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Monday 1 August 2016
Portland Man Sentenced to a Year and a Day for Credit Union Embezzlement and Making False Entries in Credit Union RecordsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that John C. Barry, 69, of Portland, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to a year and a day in prison for embezzlement and making false entries in credit union records. He was also order to pay $533,791 in restitution. He pled guilty to the charges on November 18, 2015.
According to court records, the defendant was the manager of the Portland Police Department Federal Credit Union (“PPDFCU”), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for managing the activities of the credit union. Between 2009 and December 2013, the defendant embezzled $533,791 from credit union accounts by transferring the funds into his and his family members’ accounts for his and their personal use. Over that period of time, the defendant was also responsible for preparing and submitting certified quarterly call reports to the National Credit Union Administration (“NCUA”). The defendant caused false quarterly call reports to be filed that overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.
The investigation was conducted by the Federal Bureau of Investigation.
Plummer Man Pleads Guilty to Aggravated Assault and Use of Firearm During a Crime of ViolenceRead the Press Release
COEUR D’ALENE – Cruz Flechita Ramon Soto, 34, of Plummer, Idaho, pleaded guilty Friday to assault resulting in serious bodily injury and use of a firearm during a crime of violence, U.S. Attorney Wendy J. Olson announced. Soto was indicted by a federal grand jury on November 17, 2015.
According to the plea agreement, in the early morning of November 12, 2015, while the victim, an Indian, was sleeping in the living room of a relative’s house, Soto, also an Indian, came to the house. Soto and the victim spoke for about 20 minutes then Soto shot the victim in the chest, back, and neck. The victim was flown to Kootenai Hospital where he was stabilized and flown to Harborview Medical Center in Seattle. The victim was able to identify Soto as the shooter. The shooting occurred within the boundaries of the Coeur d’Alene Indian reservation.
The charge of assault resulting in serious bodily injury is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release and use of a firearm during a crime of violence is punishable by not less than ten years in prison to be served consecutive to any other sentence imposed.
Sentencing is set for October 11, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by Coeur d’Alene Tribal Police, Benewah County Sheriff’s Department and the Federal Bureau of Investigation.
Omaha Resident Sentenced to 180 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA- On July 28, 2016, Steven B. Davis, a 58 year-old resident of Omaha, Nebraska, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 180 months in prison, and 3 years of supervised release to follow the term of imprisonment, for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel.
On April 13, 2016, a jury in the Southern District of Iowa found Davis guilty of conspiracy to distribute methamphetamine. The charge against Davis was the result of an investigation by law enforcement of methamphetamine trafficking that took place between Omaha, Nebraska, and Audubon County, Iowa. The evidence at trial showed that from as early as June of 2014, continuing through August of 2014, Davis conspired with others to distribute over 500 grams of methamphetamine in the Southern District of Iowa.
The investigation was conducted by the Iowa Department of Public Safety, Division of Narcotics Enforcement, and the Drug Enforcement Administration. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
North Potomac Mortgage Broker Sentenced to Federal Prison for Defrauding Investors of over $400,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Sultana Siddiqui, a/k/a Sultana Ahmad, age 56, of North Potomac, Maryland, today to two years in federal prison, followed by three years of supervised release, for conspiring to commit wire and mail fraud arising from an investment fraud scheme. Judge Chuang also entered an order requiring Siddiqui to forfeit $405,000, and pay restitution of $402,800, the loss resulting from the scheme minus $2,200 in “lulling payments” paid to two of the victims in order to prevent them from going to authorities.
Judge Chuang ordered that Siddiqui be immediately taken into custody after finding that she violated the conditions of her pretrial release by visiting the victims this weekend.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Olga Acevedo of the Federal Housing Finance Agency Office of Inspector General; and Montgomery County State’s Attorney John McCarthy.
According to her guilty plea, Siddiqui was a mortgage broker who falsely represented to individual victims that co-conspirator Alexander Matthews was an investor or developer who could secure substantial returns on the victims' investments in a short time period. Siddiqui solicited investments from each of the victims, vouched for Matthews's trustworthiness and business acumen, and received money from the victims. She deposited most of the money from the victims into her personal bank account. Then she and/or Matthews provided each victim with a post-dated check in the amount of the victim's investment plus the promised return. None of the post-dated checks were negotiable on the promised return date. After the victims discovered that the post-dated checks were not negotiable, Siddiqui and/or Matthews sent lulling payments and/or email communications to the victims.
For example, in 2008, a real estate agent and her husband agreed to invest $300,000, drawn on their home equity line of credit, to renovate a home in Clifton, Virginia, which Siddiqui and Matthews claimed was to be leased by the FBI. Siddiqui, however, deposited the money in her personal bank account, and no lease agreement existed with the FBI. Siddiqui and Matthews used the money for their own benefit, providing only a small number of lulling payments to the victims.
In November 2010, at Siddiqui’s urging, another victim agreed to invest $50,000 with Matthews and give Siddiqui a $5,000 personal loan. In return, Siddiqui gave the victim a promissory note for the investment signed by Matthews, and two post-dated checks: one for $6,000 from a bank account held by Siddiqui; and one for $60,000 from an account held by Matthews. When the victim attempted to cash the checks, a bank official told her they were not negotiable. Siddiqui sent several lulling emails to the victim, claiming that she would be repaid, but the victim has not received any payment.
Siddiqui and Matthews defrauded the victims of approximately $355,000.
Siddiqui admitted to defrauding another individual of $50,000 in a transaction in 2014.
Alexander Matthews, age 50, of Dunn Loring, Virginia, pleaded guilty in 2011 in federal court in the Eastern District of Virginia to his participation in the conspiracy and was sentenced to 10 years in prison.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency Office of Inspector General, and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Ray D. McKenzie, who prosecuted the case.
New Castle Man Sentenced to 7 Years in Prison for Crack Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH – A Lawrence County resident has been sentenced in federal court to seven years in prison on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Duane Stokes, 23, of New Castle, Pa.
According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Duane Stokes conspired with others to possess with intent to distribute and distribute crack cocaine which was transported from Buffalo, New York, to the New Castle area for further distribution.
Prior to imposing sentence, Judge Fischer stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorneys Jonathan B. Ortiz and Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Stokes.
Massachusetts Man Sentenced for Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Euris Daniel Paulino Guerrero, 24, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced to 100 months in federal prison after pleading guilty in United States District Court for the District of New Hampshire to a federal indictment charging him with two counts of distribution and one count of conspiracy to distribute the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
According to documents filed in United States District Court and statements in court proceedings, Guerrero sold fentanyl, heroin, and oxycodone to cooperating witnesses on three occasions during the summer of 2015. He also sold approximately 150 grams of fentanyl to a law enforcement officer acting in an undercover capacity. Pursuant to a search warrant executed at a residence associated with the conspiracy, law enforcement seized approximately 485 grams of fentanyl, an instrument used to compress drugs into ten-gram quantities for sale, blenders, and other packaging materials.
Chief United States District Judge Joseph LaPlante sentenced Guerrero. In addition to the term of incarceration, Judge LaPlante ordered Guerrero to serve, upon his release from prison, a term of supervised release of 4 years.
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. “This defendant was responsible for distributing hundreds if not thousands of doses of the lethal narcotic fentanyl in New Hampshire and Massachusetts,” stated United States Attorney Emily Gray Rice. “My office will continue to focus our resources on targeting traffickers who attempt to profit from the drug epidemic plaguing our state.”
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and John Farley.
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Malden Man Sentenced for Armed Bank RobberyRead the Press Release
Boston – A Malden man was sentenced today in U.S. District Court in Boston for robbing the Hingham Institute for Savings Bank in October 2015.
Anthony Pantone, 56, was sentenced by U.S. District Court Judge Indira Talwani to 78 months in prison and five years of supervised. In May 2016, Pantone pleaded guilty to one count of armed bank robbery.
On Oct.9, 2015, two individuals entered the Hingham Institute for Savings Bank in Boston’s Beacon Hill neighborhood. While one individual, later identified as Russell Dinovo, jumped over the teller’s counter and stole money, the other individual, later identified as Pantone, remained in the lobby holding what appeared to be a handgun. During the robbery, Pantone repeatedly said to Dinovo, “hurry up, let’s go” and “get the drawer.” Pantone also told the tellers not to look at the robbers. After putting $16,320 in a duffel bag, the two individuals fled the bank on foot, and were captured with the duffel bag shortly thereafter in a cab. In addition to the cash, an item that looked like a handgun, but was determined to be a fake gun, was found in the duffle bag.
Dinovo was charged in a separate indictment with one count of armed bank robbery. His case is pending before U.S. District Court Judge Richard G. Stearns.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Office; and Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Madison Heights Man Pleads Guilty to Failing to Report to Federal PrisonRead the Press Release
LYNCHBURG, VIRGINIA – A Madison Heights man who failed to report for his previously ordered 72 month federal prison sentence based on a drug conviction in 2015, pled guilty today to a new federal charge and was sentenced to additional prison time, United States Attorney John P. Fishwick Jr. announced.
Bernadino Rodriguez, 26, of Madison Heights, Va., pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to one count of failure to surrender for service of sentence. Rodriguez was also sentenced today to an additional 21 months of incarceration on the failure to surrender for service charge.
“Individuals who are convicted and sentenced must adhere to the rule of law and surrender for service,” United States Attorney John P. Fishwick said today. “Those defendants who are able to self-report must not take advantage of the system, but when they do, they will be punished.”
Today’s guilty plea is based on the defendant’s April 2015 federal drug case in which he pled guilty to one count of conspiracy to distribute more than 50 grams of methamphetamine. In that case, Rodriguez was sentenced to 72 months in federal prison and ordered to report to FCI Butner. When he failed to report to FCI Butner to begin serving his sentence an arrest warrant was issued. Rodriguez was arrested on April 26, 2016.
The investigation of the case was conducted by the U.S. Marshals Service and the Drug Enforcement Administration. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Lenexa Man Pleads Guilty to Impersonating IRS EmployeeRead the Press Release
KANSAS CITY, KAN. – A Lenexa man pleaded guilty Monday to harassing former girlfriends and business partners by sending them letters on Internal Revenue Service letterhead saying they were under investigation for tax evasion, Acting U.S. Attorney Tom Beall said.
Jeffrey Nickerson, 56, Lenexa, Kan., pleaded guilty to one count of impersonating a federal employee. In his plea, Nickerson admitted he was an acquaintance of a woman who worked at the IRS Service Center in Kansas City, Mo. She brought IRS letterhead and IRS publications home. He used the information to send letters to former girlfriends and former business partners. The letters said the victims were under investigation as a result of reports being filed to the Internal Revenue Service Fraud Investigations Hotline.
Sentencing will be set for a later date. He faces a penalty of up to three years in federal prison and a fine up to $250,000. Beall commended the U.S. Treasury Inspector General for Tax Administration and Assistant U.S. Attorney Chris Oakley for their work on the case.
KC Man Pleads Guilty to Attacking Postal CarrierRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to impeding a U.S. Postal Service employee by physically attacking her while she was delivering the mail.
Willie A. Rimpson, 22, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of impeding a U.S. Postal Service employee.
By pleading guilty today, Rimpson admitted that he physically confronted a letter carrier twice, once putting her in a choke hold and a short time later wrestling her away from her vehicle.
On Feb. 10, 2016, the letter carrier was delivering mail in the 3800 block of Myrtle Avenue in Kansas City, Mo., at approximately 12:15 p.m. She parked her marked postal vehicle and was organizing the mail for that block when Rimpson, whom she recognized, approached her. She handed Rimpson the mail and he asked “Where’s my check?” She replied, “I don’t have a check for you today.” When Rimpson walked back toward his house, the letter carrier began walking to her next delivery.
According to today’s plea agreement, Rimpson came up from behind her and put her in a choke hold with his arm around her neck. She yelled, “Let me go!” and Rimpson replied, “Not until I get my check.” The carrier kept swinging her arms back and forth until she was able to get away from him. She continued to deliver the rest of the mail for that block.
