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19 September 2016
Oregon Man Sentenced to 18 Years in Prison for Receipt and Possession of Images of Child RapeRead the Press Release
A man originally from the State of Oregon was sentenced today in U.S. District Court in Seattle to 18 years in prison and lifetime supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes. JOHN EVERETT KAMPH, 42, has a prior conviction in Oregon for the sexual molestation of a 6-year-old girl. That prior conviction results in a mandatory minimum fifteen-year prison term. U.S. District Judge James L. Robart imposed an 18-year sentence saying he “needs to protect the public from the defendant.”
According to records filed in the case, KAMPH came to the attention of law enforcement when his internet service provider linked KAMPH’s email account to the receipt of images of child sex abuse. When the Seattle Police Department executed a court-authorized search warrant on KAMPH’s electronic devices, they found more than 600 images of child sexual abuse. The investigation revealed that KAMPH had not produced those images, but he had produced a video using his dog to interact with young children. In what appears to be a Seattle park, KAMPH uses his dog to attract young children and positions dog treats and the camera in such a way that he focuses on the children’s underwear.
KAMPH was arrested in Seattle in September 2015. KAMPH had failed to register as a sex offender as required by law due to his 1997 conviction for sexual abuse of a minor. He had been living in an RV in the upper parking lot at Seattle’s Woodland Park and was working at a restaurant at the north end of Lake Union.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Seattle Police Department’s Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.
Old Town Woman Sentenced to 5½ Years for Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Fern Dowling, 40, of Old Town, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 5½ years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute cocaine base, commonly known as “crack.”
According to court records, between January 2010 and August 2013, the defendant distributed 7.8 kilograms of crack in Penobscot County and elsewhere. She sold half-gram bags for $50 and gram bags for $100. She transferred the proceeds of her sales to her source of supply in the New Haven, Connecticut area and got cash and crack in exchange. Members of the conspiracy from New Haven included members of the Red Side Guerilla Brims, a violent street gang affiliated with the Almighty Blood Nation, a national street gang.
The case was investigated by the Maine Drug Enforcement Agency and the New Haven, Connecticut Office of Bureau of Alcohol, Tobacco, Firearms and Explosives, and the City of New Haven Department of Police Services.
North American Health Care Inc. to Pay $28.5 Million to Settle Claims for Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Chairman of the Board and Senior Vice President of Reimbursement Analysis to Pay an Additional $1.5 Million
North American Health Care Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon, have agreed to pay a total of $30 million to resolve allegations that they violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary rehabilitation therapy services provided to residents at NAHC’s skilled nursing facilities (SNFs), the Department of Justice announced today. Under the settlement agreement, NAHC has agreed to pay $28.5 million. Mr. Sorensen has agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000.
“Medicare patients and those insured by TRICARE are entitled to receive care necessary for their clinical needs and not the financial needs of their health providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Health care providers will be held accountable if they bill for unnecessary services or treatment.”
NAHC is a private, for-profit company headquartered in Orange County, California, that has service agreements to operate 35 SNFs, most of them in California. The SNFs provide inpatient rehabilitation services, including physical, occupational, and speech therapy, to patients. The United States contends that NAHC caused false claims to be submitted to Medicare and TRICARE, seeking payment for medically unnecessary rehabilitation therapy services provided to residents at the NAHC facilities.
The United States further contends that Gelvezon, in her capacity as an officer of NAHC, contributed to this conduct by creating the improper billing scheme. The government also contends that Sorensen, in his capacity as chairman of the board of NAHC, reinforced this scheme at the NAHC facilities. The United States contends that this conduct occurred during the period from Jan. 21, 2005, to Oct. 31, 2009, for all of the NAHC SNFs and continued during the period of Nov. 1, 2009, to Dec. 3, 2011, for three of the SNFs in the Northern District of California area.
“This office is committed to safeguarding the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “Skilled nursing facilities such as NAHC treat some of the most vulnerable patients in the health care system. These facilities, and the individuals who run them, will be held accountable when they provide treatment based on financial motivations instead of the patients’ needs.”
“Providing medically unnecessary services to this fragile population can be taxing both for the patient and the program,” said Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan. “Today’s settlement should send a message to others who may be engaging in these schemes that we will pursue justice for our beneficiaries and the programs.”
As part of this settlement, NAHC has also entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA applies to all facilities managed by NAHC and requires an independent review organization to annually review therapy services billed to Medicare.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.6 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, HHS-OIG and the FBI.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
New York Restaurant Entrepreneur Pleads Guilty to Ten-Year Investment Fraud Scheme and Tax EvasionRead the Press Release
Defendant Deceived Investors, Diverted Funds and Dodged Tax Obligations
A Watertown, New York, food and restaurant entrepreneur and franchisor pleaded guilty today to one count of wire fraud and one count of tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.
According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors, as well as a scheme to evade taxes and obstruct the Internal Revenue Service (IRS).
“Mr. Swartz used his business enterprises to steal from lenders, investors, and the United States, hiding behind an elaborate web of entities and financial transactions,” said Principal Deputy Assistant Attorney General Ciraolo. “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.”
“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian. “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”
“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office. “Mr. Swartz’s conviction serves as warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”
Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high interest rates and ownership interests in his companies. Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew would bounce. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.
As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain. Swartz misappropriated and diverted a substantial portion of the funds. Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds. Swartz purported to secure some of the notes with fictitious and forged rebate agreements.
Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income. Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses. He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017. Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes.
The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales. Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims. According to court documents, the number of victims may be in excess of 130.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Restaurant Entrepreneur Pleads Guilty to Ten-Year Investment Fraud Scheme and Tax EvasionRead the Press Release
WASHINGTON – A Watertown, New York food and restaurant entrepreneur and franchisor pleaded guilty today to one count of wire fraud and one count of tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.
According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors, as well as a scheme to evade taxes and obstruct the Internal Revenue Service (IRS).
“Mr. Swartz used his business enterprises to steal from lenders, investors, and the United States, hiding behind an elaborate web of entities and financial transactions,” said Principal Deputy Assistant Attorney General Ciraolo. “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.”
“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian. “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”
“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office. “Mr. Swartz’s conviction serves as warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”
Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high interest rates and ownership interests in his companies. Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew would bounce. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.
As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain. Swartz misappropriated and diverted a substantial portion of the funds. Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds. Swartz purported to secure some of the notes with fictitious and forged rebate agreements.
Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income. Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses. He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017. Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes.
The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales. Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims. According to court documents, the number of victims may be in excess of 130.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Navajo Man from Shiprock Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Harrison Cambridge, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 42 months in prison followed by 15 years of supervised release for his conviction on an abusive sexual contact charge. Cambridge will also be required to register as a sex offender after he completes his prison sentence.
