, with more at stake, than right here in Chicago. In December of last year, United States Attorney General Loretta Lynch announced a “pattern and practice” investigation of the Chicago Police Department. I was by her side in Washington when that announcement was made. And since that announcement, our Office here in Chicago has been working hand-in-hand with DOJ’s Civil Rights Division in Washington, D.C., to conduct the investigation of CPD.
Our “pattern and practice” investigation is not a criminal investigation. I will say something in a moment about our federal criminal civil rights cases. The “pattern and practice” investigation is a sweeping civil review to determine if there have been repeated Constitutional violations by Chicago police over the years, particularly in two key areas: (i) use of force, including deadly force; and (ii) accountability mechanisms, meaning essentially what happens when bad cops do bad things.
For the past nine months our DOJ team -- my office and Main Justice working together – has done a deep dive on those areas. The team has analyzed tons of data, interviewed hundreds of people, held public forums, conducted ride-alongs with patrol officers, reviewed policies and procedures, scrutinized training, and conferred with top experts across the country. This is the largest “pattern and practice” investigation in the history of the Department of Justice. And this is the first time in Chicago’s history there has been this kind of review of the police department. So this is hugely important stuff.
We are not done yet with the review, but we are, I believe, moving at record pace. I won’t make predictions because I don’t want to create expectations where there is no certainty. But we are approaching this with a tremendous sense of urgency, and I believe we’re on an unprecedented pace to get this review done.
Our urgency has to be balanced with efficacy. We’ve got one shot at this thing, and so we have to get it right. Assuming we find problems, our goal is not quick fixes; it is long-term, sustainable change. That is what we are about. Sustainable change takes time, care, and enormous effort. So that’s how we’re approaching this historic opportunity.
That’s on the civil side. Let me, as promised, say something about our federal criminal civil rights prosecutions. Where appropriate, our U.S. Attorney’s Office here in Chicago prosecutes police officers criminally. To do that, we have a limited number of options. Federally, there are no general murder, manslaughter, or assault type crimes; those are state crimes, and only the State can bring those kinds of charges.
Our principal tool for federal prosecution is known as the deprivation of rights law, which essentially gives us authority to bring federal charges where we can prove that an officer willfully violated someone’s civil rights. To prosecute under that law, we have to be able to prove beyond a reasonable doubt both that the officer’s use of force was objectively unreasonable, and that the officer acted willfully -- knowing that the force used was excessive. Proving that willful state of mind -- getting inside the officer’s head at the moment force was used and proving willfulness beyond a reasonable doubt -- is a high bar.
Despite those challenges, our Office has dedicated resources to this area and has historically brought impactful criminal charges against officers using excessive force in Chicago and across the Northern District of Illinois. In the past two weeks we charged two excessive force cases – one against a Joliet police officer, and one against a Chicago police officer. And beyond excessive use of force cases, we also have held dozens of officers accountable for other forms of corruption, like stealing from drug dealers, selling drugs, selling weapons, theft, and other crimes.
We sometimes investigate police officer cases that are charged by the State and not by us. Let me say something about that interplay between State and Federal prosecutions when it comes to police officer misconduct. In some cases, even if our Office finds sufficient evidence to prosecute an officer federally, we will defer to the State when it moves forward with charges. There are a couple important reasons for that.
First, as I mentioned, the State has the ability to charge crimes – like murder or manslaughter – that carry heavier penalties than our federal statute. In other words, excessive use of force by police officers is a context in which the State often carries a bigger criminal stick than the feds. Whether we like it or not, that’s the reality.
Second, in Illinois, there is a State double jeopardy law that specifically can preclude the State from prosecuting if we, the feds, charge first. In light of that, when the State decides to charge an officer, my Office often will wait rather than risk jamming up the State’s prosecution. When we make that decision to wait, we monitor the State case to see how it is resolved, and once the State case is done, we make a decision whether or not to charge federally. In making that decision, the key factor is whether we the think the State result, including any prison sentence, has rendered justice.
So, a lot of layers there. Our criminal justice world is sometimes complicated, and that’s okay. The most important thing I want you to know is this: Our U.S. Attorney’s Office has and will continue to independently and vigorously pursue federal civil rights prosecutions of police officers, where appropriate.
And let me tell you why. When officers break the law, it hurts us all. It hurts the immediate victims, it hurts the public -- who lose faith and confidence in law enforcement -- and it hurts all of the good officers who suffer from that loss of public faith and confidence. Those good officers can no longer do their jobs effectively without the support and trust of the people they serve and protect.
Let me put a finer point on it. I am someone who believes that police officers are by and large the noblest of our public servants. They’re the ones, women and men, who’ve taken a job at modest pay, where every day they wake up not knowing if they may get hurt or even killed. And damn near all of them do that, and wear that risk, because they are good people. They are people who risk their lives to serve and protect us.
To succeed, those good officers need credibility with the public they serve. And when bad cops are able to do bad things and there’s no accountability, that hurts all of those good officers. Among other things, in my opinion, that paradigm can create and foster the exact kind of “don’t snitch” culture we have seen for decades now in our neighborhoods – South Side and West Side -- that most desperately need the police to be able to solve crimes, to catch the murderers.
It’s time to fix that. It’s time to change that paradigm. It’s time to win back the respect our police officers have earned. By doing that, we help CPD, we help our afflicted neighborhoods, and we help make this city safer and stronger.
As I said at the outset, for me, this is not about statistics. It is about fairness – fairness to all our neighbors across Chicago. For us to have any chance of succeeding in the long-term goal of correcting the injustice of those neighborhoods set apart, I believe what we are going through with CPD right now was inevitable, and is essential.