When she began walking back to her vehicle, she saw Rimpson come out of his house. She tried to walk fast to get to her vehicle before Rimpson could stop her, but he blocked her from opening the door of her vehicle. Rimpson put his hands up in a boxing stance and said, “Come on!” He physically kept her from entering her vehicle by wrestling her away from the vehicle. She struggled to get away from Rimpson; she was able to push him away, enter her vehicle and drive away.
Under federal statutes, Rimpson is subject to a sentence of up to eight years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the U.S. Postal Inspection Service.
Judge Sentences Erie Man to Federal Prison for Violating Drug LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 102 months in jail on his conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Jamie Darnell Paceley, 37.
According to information presented to the court, on November 13, 2012, November 27, 2012 and December 7, 2012, Pacely distributed crack cocaine in Erie.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department for the investigation leading to the successful prosecution of Pacely.
Jacintoport International LLC and Seaboard Marine Ltd. Agree to Settle False Claims Allegations Related to Delivery of Humanitarian Food AidRead the Press Release
WASHINGTON – The Justice Department announced today that Jacintoport International LLC (Jacintoport) and Seaboard Marine Ltd. (Seaboard Marine) have agreed to pay $1.075 million to settle a lawsuit alleging that the companies violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid. Jacintoport is a cargo handling and stevedoring firm headquartered in Houston, Texas, and Seaboard Marine, an affiliate of Jacintoport, is an ocean transportation company headquartered in Miami, Florida.
In its lawsuit, the United States alleged that Jacintoport executed in 2007 a warehousing and logistics contract with the United States Agency for International Development (USAID) for the storage and redelivery of emergency humanitarian food aid. This contract contained explicit caps on the rates Jacintoport could charge ocean carriers to load humanitarian food aid onto ships (referred to as “stevedoring” charges) bound for crisis areas around the world. The complaint alleges that beginning around January 2008 and continuing through at least October 2009, Jacintoport, under the supervision and control of Seaboard, charged ocean carriers more for stevedoring than permitted to load over 50,000 tons of humanitarian food aid. These inflated stevedoring charges were subsequently lumped into other costs for delivering humanitarian food aid and passed on to the United States.
“USAID’s humanitarian food aid program provides critical assistance to starving people all over the world,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will hold accountable those who seek to abuse this important program.”
“It is unacceptable for companies that do business with the federal government to inflate their costs,” said U.S. Attorney Channing D. Phillips. “This settlement demonstrates our determination to protect the taxpayers’ dollars – and humanitarian programs – from abuse.”
The allegations resolved by this settlement were initially brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by John Raggio, a shipping contractor who allegedly received an invoice from Jacintoport that contained the excessive stevedoring charge. Under the Act’s qui tam provisions, a private citizen, known as a “relator,” can sue on behalf of the United States and share in any recovery. The United States is permitted to intervene in the lawsuit, as it did here. Raggio will receive $215,000. Earlier today, the government requested that the case be dismissed.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia, with assistance from the USAID Office of the Inspector General. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex. rel. Raggio v. Jacintoport International, LLC, et al. Case No. 1:10-cv-01908 (D.D.C.).
Jacintoport International LLC and Seaboard Marine Ltd Agree to Settle False Claims Allegations Related to Delivery of Humanitarian Food AidRead the Press Release
The Justice Department announced today that Jacintoport International LLC (Jacintoport) and Seaboard Marine Ltd. (Seaboard Marine) have agreed to pay $1.075 million to settle a lawsuit alleging that the companies violated the False Claims Act in connection with a warehousing and logistics contract for the storage and redelivery of humanitarian food aid. Jacintoport is a cargo handling and stevedoring firm headquartered in Houston, Texas, and Seaboard Marine, an affiliate of Jacintoport, is an ocean transportation company headquartered in Miami, Florida.
In its lawsuit, the United States alleged that Jacintoport executed in 2007 a warehousing and logistics contract with the United States Agency for International Development (USAID) for the storage and redelivery of emergency humanitarian food aid. This contract contained explicit caps on the rates Jacintoport could charge ocean carriers to load humanitarian food aid onto ships (referred to as “stevedoring” charges) bound for crisis areas around the world. The complaint alleges that beginning around January 2008 and continuing through at least October 2009, Jacintoport, under the supervision and control of Seaboard, charged ocean carriers more for stevedoring than permitted to load over 50,000 tons of humanitarian food aid. These inflated stevedoring charges were subsequently lumped into other costs for delivering humanitarian food aid and passed on to the United States.
“USAID’s humanitarian food aid program provides critical assistance to starving people all over the world,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will hold accountable those who seek to abuse this important program.”
“It is unacceptable for companies that do business with the federal government to inflate their costs,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “This settlement demonstrates our determination to protect the taxpayers’ dollars – and humanitarian programs – from abuse.”
The allegations resolved by this settlement were initially brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by John Raggio, a shipping contractor who allegedly received an invoice from Jacintoport that contained the excessive stevedoring charge. Under the Act’s qui tam provisions, a private citizen, known as a “relator,” can sue on behalf of the United States and share in any recovery. The United States is permitted to intervene in the lawsuit, as it did here. Raggio will receive $215,000. Earlier today, the government requested that the case be dismissed.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Columbia, with assistance from the USAID Office of the Inspector General. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex. rel. Raggio v. Jacintoport International, LLC, et al. Case No. 1:10-cv-01908 (D.D.C.).
Illinois Man Sentenced to 11 Years in Prison for Attempting to Entice a MinorRead the Press Release
A Springfield, Illinois, man was sentenced today to serve 132 months in prison for attempted enticement of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jim Lewis of the Central District of Illinois.
Jeffrey Parkhurst, 59, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered him to serve a 15 year term of supervised release. Parkhurst was convicted by a federal jury on March 31, 2016.
During the trial, the government presented evidence to establish that Parkhurst knowingly attempted to persuade, induce and entice an individual who he believed to be a minor to engage in illegal sexual activity using the internet and a cell phone. In addition, the government also presented evidence to establish that between January and July of 2015, Parkhurst posted over 60 online advertisements in an effort to persuade, induce and entice an individual who he believed to be a minor to engage in illegal sexual activity.
Parkhurst was arrested on July 27, 2015, in Decatur, Illinois, and initially charged by state authorities. He has remained in custody since his arrest. The defendant was remanded to the custody of the U.S. Marshals Service on Sept. 18, 2015.
The Decatur Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case in cooperation with the Macon County, Illinois, State’s Attorney. Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Huntington woman pleads guilty to Federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Misty Renee Wentz, 38, entered her guilty plea to possession with intent to distribute heroin.
On September 1, 2015, Wentz was approached and interviewed by Drug Enforcement Administration agents in Huntington. While speaking with agents, Wentz admitted that she was concealing heroin on her person. Wentz then provided the heroin to agents and admitted that she possessed the heroin for distribution. Wentz further admitted that she had conspired with multiple other individuals over the previous year to distribute up to 3 kilograms of heroin that was transported to the Huntington area from Detroit.
Wentz faces up to 20 years in federal prison when she is sentenced on October 31, 2016.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Hartford Man Sentenced to 8 Years in Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that JOSHUA ACOFF, also known as "Fat Boy," 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 84 months of imprisonment for distributing crack cocaine, and an additional 12 months of imprisonment for violating the conditions of his supervised release that followed a prior federal conviction. Upon completion of his prison term, ACOFF will be placed on supervised release for four years.
This matter stems from a joint investigation by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Vice, Intelligence and Narcotics Unit into gang-related narcotics trafficking in Hartford’s North End.
On May 5, 2016, ACOFF pleaded guilty to one count of possessing with intent to distribute, and distribution of cocaine base (“crack cocaine”).
This matter was investigated by the Federal Bureau of Investigation, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Viridian Elementary Principal Sentenced for Child Exploitation ViolationRead the Press Release
SHERMAN, Texas — A 47-year-old former HEB principal has been sentenced for child exploitation in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Oscar Figueroa, of Carrollton, Texas, was convicted by a federal jury on April 1, 2016 for attempting to coerce and enticement of minors and was sentenced to 120 months in federal prison today by U.S. District Judge Amos L Mazzant. Figueroa was also ordered to pay fines and assessments totaling $17,600. Upon his release from custody, Figueroa will serve a term of supervised release of 10 years and will be required to register as a sex offender.
According to the evidence introduced at trial, on July 7, 2015, law enforcement officers responded to a Craigslist advertisement posted by Figueroa, entitled “Dad sucking at AMC Stonebriar.” The ad sought a young male with whom to engage in sexual activity at the AMC movie theatre located within the Stonebriar Centre, in Frisco, Texas. An undercover officer posing as a 16-year-old boy contacted Figueroa and began exchanging text messages. After learning that the undercover was 16-years-old, Figueroa responded “Nice” and instructed the undercover officer to meet him at a particular place within the theatre. Upon arrival, Frisco PD Officers encountered Figueroa, who directed an undercover officer to a bathroom for sexual activity. During the trial, attorneys for the United States introduced Figueroa’s text messages with the undercover agent, his interview with law enforcement, approximately 120 Craigslist ads Figueroa posted seeking sexual activity, and the contents of his cellular phone. Figueroa was indicted by a federal grand jury on July 15, 2015
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jay Combs.
Former Top Leaders of Venezuela’s Anti-Narcotics Agency Indicted for Trafficking Drugs to the United StatesRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Nestor Luis Reverol Torres, the former General Director of Venezuela’s La Oficina Nacional Antidrogas (ONA) and former commander of Venezuela’s National Guard, and Edylberto Jose Molina Molina, the former Sub-Director of ONA and currently Venezuela’s military attaché to Germany, with participating in an international cocaine distribution conspiracy.[1] The indictment was returned under seal by a federal grand jury in Brooklyn, New York, on January 21, 2015, and relates to Reverol’s and Molina’s alleged activities from January 2008 to December 2010, when they served as the top officials for ONA, Venezuela’s government agency charged with combating narcotics trafficking.
The indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; and Angel Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to court documents, from January 2008 to December 2010, in their then official capacities at ONA, Reverol and Molina received payments from drug traffickers in exchange for assisting the drug traffickers in distributing cocaine for ultimate importation into the United States. For example, in exchange for such payments they alerted the traffickers to future drug raids or the locations where law enforcement officers in Venezuela were conducting counter-narcotics activities to allow drug traffickers to change the location where they stored drugs or alter drug transportation routes. They also took steps to stop or hinder ongoing narcotics investigations to allow cocaine-laden vehicles to leave Venezuela and arranged for the release of individuals arrested for narcotics violations and the release of narcotics and narcotics-related currency that had been seized by law enforcement. Reverol and Molina also prevented the arrest or deportation of individuals targeted by foreign countries, such as the United States, for prosecution on drug-related charges.
The indictment is the second indictment unsealed in the Eastern District of New York against alleged corrupt high-level officials in Venezuela who allegedly assisted narcotics traffickers in importing cocaine into the United States. On March 20, 2013, a third superseding indictment was unsealed charging Vassyly Kotosky Villaroel Ramirez, also known as “Mauro” and “Angel,” a captain in the Venezuelan Guardia Nacional, and Rafael Antonio Villasana Fernandez, an officer in the Venezuelan Guardia Nacional, with participating in an international cocaine distribution conspiracy between January 1, 2004 and December 1, 2009. According to court documents, Kotosky and Villasana allegedly used official government vehicles to transport more than seven metric tons of cocaine from the Colombian border to various airports and seaports in Venezuela for ultimate importation into the United States.
“The indictment announced today reflects our ongoing efforts to combat one of the most insidious and dangerous aspects of the international drug trade – the ability of drug cartels to infiltrate and corrupt the highest echelons of government and law enforcement,” said U.S. Attorney Capers. “Nothing can be more damaging to law enforcement’s efforts to stop the flow of illegal drugs than when corrupt public officials violate the public’s trust by actively assisting drug traffickers in their deadly criminal activities.” Mr. Capers extended his grateful appreciation to the DEA’s New York Drug Enforcement Task Force[2] and the Department of Homeland Security, Homeland Security Investigations (HSI) New York El Dorado Task Force,[3] the agencies responsible for leading the investigation, and to the invaluable assistance provided by the DEA Bogota Country Office, the DEA Miami Field Office, and the U.S. Attorney’s Office for the Southern District of Florida.