Cambridge was arrested in Dec. 2015, on a criminal complaint alleging that he sexually abused a Navajo child under the age of 12 on Dec. 20, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Cambridge was indicted on Jan. 14, 2016, and charged with abusive sexual contact of a child under the age of 12. On March 31, 2016, Cambridge entered a guilty plea to the indictment.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
National Prescription Opioid and Heroin Epidemic Awareness Week to Examine Oregon EpidemicRead the Press Release
PORTLAND, Ore. – On Wednesday, September 21, 2016, leaders from local, state, and federal law enforcement and public health agencies will co-host “Taking Stock,” a roundtable discussion examining Oregon’s prescription opioid and heroin epidemic.
“The Department of Justice plays a critical role in building community coalitions to fight this epidemic, said Billy J. Williams, United States Attorney for the District of Oregon. This country is facing a crisis of heroin and opioid overdose deaths. We cannot arrest our way out of an epidemic that is causing such preventable loss of life. We must work together in Oregon to save lives through innovative partnerships between public safety and health. This event is a step forward in our effort to support a coordinated response across all elements of government and the private sector to address not only drug enforcement, but also prevention and treatment.”
The U.S. Attorney’s Office, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and the Oregon Department of Justice will meet with local law enforcement and public health leaders to discuss issues surrounding the crisis. Opening remarks will be provided by U.S. Attorney Williams and Oregon Attorney General Ellen Rosenblum. Participants will also have the opportunity to hear perspectives from the Oregon Medical Examiner’s Office, the Oregon High Intensity Drug Trafficking Area Program (HIDTA), the Tri-County Public Health Departments, Lines for Life, and the DEA.
The roundtable discussion will take place at the Oregon Department of Justice in Portland from 8:00AM to 12:00PM. Members of Oregon’s law enforcement and public health communities are invited to attend. For event information, please contact Suzanne Hayden, Assistant U.S. Attorney, at [email protected] or (503) 727-1000.
This event is being held in conjunction with the National Prescription Opioid and Heroin Epidemic Awareness Week to raise awareness of the growing epidemic of opioid and heroin abuse in the U.S. For more information, please visit http://go.usa.gov/xKwCG.
National Heroin & Opioid Awareness WeekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-As prescription opioids and heroin continue to take a tragic toll on too many Americans and their families, U.S. Attorney William J. Hochul Jr. joined with the Drug Enforcement Administration for the start of Prescription Opioid and Heroin Epidemic Awareness Week.
“Each year, more Americans die from a drug overdose than in traffic accidents,” said U.S. Attorney Hochul. “This epidemic continues to take a heartbreaking toll on our local community. “To date, there are 150 confirmed opioid-related deaths in Erie County and 74% of those deaths involved fentanyl.”
In 2014, over 27,000 lives were lost to heroin and opioids in the United States, and reports indicate that number increased in 2015 and this year. The largest number of deaths came from the abuse of prescription opioids, but the number of heroin deaths, including heroin laced with fentanyl, has increased dramatically over the last several years.
The Department of Justice has designated September 19-23, 2016 as Prescription Opioid and Heroin Epidemic Awareness Week. The fight against this deadly epidemic involves a three-pronged approach: prevention; enforcement; and treatment. The goal of enforcement is to reduce the supply of these deadly substances.
U.S. Attorney Hochul further stated “Here in Western New York, we work closely with our partners at all levels, federal, state and local.” “We have prosecuted street dealers, gang members who sell drugs, doctors and other health care professionals. But we cannot arrest our way out of the problem. We will continue to join forces with our community partners in the medical, public health, prevention and treatment fields until we loosen the grip of this deadly epidemic.”
U.S. Attorney Hochul encourages all in our community to:• Have meaningful conversations with your family about the dangers of heroin and opioid abuse, it can happen to anyone.
• Get involved in activities in the community against heroin and opioids.
• Contact law enforcement if you suspect drug-related activity in your neighborhood.
• If you have prescription opioids in your home, make sure they are safely locked away.To further raise awareness about this epidemic, on Thursday, September 22, 2016, the U.S. Attorney’s Office is partnering with the Better Business Bureau of Upstate NY to present “Opiates in the Workplace.”
This two-hour event is free and open to all businesses in WNY. Employers can learn how to recognize the signs of addiction and ways to assist employees.
For more information and to register, go to http://bbbupstateny.org/opiates-workplace-registration/.
Mexican Citizen Sentenced to over Two Years in Prison for Identity TheftRead the Press Release
A woman who stole the identity of a United States citizen was sentenced Friday to more than two years in federal prison.
Elida Yepez-Alvarez, age 32, a Mexican citizen illegally residing in Marshalltown, Iowa, received the prison term after a June 23, 2016, guilty plea to one count of misuse of a Social Security Number and one count of aggravated identity theft.
The evidence showed that Yepez-Alvarez was convicted in the United States District Court for the Southern District of Iowa in 2006 of illegally using the name and Social Security Number of a United States citizen to obtain employment in Marshalltown. In September 2008, an immigration court ordered Yepez-Alvarez to depart the United States by January 7, 2009, but she failed to leave the country as ordered. On November 3, 2014, Yepez-Alvarez illegally used the name and Social Security Number of a different United States citizen to obtain employment in Tama. On May 17, 2016, Yepez-Alvarez was arrested by immigration agents in Marshalltown. At that time, Yepez-Alvarez turned over to agents a Social Security card, a Missouri identification card bearing her photo, and a birth certificate all in the name of the U.S. citizen whose identity she knowingly used.
Yepez-Alvarez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Yepez-Alvarez was sentenced to 28 months imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Yepez-Alvarez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-37.
Follow us on Twitter @USAO_NDIA.
Media Advisory: Tackling the Opioid & Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office, in partnership with the Eastern Iowa Heroin Initiative, Mason City Police Department, Cerro Gordo Sheriff’s Office, Prairie Ridge Integrated Behavioral Healthcare, and Mason City Youth Task Force has scheduled a community event on September 21st to discuss the heroin epidemic making its way into Eastern Iowa and beyond. It is estimated that there are over 100 overdoses deaths each day, with more than three out of five overdose deaths involving opioids. The greater Mason City area and surrounding communities are not immune to this threat.
Viewed as a national challenge requiring a community solution, the meeting will bring the community together to exchange information and to discuss strategies to address the epidemic plaguing our state. A special showing of the FBI and DEA documentary, Chasing the Dragon: The Life of an Opiate Addict, will be shown. This 49-minute film presents a compilation of heart-wrenching first-person accounts by addicts and family members of addicts about their experiences. A “Call to Action” will be introduced to the community by the Eastern Iowa Heroin Initiative. Visit: www.faceboook.com/EasternIowaHeroinInitiative, to learn more.
A representative from the U.S. Attorney’s Office will be present. The event is open to the public.
Event Details
When: Wednesday, September 21, 2016
Where: The Music Man Square, 308 S. Pennsylvania Ave., Mason City, IA 50401
Time: Begins at 6:00 p.m., and ends at 8:00 p.m.