At the moment we are in pain. In life, you sometimes have to go through pain to get to a better place.
Spike in gun violence
Let me talk more directly about that pain. A 40+% increase this year in homicides. A nearly 50% increase in shootings. In 2014 and 2015, we saw some of our lowest homicide rates in Chicago since the 1960s. And now suddenly, in 2016, the pendulum whips away from us. Why is that?
No one can say for sure, but I think it is worth noting that the current spike in violence followed 4 quick successive events late last year:
- The city released the Laquan McDonald video
- DOJ announced its pattern & practice investigation
- CPD’s Superintendent of 4.5 years was let go
- Coincidental to those first 3 things, on January 1 of this year, a contract went into effect between the City and the ACLU mandating that officers fill out lengthy contact cards for every street encounter. That agreement was negotiated between the city, CPD and the ACLU last year. It just happened to go into effect on January 1 of this year.
After those 4 events, all of which came within a six-week period leading up to January 1, 2016, I believe there was a hit on CPD morale, and a drag on officer willingness to conduct stops. There has in fact been a major drop this year in the number of street stops officers are conducting.
I also think that the fallout in public confidence – the apparent embattlement of police on all fronts -- created a sense of emboldenment among gang members, especially in Chicago’s most violence-afflicted neighborhoods. Some gang members apparently felt they could get away with more, and so more bullets starting flying.
Those perceptions are wrong, and I think they are changing and will change with time and because of the great efforts our Chicago police officers are making right now -- to push back against that violence and to ensure change that will restore credibility.
What We’re Doing at the USAO
Let me say something about what federal law enforcement, including the U.S. Attorney’s Office, has been doing to help CPD and our State partners in this crisis.
In addition to the civil rights work I already mentioned, we are busier than ever at 219 South Dearborn prosecuting gangs and violent offenders. In late July, we announced racketeering indictments against 34 ranking leaders of the Latin King Street gang on the South and West Sides for widespread and recurring violence. Separate from that, starting earlier this month, we are trying a federal racketeering case against members of a Gangster Disciples/Black Disciples hybrid gang faction, who are alleged to have committed multiple murders and other brutal acts of violence over years. That federal trial is taking place as I speak.
Those two major cases are exemplary; we have many more federal gang and violent-offender cases charged and in the investigative pipeline. We have not and will not take our foot off the criminal enforcement pedal.
In addition, this year our Office has increased its intake of gun cases across the board. We continue to work with the State’s Attorney’s Office, who are a great partner to us, to determine which sovereign is in a better position to charge putative gun defendants. This year, through that cooperative screening process, we’ve decided to take on more water federally, specifically in reaction to the current crisis and to make sure that during this challenging time we’re doing everything we can to aid our local and state partners.
And to be clear, it’s not just the U.S. Attorney’s Office leaning in to this crisis. It’s the entire federal law enforcement family here in Chicago. The FBI, DEA, ATF, USMS and other federal agencies have ramped up their resources to help tamp down this spike in violence. There are some very specific initiatives we’ve launched this year, along with our State and local partners, and I’m not going to reveal details because I do not want to compromise those ongoing initiatives. But suffice it to say all oars from those agencies, including the FBI, are in the water right now. We are committed, along with CPD and our State partners, to doing everything we can to address the current increase in gun violence as quickly and effectively as possible.
Prevention Efforts
That’s all on the criminal enforcement side. Complementary to those efforts, we’re also right now working closely and constantly with CPD and others on preventing violence before it happens. My Office this year has led or participated in reentry forums, youth outreach forums, violence-reduction gang call-in meetings, and community trust roundtables, on a routine basis. We’ve had dozens of such events already this year.
Last time I was here I spoke about our Youth Outreach Forums, where we are working with at-risk kids, 13-17 years of age, to help them identify a path other than gang membership and violence. I won’t rehash that now, but that program continues. And while no one program is a panacea for our gun violence problem, I am proud that our U.S. Attorney’s Office here continues to invest resources and lead the way forward on many of those initiatives.
Prevention efforts are a critical part of our long-term success against gun violence. I don’t want to prosecute gun criminals if we can stop the crimes from happening in the first instance.
Not-For-Profit Community Conversations
I’m going to pivot now and say a few words about another concern I think is important to this overall discussion -- specifically, some challenges facing not-for-profit organizations operating in our most violence-afflicted neighborhoods.
When I was here last, about a year ago, I mentioned that my Office had launched a series of community trust roundtables focused on violence and policing issues. We have continued to hold those roundtables, which I’ve hosted roughly quarterly over the past almost two years. After one in Englewood earlier this year, I spoke with CPD Superintendent Eddie Johnson about doing a separate series of smaller roundtable discussions with a very specific and discrete purpose: to gather leaders of not-for-profits operating in the neighborhoods that are suffering this year’s worst gun violence, and find out from those not-for-profit leaders their views and concerns about trying to make those neighborhoods safer.
Over the past three months, my Office and CPD have hosted 4 of those not-for-profit roundtable discussions. We held one in Englewood, one in Garfield Park, one in Austin, and one in Back of the Yards. Each meeting has included about 20 to 30 leaders from different not-for-profit organizations providing a wide spectrum of services in their respective neighborhoods. Things like:
- healthcare for the indigent
- housing and food for the homeless
- mental health services
- substance abuse aid
- domestic violence assistance
- workforce development
- educational programs
- youth programs
- tutoring for kids
The roundtables have been non-public, so as to foster candor and honesty. This is the first time I’ve mentioned these meetings publicly.