DEA Special Agent-in-Charge Hunt stated, “As alleged, Nestor Luis Reverol Torres and Edylberto Jose Molina Molina used their positions of power to enable drug trafficking organizations, all the while hindering law enforcement’s efforts to thwart them. Simply put, the indictments send a message that here is no difference between a drug trafficker and a drug trafficker who leads anti-narcotics trafficking efforts. Drug law enforcement working in the U.S. and overseas will continue to stop those at every level and every profession who supply or abet the distribution of poison to American doorsteps.”
“Today’s indictment emphasizes that no one is above the law. These former government officials allegedly used their positions of trust to feed their greed, and along the way betrayed their oath of service by warning drug traffickers of sensitive law enforcement operations,” said Special Agent-in-Charge Melendez of HSI New York. “We will continue to work tirelessly with our federal and international law enforcement partners to expose criminals who attempt to cross our borders with illicit drugs.”
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Gina M. Parlovecchio and Hiral Mehta are in charge of the prosecution.
The Defendants:
NESTOR LUIS REVEROL TORRES
Age: 51
VenezuelaEDYLBERTO JOSE MOLINA MOLINA
Age: 53
VenezuelaE.D.N.Y. Docket No. 15-CR-020
[1] The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
[2] The New York Drug Enforcement Task Force comprises agents and officers from the Drug Enforcement Administration, New York City Police Department, and the New York State Police.
[3] HSI New York Office’s El Dorado Task Force comprises over 240 members from more than 29 law enforcement agencies in New York and New Jersey – including special agents, state and local police investigators, intelligence analysts, and federal prosecutors – with the assistance of the task force’s High Intensity Financial Crimes Area (HIFCA)/Intelligence Unit.
Former Mohegan Sun Employee Charged with Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former employee of the Mohegan Sun Casino at Pocono Downs has been charged with engaging in a money laundering conspiracy.
According to United States Attorney Peter Smith, Rochelle Poszeluznyj, age 38, of Kingston, is charged in a Criminal Information filed today in United States District Court in Scranton with Conspiracy to Commit Money Laundering. The Criminal Information charges Poszeluznyj with conspiring with Robert Pellegrini and Mark Heltzel, to defraud the Mohegan Sun Casino by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ loyalty club cards.
It is alleged that while employed as a cocktail waitress at the casino, Poszeluznyj had access to the names and PINs of casino players as she served them beverages. Poszeluznyj stole the names and PINs of those players and provided them to Pellegrini, who then used the stolen information to create duplicate player club cards. Pellegrini then loaded the duplicate cards with “free play” credits and provided them to Heltzel to gamble with, primarily at poker slot machines. The scheme began in May 2014 and continued to April 2015, netting the defendants winnings in the approximate amount of $422,147.
The Criminal Information was filed pursuant to a plea agreement with Poszeluznyj. The agreement is subject to approval by the court. No date has been scheduled as yet for the entry of Poszeluznyj’s guilty plea.
Pellegrini and Heltzel were indicted by a grand jury in Scranton on April 19, 2016 and charged with conspiracy to commit money laundering, access device fraud and aggravated identity theft. Those charges remain pending.
The charges stem from an investigation by the Internal Revenue Service Investigations and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum sentence for Conspiracy to Commit Money Laundering is up to 20 years imprisonment and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Department of Commerce Employee Indicted on Bribery ChargesRead the Press Release
ALEXANDRIA, Va. – Raushi J. Conrad, 42, of Bristow, was arrested today on charges of conspiracy to pay and receive bribes, and acceptance of bribes by a public official.
According to the indictment, from at least 2008 through October 2011, Conrad served as the Director of Systems Operation and Security within the Bureau of Industry and Security, a branch of the Department of Commerce. In that position, Conrad was designated to oversee and manage a project whereby computer files were transferred from an old BIS computer network that had been infected by a virus to a new, uninfected network, and to ensure that the transferred files were free of viruses and, in some instances, retained the full functionality of the files that had resided on the old network.
The indictment alleges that while serving as the project manager for the data migration project, Conrad solicited and received bribes from a local businessman in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in part by the bribe payer. One of the bribe payer’s companies made $208,000 in payments to a restaurant business owned by Conrad, and many of these payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for the bribe payer’s company, when in fact no such services had ever been provided. According to the indictment, the bribe payer’s company also arranged for various subcontractors to perform over $7,000 worth of free renovation work at Conrad’s residence.
Conrad faces a maximum penalty of five years in prison if convicted of conspiracy, and 15 years in prison if convicted of bribery. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after Conrad’s initial appearance before U.S. Magistrate Judge Theresa C. Buchanan. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-169.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Bank Vice President Convicted of Embezzling Money from Local BankRead the Press Release
BOSTON – A former vice president at the former Lenox National Bank pleaded guilty on Friday, July 29, 2016, in U.S. District Court in Springfield in connection with embezzling more than $150,000 from the bank and attempting to conceal the theft.
Joseph E. Leskovitz, 56, of Lenox, Mass., pleaded guilty to three counts of embezzlement of bank funds and one count of money laundering. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 15, 2016.
Between approximately 2009 and February 2014, Leskovitz was the vice president of the Lenox National Bank, which was acquired in 2015 by Adams Community Bank. Leskovitz stole money from certificates of deposits he was entrusted to manage for family members and clients. In addition, Leskovitz opened a loan in the name of a family member without the family member’s knowledge and stole the loan proceeds.The charge of embezzlement provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Fairbanks Man Sentenced for Child Pornography CrimesRead the Press Release
Fairbanks, Alaska – United States Attorney Karen L. Loeffler announced today that Michael Gray, Jr., 35, resident of Fairbanks, Alaska, was sentenced on Friday, July 29, 2016, by United States District Judge Ralph R. Beistline to 77 months in prison, to be followed by a 15-year term of supervised release, for possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B).
According to documents filed in the case, on June 26 and 29, 2015, law enforcement identified the defendant’s computer using an Internet file-sharing network to distribute files of child pornography. The videos being shared by the defendant through the file-sharing network were between three and 20 minutes long, and showed prepubescent females between the ages of eight and 12 being sexually molested by adult males. In three of the videos, there are scenes of sadistic and masochistic conduct.
Law enforcement searched the defendant’s residence in Fairbanks, Alaska on September 3, 2015. A forensic examination of the defendant’s computer located files of child pornography, including images and videos of minors under the age of 12, as well as images and videos showing sadistic and masochistic conduct.
In a statement to law enforcement at the time of the search, the defendant admitted to knowingly using search terms associated with child pornography to search the file-sharing network for images and videos of child pornography. The defendant described that he engaged in a pattern of downloading files of child pornography through the Internet, viewing those files, and then deleting those files from his computer. The defendant admitted to having approximately 250 images and videos of child pornography on his computer at the time law enforcement seized it from him.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
FBI Employee Pleads Guilty to Acting in the United States as an Agent of the Chinese GovernmentRead the Press Release
Defendant Collected and Caused Sensitive FBI Information to be Provided to the Chinese Government
Kun Shan Chun, a native of the People’s Republic of China and a naturalized U.S. citizen, pleaded guilty today to a criminal information charging him with acting in the United States as an agent of China without providing prior notice to the Attorney General.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Diego P. Rodriguez of the FBI’s New York Field Office made the announcement.
Chun, aka Joey Chun, 46, pleaded guilty before U.S. Magistrate Judge James C. Francis IV of the Southern District of New York. He was an employee of the FBI until his arrest on March 16, 2016.
“Kun Shan Chun violated our nation’s trust by exploiting his official U.S. Government position to provide restricted and sensitive FBI information to the Chinese Government,” said Assistant Attorney General Carlin. “Holding accountable those who work as illegal foreign agents to the detriment of the United States is among the highest priorities of the National Security Division.”
“Americans who act as unauthorized foreign agents commit a federal offense that betrays our nation and threatens our security,” said U.S. Attorney Bharara. “And when the perpetrator is an FBI employee, like Kun Shan Chun, the threat is all the more serious and the betrayal all the more duplicitous. Thanks to the excellent investigative work of the FBI’s Counterintelligence Division, the FBI succeeded in identifying and rooting out this criminal misconduct from within its own ranks.”
“No one is above the law, to include employees of the FBI,” said Assistant Director in Charge Rodriguez. “We understand as an agency we are trusted by the public to protect our nation’s most sensitive information, and we have to do everything in our power to uphold that trust.”
According to the complaint, the information and statements made during today’s court proceeding:
In approximately 1997, Chun began working at the FBI’s New York Field Office as an electronics technician assigned to the Computerized Central Monitoring Facility of the FBI’s Technical Branch. In approximately 1998, and in connection with his employment, the FBI granted Chun a Top Secret security clearance and his duties included accessing sensitive, and in some instances classified, information. In connection with a progressive recruitment process, Chun received and responded to taskings from Chinese nationals and at least one Chinese government official (Chinese Official-1), some, if not all, of whom were aware that Chun worked at the FBI. On multiple occasions prior to his arrest in March 2016, at the direction of Chinese government officials, Chun collected sensitive FBI information and caused it to be transmitted to Chinese Official-1 and others, while at the same time engaging in a prolonged and concerted effort to conceal from the FBI his illicit relationships with these individuals.
Beginning in 2006, Chun and some of his relatives maintained relationships with Chinese nationals purporting to be affiliated with a company in China named Zhuhai Kolion Technology Company Ltd. (Kolion). Chun maintained an indirect financial interest in Kolion, including through a previous investment by one of his parents. In connection with these relationships, Chinese nationals asked Chun to perform research and consulting tasks in the United States, purportedly for the benefit of Kolion, in exchange for financial benefits, including partial compensation for international trips.
Between 2006 and 2010, Chun’s communications and other evidence reflect inquiries from purported employees of Kolion to Chun while he was in the United States, as well as efforts by the defendant to collect, among other things, information regarding solid-state hard drives.
In approximately 2011, during a trip to Italy and France partially paid for by the Chinese nationals, Chun was introduced to Chinese Official-1, who indicated that he worked for the Chinese government and that he knew Chun worked for the FBI. During subsequent private meetings conducted abroad between the two, Chinese Official-1 asked questions regarding sensitive, non-public FBI information. During those meetings, Chun disclosed, among other things, the identity and potential travel patterns of an FBI Special Agent.
In approximately 2012, the FBI conducted a routine investigation relating to Chun’s Top Secret security clearance. In an effort to conceal his relationships with Chinese Official-1 and the other Chinese nationals purporting to be affiliated with Kolion, Chun made a series of false statements on a standardized FBI form related to the investigation. Between 2000 and March 16, 2016, Chun was required by FBI policy to disclose anticipated and actual contact with foreign nationals during his international travel, but he lied on numerous pre- and post-trip FBI debriefing forms by omitting his contacts with Chinese Official-1, other Chinese nationals and Kolion.
On multiple occasions, Chinese Official-1 asked Chun for information regarding the FBI’s internal structure. In approximately March 2013, Chun downloaded an FBI organizational chart from his FBI computer in Manhattan. Chun later admitted to the FBI that, after editing the chart to remove the names of FBI personnel, he saved the document on a piece of digital media and caused it to be transported to Chinese Official-1 in China.
Chinese Official-1 also asked Chun for information regarding technology used by the FBI. In approximately January 2015, Chun took photos of documents displayed in a restricted area of the FBI’s New York Field Office, which summarized sensitive details regarding multiple surveillance technologies used by the FBI. Chun sent the photographs to his personal cell phone and later admitted to the FBI that he caused the photographs to be transported to Chinese Official-1 in China.
In approximately February 2015, the FBI caused an undercover employee (UCE) to be introduced to Chun. The UCE purported to be a U.S. citizen who was born in China and working as a consultant to several firms, including an independent contractor for the Department of Defense, among other entities.