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected].
Manager in Timeshare Resale Fraud Scheme Sentenced to Nine Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Chima Edozie Aligwekwe (34, Orlando) to nine years in federal prison for conspiracy to commit mail fraud and wire fraud for his role as a manager in a timeshare resale fraud scheme. The Court also entered a money judgment against Aligwekwe in the amount of $704,326.55, which represents the total amount of money fraudulently obtained as a result of the scheme. Aligwekwe was found guilty by a jury on June 10, 2016.
According to testimony and evidence presented at trial and sentencing, Aligwekwe acted as a manager for a company named “Timeshare Title Services LLC” that operated in Orlando. Representatives of the company, known as “callers,” made unsolicited phone calls to timeshare owners throughout the country, falsely claiming that a buyer existed for their timeshares. The timeshare owners were told that buyers had deposited money into an escrow account for the purchase of their timeshares, and they received documents from the companies that appeared to be legitimate timeshare sales contracts. Ultimately, the timeshare owners were told to send advance fees to the companies to finalize the sales. Numerous timeshare owners made advance fee payments to the companies but received no services and their timeshares were never sold. Aligwekwe provided customer lead information for the timeshare owners and managed a team of “callers” for Timeshare Title Services LLC. In just a three-month period, more than $500,000 in timeshare owner payments were deposited into bank accounts for the two companies. During this period, Aligwekwe personally received over $120,000 from the victims of this fraud scheme.
On August 25, 2016, another participant in the scheme, Eugene Warren Brewington (34, Orlando) was also sentenced to nine years in federal prison.
This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Kara M. Wick.
Man Sentenced to 37 Months for Providing False Information During Firearm PurchaseRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Nana Kofi Baffoe, 63, was sentenced to serve 37 months in prison following his conviction on two charges of making false statements related to the purchase of firearms.
Baffoe previously pleaded guilty on June 14, 2016. According to documents that were filed in United States District Court and statements in the plea proceeding, on February 4, 2015, Baffoe purchased two Ruger .45 caliber pistols from a federally licensed firearms dealer in Hudson, New Hampshire. In purchasing these handguns, Baffoe filled out a form stating that he resided at a location in Manchester, New Hampshire. A subsequent law enforcement investigation showed that this statement was false. At the time of the purchase, Baffoe was residing in Canada. He never resided at the address in Manchester. Under federal law, the firearms dealer could not have lawfully sold these handguns to Baffoe if he was not a resident of New Hampshire.
Baffoe, who also has used the name John A. Baffoe, is originally from Ghana, but is a citizen of Canada and the United States. He originally was arrested on May 26, 2015. According to an affidavit previously filed in federal court, Baffoe entered the United States from Canada at a border crossing on May 18, 2015. A few days later, he met with a firearms dealer in Nashua, New Hampshire and sought to purchase 100 handguns. However, he was arrested before that larger transaction could take place.
Baffoe was sentenced by Chief United States District Judge Joseph Laplante. After serving his prison sentence, Baffoe will be placed on supervised release for two years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department, Nashua Police Department, the New Hampshire State Police, the Office of Inspector General of the Social Security Administration, the U.S. Department of Commerce, Homeland Security Investigations, and the U.S. State Department. It was prosecuted by Assistant United States Attorney John J. Farley.
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Major Narcotics Supplier for New Jersey Drug Trafficking Organization Sentenced to 25 Years in PrisonRead the Press Release
TRENTON, N.J. – A Jersey City, New Jersey, man was sentenced today to 300 months in prison for supplying heroin and cocaine to a large-scale drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 37, was previously convicted of four counts of an indictment charging him with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property. Shannon was convicted following a two-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Between March and May 2014, 21 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the 22 individuals charged, 21 have been convicted to date.
According to documents filed in this case and the evidence presented at trial:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey.
The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the packages to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged and prepared the narcotics for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms in furtherance of the drug trafficking conspiracy, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
In addition to the prison term, Judge Sheridan sentenced Shannon to five years of supervised released.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark; officers of the Brick Township Police Department, under the direction of Chief James Riccio: and officers of the Toms River Police Department, under the direction of Chief Mitchell A. Little, with the investigation leading to today’s verdict.
He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato.
He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, and Long Branch police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Edward Bertucio Esq., Eatontown, New Jersey
MEDIA ADVISORY-- DOJ Officials and Tribal Leaders to Discuss Impact of Heroin and Opioid Epidemic on New Mexico’s Tribal CommunitiesRead the Press Release
HOPE Initiative’s National Heroin and Opioid Awareness Week Event to be Held on September 20, 2016 at Indian Pueblo Cultural Center in Albuquerque
ALBUQUERQUE – The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office, is hosting a series of education events during National Heroin and Opioid Awareness Week, Sept. 19-24, 2016. Bruce G. Ohr, Associate Deputy Attorney General and Director of DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, will participate in the HOPE Initiative’s events.
The HOPE Initiative’s Awareness Week events will include a listening session during which Justice Department officials will hear from tribal leaders from the New Mexico tribes most deeply affected by the national heroin and opioid epidemic. At 2:00 pm on Sept. 20, 2016, tribal leaders and police chiefs from the Eight Northern Indian Pueblos will meet with Associate Deputy Attorney General Ohr and U.S. Attorney Damon P. Martinez at the Indian Pueblo Cultural Center in Albuquerque, N.M., to discuss the devastating impact heroin and opioids have had on tribal communities in northern New Mexico. Indian Health Services (IHS) physicians who provide care to New Mexico's Native American population and medical professionals from the UNM Health Science Center who provide pain and addiction training to IHS providers throughout the country will participate in the discussion.
Tribal leaders, DOJ officials, and medical professionals from the UNM Health Sciences Center will be available to meet with the media at 3:30 p.m. at the Indian Pueblo Cultural Center following the listening session. Discussion details from this event will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
WHO:
DOJ Officials, Tribal Leaders and UNM Medical Providers will be available to speak with the media at 3:30 pm following the listening session.
Participants in Listening Session (in formation)
Associate Deputy Attorney General Bruce G. Ohr
U.S. Attorney Damon P. Martinez
Gil Vigil, Executive Director Eight Northern Indian Pueblos, Inc.