And to be clear, the meetings are not part of the DOJ “pattern and practice” investigation or any larger DOJ initiative. This is the U.S. Attorney’s Office and me, as the U.S. Attorney, trying to better understand some of the other pieces of the puzzle in Chicago -- beyond law enforcement’s role -- when it comes to combatting gun violence, so that we can do everything in our power to complement those other critical efforts.
So, here are two key takeaways from the roundtable discussions:
First, there is an amazing number of super smart, committed, passionate, hard-working, altruistic people providing not-for-profit services in these neighborhoods. And I don’t say that lightly, or to pander, or for hyperbole. I say it because it’s true, and I didn’t really know it until I went and saw it for myself. There is no shortage of good and smart people trying to help in these neighborhoods.
And so what? Why does it matter that there is this critical mass of capable leaders working to improve those neighborhoods?
Because of my second key point -- they don’t have what they need to succeed. At each and every one of these meetings – each with different participants operating in different neighborhoods – there was a single, resounding, common complaint: the absence of a Marshall plan or unified vision for working together and cooperating to improve the neighborhoods. In fact, repeatedly we heard how these leaders and their organizations are often working apart from each other and often even in competition.
Why is that? What I heard first and foremost is that the funding mechanisms -- whether state, federal or philanthropic -- are mostly annualized, are hyper competitive, and are data driven. And so many of these organizations compete -- all year, every year -- to protect their numbers and bring in funding dollars just so they can survive. That paradigm leaves little room or incentive for them to stop the music and work together to come up with a comprehensive plan for attacking gun violence.
They want to do that. All of them want to do that. Many feel like they can’t.
That paradigm has to change as well. Those great people need to be able to work together, to complement each other, to share a vision and plan for success in helping their respective neighborhoods. And so I ask all of you, whether you are in business, or government, or part of the great philanthropic community in Chicago, to give that issue some thought. Let’s have a conversation and find a way to change that paradigm such that all these talented people -- already operating full time in these neighborhoods -- can have a greater impact.
Schools and Jobs
Of course beyond not-for-profits and law enforcement, there are other major moving parts that we have to address to resolve our gun violence dilemma. And like not-for-profits those major moving parts are outside my Office’s authority.
Equal education is one. We have to find ways to ensure that the schools operating in our violence-afflicted neighborhoods are providing the same quality and continuity of services as others across the city.
Jobs is another. We need more businesses to stake ground in these neighborhoods and create work opportunities, particularly for young adults coming up and for Illinois citizens returning from incarceration, a large percentage of whom return to these violence-afflicted neighborhoods.
Those are all significant challenges. But there are a lot of good people – in city government, in state government, in the private sector – who working hard and earnestly on those challenges. And we have success stories -- discreet but real stories -- where schools have improved, and new businesses have staked ground in these neighborhoods. We need to study and build upon those successes, and come up with a template for every neighborhood to succeed.
Conclusion
Chicago’s gun violence problem is multi-faceted. It is not rooted in any one thing. It has roots in poverty, joblessness, and educational inequality, which over decades has fostered cultural issues, parenting problems, fear, cynicism, and a tragic strain of low expectations, complacency, hopelessness.
Our institutions must do better. Law enforcement. Government. Schools. Businesses. Not-for-Profits. We all have to do better.
I’d submit to you that across those institutions, we too are too often operating in silos. For all of the good will and work of folks in the public, private and philanthropic sectors, we don’t communicate as much and effectively as we need to. We are each trying hard to do our jobs, to do our parts. But that is not good enough in the face of this kind of challenge. We have to be better at knowing each other, at communicating, at coming together around a common, comprehensive plan where we are coordinated and complementing each other. That is the only way to win this particular fight.
In some small measure, through our roundtables and outreach initiatives, my Office is trying to chip away at that challenge. And I commit to you we will not stop. The fantastic women and men of this U.S. Attorney’s Office will keep pushing. We’ll keep prosecuting violent offenders. We’ll keep looking for new ways to stop crime before it occurs. And we’ll keep listening, learning, and striving to find long-term solutions to this complex problem. We never lose hope. Giving up is not part of our DNA.
Institutions matter. But at the end of the day, to save innocent kids and restore neglected parts of this city, the solution lies not in institutions; it lies in people. I’m from Tennessee. Chicago is my adoptive home. And every year I have lived here I have fallen further in love with this place and its people. I am in awe of the fundamental goodness I witness from people each and every day across this city -- the profound strength and love citizens here hold for the city and each other. That strength and love is the fuel that will drive our change.
The U.S. Attorney’s Office is honored to be a part of it. We’re going to keep working hard every single day.
Thank you for being here and for listening.
Pottawattamie County Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Council Bluffs, IA- United States Attorney for the Southern District of Iowa, Kevin E. VanderSchel, announced on September 23, 2016, Omar Rosales-Ixta, a 39 year-old resident of Carter Lake, Iowa, was sentenced by United States District Court Senior Judge James E. Gritzner to 168 months in prison for conspiracy to distribute methamphetamine. Rosales-Ixta’s term of imprisonment is to be followed by five years of supervised release. Rosales-Ixta entered a guilty plea to conspiracy to distribute methamphetamine on May 26, 2016.
Rosales-Ixta’s co-defendant, Michael Leroy Poore, a 34 year-old resident of Logan, Iowa, was sentenced by Senior Judge James E. Gritzner to 78 months in prison for conspiracy to distribute methamphetamine to be followed by four years of supervised release. Poore entered a guilty plea to the charge on April 29, 2016.