During a recorded meeting in March 2015, Chun told the UCE about his relationship with Kolion and Chinese nationals and later explained to the UCE that Kolion had “government backing,” and that approximately five years prior a relative met a “section chief” whom Chun believed was associated with the Chinese government.
In another recorded meeting in June 2015, Chun told the UCE that he had informed his Chinese associates that the UCE was a consultant who might be in a position to assist them. Chun said that he wished to act as a “sub-consultant” to the UCE and wanted the UCE to “pay” him “a little bit.” In July 2015, after coordinating travel to meet Chun’s Chinese associates, Chun met with the UCE in Hungary twice. During one of the meetings, Chun stated that he knew “firsthand” that the Chinese government was actively recruiting individuals who could provide assistance and that the Chinese government was willing to provide immigration benefits and other compensation in exchange for such assistance. The UCE told Chun that he had access to sensitive information from the U.S. government. Chun responded that his Chinese associates would be interested in that type of information and that Chun expected a “cut” of any payment that the UCE received for providing information to the Chinese government.
The count of acting in the United States as an agent of China without providing notice to the Attorney General carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The FBI’s Counterintelligence Division investigated the case. The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III and Andrea L. Surratt of the Southern District of New York’s Terrorism and International Narcotics Unit, with assistance provided by Trial Attorneys Thea D. R. Kendler and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
FBI Employee Pleads Guilty in Manhattan Federal Court to Acting in the United States as an Agent of the Chinese GovernmentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that Kun Shan Chun, a/k/a “Joey Chun,” pled guilty to a criminal Information charging him with acting in the United States as an agent of the People’s Republic of China (“China”), without providing prior notice to the Attorney General. CHUN, an employee of the FBI, pled guilty earlier today before United States Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “Americans who act as unauthorized foreign agents commit a federal offense that betrays our nation and threatens our security. And when the perpetrator is an FBI employee, like Kun Shan Chun, the threat is all the more serious and the betrayal all the more duplicitous. Thanks to the excellent investigative work of the FBI’s Counterintelligence Division, the FBI succeeded in identifying and rooting out this criminal misconduct from within its own ranks.”
Assistant Attorney General John P. Carlin said: “Kun Shan Chun violated our nation’s trust by exploiting his official U.S. Government position to provide restricted and sensitive FBI information to the Chinese Government. Holding accountable those who work as illegal foreign agents to the detriment of the United States is among the highest priorities of the National Security Division.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “No one is above the law, to include employees of the FBI. We understand as an agency we are trusted by the public to protect our nation's most sensitive information, and we have to do everything in our power to uphold that trust.”
According to the Complaint, the Information, and statements made during today’s court proceeding:
CHUN, a native of China and a naturalized citizen of the United States, began working at the FBI’s New York Field Office in approximately 1997, as an electronics technician assigned to the Computerized Central Monitoring Facility of the FBI’s Technical Branch. In approximately 1998, and in connection with his employment, the FBI granted CHUN a top secret security clearance, and his duties included accessing sensitive, and in some instances, classified information. As discussed in more detail below, in connection with a progressive recruitment process, CHUN received and responded to requests from Chinese nationals and at least one Chinese government official (“Chinese Official-1”), some (if not all) of whom were aware that CHUN worked at the FBI. On multiple occasions prior to his arrest in March 2016, CHUN collected sensitive FBI information and caused it to be transmitted to Chinese Official-1 and others, while at the same time engaging in a prolonged and concerted effort to conceal from the FBI his illicit relationships with these individuals.
CHUN’s Purported Consulting for Zhuhai Kolion Technology Company Ltd.
Beginning in 2006, CHUN and certain of his relatives maintained relationships with Chinese nationals purporting to be affiliated with a company in China named Zhuhai Kolion Technology Company Ltd. (“Kolion”). CHUN maintained an indirect financial interest in Kolion, including through a previous investment by one of his relatives. In connection with these relationships, Chinese nationals asked CHUN to perform research and consulting tasks in the United States, purportedly for the benefit of Kolion, in exchange for financial benefits, including partial compensation for international trips.
Between 2006 and 2010, CHUN’s communications and other evidence reflect inquiries to CHUN from purported employees of Kolion while CHUN was in the United States, as well as efforts by CHUN to collect, among other things, information regarding solid-state hard drives.
CHUN’s Relationship with Chinese Official-1
In approximately 2011, during a trip to Italy and France, Chinese nationals introduced CHUN to Chinese Official-1. Chinese Official-1 indicated that he worked for the Chinese government, and that he knew CHUN worked for the FBI. During subsequent private meetings conducted abroad between CHUN and Chinese Official-1, Chinese Official-1 asked questions about sensitive, nonpublic FBI information. During those meetings, CHUN disclosed, among other things, the identity and potential travel patterns of an FBI Special Agent.
In approximately 2012, the FBI conducted a routine investigation relating to CHUN’s top secret security clearance. In an effort to conceal his relationships with Chinese Official-1 and the other Chinese nationals purporting to be affiliated with Kolion, CHUN repeatedly lied on a standardized form related to the security-clearance investigation. During the period between 2000 and CHUN’s termination, CHUN also reported to the FBI that he had traveled to the areas of Hong Kong and China approximately nine times, as well as additional trips to Canada, Thailand, Europe, Australia, and New Zealand. CHUN was required by FBI policy to disclose anticipated and actual contact with foreign nationals during his international travel, but he lied on numerous pre- and post-trip FBI debriefing forms by omitting his contacts with Chinese Official-1, other Chinese nationals, and Kolion.
Examples of CHUN’s Actions in the United States
in Response to Requests from Chinese Official-1Chinese Official-1 asked CHUN on multiple occasions for information regarding the internal structure of the FBI. In response to those requests, in approximately March 2013, CHUN downloaded an FBI organizational chart from his FBI computer in Manhattan. CHUN later admitted to the FBI that, after editing the chart to remove the names of FBI personnel, he saved the document on a piece of digital media and caused it to be transported to Chinese Official-1 in China.
Chinese Official-1 also asked CHUN for information regarding technology used by the FBI. In approximately January 2015, CHUN took photographs of documents displayed in a restricted area of the FBI’s New York Field Office, which summarized sensitive details regarding multiple surveillance technologies used by the FBI. CHUN sent the photographs to his personal cell phone, and later admitted to the FBI that he caused the photographs to be transported to Chinese Official-1 in China.
CHUN’s Admissions to an FBI Undercover Employee
In about February 2015, the FBI caused an undercover employee (the “UCE”) to be introduced to CHUN. The UCE purported to be employed by an independent contractor.
During a March 2015 recorded meeting, CHUN told the UCE about his relationship with Kolion and Chinese nationals. In a subsequent recorded meeting in March 2015, CHUN explained to the UCE that Kolion had “government backing,” and that approximately five years earlier a relative met a “section chief” whom CHUN believed was associated with the Chinese government.
In June 2015, during a recorded meeting, CHUN told the UCE that he had informed his Chinese associates that the UCE may be in a position to assist them. CHUN said that he wished to act as a “sub-consultant” to the UCE and wanted the UCE to “pay” him “a little bit.” In July 2015, after coordinating travel in an effort to introduce the UCE to CHUN’s Chinese associates, CHUN met with the UCE twice. During one of the meetings, CHUN stated that he knew “firsthand” that the Chinese government was actively recruiting individuals who could provide assistance, and that the Chinese government was willing to provide immigration benefits and other compensation in exchange for such assistance. The UCE told CHUN that he had access to sensitive information from the United States government. CHUN responded that his Chinese associates would be interested in that type of information, but that CHUN expected a “cut” of any payment that the UCE received for providing information to the Chinese government.
CHUN’s Arrest by the FBI and Confession
CHUN was arrested by the FBI on March 16, 2016. He subsequently confessed to most of the foregoing activities, including to having taken steps to collect sensitive FBI information in the United States in response to taskings from Chinese Official-1. CHUN explained that he was motivated in part by the financial benefits that he and others derived from these relationships, but also admitted that he understood that he had provided assistance to the Chinese government.
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CHUN, 46, pled guilty to one count of acting in the United States as an agent of China without providing notice to the Attorney General, which carries a maximum sentence of 10 years in prison. CHUN will be sentenced on December 2, 2016, at 1:00 p.m., by United States District Judge Victor Marrero. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III and Andrea L. Surratt of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance provided by Trial Attorneys Thea D.R. Kendler and David Recker of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
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Erie Man Sentenced to Prison for Robbing Hometown BanksRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail on his conviction of bank robbery, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Samuel Louis Dominick, 29.
According to information presented to the court, on February 19, 2015, Dominick and a co-defendant were involved in the robbery of $1,565 from the First National Bank, located at 3310 West 26th Street, Erie, Pennsylvania. In addition, on March 5, 2015, Dominick robbed $4,828 from the Marquette Savings Bank, located at 2320 West 12th Street, Erie, Pennsylvania.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Millcreek Township Police Department for the investigation leading to the successful prosecution of Dominick.
Erie Man Sentenced to Prison for Conspiring to Distribute Crack CocaineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail on his conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Curtis L. Duck, 43.
According to information presented to the court, Duck conspired with a co-defendant to possess with intent to distribute and distribute approximately 40 grams of crack cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the Erie Police Department for the investigation leading to the successful prosecution of Duck.
Erie Man Admits Possessing Pornographic Images of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Bruce Johnson, 61, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Johnson possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for November 21, 2016 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Johnson on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Johnson.
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.
Detroit man sentenced to five and a half years in Federal prison for oxycodone crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to five and a half years in federal prison for a drug crime, announced United States Attorney Carol Casto. Chester Estes, 41, previously pleaded guilty to possession with intent to distribute oxycodone.
On October 2, 2014, Estes was arrested on an unrelated misdemeanor warrant in Huntington. In a search following the arrest, Estes was found to be in possession of $4,590 in cash and 475 oxycodone pills.
The Huntington Federal Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Gregory McVey is responsible for the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Frederick A. Obak Sentenced to 16 Years IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on August 1, 2016, Defendant FREDERICK A. OBAK (“OBAK”)was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve sixteen (16) years incarceration followed by three years of supervised release, with credit for time served.
Defendant OBAK pled guilty on May 5, 2014, to two counts of Attempted Possession of Methamphetamine with Intent to Distribute, in violation of Title 21, United States Code, Section 846(a)(1) and (b)(1)(C). Defendant OBAK attempted to receive two packages containing 2,171.3 grams of methamphetamine hydrochloride at Kautz and Sons Glass Company and StayWell Insurance in Hagatna, Guam. OBAK conspired with co-defendants Thomas Kautz and Amos Shioichi Ueda to receive the packages at their places of employment. The contents of the packages were to be broken down for later distribution on Guam. The methamphetamine hydrochloride was concealed within U.S. Priority Mail packages and sent from Washington State to Guam where they were intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 82%. The street value of 2,171.3 grams of methamphetamine hydrochloride exceeds $1,000,000.
According to U.S. Attorney Limtiaco, “Methamphetamine hydrochloride is often associated with crimes against people and property. We cannot and will not tolerate the devastating and destructive effects this drug has on the lives of our families, children and community. The U.S. Attorney’s Office remains committed to the aggressive prosecution of cases involving drug trafficking and distribution.”
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration, including its Special Agents and Task Force Officers. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Columbia Man Pleads Guilty to Distributing Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in the distribution of synthetic marijuana, commonly referred to as K2.
Matthew Ashby Hawkins, 41, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to commit mail fraud between March 1, 2011, and Oct. 2, 2013.
Hawkins was a partner in two companies, Dynamic Scents and its successor, Order-Refill, LLC. Three of his partners in those companies – Alexander Vladimir McMillin, also known as “Shasha,” 32, Patrick Ross Hawkins, 34, and Molly Jane Charmichael, 38, all of Columbia – have also pleaded guilty to the mail fraud conspiracy. They are among 15 defendants who have pleaded guilty in this case.
By pleading guilty today, Hawkins admitted that he sold wholesale orders of packaged synthetic drugs to customers throughout the state of Missouri. These packages of synthetic marijuana bore misleading labeling regarding the contents and nature of the product in order to avoid detection by law enforcement officers.