Pojoaque Pueblo Governor Joseph Talachy
Santa Clara Pueblo Governor Michael Chavarria
Dr. Joanna G. Katzman, Director of the UNM Pain Clinic
Dr. Snehal R. Bhatt, UNM Psychiatry Center, Medical Director of Addictions and Substance Abuse Programs
Dr. Leonard Thomas, Acting Director and Chief Medical Officer, Albuquerque Area Office, Indian Health Services
Dr. Chris Fore, Director of IHS Telebehavioral Health Center of Excellence
Assistant Special Agent in Charge John Burge, BIA Office of Justice Services
Assistant Special Agent in Charge Louis Poitra, BIA Office of Justice Services
Police Chief Brenda Gonzalez, BIA Northern Pueblos Agency
Police Chief Travis LeBeaux, BIA Southern Pueblos Agency
Special Agent Craig, BIA Division of Drug Enforcement
FBI Supervisory Special Agent Benedict B. Bourgeois
Pojoaque Pueblo Tribal Police Chief Frank Rael
Santa Clara Pueblo Tribal Police Chief Roger Naranjo
WHAT:
Media Availability following DOJ Listening Session with Tribal Leaders
WHEN:
Tuesday, September 20, 2016 at 3:30 pm
WHERE:
Indian Pueblo Cultural Center
2401 12th Street NW, Albuquerque, NM
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 3:15 pm. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (cell), or [email protected].
NOTE: Reporters who cannot participate in the media availability but are interested in participating in telephone interviews conference should contact Alyssa Ferda. See contact information above.
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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Lansing, Michigan Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that THOMAS ZACHARY PETERS, age 32, of Lansing, Michigan, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3) and FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that from in or about November 2015, the exact date being unknown to the Grand Jury, until on or about June 1, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, THOMAS ZACHARY PETERS, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan, in Eaton County, on or about April 7, 2005, for the offense of Criminal Sexual Conduct-2nd Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
It further alleged that from in or about November 2015 until on or about June 1, 2016, in the Eastern District of Oklahoma, the defendant, THOMAS ZACHARY PETERS, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Michigan Department of Corrections, the Pittsburg County Sheriff’s Office, and the Unites States Marshal Service.
The statutory range of punishment for each count is not more than 10 years imprisonment, a fine of up to $250,000 or both.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the Unites States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
La Joya Housing Authority Indicted in Bid Rigging SchemeRead the Press Release
McALLEN, Texas ‐ The executive director of the La Joya Housing Authority has been indicted along with another individual for wire fraud, announced U.S. Attorney Kenneth Magidson.
Juan Jose Garza, 48, and Armando Jimenez, 52, were arrested Friday. This morning, the two men made their initial appearances before U.S. Magistrate Judge Dorina Ramos.
Garza is the executive director of the La Joya Housing Authority. The indictment alleges that from July 2012 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. Garza and Jimenez allegedly submitted false bids so that Jimenez Construction would be awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza, according to the charges.
If convicted, each faces up to 20 years in prison and a possible $250,000 maximum fine.
The Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
An indictment is merely an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
KC Man Pleads Guilty to Bank Fraud ConspiracyRead 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 his role in a bank fraud conspiracy in which he operated a flop house where he paid drug addicts for stolen identity information that was used to create counterfeit checks.
Tyler Sutton, 54, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit bank fraud, possession of counterfeit securities, possession of stolen mail, and identity theft. Sutton also pleaded guilty to two counts of aggravated identity theft.
Sutton was a property manager residing in the 400 block of Gladstone Boulevard in Kansas City, although he only paid rent for one month and was evicted in October 2014. He used the house to conduct his illegal business by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers and bank account information. Sutton often allowed the addicts to stay at the residence.
Sutton also unlawfully obtained identity and account information belonging to other persons and businesses by stealing these items from businesses and from the mail. Sutton and co-conspirators used the stolen identity information to create counterfeit identifications and checks, which were cashed at retail stores and financial institutions.
Sutton did not usually create counterfeit identifications and checks himself, nor did he personally present counterfeit identifications and cash checks. Rather, he instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, Sutton attempted to insulate himself from liability.
Sutton admitted that the intended loss amount was $83,981.
Co-defendants Gary K. Keesler, 37, and Chad M. Mills, 28, both of Kansas City, Mo., and Christopher Hite, 33, of Windsor, Mo., have pleaded guilty to their roles in the conspiracy and have been sentenced.
Under federal statutes, Sutton is subject to a sentence of up to five years in federal prison without parole for the conspiracy, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. 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 Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Justice Department Settles with 30 Hop Restaurant and Bar in Iowa to Resolve Americans with Disabilities Act ViolationsRead the Press Release
The Justice Department filed a proposed consent decree today with 30 Hop restaurant and bar in Coralville, Iowa, resolving claims that the establishment violated the new construction requirements of Title III of the Americans with Disabilities Act (ADA).
The ADA requires newly constructed facilities to comply with the ADA Standards for Accessible Design. 30 Hop, which opened for business in 2014, is a newly constructed multi-story restaurant and bar with a rooftop patio. The department’s complaint alleges that 30 Hop does not provide an accessible route to the rooftop patio or lower level, has an inaccessible entrance, has no accessible dining tables and has inaccessible bathrooms.
“All newly constructed restaurants and bars must be readily accessible to and usable by individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend the owners of 30 Hop for cooperating with the Justice Department and for taking swift action to remedy the alleged ADA violations.”
Under the consent decree, which is subject to court approval, the owners of 30 Hop will, among other things, install an elevator between the ground floor and rooftop patio, install a platform lift between the ground floor and the lower level, provide accessible dining surfaces in each area of the restaurant and bar, provide closed risers on the staircase to the rooftop patio, increase the maneuvering clearance at the entrance door, bring the bathrooms into compliance with the ADA requirements for newly constructed facilities, pay a $17,500 civil penalty and pay $3,500 to compensate an individual with a disability who is not able to access the rooftop patio.
The agreement will last for two years. To learn more about the ADA, call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or visit www.ada.gov.
30 Hop Consent Decree
Justice Department Announces over $10 Million to Improve Substance Abuse Treatment for Justice-Involved PeopleRead the Press Release
Deputy Attorney General Sally Q. Yates today announced awards totaling more than $10.8 million to assist 162 state, tribal and local government agencies to improve evidence-based substance abuse treatment programs for incarcerated inmates, as well as to prepare justice-involved individuals for reintegration into local communities. The grants were announced during a visit by Deputy Attorney General Yates to a Bureau of Prisons Community Treatment Services Program as part of Prescription Opioid and Heroin Epidemic Awareness Week.
“Cooperation and community partnerships like the ones supported by the Residential Substance Abuse Treatment Program help incarcerated individuals transitioning back to the community receive the support they need to break the cycle of addiction and have the tools they need for successful reentry” said Deputy Attorney General Yates. “These grants are a critical part of the department’s ongoing work to combat the prescription opioid and heroin epidemic and provide treatment to those in need.”
The grants are funded under the Office of Justice Programs Bureau of Justice Assistance’s Residential Substance Abuse Treatment for State Prisoners Program. This annual award provides for the development and implementation of treatment programs and aftercare services in correctional and detention facilities in all 50 states, the District of Columbia and five U.S. territories.
“Treating justice-involved individuals for substance abuse must extend beyond incarceration treatment programs to be successful,” said Assistant Attorney General Karol V. Mason. “These grants reward those state, tribal and local agencies that seek to leverage community partnerships and interagency cooperation as well to help these individuals reenter society.”