The pleas of guilty and sentencings were the result of an investigation into methamphetamine distribution by the defendants between July and November of 2015. During that time, the defendants distributed over two kilograms of methamphetamine, which was obtained in Omaha and transported to Pottawattamie County where it was sold.
Co-defendant Broc Todd Waltermeyer is scheduled for sentencing on November 2, 2016.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, Omaha Police Department, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Portsmouth Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – Michael Lanell Easley, Jr., 36, of Portsmouth, was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute heroin, and for possession of firearms in furtherance of drug trafficking.
Easley pleaded guilty on May 25. According to court documents, Easley maintained a residence on Riverview Avenue in Portsmouth for the purpose of manufacturing and distributing heroin. On Nov. 23, 2015, federal agents and state law enforcement executed an arrest and search warrant. As the agents and officers approached Easley, he ingested a significant amount of heroin. In an effort to save Easley’s life, an ambulance was called and he was rushed to the hospital. Easley came close to cardiac arrest several times during the trip, but doctors were able to stabilize him and he survived. During the search of Easley’s home, agents and officers recovered heroin and a .45 caliber semi-automatic handgun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; James A. Cervera, Chief of Virginia Beach Police Department; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Special Assistant U.S. Attorney John F. Butler 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. 2:16-cr-44.
Pine Ridge Woman Pleads Not Guilty to Felony Child Abuse and Neglect and Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Felony Child Abuse and Neglect and Involuntary Manslaughter.
Mona Goggleye, age 31, was indicted on May 24, 2016. Goggleye appeared before U.S. Magistrate Judge Daneta Wollmann on September 21, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Goggleye abusing and neglecting a child between May 6 and 7, 2016, near Pine Ridge. This abuse and neglect resulted in the death of the child.
The charges are merely accusations and Goggleye is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Goggleye was released on bond pending trial. A trial date has been set for November 29, 2016.
Owner of Information Technology Companies Arrested for Visa Fraud, Obstruction of Justice, and Harboring Foreign WorkersRead the Press Release
Two Companies and an Employee Also Charged in Indictment
NEWARK, N.J. – A New York man was arrested this morning pursuant to an indictment charging him, two information technology companies that he partly owns, and an employee with fraudulently using the H-1B visa program to reduce skilled labor costs, U.S. Attorney Paul J. Fishman announced today.
Sowrabh Sharma, 31, of New York, is charged – along with SCM Data Inc., a New Jersey corporation, MMC Systems Inc., a Virginia corporation, and Shikha Mohta, 33, of Jersey City, New Jersey, the head of finance for the companies – with one count of conspiracy to commit visa fraud and to obstruct justice and one count of conspiracy to harbor aliens.
Sharma is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Mohta was previously arrested in May 2015 on a criminal complaint and was released on a $100,000 bond.
According to the indictment unsealed today:
SCM Data and MMC Systems offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. The U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS) was empowered to approve and process applications for residency within the United States, and the U.S. Department of Labor (USDOL) was charged with the enforcement of the requirements of labor regulations, including immigration-related employment standards and worker protections.
SCM Data, MMC Systems, Sharma, Mohta and other conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to USCIS, the conspirators falsely represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the H-1B visas. Contrary to these representations and in violation of the H-1B program, SCM Data, MMC Systems, Sharma, Mohta, and others paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems.
In some instances, SCM Data, MMC Systems, Sharma, Mohta, and others generated false payroll records to create the appearance that the foreign workers were paid full-time wages. The conspirators required workers to pay SCM Data or MMC Systems their gross wages in cash. In exchange, SCM Data or MMC Systems would issue payroll checks to the foreign workers in a smaller amount. The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for SCM Data and MMC Systems.
Once USDOL launched an audit of SCM Data and MMC Systems, the conspirators provided fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working in order to conceal the fact that they were not paid during those time periods as required by federal law.
The visa fraud and obstruction of justice conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The alien harboring conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Anthony Moscato and Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense Counsel (Sharma): John P. Lacey Esq.
Defense Counsel (Mohta): Daniel Bibb Esq.
Orange County Man Sentenced to 30 Years in Federal Prison for Conspiring to Join ISIL and Engaging in FraudRead the Press Release
SANTA ANA, CALIFORNIA – An Orange County man who attempted to travel to the Middle East to join the Islamic State of Iraq and the Levant (ISIL) was sentenced this afternoon to 30 years in federal prison for conspiring and attempting to provide material support to the terrorist organization.
United States District Judge David O. Carter imposed the sentence on defendant Nader Elhuzayel, 25 of Anaheim, following a two-week federal trial that ended in June when a federal jury returned guilty verdicts against Elhuzayel and co-defendant Muhanad Badawi after deliberating for just over an hour. When imposing sentence, Judge Carter said of Elhuzayel, “There’s no remorse, no repudiation of ISIL, only death and destruction.” Judge Carter also commented that the fact that the defendant made repeated calls for martyrdom “makes [him] especially dangerous.” In addition to the 360-month sentence, Judge Carter ordered supervised release for life.
In addition to the terrorism counts, the jury also found Elhuzayel guilty of committing 26 counts of bank fraud and found Badawi guilty of one count of financial aid fraud.
“Today’s sentence reflects the gravity of the defendant’s plan to betray his country and join a terrorist organization dedicated to the murder of innocent individuals,” said United States Attorney Eileen M. Decker. “As this case shows, the ability of individuals with the desire to support ISIL to use the Internet and social media to conspire with each other poses a grave threat to our national security. So-called ‘foreign fighters’ like this defendant pose a serious danger both overseas and here at home. There can be no doubt that law enforcement’s disruption of their plans saved lives, both in the United States and abroad.”