Hawkins and his business partners falsely and misleadingly referred to these synthetic drug products as “incense,” “herbal incense,” “potpourri,” “therapeutic potpourri,” that were labeled as “not intended for human consumption,” when, in fact, these products were synthetic drugs intended for consumption in order to obtain a physiological “high.” When sold at retail stores, these products were often located next to products and paraphernalia used for smoking the substances.
Law enforcement officers seized $177,398 from the bank account of Order-Refill, which must be forfeited to the government.
Under the terms of today’s plea agreement, the government and Hawkins agree that a sentence of 63 to 78 months is appropriate. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Homeland Security Investigations, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol, the Kirksville, Mo., Police Department, the North Missouri Drug Task Force, the Schuyler County, Mo., Sheriff’s Department, the Edina, Mo., Police Department, the Linn County, Mo., Sheriff’s Department and the Brookfield, Mo., Police Department.
Clovis Man Sentenced to More Than Two and A Half Years for Counterfeiting U.S. Currency and Possessing Unauthorized Access DevicesRead the Press Release
FRESNO, Calif. — Larry Landseadal, 45, of Clovis, was sentenced today by United States District Judge Lawrence J. O'Neill to more than two and a half years in prison for counterfeiting U.S. currency and possessing unauthorized access devices for use in identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Landseadal possessed the personal information of approximately 260 individuals, including their names, social security numbers, and other personal identifying information. Landseadal used the information to open credit card accounts in victims’ names and to purchase goods. Landseadal also unlawfully produced and possessed counterfeit U.S. currency in denominations up to $100.
This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Cincinnati-Area Man Pleads Guilty to Terrorism ChargesRead the Press Release
Christopher Lee Cornell, 22, of Green Township, Ohio, pleaded guilty today to one count of attempting to kill government employees, one count of possession of a firearm in furtherance of a crime of violence and one count of attempting to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. Cornell pleaded guilty before Senior U.S. District Judge Sandra Beckwith of the Southern District of Ohio.
Cornell was originally charged by an indictment returned by a federal grand jury on Jan. 21, 2015. On May 7, 2015, Cornell was additionally charged by superseding indictment with attempting to provide material support to a designated foreign terrorist organization.
According to the plea agreement, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on January 20, 2015.
Cornell admitted that he conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. Cornell intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition, according to the plea agreement.
The defendant admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to the Islamic State of Iraq and the Levant (ISIL).
The material support count carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL, according to his admissions in the plea agreement.
The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; University of Cincinnati Police Department; U.S. Air Force Office of Special Investigations; FBI; U.S. Immigrations and Customs Enforcement; U.S. Internal Revenue Service; U.S. Secret Service; U.S. Postal Inspection Service; West Chester, Ohio, Police Department; and Xenia, Ohio, Police Department.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.
Cincinnati-Area Man Pleads Guilty to Terrorism ChargesRead the Press Release
CINCINNATI – Christopher Lee Cornell, 22, of Green Township, Ohio, pleaded guilty today to one count of attempting to kill government employees, one count of possession of a firearm in furtherance of a crime of violence and one count of attempting to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. Cornell pleaded guilty before Senior U.S. District Judge Sandra Beckwith of the Southern District of Ohio.
Cornell was originally charged by an indictment returned by a federal grand jury on Jan. 21, 2015. On May 7, 2015, Cornell was additionally charged by superseding indictment with attempting to provide material support to a designated foreign terrorist organization.
According to the plea agreement, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on January 20, 2015.
Cornell admitted that he conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. Cornell intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition, according to the plea agreement.
The defendant admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to the Islamic State of Iraq and the Levant (ISIL).
The material support count carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years up to life in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL, according to his admissions in the plea agreement.
The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain, Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, West Chester Police Department and Xenia Police Department.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Canfield man indicted for being a felon in possession of a firearmRead the Press Release
A federal grand jury turned a one-count indictment charging John T. Dellick, 22, of Canfield, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Dellick was taken into custody this morning.
Dellick possessed an Armi Galesi, model Brevetta, .25 caliber pistol, and ammunition, on Jan. 3, despite a previous convicting for aggravated assault in the Court of Common Pleas, Mahoning County, in 2015, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boardman Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Sentenced to 70 Years in Federal Prison for Traveling to Cambodia to Engage in Illicit Sex with Young GirlRead the Press Release
LOS ANGELES – A California man who was found guilty at trial of traveling to Cambodia to have illicit sexual conduct with young girls was sentenced today to 70 years in federal prison and $40,000 restitution to a victim.
Ronald Gerard Boyajian, 55, who previously resided in Menlo Park and has spent time on the Palos Verdes peninsula, was sentenced this afternoon by United States District Judge Christina A. Snyder.
At today’s hearing, Judge Snyder observed that “the conduct was extremely serious.” In imposing the maximum sentence, the court stated that it is “obvious that the reason for the sentence is for the protection of the public and to deter such behavior in the future.”
Following a six-week trial earlier this year, Boyajian was found guilty of three child exploitation crimes – traveling to Cambodia with the intent to engage in illicit sexual conduct, engaging in illicit sexual conduct with a nine-year-old girl in Cambodia, and committing these offenses while being required to register as a sex offender under California law.
Boyajian was arrested by the Cambodian National Police (CNP) in February 2009, while he was on his 35th trip to Asia over a nine-year period. Boyajian began traveling to Cambodia shortly after completing his parole following convictions on 22 counts of illegal sex with a minor and oral sex with a minor in 1995.
“Pedophiles will not escape punishment by crossing international borders to sexually assault children,” said United States Attorney Eileen M. Decker. “After being convicted of sexually exploiting two children here in California, this defendant tried to evade justice by traveling to Cambodia to victimize even younger children. As today’s sentence demonstrates, however, if you travel anywhere in the world for sex with children, the U.S. Department of Justice will be tenacious in prosecuting you and pursuing justice for the young victims of this hideous crime.”
Four victims whom Boyajian had sexually assaulted testified against him at trial. Each girl was between 8 and 11 years old when Boyajian purchased them from their mother and grandmothers to sexually abuse them. One victim, who was approximately 8 when Boyajian assaulted her, testified at trial that “he was abusive, he was cruel, he treated me like I wasn’t even human.”
At a hearing last week, the four testifying victims appeared before Judge Snyder. The youngest victim, who is now approximately 16 years old, asked for a strong sentence: “I would like the court not to allow him to leave prison because there are possibly other children out there who could be harmed, just like it happened to me.”
Boyajian paid pimps and relatives from impoverished families to gain access to his victims, which he preferred to weigh less than 70 pounds. While the attacks took place in the village of Svay Pak – a notorious destination for pedophiles from around the world, the victims were Vietnamese immigrants who lived in the poor community. A CNP anti-human trafficking officer testified at trial that Svay Pak was well known as a place where foreigners went to have sexual contact with females, often young girls. Boyajian went to Svay Pak to have “unlimited access to young girls for sex,” prosecutors said in court.
“Given the defendant’s age, this prison term amounts to a life sentence and assures no more children will be fall prey to this serial pedophile,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Successful prosecutions are crucial to combatting child sex tourism, but HSI is also focused on strategies to prevent such crimes from occurring, including Operation Angel Watch where HSI alerts foreign law enforcement when a convicted child predator is planning to travel to their country. Last fiscal year, HSI made over 2,100 notifications to more than 90 countries.”
According to a sentencing brief filed by prosecutors, Boyajian was convicted in 1995 of unlawful sex with two 16-year-old girls, making him “a repeat and dangerous sex offender against minors.”
Boyajian’s sentencing follows lengthy sentences imposed on other sex tourists who were prosecuted in Los Angeles, including Michael Joseph Pepe, who was sentenced to 210 years in federal prison after being convicted of abusing seven victims in Cambodia, and Stanley Dan Reczko, who received a mandatory life-without-parole sentence for producing child pornography with a minor victim in the Philippines.
The case against Boyajian is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles and HSI’s Attaché Offices in Bangkok, Phnom Penh and Ho Chi Minh, with the assistance of the United States Embassy in Phnom Penh.
The case against Boyajian was prosecuted by David M. Herzog and Vanessa Baehr-Jones of the Violent and Organized Crime Section.
California Man Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BOISE – Derrick Courtney Franklin, II, 28, of Los Angeles, California, pleaded guilty on August 1, 2016, to wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Franklin was indicted by a federal grand Jury in Boise on October 14, 2015.
According to the court proceedings, Franklin agreed to travel to Idaho for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded and embossed onto stock debit and credit cards. Franklin and his co-conspirator, Jassmine Pettaway, 27, of Inglewood, California, made at least eight fraudulent purchases from at least four different retail stores, in the amount of at least $20,225.86. Two of those purchases were made at the Nike Factory Store in Meridian for a total of $18,204.54. Law enforcement recovered a fake Michigan driver’s license, at least 19 counterfeit credit cards, and at least 45 gift cards. Pettaway pleaded guilty on April 5, 2016, to wire fraud and aggravated identity theft. She is scheduled to be sentenced on August 29, 2016.
Wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release, and a special assessment of $100. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, and a fine up to $250,000.
Sentencing for Franklin is set for October 18, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Meridian Police Department, the Boise Police Department, and the U.S. Secret Service (USSS).
California Businessman Charged with Conspiring with Israeli Banks to Hide IncomeRead the Press Release
Concealed Foreign Accounts and Failed to Report More Than $20 Million
A Los Angeles, California, businessman was charged today in an information, which charges one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Masud Sarshar, who owned and operated Apparel Limited Inc., a business that designed, manufactured and sold clothing and other apparel, signed a plea agreement admitting that he maintained several undeclared bank accounts at Bank Leumi and two other Israeli banks, both in his name and in the names of entities that he created. For decades, with the assistance of at least two relationship managers from Bank Leumi and a second Israeli bank (Israeli Bank A), Sarshar hid tens of millions of dollars in assets in these accounts in an effort to conceal income and obstruct the Internal Revenue Service (IRS). As alleged in the information, between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to these undeclared bank accounts. Between 2007 and 2012, Sarshar also earned more than $2.5 million in interest income from these accounts. Sarshar omitted all of this income from his 2006 through 2011 individual and corporate tax returns and he failed to report his authority over and ownership of these bank accounts in false Reports of Foreign Bank and Financial Accounts (FBARs) that he submitted to the U.S. Department of Treasury.
Sarshar signed a plea agreement to the charges in the information, agreeing to plead guilty and pay more than $8.3 million in restitution to the IRS. If the court accepts the parties’ agreement, Sarshar will be sentenced to 24 months in prison. In addition, Sarshar stipulated to a civil penalty in the amount of 50 percent of the high balance of his undeclared accounts to resolve his civil liability for not disclosing the existence of his Israeli bank accounts.
“Mr. Sarshar stashed millions in secret foreign financial accounts in Israel and then sought to use these accounts to evade his U.S. tax obligations, seeking to cover his tracks along the way,” said Principal Deputy Assistant Attorney General Ciraolo. “The message of this case is clear: There are no safe havens. If you are concealing assets and income in undeclared offshore accounts – or are a banker, an asset manager or otherwise are assisting accountholders in such criminal conduct, your only viable option is to come forward and accept responsibility for your actions. Those who continue to violate U.S. tax laws will be held accountable and pay a heavy price.”
According to the information and statement of facts, Sarshar’s relationship managers at Israeli Bank A (RM1) and at Bank Leumi (RM2) visited him frequently in Los Angeles. At his request, neither bank sent him account statements by mail, but rather, RM1 and RM2 provided Sarshar with his account information in person. For example, RM2 loaded electronic copies of Sarshar’s Bank Leumi account statements on a USB drive, which she concealed in a necklace worn during her trips to the United States. To further maintain the secrecy of his accounts, Sarshar’s meetings with RM1 sometimes occurred in Sarshar’s car. RM1 and RM2 also used these visits to Los Angeles to offer Sarshar other bank products, including “back-to-back” loans. Through back-to-back loans, which Bank Leumi made to Sarshar through its branch in the United States and which Sarshar collateralized with funds from his account at Israeli Bank A, Sarshar was able to bring back to the United States approximately $19 million of his offshore assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities. At the direction of RM1 and RM2, Sarshar also obtained Israeli and Iranian passports in an effort to avoid being flagged as a U.S. citizen by the compliance departments at both banks. After receiving both new passports and still being flagged as a U.S. citizen by their compliance departments, RM1 and RM2 advised Sarshar to transfer his remaining funds to yet another Israeli bank, which he did in late 2011.