The program’s framework allows award recipients to implement three types of programs: residential, jail-based and aftercare. Awardees are required to coordinate treatment programs with state correctional professionals and alcohol and drug abuse agencies to receive grant funding. They are also encouraged to partner with community-based organizations to help continue care as justice-involved individuals reenter local communities.
An additional $485,000 was awarded to Advocates for Human Potential, Inc., to provide training and technical assistance in the development and implementation of substance abuse treatment programs.
For a complete monetary and geographical breakdown of the grants awarded under this program, visit https://www.bja.gov/Funding/16RSATAllocations.pdf.
Huntington man fifth to plead guilty for role in drug ringRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who helped lead a multistate drug ring pleaded guilty today to a federal crime, announced United States Attorney Carol Casto. Corey Bruce Toney, 27, entered his guilty plea to distribution of heroin.
On September 29, 2016, a confidential informant working at the direction of the Drug Enforcement Administration contacted Toney to arrange for the purchase of heroin. Toney agreed to meet the informant, who was accompanied by undercover agents. Toney admitted that he subsequently distributed 10 grams of heroin to the informant in exchange for $1,250. Agents were also able to make numerous additional controlled purchases of heroin from Toney and others during the course of the investigation.
Toney also admitted that from the summer of 2014 to May 2016, he conspired with others to distribute large quantities of drugs in the Huntington and Charleston areas, including heroin, crack, marijuana, and alprazolam pills, commonly known as Xanax. Toney further admitted that he maintained a leadership role in the conspiracy, and that he possessed a number of firearms during the conspiracy.
Toney faces up to 20 years in federal prison when he is sentenced on January 9, 2017.
These prosecutions arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service, which resulted in charging 12 defendants for offenses related to the distribution of heroin, crack, marijuana and alprazolam in Huntington.
Four defendants have previously pleaded guilty for their roles in this drug ring. Matthew Michael Meadows, Arthur James Canada, Tanisha Lynette Wooding, and Parker Wyatt Mays have all pleaded guilty to federal drug charges and are awaiting sentencing. All of the other defendants charged in the prosecution of this drug ring are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
These cases are being 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 illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Hunt County Man Sentenced to 262 Months in Federal Prison on Methamphetamine Trafficking ConvictionRead the Press Release
DALLAS — Adrian Sanchez, 40, was sentenced today by U.S. District Judge David C. Godbey to 262 months in federal prison following his guilty plea in March 2016 to an Information charging one count of possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, Judge Godbey ordered that Sanchez forfeit his residence on Perry Drive in West Tawakoni, Texas, as well as seven firearms that were seized by the government when they executed search warrants at his home and at a storage unit he rented. Law enforcement found methamphetamine, drug ledgers, drug paraphernalia and firearms at both locations. Sanchez has been in custody since his arrest on January 21, 2016, on a related federal criminal complaint. He is subject to deportation upon completion of his sentence.
According to documents filed in the case, Sanchez admitted that from approximately 2015 until the date of his arrest, he knowingly and intentionally possessed with the intent to distribute and distributed 50 grams or more of methamphetamine. On January 6, 2016, at a Walmart parking lot, Sanchez sold a witness one-fourth kilogram of methamphetamine for $2,250. Later the same day, Sanchez sold the witness another one-fourth kilogram of methamphetamine for the same price. Then, approximately two weeks later, after leaving his residence and then stopping at the storage unit he rented on Plano Road in Dallas, Sanchez met the witness at an AutoZone in Dallas and sold him/her one-half kilogram of methamphetamine for $4,500.
Sanchez advised the witness, according to the complaint filed in the case, that his neighbors were suspicious of his activities because he converted liquid methamphetamine to crystal methamphetamine at his home in West Tawakoni, and he believed they knew about his recrystallization laboratory because of the strong chemical odors associated with the methamphetamine conversion process.
The Drug Enforcement Administration, Hunt County Sheriff’s Office, Rockwall Police Department, Allen Police Department and Garland Police Department investigated the case. Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
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Houston, Texas Woman Pleads Guilty to Bank Fraud, False IdentificationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that STACY BORLEY BORTEY, age 26, of Houston, Texas, pled guilty to BANK FRAUD, in violation of Title 18, United States Code, Sections 1344(2) and 2 and UNLAWFUL TRANSFER, POSSESSION OR USE OF A MEANS OF IDENTIFICATION, in violation of Title 18, United States Code, Sections 1028(a)(7) and 2.
The Indictment alleged that on or about March 18, 2016, in the Eastern District of Oklahoma, the defendant did knowingly obtain moneys and funds owned by and under the custody and control of CreditONE, a financial institution as defined by Title 18, United States Code, Section 20, whose deposits were insured by the Federal Deposit Insurance Corporation, by means of false pretenses and representations, by using a unauthorized credit card. It further alleges that on the same date the defendant did knowingly possess in or affecting interstate or foreign commerce, without lawful authority, a means of identification of another person, knowing that the means of identification belonged to another actual person, with the intent to commit, or to aid or abet or in connection with, Bank Fraud.
The charges arose from an investigation by the Murray County Sheriff’s Office and the United States Secret Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Sentencing will be scheduled upon its completion. The defendant will remain in the custody of the United States Marshal Service, pending sentencing.
The statutory range of punishment for Bank Fraud is not more than 30 years imprisonment, a fine of up to $1,000,000.00 or both and for Unlawful Transfer, Possession or Use of a Means of Identification is not more than 5 years imprisonment, a fine of up to $250,000.00 or both on count 2.
Assistant United States Attorney Christopher Wilson represented the United States.
Houston Man Arrested for Attempting to Transport and Use ExplosivesRead the Press Release
HOUSTON – A 50-year-old man residing in Houston has been arrested on charges that he attempted to transport explosives for the purpose of injury or destruction of property, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Perrye K. Turner of the FBI.
Cary Lee Ogborn is charged with attempting to transport explosives with the intent that those explosives be used to kill, injure, or intimidate any individual or to damage or destroy a vehicle or building. He was arrested late Friday after picking up a package he believed contained such explosives. He is expected to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
The criminal complaint, filed upon his arrest, alleges he initiated an anonymous online order of explosive materials on a network of computers designed to conceal his true IP address. Ogborn allegedly went to an online marketplace that enables vendors and users to conduct anonymous transactions involving the sale of illegal goods.
Beginning on or around Aug. 20, 2016, Ogborn allegedly sent a private message via this network seeking items he intended to use to cause the explosion of a building. According to the complaint, Ogborn continued to communicate with someone he believed was a vendor, but whom was actually an undercover FBI employee.
Ogborn eventually placed an order for items he intended to use to destroy a vehicle and a building, according to the charges. After receiving notice that his package had arrived in his post office box, Ogborn allegedly retrieved the package and opened it.
He was arrested soon thereafter.
If convicted, he faces up to 10 years in prison and a fine of up to $250,000.