The evidence at trial showed Elhuzayel and Badawi used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs, and made arrangements for Elhuzayel to leave the United States to join ISIL. In recorded conversations, Elhuzayel and Badawi discussed how “it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.”
The trial evidence also showed that Elhuzayel used social media to communicate with ISIL supporters and operatives, to disseminate pro-ISIL information, and to assist ISIL supporters by distributing social media account information for those whose accounts had been suspended. Elhuzayel maintained a Facebook account with the ISIL flag as his profile picture. He used the account to ask Allah to grant him martyrdom and success in leaving the United States to fight for his cause and to ask Allah to “destroy your enemies and give the Islamic state victory.” Badawi also had a Facebook account, on which he made posts that supported ISIL and violence aimed at non-Muslims, and he indicated that he intended to join the terrorist organization.
According to the trial exhibits, on October 21, 2014, defendant Badawi made a video of defendant Elhuzayel swearing allegiance to the leader of ISIS, Abu Bakr al-Baghdadi. In the video, Elhuzayel pledged to travel to join ISIS to be a fighter for the organization, according to court documents.
The evidence at trial further showed that, on the day of the May 3, 2015, attack in Garland, Texas, Elhuzayel received social media communications from Elton Simpson, one of the perpetrators of the attack, and that Elhuzayel wrote to Simpson “I love you for the sake of Allah brother may Allah grant you Jannat al ferdaus [the highest level of Paradise reserved for martyrs].” In addition, Elhuzayel received and disseminated social media communications from ISIL operative Abu Hussain al Britani, also known as Junaid Hussain, including communications trumpeting the Garland, Texas, shootings. On May 7, 2015, four days after the Garland shootings, Elhuzayel and Badawi made travel arrangements and purchased Elhuzayel’s plane ticket to join ISIL.
Both Elhuzayel and Badawi were arrested on May 21, 2015, as Elhuzayel attempted to board a plane at Los Angeles International Airport to travel to Turkey to join ISIL. Badawi had purchased a one-way ticket on Turkish Airlines for Elhuzayel to travel to Israel, with a layover in Istanbul. In an interview with the FBI, Elhuzayel admitted that he intended to deplane in Turkey and seek contacts to facilitate joining ISIL.
“The defendant pledged allegiance to an avowed enemy of the United States and carried out a significant bank fraud scheme to fund his plans to join the terrorist group, which calls for the murder of Americans” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Office. “The efforts by the Joint Terrorism Task Force in thwarting this horrible plot cannot be overstated, and I commend federal prosecutors in bringing this defendant to justice.”
Elhuzayel was also convicted of obtaining cash through a scheme to defraud three different banks by depositing stolen checks into his personal checking accounts and then withdrawing cash at branch offices and ATMs in Orange County. The money generated from the bank fraud was intended to finance his travel to Syria to join ISIL.
Both men have been held in federal custody without bond since their arrests.
Judge Carter is scheduled to sentence Badawi on October 17 at which time he will face a statutory maximum sentence of 35 years in federal prison.
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County, which includes the following agencies: the Anaheim Police Department, the California Highway Patrol, the Orange County Sheriff’s Department, the Orange County Intelligence Assessment Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, IRS – Criminal Investigation, the City of Orange Police Department, the Irvine Police Department, the Naval Criminal Investigative Service, the Orange County Regional Computer Forensics Laboratory, the United States Attorney’s Office, and the Federal Bureau of Investigation. The Department of Education’s Office of Inspector General provided significant assistance in the investigation and at trial.
The case was prosecuted by Assistant United States Attorneys Judith A. Heinz and Deirdre Z. Eliot of the Terrorism and Export Crimes Section, and Julius J. Nam of the General Crimes Section, with substantial assistance from Trial Attorney Michael Dittoe of the Justice Department’s Counterterrorism Section.
Okaloosa County Man Indicted for Locally Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Jack D. Messerschmidt, 36, of Laurel Hill, Florida, was arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with the production and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between December 2015 and January 2016, Messerschmidt persuaded a minor to engage in sexually explicit conduct for the purpose of producing child pornography. The indictment further alleges that, in September 2016, Messerschmidt possessed child pornography. The trial is scheduled for November 21, 2016, at 8:00 a.m.
The case is being investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, the Mount Dora Police Department, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Office of Justice Programs Awards over $38 Million to Expand Sexual Assault Kit TestingRead the Press Release
The Office of Justice Programs’ Bureau of Justice Assistance (BJA) today announced awards totaling more than $38 million to help state, tribal and local government agencies to process sexual assault kits in law enforcement custody that have not been submitted to forensic laboratories.
Funded under BJA’s National Sexual Assault Kit Initiative, this program provides funding to support a community-based comprehensive approach to inventory and test kits that were housed in law enforcement storage rooms or other facilities that have never been submitted to the lab for testing. The program also enables jurisdictions to assign personnel to pursue leads and criminal investigations based on evidence discovered through kit testing, as well as to develop evidence-based tracking systems and train law enforcement on sexual assault investigations. Further, grantees can use the funds to conduct research on outcomes in sexual assault cases and increase collection of DNA that may lead to identification of serial sex offenders.
“Reducing the backlog of untested sexual assault kits is a complex issue that requires a comprehensive, evidence-based and community-supported approach to resolve,” said Director Denise O’Donnell of the Bureau of Justice Assistance. “These grants provide resources and improve processes to test kits, provide training to law enforcement personnel and improve the justice system while providing justice and resolution to the victims of sexual assault.”