“As the filing of today’s criminal charges demonstrate, the days of bank secrecy is rapidly changing,” said Chief Richard Weber for IRS-Criminal Investigation. “There's no safe place for taxpayers to divert and hide income anywhere in the world. IRS-CI works vigorously to stop offshore tax schemes such as this one and is proud that our forensic accounting skills helped uncover over $21 million in untaxed gross business income in this investigation.”
Principal Deputy Assistant Attorney General Ciraolo commended special agents from IRS-Criminal Investigation, who are investigating the case and Assistant Chief Tino M. Lisella and Trial Attorney Timothy M. Russo, of the Tax Division, who are prosecuting this case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Businessman Charged with Conspiring with Israeli Banks to Hide IncomeRead the Press Release
WASHINGTON – A Los Angeles, California, businessman was charged today in an information, which charges one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Masud Sarshar, who owned and operated Apparel Limited, Inc., a business that designed, manufactured, and sold clothing and other apparel, signed a plea agreement admitting that he maintained several undeclared bank accounts at Bank Leumi and two other Israeli banks, both in his name and in the names of entities that he created. For decades, with the assistance of at least two relationship managers from Bank Leumi and a second Israeli bank (Israeli Bank A), Sarshar hid tens of millions of dollars in assets in these accounts in an effort to conceal income and obstruct the Internal Revenue Service (IRS). As alleged in the information, between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to these undeclared bank accounts. Between 2007 and 2012, Sarshar also earned more than $2.5 million in interest income from these accounts. Sarshar omitted all of this income from his 2006 through 2011 individual and corporate tax returns and he failed to report his authority over and ownership of these bank accounts in false Reports of Foreign Bank and Financial Accounts (FBARs) that he submitted to the U.S. Department of Treasury.
Sarshar signed a plea agreement to the charges in the information, agreeing to plead guilty and pay more than $8.3 million in restitution to the IRS. If the court accepts the parties’ agreement, Sarshar will be sentenced to 24 months in prison. In addition, Sarshar stipulated to a civil penalty in the amount of 50 percent of the high balance of his undeclared accounts to resolve his civil liability for not disclosing the existence of his Israeli bank accounts.
“Mr. Sarshar stashed millions in secret foreign financial accounts in Israel and then sought to use these accounts to evade his U.S. tax obligations, seeking to cover his tracks along the way,” said Principal Deputy Assistant Attorney General Ciraolo. “The message of this case is clear: There are no safe havens. If you are concealing assets and income in undeclared offshore accounts – or are a banker, an asset manager or otherwise are assisting accountholders in such criminal conduct, your only viable option is to come forward and accept responsibility for your actions. Those who continue to violate U.S. tax laws will be held accountable and pay a heavy price.”
According to the information and statement of facts, Sarshar’s relationship managers at Israeli Bank A (RM1) and at Bank Leumi (RM2) visited him frequently in Los Angeles. At his request, neither bank sent him account statements by mail, but rather, RM1 and RM2 provided Sarshar with his account information in person. For example, RM2 loaded electronic copies of Sarshar’s Bank Leumi account statements on a USB drive, which she concealed in a necklace worn during her trips to the United States. To further maintain the secrecy of his accounts, Sarshar’s meetings with RM1 sometimes occurred in Sarshar’s car. RM1 and RM2 also used these visits to Los Angeles to offer Sarshar other bank products, including “back-to-back” loans. Through back-to-back loans, which Bank Leumi made to Sarshar through its branch in the United States and which Sarshar collateralized with funds from his account at Israeli Bank A, Sarshar was able to bring back to the United States approximately $19 million of his offshore assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities. At the direction of RM1 and RM2, Sarshar also obtained Israeli and Iranian passports in an effort to avoid being flagged as a U.S. citizen by the compliance departments at both banks. After receiving both new passports and still being flagged as a U.S. citizen by their compliance departments, RM1 and RM2 advised Sarshar to transfer his remaining funds to yet another Israeli bank, which he did in late 2011.
“As the filing of today’s criminal charges demonstrate, the days of bank secrecy is rapidly changing,” said Chief Richard Weber for IRS-Criminal Investigation. “There's no safe place for taxpayers to divert and hide income anywhere in the world. IRS-CI works vigorously to stop offshore tax schemes such as this one and is proud that our forensic accounting skills helped uncover over $21 million in untaxed gross business income in this investigation.”
Principal Deputy Assistant Attorney General Ciraolo commended special agents from IRS-Criminal Investigation, who are investigating the case and Assistant Chief Tino M. Lisella and Trial Attorney Timothy M. Russo, of the Tax Division, who are prosecuting this case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Allen Man Sentenced to 17 Years and 6 Months for Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota man convicted of Second Degree Murder was sentenced on July 28, 2016 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nile Paul Waters, a/k/a Nile Hollow Horn Bear, age 21, was sentenced to 17 years and 6 months in custody; 3 years supervised release, $100 special assessment to the Federal Crime Victims Fund, and $858.36 in restitution.
Waters was indicted for Second Degree Murder by a federal grand jury on July 14, 2015. He pled guilty on March 25, 2016.
On July 6, 2015, Waters was in Pine Ridge, South Dakota, with his girlfriend, Stanna Piper. Later in the day, Waters and Piper met Theodore Red Cloud, the victim, at Red Cloud’s residence. Waters, Piper, and Red Cloud went to another residence in the Old Sundance Grounds area. They began drinking alcohol. Waters and Red Cloud had a verbal altercation and physical struggle inside the trailer. Red Cloud then left the trailer. Moments later, a sliding glass door was broken. Waters and Piper went outside to see what happened. Once outside, Waters and Red Cloud each had a club-like weapon and they got into another physical altercation. Red Cloud fell to the ground. The Waters hit Red Cloud at least four times on his body with the club-like weapon. Red Cloud died as a result of his injuries from the assault. At least one other individual was involved in the assault.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Waters was immediately turned over to the custody of the U.S. Marshals Service.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Johnny Ramirez, 33, of Albuquerque, N.M., pled guilty today in federal court to violating federal drug trafficking laws. Under the terms of his plea agreement, Ramirez will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Ramirez and his co-defendant Larry Valadez, 33, also of Albuquerque, were charged on Dec. 1, 2015, with drug trafficking offenses in an eight-count indictment. Ramirez and Valadez were charged with conspiring to distribute methamphetamine and heroin in May 2015, and with distributing methamphetamine and heroin in May 2015 and June 2015. According to the indictment, all eight offenses occurred in Bernalillo County, N.M. The indictment included forfeiture provisions, requiring Ramirez to forfeit $4,200 and Valadez to forfeit $4,100 to the United States.
During today’s proceedings, Ramirez pled guilty to two methamphetamine distribution counts and one heroin distribution count. In entering the guilty plea, Ramirez admitted that on May 19, he arranged for a co-conspirator to sell 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual who was working with the FBI. Ramirez also admitted that on June 16, 2015, he sold 14.71 grams of methamphetamine to the same individual working with the FBI. Ramirez acknowledged that the drug deals took place in Albuquerque.
Ramirez remains in custody pending a sentencing hearing which has yet to be scheduled.
Valadez has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the New Mexico State Police. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Ackerman Man Pleads Guilty to Two Counts of Harvesting Deer on Natchez TraceRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, announced that:
James Larry McClure, 41, of Ackerman, Mississippi, pled guilty on July 28, 2016, before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, to two counts of harvesting White-tailed Deer within the boundary of the Natchez Trace Parkway in violation of federal law.
Following his guilty plea, McClure was sentenced to a term of probation of two (2) years and ordered to pay a fine of $3725.00 for each count of conviction, for a total fine of $7450.00. As a condition of his probation, McClure will be prohibited from hunting in any manner or any location for a period of two (2) years.
“This prosecution has been the result of seamless cooperation between the Mississippi Department of Wildlife, Fisheries, and Parks and the United States Fish and Wildlife Service,” said United States Fish and Wildlife Service Special Agent in Charge Santiago. “Our collective efforts help ensure that these resources will be here for future generations of fair chase hunters, trappers and outdoor enthusiasts.”
“Our officers will go to great lengths investigating each case to the fullest, wherever the facts may lead, to ensure justice is served,” states Colonel Steve Adcock, Mississippi Department of Wildlife, Fisheries, and Parks. “We appreciate the efforts of the United States Fish and Wildlife Service and the ability to work closely with them on cases such as this.”
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks.
"One Community Guam" and "One Community NMI"Read the Press Release
In response to the “Smart on Crime” Initiative announced in 2013 by then-Attorney General Eric Holder, Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), spearheaded a joint effort with the U.S. Attorney’s Office Diverse Community Outreach Coalition (“Coalition”) to put a spotlight on the need for support and services for vulnerable populations and those reentering from incarceration.
U.S. Attorney Limtiaco and the Coalition, comprised of the faith-based community, Consular Corps, private sector, government agencies, non-governmental/nonprofit/civic organizations, medical/mental/public health professionals, and educational institutions, recognized that crime prevention, strengthening protections for vulnerable populations, and reentry efforts require community ownership and a true community response for there to be an effective positive impact in the districts. In response to this need, U.S. Attorney Limtiaco and the Coalition identified and implemented key strategies calling for stakeholders in each of the districts to cooperate and collaborate as “One Community Guam” and “One Community CNMI.”
In June 2015, U.S. Attorney Limtiaco, with support of the Coalition, organized unprecedented multi-day training conferences in Guam and Saipan, NMI entitled, “Engaging Our Community in Crime Prevention, Strengthening Protections for Vulnerable Populations, and Reentry Efforts through Workforce Development Strategies.” This year, consistent with recommendations discussed at the 2015 conferences regarding the need for increased public awareness about and the implementation of reentry programs, the U.S. Attorney launched the 2nd Annual “One Community Guam” and “One Community CNMI” conferences, an ambitious schedule of three days of trainings developed to target key stakeholders and critical to the success of vulnerable populations and reentering offenders.
An initial outreach effort by the U.S. Attorney’s Office entitled, “Improving Criminal Justice Outcomes,” was held on March 1, 2016, and focused on community stakeholders. The keynote speaker was Michael G. Santos - author, motivational speaker, life coach, trainer and prison consultant. Mr. Santos served 26 years of a 45-year federal prison term for drug offenses. Mr. Santos developed the “Straight A Guide Reentry Course” and the “Earning Freedom Mastermind Reentry Course.” These programs have been adopted at several penitentiaries and have been lauded as exceptional in preparing inmates for becoming law-abiding, contributing citizens. Mr. Santos spoke to the group via videoconference about his own personal journey through 26 years in federal prison, the challenges faced by those in prison and the opportunities for reentry into the community.
In June 2016, the U.S. Attorney’s Office hosted its second conferences, “One Community Guam” and “One Community CNMI”, this time sponsoring Mr. Santos to provide in-person training to both districts. Upon his arrival in Guam, Mr. Santos hit the ground running by meeting with three groups of inmates at the Department of Corrections and, later, parolees and their families, to discuss the importance of cognitive and life skills development. On June 27 and 28, 2016, Mr. Santos trained at six venues on Guam, and on June 29 and 30, 2016, he travelled to and trained at two venues in Saipan, NMI, to meet with key stakeholders. Training was conducted for adult and youth corrections staff including corrections officers and caseworkers, social workers, and medical, mental and public health professionals, working within or associated with the correctional institutions; law enforcement/prosecutors; public defenders/defense counsel; pretrial officers; probation officers; parole officers; and other related professionals working with our criminal and juvenile justice systems. Mr. Santos also conducted training for selected offenders – adult and justice-involved youth, appropriate to act as peer facilitators for other adult offenders and justice-involved youth. Training for community stakeholders including our nonprofits, faith based community, government agencies, private sector and military counterparts was also held. Mr. Santos’ reentry course included lessons on: (1) how to develop communication skills and why those skills relate to success; (2) how to develop self-directed learning techniques; (3) how to develop critical thinking skills; and (4) how to reject criminal lifestyles and criminal associations. Mr. Santos also explained the “Seven A’s” critical to successful reentry: attitude, aspirations, actions, accountability, awareness, achievement and appreciation.