The FBI Joint Terrorism Task Force conducted the investigation with the assistance of the Montgomery County Sheriff’s Office, Houston High Intensity Drug Trafficking Area, Montgomery County Narcotics Enforcement Team and U.S. Postal Inspection Service.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Honolulu Man Pleads Guilty to Identity Theft and Admits to Fraudulent Tax Return SchemeRead the Press Release
Richard Lee Derrick, Jr., 52, of Honolulu, pled guilty today in federal court to one count of aggravated identity theft. Derrick will face a mandatory term of imprisonment of two years, a fine of up to $250,000, and restitution when he is sentenced on January 10, 2017, by United States District Judge Derrick K. Watson.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, stated that, according to documents filed with the court, Derrick engaged in a scheme by which he filed numerous fraudulent federal and state income tax returns using the personal information of others. During court proceedings, Derrick admitted to filing one such fraudulent federal tax return using his deceased wife’s social security number on February 20, 2014. As part of the plea agreement, Derrick pled guilty to the identity theft offense but also agreed that he was responsible for fraudulently obtaining $241,897.60 in refunds from the State of Hawaii. Derrick agreed to pay restitution in that amount to the State of Hawaii Department of Taxation.
The case was investigated by the Internal Revenue Service - Criminal Investigation, the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service, with the assistance of the State of Hawaii Department of Taxation, Criminal Investigation Section. The prosecution is being handled by Assistant U.S. Attorney Amalia Fenton.
Heroin and Opioid Awareness WeekRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today the start of the National Heroin and Opioid Awareness Week, which will reinforce the Department of Justice’s three-fold approach to the nationwide opioid and heroin epidemic: 1) prevention and awareness regarding the opioid and heroin problem; 2) enforcement priorities and best practices; and 3) resources that focus on treatment. This week, the Attorney General and other Department of Justice leaders, as well as U.S. Attorney’s Offices across the country, will participate in events designed to highlight and educate the public about the dangers of heroin and opioids.
On Friday, the U.S. Attorney’s Office for the Eastern District of Arkansas will sponsor a forum at North Little Rock High School, at which time health care professionals, enforcement officials, and recovering addicts will speak to students about heroin and opioid abuse.
More Americans now die every year from drug overdoses than in motor vehicle crashes—and most of those involve prescription opioids or heroin. The statistics are sobering: 80% of the world’s supply of opioid medication is used in the United States, while 4.6% of the world’s population lives in the United States. In 2014 more than 27,000 lives were lost to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. While the largest share of this toll comes from the abuse of prescription opioids, the number of deaths from heroin has increased dramatically over the last several years.
A main component of the Department of Justice’s approach to the epidemic is the enforcement prong. The Department and the Eastern District of Arkansas seek to reduce the supply of these deadly substances by working closely with other federal agencies and our state and local partners to prosecute street dealers, gang members who sell drugs, dirty doctors and pharmacists, up to the leaders of the major cartels who move large quantities of heroin and other opioids into the United States.
However, this crisis will not be solved solely through prosecutions. The heroin and opioid epidemic requires a coordinated response across all elements of government and our society, including federal, state and local law enforcement as well as medical and public health authorities, community groups and concerned citizens. Enforcement efforts are much more effective when they are part of a larger strategy that seeks to educate potential drug users and prevent their involvement with opioids in the first place, and focuses on treatment.
The Eastern District of Arkansas and other U.S. Attorneys are finding new and creative approaches to beat back the heroin and opioid epidemic. For example:
- The Drug Enforcement Administration has developed its 360 Strategy that combines targeted enforcement with efforts to fight the diversion of prescription opioids and efforts to build community coalitions against drug abuse.
- The Organized Crime Drug Enforcement Task Forces runs a National Heroin Initiative that provides seed money to federal prosecutors and agents who come up with new approaches to investigate drug trafficking groups and reduce heroin and opioid deaths.
- The Office of Justice Programs is awarding grants to public health authorities to implement and enhance the use of Prescription Drug Monitoring Programs to help track opioid prescriptions and prevent their abuse.
The President has made clear that addressing the prescription opioid and heroin epidemic is a priority for his Administration, and has proposed to invest $1.1 billion in new funding to make sure that every American with an opioid addiction who seeks treatment can get care. These new investments build on the steps the Administration has been taking to:
- promote evidence-based prevention programs;
- increase access to the overdose-reversal medicine naloxone;
- expand access to treatment, including medication-assisted treatment;
- improve opioid prescribing practices;
- carry out targeted enforcement activities; and
- support the millions of Americans in recovery.
States and communities are also working to save lives through innovative partnerships between public safety and public health. For example, first responders are using naloxone to reverse overdoses and prevent deaths; states are strengthening prescription drug monitoring programs which help detect doctor-shopping and overprescribing of opioids; and the criminal justice community is establishing programs that send people with substance abuse problems to treatment rather than jail.
Recovery from opioid and other controlled substance addictions is possible, and many Americans are able to recover because they get the treatment and care they need. But too many still are not able to get treatment. That’s why the President has called on Congress to provide the resources needed to ensure that every American with an opioid addiction who wants treatment can get it and start the road to recovery. This is an epidemic that can be confronted and defeated, but everyone has a role to play in turning the tide of this epidemic:
- Have a meaningful conversation with your family about the dangers of heroin and opioid abuse.
- Get involved in activities in your community against heroin and opioids. Many communities are hosting public forums, town halls, events at schools, vigils, walks, and similar activities.
- Contact law enforcement if you suspect drug-related activity in your neighborhood.
- If you have prescription opioids in your home, make sure they are safely locked away.
- Take advantage of drug take back days sponsored by the DEA, other law enforcement agencies, and some pharmacy chains to safely dispose of your unneeded prescription opioids.
During Heroin and Opioid Awareness Week, Americans can learn more about addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those suffering from addictions or who are in recovery—to let them know they are not alone.
Greenfield Man Sentenced to 24 Years for Enticing Teens for Illicit SexRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Greenfield, Mo., man was sentenced in federal court today for attempting to entice two teenage victims to engage in illicit sexual activity.
Christopher L. Johnson, 38, of Greenfield, was sentenced by U.S. District Judge Stephen R. Bough to 24 years and four months in federal prison without parole. The court also sentenced Johnson to a lifetime of supervised release following incarceration.
Johnson, who pleaded guilty on June 28,2016, engaged in text messages and Facebook messages that were sexual in nature with two victims, identified in court documents as Jane Doe 1, who was 16 years old, and Jane Doe 2, who was 13 years old. Johnson admitted in his plea agreement that he engaged in sexual contact with Jane Doe 1 at his residence.