In FY 2016, BJA made 19 grant awards totaling $25 million to state, local and tribal jurisdictions in support of new efforts to improve the processing of sexual assault kits and improve their capacity to act on evidence resulting from these efforts. BJA also made seven supplemental awards totaling over $6 million to grantees that received National Sexual Assault Kit Initiative awards in previous years to help them continue their efforts to address the challenges surrounding the processing of untested sexual assault kits.
An additional $5 million was awarded to Research Triangle Institute to provide training and technical assistance to the grantees in the development and implementation of sexual assault kit submission, tracking and investigation processes. BJA provided $2 million to the National Institute of Justice to support evaluation of the programs funded by the National Sexual Assault Kit Initiative.
For a complete monetary and geographical breakdown of the grants awarded under this program, visit http://go.usa.gov/xKFcx.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Office of Justice Programs Awards More Than $5.6 Million to Enable Information, Technology Sharing to Reduce CrimeRead the Press Release
The Office of Justice Programs’ Bureau of Justice Assistance (BJA) today announced funding of more than $5.6 million through two separate programs. One is a new initiative designed to help communities reduce and prosecute gun crime; the other is an annual grant that enables jurisdictions to leverage technology and information sharing to enhance criminal justice operations.
Nearly $3 million was awarded to three cities—Metropolitan Police Dept. of the District of Columbia ($999,129), Wisconsin’s Milwaukee Police Dept. ($1 million), and the City of Los Angeles ($1 million)—via BJA’s National Crime Gun Intelligence Center Initiative, a newly developed initiative in 2016. The program, which is supported and administered in partnership between BJA and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), supports the implementation of three crime gun intelligence centers in the above listed cities. These centers employ multidisciplinary teams to identify perpetrators and connect criminal activity and sources of gun crime for immediate disruption, investigation and prosecution. Each site will also work closely with a research partner to help guide implementation and evaluate program outcomes.
Another $2.6 million was awarded to six cities and the Washington, D.C.-based Police Foundation ($499,826) to enhance information sharing capacities through the use of innovative technological solutions to reduce crime. Funded through BJA’s annual competitive grant Technology Innovation for Public Safety Program, the resources provided through this grant are intended to help selectees address a precipitous or extraordinary increase in crime in individual jurisdictions. To combat this, awardees are enabled to share information across crime-fighting agencies. This collaboration can help address specific local crime problems, which often require multidisciplinary responses involving public safety agencies, personnel and shared investment in technology.
“The Office of Justice Programs is committed to giving our state and local partners the tools they need to drive down crime and maintain public safety for the long run,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “These new resources will expand community capability to investigate and prosecute gun offenses and support data sharing and other technological solutions to serious violence challenges.”
The six cities and police departments awarded under the Technology Innovation for Public Safety Program include: the New Castle County Division of Police, Del. ($306,700); the City of Hartford, Connecticut ($245,681); the City of Cincinnati, Ohio ($370,673); the Los Angeles Police Department ($395,717); the City of Memphis, Tennessee ($401,193); and the St. Louis, Missouri, County Government ($400,636).
For additional information about the National Crime Gun Intelligence Center Initiative, visit http://go.usa.gov/xKefx. For additional information about the Technology Innovation for Public Safety Program, visit http://go.usa.gov/xKefa.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Office of Justice Programs Awards More Than $34 Million to Build Sustainable, Science-Based Crime Reduction StrategiesRead the Press Release
Assistant Attorney General Karol V. Mason of the Justice Department’s Office of Justice Programs (OJP) today announced funding of more than $34.5 million, through nine separate grant programs, to more than 40 jurisdictions, research institutions and other grantees, to reduce crime, improve community safety and provide a science-based approach to criminal justice operations.
Administered under OJP’s Bureau of Justice Assistance, the “Smart Suite” of programs represents a strategic approach that brings more science into criminal justice operations by leveraging innovative applications of analysis, technology and evidence-based practices with the goal of improving performance and effectiveness while containing costs. The Smart Suite touches every aspect of the criminal justice system, from arrest to prosecution to reentry, relying on practitioner-researcher relationships that use data, evidence and innovation to enable jurisdictions to understand the full nature and extent of local crime challenges.
During the Sept. 7, 2016, Smart Suite Summit, Assistant Attorney General Mason described the programs’ proven track records of helping communities target crime hot spots, promote neighborhood revitalization and increase public safety. She noted that Corning, California—a Byrne Criminal Justice Program grant recipient—saw a 30 percent decrease in violent crime since early 2015. Under the Smart Prosecution Initiative, the St. Louis, Missouri, Circuit Attorney’s Office is now working with police, courts and local university researchers on a gun diversion program that targets individuals convicted of a felony.
“These successes are no accident,” said Assistant Attorney General Mason. “They happened because of a commitment to smart, sustainable public safety strategies grounded in data and research. These awards help communities pursue evidence-based and community partnerships to reduce crime and increase public safety.”
Grants awarded to specific jurisdictions under individual 2016 Smart Suite programs include the following:
Enhancing Researcher-Practitioner Partnerships: Smart Suite Training and Technical Assistance Program: More than $2.1 million was awarded to Michigan State University under this program, which supports the development, enhancement, and needs of researcher-practitioner relationships in all of the Smart Suite programs. The training and technical assistance includes measuring individual program outcomes; using data to identify criminal justice and public safety-related problems; assessing implementation fidelity; developing logic models; developing “real time” products and resources for strategic decision making; and making recommendations for program improvement. For more information about this program, visit http://go.usa.gov/xKep8.