In total, Mr. Santos worked with leadership from the U.S. Attorney’s Office to conduct 25 training sessions on “Earning Freedom and Reentry” in both Guam and the NMI. The training sessions were widely attended, with over 300 attendees in Guam, and over 80 attendees in Saipan.
On June 30 and July 1, 2016, the U.S. Attorney’s Office hosted its third “One Community” conference in Guam and Saipan entitled, “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities.”
In Guam, the training focused on “Doing Business with DoD” and provided information on contractual, legal and policy requirements regarding base access in Guam and local procedures used to implement these requirements, including: what DoD contracts say about access; DoD / U.S. Department of the Navy (DoN) / Joint Region Marianas (JRM) policies covering base access, including information on the eligibility of individuals with prior convictions; installation specific application access policies; and appeal of the denial process and related information. Panel members included Small Business Advisors, Naval Facilities Engineering Command Marianas; Regional Program Director for Force Protection, Joint Region Marianas; USAF, 36th Security Force Squadron; and USAF, 36th Wing Staff Judge Advocate and Assistant Staff Judge Advocate. Another panel entitled, “What Employers Need to Know” provided information on Equal Employment Opportunity laws and guidance, including the use of criminal background checks and consideration of arrest and conviction records in employment decisions, and the disparate impact on vulnerable populations and their reentry to the workforce; “Ban the Box” legislation; Work Opportunity Tax Credit (WOTC); affirmative action; social security programs; and related issues. Additional topics included an overview of the immigration process and compliance by employers with federal immigration laws, including the Immigration Reform and Control Act requiring employers to verify the identity and employment eligibility of their employees and criminal and civil sanctions for employment related violations. Speakers on this panel included the Equal Employment Opportunity Commission, U.S. Department of Labor, U.S. Department of Homeland Security/Immigration and Customs Enforcement/Homeland Security Investigations, U.S. Department of Homeland Security/U.S. Citizenship and Immigration Services, and Social Security Administration. The last panel entitled, “A Local Perspective: Employment Challenges, Best Practices and Resources,” discussed challenges and barriers to employment, and strategies and approaches, such as the Workforce Innovation and Opportunity Act (WIOA) and Guam’s Combined State Plan for Program Year 2016-2019 addressing workforce needs of businesses and those seeking jobs including individuals who have consistently faced significant barriers to employment such as ex-offenders, Veterans, low- income individuals, individuals with disabilities, homeless individuals, individuals facing substantial cultural barriers, and other vulnerable populations. Additional topics included the Guam Registered Apprenticeship Program (GRAP) which provides incentives for employers who are sponsors of apprenticeships; and relevant local labor and employment regulations, best practices and resources. Testimonials of employers who have successfully employed offenders who have reentered the community were also shared. Speakers on this panel included Guam Department of Labor, Guam Chamber of Commerce, Guam Contractors Association (GCA), GCA Trades Academy, and Guam Community College. In addition, Mr. Santos spoke about his own personal journey, the importance of and critical need for preparing offenders for reentry into the community, and the important role of employers in the reentry process.
In Saipan, the training included a session on “What Employers Need to Know.” The speakers discussed information on Equal Employment Opportunity laws and guidance, including the use of criminal background checks and consideration of arrest and conviction records in employment decisions, and the disparate impact on vulnerable populations and their reentry to the workforce; “Ban the Box” legislation; Work Opportunity Tax Credit (WOTC); affirmative action; social security programs; and an overview of the immigration process and compliance by employers with federal immigration laws, including the Immigration Reform and Control Act requiring employers to verify the identity and employment eligibility of their employees and criminal and civil sanctions for employment related violations. The second session was on “Earning Freedom and Reentry,” a presentation by Mr. Santos on his journey through federal prison, the challenges faced by those incarcerated, the importance of reentry programs, and the opportunities for reentry into the community. The third session shared “A Local Perspective: Employment Challenges, Best Practices and Resources.” The panel members discussed challenges and barriers to employment, and strategies and approaches to assist the workforce and businesses in hiring individuals who have consistently faced significant barriers, such as ex- offenders, Veterans, low-income individuals, individuals with disabilities, homeless individuals, individuals facing substantial cultural barriers, and other vulnerable populations; WOTC; and relevant local labor and employment regulations, best practices and resources. The speakers included representatives from the Equal Employment Opportunity Commission; Social Security Administration; Homeland Security Investigations, U.S. Department of Homeland Security; U.S. Citizenship and Immigration Services, U.S. Department of Homeland Security; CNMI Department of Labor; Office of Personnel Management; Northern Marianas College; Nutrition Assistance Program and Division of Youth Services, CNMI Department of Community & Cultural Affairs; Northern Marianas Trades Institute; and Island Training Solutions.
In furtherance of the “Smart on Crime” Initiative, the U.S. Attorney worked with the Governor of Guam and the Governor of the Northern Mariana Islands to coordinate the proclamation of April 24-30, 2016, as National Reentry Week. The proclamations were held on May 3, 2016 at the Governor’s Conference Room at Adelup, Guam, and on May 9, 2016, at the Governor’s Conference Room at Capitol Hill, Saipan.
Guam Chamber of Commerce (Chamber) Member Jeff Jones, Chamber President Catherine Castro, Trainer Michael G. Santos, Lt. Gov. of Guam Raymond Tenorio, U.S. Attorney Alicia Limtiaco, Chamber Member Monty McDowell, at the Chamber Luncheon Meeting
Trainer Michael G. Santos with Professional Staff at training held at the U.S. Attorney’s Office in Guam
Community stakeholders with Trainer Michael G. Santos and U.S. Attorney Alicia Limtiaco held at the U.S. Attorney’s Office in Guam
Participants at the “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities” Conference in Guam
Trainer Michael G. Santos, U.S. Attorney Alicia Limtiaco, AUSA/Prevention and Reentry Coordinator Stephen Leon Guerrero, National Security Specialist/DOSM Joe Quitano, and NMI DOC Commissioner Georgia Cabrera, at training held at the NMI Department of Corrections for DOC officers in Saipan Trainer Michael G. Santos and U.S. Attorney Alicia Limtiaco at Professional Staff training held at the Multi-Purpose Center in Saipan, NMI Trainer Michael G. Santos at the “Earning Freedom and Reentry” session at the “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities” Conference in Saipan, NMI U.S. Attorney Alicia Limtiaco and Lt. Governor Raymond Tenorio with community stakeholders at the Proclamation Signing at the Governor’s Office in Guam
U.S. Attorney Alicia Limtiaco and Governor of the CNMI Ralph Torres with community stakeholders at the Proclamation Signing at the Governor’s Office in Saipan, NMI
Guam Department of Labor Robert Dames, AUSA/Prevention and Reentry Coordinator Stephen Leon Guerrero, Guam Department of Corrections (DOC) Director Alberto Lamorena, Trainer Michael G. Santos, U.S. Attorney Alicia Limtiaco, DOC Corrections Social Work Administrator Therese Tayama, and DOC Clinical Psychologist Dr. Patricia Taimanglo at presentations conducted by Michael G. Santos with inmates at the DOC
Friday 29 July 2016
United States and State of Oklahoma Obtain $4.7 Million Judgment Against Behavioral Health Counseling Company and Its Owner for Submitting False ClaimsRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma, and E. Scott Pruitt, Attorney General for the State of Oklahoma, jointly announce that a judgment for $4,752,101.50 has been entered against LXE Counseling, LLC ("LXE") and Lexie Darlene George a/k/a Lexie Darlene Batchelor ("Batchelor") in a civil qui tam "whistleblower" lawsuit for submitting false claims related to behavioral health counseling to Medicaid patients in Oklahoma.
LXE is an Oklahoma limited liability corporation headquartered in Atoka, Oklahoma, that provides behavioral and mental health counseling in various offices throughout the state. Batchelor is the owner and CEO of LXE. LXE and Batchelor provided behavioral health psychotherapy and rehabilitation services to those who could not afford medical services under Oklahoma Medicaid ("SoonerCare"), which is a jointly funded program by the federal and state government administered by the Oklahoma Health Care Authority ("OHCA").
On November 5, 2015, the United States and State of Oklahoma intervened in the lawsuit styled United States and State of Oklahoma ex. rel. Pittman, et al., v. LXE Counseling, LLC, et al. (Case No. CIV-13-1129-R) and asserted claims for violations of the federal False Claims Act, the Oklahoma Medicaid False Claims Act, the Oklahoma Medicaid Program Integrity Act, and common law claims. The judgment entered today was on the government’s specific claims that LXE and Batchelor submitted or cause to be submitted the following false Medicaid claims to OHCA:
a. claims for services provided by persons not qualified to provide those services;
b. claims for services where the defendants altered dates or times of services or altered service codes to make otherwise ineligible claims eligible for reimbursement;
c. claims for face-to-face services that were double-billed for the same dates and times by the same person (i.e. using variations of Defendant Bachelor’s name);
d. claims for face-to-face services performed by Batchelor while she was instead attending a funeral, a wedding, or on trips;
e. claims for telemedicine services when LXE and its providers were not authorized or approved by OHCA to provide telemedicine services; and
f. claims for rehabilitation services provided to patients who never received any psychotherapy services, despite representations on LXE’s treatment plans that these services were necessary and OHCA regulations that only allows rehabilitation services to be provided as adjunct services to compliment psychotherapy.
United States District Judge David Russell entered a judgment today against LXE and Batchelor for a total of $4,752,101.50. Of that amount, $4,631,101.50 is for triple the amount of false claims and $121,000 is for penalties, as provided under the False Claims Act and the Oklahoma Medicaid False Claims Act. In addition to the monetary judgment, LXE and Batchelor entered into an agreement with United States Department of Health and Human Services Office of Inspector General whereby each of them will be excluded nationally from participation in the Medicaid and Medicare programs for five years.
This case is the result of a joint investigation by the Oklahoma Medicaid Fraud Control Unit and the United States Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Bob Troester and Amanda Johnson together with Assistant Attorneys General Niki Batt and Christopher Robinson.
U.S. Attorney’s Office Will Not Pursue Criminal Civil Rights Charges in Death of Adams County RancherRead the Press Release
BOISE – The U.S. Attorney’s Office for the District of Idaho announced today that there is insufficient evidence to pursue federal criminal civil rights charges against Adams County deputy sheriffs Cody Roland and Brian Wood for the death of Jack Yantis on Nov. 1, 2015.
Earlier today, the U.S. Attorney’s Office notified Mr. Yantis’s family, through their attorney, of this decision.
Federal authorities conducted a comprehensive and independent investigation of the events surrounding the death of Mr. Yantis, who was shot on Highway 95 near Council, Idaho, as he attempted to assist the deputies with his injured bull. The bull had been struck by a car and the accident drew the deputies, medical personnel and Mr. Yantis to the scene. The independent investigation included a review of the materials and evidence gathered by the Idaho State Police, including reports of the thorough investigation of the shooting scene; forensic reports detailing the scientific examination of physical evidence, such as gunshot residue and ballistics evidence; the autopsy report of Mr. Yantis; the necropsy report of the bull; interviews of emergency responders and travelers present at the time of the shooting; interviews with two civilian eyewitnesses who witnessed the shooting; multiple interviews with Roland and Wood; the 911 calls and dispatch recordings for the incident; and the deputies’ histories as law enforcement officers.