According to court documents, Johnson engaged in sexual intercourse with both of the minor victims. Johnson also asked Jane Doe 2 to take sexually explicit photographs of herself to send to him. Even after the investigation with Jane Doe 2 began in June 2014, Johnson did not cease his behavior, but instead moved onto Jane Doe 1.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the FBI and the Dade County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Sentenced for Racketeering Conspiracy to Commit Violent Robberies, Murder of Off-Duty Reserve Police OfficerRead the Press Release
CHARLOTTESVILLE, VIRGINIA – Four members of a violent street gang, who were convicted of federal racketeering charges in February, were sentenced today in the United States District Court for the Western District of Virginia in Charlottesville for their roles in a RICO conspiracy that was responsible for the abduction and murder of a Waynesboro Police Department reserve officer, as well as multiple, violent armed robberies and home invasions, United States Attorney John P. Fishwick Jr. announced today.
Daniel Lamont Mathis, 20, of Charlottesville, Va., Shantai Monique Shelton, 26, of Charlottesville, Va., Mersadies Lachelle Shelton, 22, of Charlottesville, Va., and Kweli Uhuru, 25, of Winchester, Va., were each found guilty of multiple federal racketeering counts following a month-long jury trial in February.
Today in District Court, Mathis, Shantai Shelton, Mersadies Shelton and Uhuru were sentenced each to four life sentences plus an additional period of incarceration. Mathis was sentenced today to four life terms plus 132 years in federal prison. Shantai and Mersadies Shelton were each sentenced to four life terms plus an additional 82 years in federal prison and Kweli Uhuru was sentenced to four life terms plus an additional 10 years in federal prison.
“This investigation shows how dedicated the Department of Justice is to addressing violent crime and the presence of street gangs in our communities,” United States Attorney Fishwick said today. “The use of the federal RICO statute in this case allowed prosecutors to not only charge these four defendants, but other members of the gang, including those in leadership positions in Northern Virginia. Today’s sentence of multiple life terms should send a clear and loud message to those operating gang activity in central Virginia, this type of activity will lead you nowhere but federal prison.”
“This case comes at a time when our nation hears confusing messages about who in our society are the good guys and who are the bad guys. Officer Kevin Quick was one of the good guys. Thanks to United States Attorney John Fishwick and his team, our many outstanding law enforcement partners, and the Charlottesville FBI office, Officer Quick's killers have finally been brought to justice,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Division.
At trial, the evidence established that co-defendants Halisi Uhuru, Anthony Stokes and Kweli Uhuru formed the 99 Goon Syndikate, a set of the Bloods criminal street gang, while in prison. All three were released from prison in 2013. Kweli Uhuru recruited his brothers and the Shelton/Mathis siblings to join the gang in the summer of 2013 by persuading them of the easy money and respect earned as a gang member. By October 2013, this violent criminal street gang began committing criminal acts throughout Central Virginia.
Over the ensuing months, the gang members robbed convenience stores, burglarized or robbed homeowners, sold narcotics and ultimately abducted and murdered Captain Kevin Quick of the Waynesboro Police Department Reserves. Tragically, Captain Quick was in the wrong place at the wrong time on the evening hours of January 31, 2014. Quick was on his way to visit his sick child at the same time the gang wanted to commit a carjacking. When he arrived in the parking lot and exited his vehicle, the gang members abducted the unarmed Captain Quick at gunpoint and drove him to Fluvanna, where they forced him to disclose his ATM PIN code at gunpoint. After obtaining his code, the gang members took him into the woods and shot and killed him.
Two days later, gang members Daniel Mathis and Mersadies Shelton attempted to rob a Louisa homeowner who fought back after Mathis threatened a toddler and pistol whipped a female at the residence. During the melee, Mathis lost the magazine to his .40 caliber pistol and shot one of the residents while he escaped. The gang members then reached out to their leadership in Northern Virginia in an effort to escape to Montana. Halisi Uhuru sent Anthony Stokes from Manassas to Louisa in the middle of the night to bring the fellow gang members away from the scene of their crimes.
While in Northern Virginia, the leadership provided the gang members with food, shelter and helped them destroy evidence associated with the murder of Captain Quick, including the murder weapon. Law enforcement caught up with them the night they planned to escape to Montana on February 4, 2014. Two days later, Captain Quick’s body was found off a remote logging road in Goochland County, Virginia.
The investigation of the case was conducted by the Virginia State Police, the Federal Bureau of Investigation, the Louisa County Sheriff’s Office, the Albemarle County Police Department, the Charlottesville City Police Department, the Waynesboro Police Department, the Henrico County Police Department, the Gordonsville Police Department, the Goochland County Commonwealth’s Attorney’s Office, the Fluvanna County Commonwealth’s Attorney’s Office and the Prince William County Police Department. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States. Victim and Witness specialists with the United States Attorney’s Office, assisted by Victim and Witness specialists from the FBI, Albemarle County and Louisa County, provided substantial assistance in support of the prosecution.
Fostoria man charged with embezzling $42,000 from labor unionRead the Press Release
A criminal information was filed charging Aaron M. Contreras, 34, of Fostoria, with embezzlement of union funds.
Contreras, while working as financial secretary of a labor union, illegally embezzled approximately $42,700 from the union during 2015. He prepared a false financial report to conceal the embezzlement. Including ATM fees, the loss to the union was $43,293, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing 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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Department of Labor, Office of Labor-Management Standards, in Cleveland. The case is being handled by Assistant United States Attorney Tracey B. Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Massachusetts Man Pleads Guilty to Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A former Massachusetts-resident pleaded guilty on Friday, Sept. 16, 2016, in U.S. District Court in Boston in connection with running a $10 million Ponzi scheme.
Mark Anderson Jones, 64, pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in proceeds of unlawful activity. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2016.
Between 2008 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals by leading them to believe that they would be providing financing to Jamaican businesses. Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a loan was sought from Jamaican banks and the distribution of funds by those banks). However, Jones made misrepresentations to investors about the purported bridge loan investments and how their money would be used. Specifically, rather than investing in bridge loans and paying returns based on investments, Jones paid a significant amount of investment returns, or repaid investment principal, to investors from new capital provided by other investors.
For example, in January 2015, a Massachusetts-based investor invested approximately $200,000 with Jones. Later that month, Jones used approximately $180,000 of that investor’s money to pay four other investors.
U.S. Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Valuable assistance was also provided by the U.S. Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit, and Special Assistant U.S. Attorney Eric A. Forni from the SEC.
Focus on Fentanyl: Awareness week shines light on emerging threatRead the Press Release
Last month when there were nearly 30 overdoses in Huntington in just four hours, West Virginia was once again in the headlines because of a drug-related issue. But this story was different, in part because the drugs involved were much more powerful than what we’re used to seeing. What is this latest threat, what’s being done about it, and what can you do?
This is National Heroin and Opioid Awareness Week, which has been established in order to shine a light on the threat posed by this class of drugs. Opioids provide rewarding, euphoric effects that can lead to dependence and addiction. The opioid family includes prescription painkillers such as oxycodone, illicit drugs like heroin, and fentanyl, which has emerged as one of the deadliest substances being distributed today. The focus is on fentanyl this week because it has led to clusters of overdoses in our region, similar to what we saw in Huntington in August.