Byrne Criminal Justice Innovation Program: About $8 million was awarded to 10 local criminal justice and community agencies and research institutions via this program, which helps communities develop comprehensive strategies that target neighborhoods with hot spots of crime and violence. Awardees include: the Boston Public Health Commission; the City of Battle Creek, MI; the Board of Highland County Ohio Commissioners; Rockdale County, GA; the City of Hartford, CT; the City of Shreveport, LA; the Milwaukee Police Dept., WI; the University of Maryland; Northwest N.J. Community Action Program, Inc.; and the City of Tulsa, OK. For more information about this program, visit http://go.usa.gov/xKeyw.
Smart Policing Initiative. More than $4.4 million was awarded to five jurisdictions and the Criminal Justice Coordinating Council under this program. This initiative seeks to promote analysis-driven, evidence-based policing by encouraging state, local, and tribal law enforcement agencies to develop effective, economical and innovative responses to crime. Awardees include: The City of Lowell, MA; the City of Madison, WI; the Detroit Police Dept.; the Kansas City, MO Board of Police Commissioners; and the County of Sacramento, CA. Nearly $1 million went to CNA Corporation to provide training and technical assistance to grant recipients. For more information about this program, visit http://go.usa.gov/xKeyf.
Project Safe Neighborhoods: More than $5.7 million was awarded to 16 jurisdictions under this program, which creates safer neighborhoods through a sustained reduction in gang violence and gun crime. PSN has a cooperative approach and unified strategies led by the U.S. Attorney (USA) who with a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners to implements using data and research with a local research partner.
Smart Prosecution Initiative: More than $2.2 million was awarded to five jurisdictions under this program, which encourages state, local, and tribal prosecutorial agencies to develop analysis-driven, evidence-based and economically-sound practices. Awardees include: Essex County, N.J. Prosecutor’s Office; D.C. Office of the Attorney General; Chatham County, GA Board of Commissioners/District Attorney; Jackson County, MO Prosecutor’s Office; and the Florida State Attorney’s Office, 11th Judicial Circuit. This award includes $461,852 in funding to the Association of Prosecuting Attorneys for training and technical assistance. For more information about this program, visit http://go.usa.gov/xKeyd.
Smart Defense Initiative Answering Gideon’s Call: Improving Public Defense Delivery Systems Competitive Grant: Nearly $400,000 was awarded to support the expansion of the Smart Defense program to Contra Costa County, CA, in addition to the five sites funded in FY 2015. Smart Defense strives to ensure that all persons accused of a crime have the aid of a lawyer with the time, ability, and resources to present an effective defense. For more information about this program, visit http://go.usa.gov/xKeyU.
Smart Pretrial Initiative: Nearly $300,000 was awarded to support the sustainment phase of this effort to enhance the pretrial process in three locations, to enhance the use of risk assessment in pretrial decisions, enhance the fairness of the process and to increase pretrial detention and use of jail for low risk persons in the pretrial process.
Smart Reentry: Focus on Evidence-based Strategies for Successful Reentry from Incarceration to Community Program: Nearly $6 million was awarded to six jurisdictions under this program, which helps communities develop strategies that increase formerly incarcerated individuals’ successful reentry into their communities. Awardees include: the Wisconsin Dept. of Justice; Newark, N.J.; Contra Costa County, CA; Fulton County, GA; Prince George’s County, MD; and Muscogee Creek Nation, OK. For more information about this program, visit http://go.usa.gov/xKepm
Smart Supervision Program: More than $5.4 million was awarded to seven jurisdictions under this program. This initiative is designed to improve supervision strategies that will reduce recidivism through evidence-based probation and parole approaches. Awardees include: Cuyahoga County, Ohio, Common Pleas Court; Office of the Attorney General of Virginia; the Wisconsin Dept. of Corrections; the Connecticut Judicial Branch; the Louisiana Dept. of Public Safety and Corrections; the Ohio Dept. of Rehabilitation and Correction; and the Virginia Dept. of Corrections. Two additional awards totaling $737,886 will be awarded separately to the National Reentry Resource Center for training and technical assistance for this program. For more information about this program, visit http://go.usa.gov/xKeV3.
###
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Norwegian Man Pleads Guilty to Making Threatening Interstate CommunicationsRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Espen Brungodt, 28, of Norway, pled guilty today in U.S. District Court to making threatening interstate communications.
According to court records, on August 3, 2016, Brungodt sent a detailed email to the Portland Police Department and to the press in which he threatened to kill police officers.
Brungodt faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. It is anticipated that the defendant will seek to have any sentence imposed served in Norway pursuant to the International Prisoner Transfer Program which permits the transfer of prisoners from countries in which they had been convicted of crimes to their home countries. The program is designed to relieve some of the special hardships that fall upon offenders incarcerated far from home, and to facilitate the rehabilitation of these offenders.
This case was investigated by the Federal Bureau of Investigation and the Portland Police Department.
North Carolina Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
Dewey W. Willis Jr. of Newport, North Carolina, pleaded guilty today in U.S. District Court in Wilmington, North Carolina, to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010, the Justice Department announced today.
This multi-defendant investigation began as a result of the National Oceanic and Atmospheric Administration (NOAA) receiving intelligence and directing the U.S. Coast Guard to board the fishing vessel Lady Samaira in February 2010, based on a complaint that multiple vessels were fishing Striped Bass illegally. Along with 13 other commercial fishermen, Willis was charged with violating the Lacey Act, a federal law that prohibits individuals from transporting, selling or buying fish and wildlife harvested illegally. Additionally, Willis, along with 11 of these fishermen, also has been charged with filing false reports in connection with the illegally harvested fish. Specifically, the indictment against Willis alleges that the he transported and sold Atlantic striped bass, knowing that they were unlawfully harvested from federal waters off the coast of North Carolina. In an effort to hide his illegal fishing activities, Willis, falsely reported harvesting these fish from state waters, where it would have been legal.