No recorded audio or video evidence of the shooting exists. The investigation determined that Wood and Roland had body cameras issued by the Adams County Sheriff’s Office, but that neither body camera recorded the shooting. The investigation determined that Wood’s body camera’s memory was full and that Roland did not activate his body camera.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, Title 18, U.S. Code, Section 242, federal prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. In this investigation, the right involved was Mr. Yantis’s Fourth Amendment right to be free from an unreasonable seizure, which includes the right to be free from unreasonable physical force by law enforcement officers.
To prove that a shooting violated the Fourth Amendment, federal prosecutors must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force be judged from the perspective of a reasonable officer on the scene, and not from the added perspective of hindsight. The law set forth by the U.S. Supreme Court requires consideration of the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
In addition, to prove that a shooting violated section 242, federal prosecutors must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something that the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident, or even exercised bad judgment.
Mr. Yantis’s death is tragic, is a tremendous loss to his family and has had a substantial effect on the Adams County community. However, the evidence does not meet the substantial evidentiary requirements imposed by the criminal law. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the applicable federal civil rights statute.
Roland and Wood each provided multiple statements to state investigators and/or the FBI offering their versions of how and why this shooting occurred. Some statements were written and some were recorded by investigators. In addition, the deputies each separately participated in a walk-through demonstration with state investigators that was audio and video recorded. Neither the deputies’ statements nor their demonstrations of their actions in the walk-through proved that they acted willfully. Accordingly, federal prosecutors determined that in assessing whether the evidence was sufficient to prove that the deputies acted willfully, they would need to examine whether other evidence corroborated or disproved the deputies’ statements and demonstrations. They also determined that they would need to assess whether other evidence affirmatively proved that the deputies acted willfully.
Only four witnesses observed the shooting: Roland, Wood and two civilian eyewitnesses. All four eyewitnesses to the shooting were consistent on certain facts: that Mr. Yantis possessed a rifle with which he was preparing to shoot or euthanize his injured bull; that Roland and Wood also were nearby; that Mr. Yantis aimed his rifle at the bull’s head to shoot it; that there was some sort of exchange, whether verbal or physical, between one or more of the deputies and Mr. Yantis, during which Mr. Yantis moved or was moved away from the bull; that as Mr. Yantis moved away from the bull, the barrel of his rifle changed directions away from the bull; and that the deputies fired at Mr. Yantis at that point. Although the witnesses did not agree on whether Mr. Yantis’s rifle discharged, investigators determined through forensic evidence that it did. Federal prosecutors concluded that the forensic evidence and all other evidence was insufficient to resolve inconsistencies among the eyewitness statements on other topics, such as in which order the fired shots occurred and what precisely caused the movement of Mr. Yantis’s rifle away from the bull’s head. Based on all of this evidence, federal prosecutors determined that the evidence was insufficient to prove, beyond a reasonable doubt, that either Roland or Wood acted willfully with a bad purpose to violate the law. Accordingly, the Department of Justice’s review of this incident will be closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal criminal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to Mr. Yantis’s death.
In this case, the U.S. Attorney’s Office for the District of Idaho and the FBI each devoted significant time and resources to investigating the circumstances surrounding Mr. Yantis’s death and, working with the Justice Department’s Civil Rights Division, to complete a thorough analysis of the evidence gathered. The U.S. Attorney’s Office and the FBI received full cooperation from the Idaho State Police, the primary investigative agency on the incident. The U.S. Attorney’s Office, the FBI and the Civil Rights Division, together as the Department of Justice, remain committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined.
U.S. Attorney Rice Encourages Participation in National Night Out EventRead the Press Release
Concord, New Hampshire – U.S. Attorney Emily Gray Rice announces the 32nd Annual National Night Out, which will be celebrated throughout New Hampshire on Tuesday night, August 2, 2016. “We encourage citizens to join the men and women of the law enforcement agencies which protect our communities for the National Night Out in the cities and towns in our state. National Night Out is an opportunity to leave our homes, visit our neighbors and become acquainted with one another. Our communities are stronger and safer when we all work together as partners in the same effort.”
National Night Out is designed to: heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back. This year, National Night Out events will be held in several communities throughout New Hampshire. Registered events will take place in Bedford, Belmont, Concord, Dover, Farmington, Greenland, Groveton, Hartford, Laconia, Lincoln, Manchester/Rochester, Milford, Mont Vernon, Northfield, Pittsfield, Portsmouth, Salem, Somersworth.
U. S. Attorney Rice stated, “Our nation has recently experienced terrible tragedies, leaving us feeling sad and uncertain. Violence is never the answer. The solution lies in forging stronger connections. We must recommit ourselves to doing everything possible to bridge divides, heal rifts, and build trust, and to ensure that all of our neighbors, including our first responders, feel respected, supported, and safe.”
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
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U.S. Attorney Ortiz Announces Partnership with Lowell High-Risk Reentry InitiativeRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced today that her Office will partner with the Office of Middlesex County Sheriff Peter Koutoujian to create the Lowell High-Risk Reentry Initiative. Drawing on their experience with reentry programs throughout the Commonwealth, the U.S. Attorney’s Office and the Middlesex County Sheriff’s Office convened the initiative together with the Middlesex County District Attorney’s Office and Lowell Police Department, in an effort to assist individuals being released from prison and prevent them from re-engaging in criminal conduct.
“Our criminal justice system must be focused just as much on preventing crime as in punishing past criminal conduct,” said United States Attorney Carmen M. Ortiz. “It is essential for public agencies to assist individuals released from prison in finding a new way of life when they return to their communities. This means lawful employment, stable housing, critical healthcare, and the other essential elements of a productive life. We look forward to the interagency and community partnerships that will measurably contribute to a decrease in crime and improvement in the quality of life for Lowell residents.”
The Lowell High-Risk Reentry Initiative is part of a nationwide trend to reform the paradigm of punishing repeat criminals with more prison time. A 2010 Harvard University study of Massachusetts county jail high-risk reentry programs, funded by the District of Massachusetts’s Project Safe Neighborhoods grant, compared recidivism rates of county jails that offer pre-release programs for inmates with jails that do not offer the programs. The results of the study revealed a 23 percent reduction in violent recidivism rates for program participants versus those who did not take part in the initiatives.
Through the Lowell High-Risk Reentry Initiative, federal, state, and local law enforcement join forces with social service agencies, mental health and substance abuse providers and faith-based organizations to tackle the complexities associated with reentry into the community after incarceration. Team members with the Lowell High-Risk Reentry Initiative will work with an average of 80 to 90 high-risk inmates per year.
High-risk prisoners participating in the reentry program will be provided with information at bi-monthly meetings regarding pre- and post-incarceration services, as well as the consequences of reoffending. For many, reoffending could result in significant state or federal prison sentences.
Through the Lowell High-Risk Reentry Initiative, participants will be offered “wrap-around” services, receiving focused assistance from social service providers, probation officers and others to ensure accountability and continuity of care. They will be provided enhanced opportunities to participate in employment training, education programs, substance abuse and mental health treatment. Prior to release, participants will be encouraged to build relationships with individuals representing resources that are needed for success on the outside, including the probation officer who is a crucial component of the program. Participants will undergo intense supervision upon release from prison to ensure greater success and accountability.
The Lowell High-Risk Reentry Initiative’s social services and mental health partners include: Career Center of Lowell, Community Teamwork, Lowell House, South Bay Day Services (Lowell Mental Health), Greater Lowell Workforce Development Board, UTEC, South Bay Community Services, Middlesex Community College, and Place of Promise. Middlesex County Superior Court Probation, Lowell District Court Probation and the Massachusetts Department of Revenue are also partners in the initiative.
The Lowell High-Risk Reentry Initiative’s model is based on the award-winning Boston Reentry Initiative (BRI), which has achieved measurable success and national attention for its model of recidivism reduction. Both programs focus their resources on inmates who pose the greatest risks to reoffend.
Two Toledo men charged with a federal hate crime for beating African-American stranger they saw on the streetRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General for the Civil Rights Division Vanita Gupta, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division, U.S. Attorney Carole S. Rendon of the Northern District of Ohio, Toledo Police Chief George Kral and Lucas County Prosecutor Julie Bates.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past A.W. on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted to Facebook that the attack was “in the name of the White Race.”
“These individuals engaged in a violent assault against another person based on his race and now will be held accountable,” Anthony said. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
“These defendants launched an unprovoked attack on an African-American man based solely on his race,” Rendon said. “There is no place for racial violence in our society and these two men will be held accountable.”
Kral said: “The Toledo Police Department is committed to protecting all citizens from those who chose to pray on them. Whenever a crime is motivated simply because of the victim’s race it makes the crime all the worse. I commend the United States Attorney’s Office for the charging of this person as they see fit. I want to let the citizens of Toledo know that we will work tirelessly to protect their interest at the local, state and federal level.”
A complaint is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with Toledo Police Department and Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Two Orlando Men Plead Guilty to Robbing Publix SupermarketsRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Cecil Dante Buckner (36) and Jarmen Lindell Sharp (34), both of Orlando, pleaded guilty to conspiracy to interfere with interstate commerce by robbery, and two substantive counts of interference with interstate commerce by robbery. Buckner also pleaded guilty to two counts of brandishing a firearm during and in relation to the robberies. Sharp faces a maximum penalty of 20 years’ imprisonment. Buckner faces a minimum penalty of 32 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning no later than February 28, 2014, and continuing through on or about April 23, 2014, Buckner, Sharp and another individual conspired to rob Publix supermarkets in Orange and Volusia Counties. Specifically, on February 28, 2014, the two and their co-conspirator robbed the Publix located at 2295 Aloma Avenue, in Winter Park; on March 16, 2014, robbed the Publix located at 7640 West Sand Lake Road, in Orlando; and on March 30, 2014, robbed the Publix located at 2410 South Woodland Boulevard, in DeLand. During each of the robberies, Buckner and a co-conspirator wore masks and gloves to conceal their identities. Buckner held store customers and employees at gunpoint at the front of the stores, while the co-conspirator forced store employees into the cashier room at gunpoint and stole cash. Sharp acted as the “lookout” during each of the robberies, waiting in the parking lot of the stores to alert Buckner and the co-conspirator in the event law enforcement arrived. In total, Buckner, Sharp, and their co-conspirator stole over $24,000 from Publix as a result of these robberies.
Additionally, on May 4, 2016, Buckner and another individual robbed the Publix supermarket located at 2515 Thonotosassa Road, in Plant City. During that robbery, Buckner held store customers and employees at gunpoint while the other individual forced a store employee into the cashier room, at gunpoint. As a result of this robbery, Buckner and the other individual stole over $18,000 from Publix.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, the Winter Park Police Department, and the Deland Police Department. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
Two Ohio Men Charged with Hate Crime for Beating African-American ManRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, Ohio, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General of the Civil Rights Division Vanita Gupta, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past A.W. on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.
The beating stopped only when two off-duty Ohio State Police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted to Facebook that the attack was “in the name of the White Race.”
A complaint is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and Lucas County, Ohio, Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Butler Complaint
Two Former Delaware Residents Charged in $270,000+ Tax Fraud SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by the Grand Jury, charging Tanisha Gregory, age 34, and Nduka White, age 32, formerly of Newark, Delaware, with False Claims Conspiracy, Mail Fraud, and Social Security Fraud. Both defendants face up to 20 years in prison, 3 years of supervised release, in addition to possible fines and restitution.
The Indictment alleges that, from February 2012 through June 2015, Gregory and White conspired with one another to defraud the United States by filing false tax returns using other people’s identities. It is alleged that the defendants obtained unauthorized access to the names and social security numbers of at least 50 people, in Delaware and elsewhere. The defendants used this identification information to file false tax returns with the Internal Revenue Service (IRS), claiming more than $270,000 in refunds for the 2011 through 2014 tax years. According to the Indictment, the defendants attempted to conceal their receipt of the refunds, by transferring the proceeds through bank accounts and prepaid debit card accounts in other people’s names. The defendants are alleged to have received more than $130,000 from the IRS on account of the false returns.
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Lauren Paxton. The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.