Willis is licensed by the state of North Carolina and NOAA to fish in state waters only for striped bass. The defendant faces a maximum sentence of five years in prison and a $250,000 fine. A sentencing hearing has been scheduled for Dec. 12.
“The illegal poaching of striped bass by commercial fishermen has a major impact on the survival of this iconic fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s dedication to pursuing those who fail to respect the law and fail to adequately monitor their harvest to stay within legal limits.”
“Our office was pleased to partner with the Environment and Natural Resources Division of the Department of Justice in this significant case,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “This prosecution makes clear that efforts to circumvent laws regulating commercial fishing will be enforced vigorously.”
In early spring each year, wild coastal striped bass, Morone saxatilis, known regionally as “rockfish,” “striper” or “rock,” enter the estuary or river where they were born to spawn and then return to ocean waters to live, migrating along the coastline. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
Under federal law, Atlantic striped bass may not be harvested from or possessed in federal waters. This ban on fishing for Atlantic striped bass in federal waters has been in place since 1990 due to drastic declines of the stock that occurred in the 1970’s. North Carolina allows fishermen to harvest fish from state waters, but often limits fishermen to no more than 100 fish per fishing trip. Commercial fishermen are required to report on a fishing vessel trip report the fish harvested from state waters; that report is then submitted to NOAA’s National Marine Fisheries Service (NMFS). NOAA uses the information on this report to assess the fishery and its sustainability throughout the eastern seaboard.
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
The North Carolina Division of Marine Fisheries, along with other states, has reduced the catch limits for the 2015 striped bass commercial fishing season in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
The Lacey Act makes it unlawful for a person to transport or sell fish that were taken in violation of any law or regulation of the United States and carries a maximum penalty of five years in prison and a fine of up to $250,000, plus the potential forfeiture of the vessels and vehicles used in committing the offense.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Banumathi Rangarajan for the Eastern District of North Carolina.
North Carolina Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, DEWEY W. WILLIS, JR., 39, of Newport pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010.
In February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic Striped Bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira), boarded the vessel, and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that between January 31, 2010, and February 3, 2010, WILLIS, then Captain of the Helen W. Smith, a commercial trawler, harvested more than 3,000 pounds of Atlantic Striped Bass, which he sold to fish dealers in Wanchese and Beaufort, North Carolina.
“The illegal poaching of striped bass by commercial fishermen has a major impact on the survival of this iconic fish resource and has the potential to devastate the future livelihoods of law abiding commercial fishermen,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s dedication to pursuing those who fail to respect the law and fail to adequately monitor their harvest to stay within legal limits.”
“Our office was pleased to partner with the Environment and Natural Resources Division of the Department of Justice in this significant case,” said U.S. Attorney John Stuart Bruce. “This prosecution makes clear that efforts to circumvent laws regulating commercial fishing will be enforced vigorously.”
According to the Atlantic Marine Fisheries Commission, “striped bass have formed the basis of one of the most important fisheries on the Atlantic coast for centuries. Early records recount their abundance as being so great at one time they were used to fertilize fields. However, overfishing and poor environmental conditions lead to the collapse of the fishery in the 1980s.”
In 2015, the North Carolina Division of Marine Fisheries, along with other states, reduced by twenty-five percent the catch limits of Atlantic Striped Bass in the Atlantic Ocean and Albemarle Sound/Roanoke River areas, citing a decline in stocks. The division cited 2013 surveys revealing that the female spawning stock has been steadily declining. The reduction applies to all commercial and recreational striped bass fishing for all the eastern coastal states.
A sentencing hearing has been scheduled for December 12, 2016.
WILLIS faces a maximum sentence of five years in prison and a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Assistant U.S. Attorney Banumathi Rangarajan and Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Non-Indian Man from Taos Arraigned on Federal Indictment Arising Out of Alleged Assault on Two Native AmericansRead the Press Release
ALBUQUERQUE – Yvon Juteau, 32, a non-Indian who resides in Taos, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment alleging that he assaulted two Native Americans. Juteau entered a not guilty plea and was detained pending trial.
Juteau was arrested on Sept. 23, 2016, on an indictment charging him with assaulting a Native American man and woman in Indian Country in Taos County, N.M., on July 10, 2013. The indictment alleges that the assault resulted in serious bodily injury.
If convicted of the crime charged in the indictment, Juteau faces a statutory maximum penalty of ten years in federal prison. Charges in indictments are merely accusations. Criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
Maryland man sentenced to 30 years for delivery causing deathRead the Press Release
MARTINSBURG, WEST VIRGINIA – Lateef Fisher, 38, of Hagerstown, Maryland, was sentenced in federal court today to 30 years in prison for selling heroin that resulted in the death of another, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at the two day trial in May 2016, indicated that Fisher conspired with another individual to sell heroin in June 2014 in Berkeley County, West Virginia. That heroin led to the death of a 27 year-old male victim.
"Whenever the delivery of heroin or other drugs leads to the death of another, the U.S. Attorney's Office will seek a severe punishment for the offender," said Ihlenfeld. "I am hopeful that this approach will deter out of town drug dealers like Mr. Fisher from traveling to West Virginia to profit from the sale of these deadly substances."
Assistant U.S. Attorneys Paul T. Camilletti and Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.