Fentanyl is a synthetic opioid that most of us know as an end-stage cancer drug applied via patches to the skin. But the version being sold on the streets of West Virginia is produced clandestinely in China and Mexico before it reaches the Mountain State. Fentanyl is very powerful – 100 times more powerful than morphine - and is often mixed with heroin by dealers to enhance the high experienced by users. Drug cartels are shipping large quantities of it to the United States to make up for declining marijuana profits.More deaths than ever before in West Virginia are being linked to fentanyl. The consumption of just two milligrams of the substance can be fatal. In the last two years, over 40% of those who died from a drug overdose in our state had fentanyl in their system, a number much higher than we’ve ever seen.
Carfentanil, which is not intended for human consumption but instead meant to tranquilize large animals, has also been introduced into the supply chain. This super drug is believed to have contributed to the rash of overdoses that occurred in our region over the past few months.
But as the substances get stronger, so must we, in the areas of enforcement, prevention and treatment. The task forces in West Virginia are aggressively targeting those who profit from the sale of fentanyl and other substances, and taking the steps necessary to disrupt and dismantle drug trafficking organizations. Supplemental federal funding has been secured to support local enforcement efforts. Additionally, many police departments in the state are now treating overdoses like crime scenes in order to better identify the source of supply. Prevention professionals are working diligently, and while there is still a gap in treatment resources I remain hopeful that it will soon be closed.What can you do? If you have children or grandchildren, you should reject the notion that it can't happen in your family. It can, and it has, in thousands of West Virginia households. Talk to your children about drugs; ask the tough questions; and be prepared to answer the questions that they fire back. Help them to understand that the threat posed by fentanyl and other opioids is very real, that it's here in West Virginia, and that one time is all it takes. If we arm young people with the facts, then hopefully they’ll stop and think before they take a pill or powder provided by a friend, a teammate, or a dealer.
You can also help by calling the police when you see suspicious activity, ensuring that pills in your home are properly secured, and participating in drug take back days. You can become a recovery coach and help those who are struggling with the disease of addiction, or volunteer at a hospital to help babies who have been exposed to opioids while in the womb.
Let's not allow what happened recently in Huntington to become the new normal. Instead, let's all do our part to push back against this threat and begin down a path toward a stronger and healthier West Virginia.
William J. Ihlenfeld, II, is the United States Attorney for the Northern District of West Virginia.Federal Jury Convicts San Angelo, Texas, Man on Methamphetamine Distribution and Firearms ChargesRead the Press Release
SAN ANGELO, Texas — Following a one-day trial that began this morning before Senior U.S. District Judge Sam R. Cummings, a federal has jury convicted Jesse Huerra, 31, of San Angelo, Texas, on methamphetamine distribution and firearms charges outlined in a May 2016 federal indictment, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Huerra on one count each of possession with intent to distribute 500 grams or more of methamphetamine; possession of firearms in furtherance of a drug trafficking crime; and being a convicted felon in possession of firearms.
The government filed a notice of enhancement because Huerra has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole as to the methamphetamine count. A sentencing date was not set.
Huerra has been in custody since his arrest on July 13, 2016, when numerous defendants, most from the San Angelo area, were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety (DPS) and the San Angelo Police Department. Twelve defendants, including the drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, were charged in an indictment with various felony offenses stemming from their roles in a methamphetamine distribution conspiracy that operated in San Angelo. While Castaneda’s trial date is set for November 7, 2016, most defendants have pleaded guilty to their roles and are awaiting sentencing.
The government presented evidence at trial that on December 4, 2015, the San Angelo Police Department executed a search warrant at Huerra’s residence on Estella Drive in San Angelo. After being advised of his constitutional rights, Huerra stated that he had methamphetamine in his dresser in the master bedroom and in the top bunk of his children’s bunk bed. He also stated that he had pistols in the master bedroom closet.
A search of Huerra’s residence yielded more than 1,500 grams of methamphetamine, three firearms (one with the serial number removed), and several items of drug trafficking paraphernalia. A law enforcement witness testified that the street value in San Angelo for the methamphetamine was approximately $125,000.
The DEA, Texas DPS and the San Angelo Police Department are leading the investigation, with assistance from the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security Homeland Security Investigations, and the Tom Green County Sheriff’s Office.
Assistant U.S. Attorneys Jeffrey Haag and John Eric Nickols are prosecuting the case.
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East Windsor Woman Charged with Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, has been charged by criminal complaint with making a false statement on a U.S. passport application.
DAVIS was arrested on September 17, 2016. She appeared today before U.S. Magistrate Judge Joan G. Margolis in Hartford and was ordered detained.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
DAVIS has not yet reported to prison to serve her sentence based on her repeated claims of a diagnosis of terminal cancer and heart conditions.
The complaint alleges that, in March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS without disclosing her federal fraud and identity theft convictions in probate court documents as required. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
The complaint further alleges that, on April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
The complaint also alleges that the investigation has revealed that many of DAVIS’s recent claims about her health are false. In addition, since her sentence was imposed, DAVIS has been employed at a local insurance company and local hospitals under her new identity, and she continues to receive unemployment compensation under her previous identity. She also took two cruise vacations earlier this year.
If convicted of passport fraud, DAVIS faces a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Dubuque Woman Sentenced to Prison for Obstructing JusticeRead the Press Release
A woman who lied to Deputy United States Marshals about the location of a federal fugitive was sentenced on September 16, 2016, to 10 months in federal prison.
Vivian Rochelle Weakley, age 28, from Dubuque, Iowa, received the prison term after a June 29, 2016, guilty plea to one count of obstruction of justice.
In a plea agreement, Weakley admitted that on April 19, 2016, she knew Antwain Deshaun Spratt was inside her residence in Dubuque when Deputy United States Marshals arrived at the residence looking to arrest Spratt on an outstanding federal arrest warrant. Weakley falsely denied knowing Spratt, and claimed there was no one else in the home. Shortly thereafter, Spratt was found hiding in an upstairs bedroom closet. An unloaded handgun was found in Spratt’s clothes in a hamper right outside the closet.
Weakley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Weakley was sentenced to 10 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Weakley was released on the bond previously set and is to surrender to the United States Marshal in October 2016.
The case is being investigated by the United States Marshals Service and the Dubuque Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-30-LRR.
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Dubuque Man Sentenced to over Two Years Prison for Identity TheftRead the Press Release
A man who stole the identity of another person was sentenced last Friday to more than two years in federal prison.
Peter Eli George, age 34, from Dubuque, Iowa, received the prison term after a May 2, 2016, guilty plea to one count of misuse of a Social Security Number and one count of aggravated identity theft.
The evidence showed George used a birth certificate and a Social Security card of a real person to obtain a State of Iowa identification card on June 11, 2015. On September 23, 2015, George used the documents to obtain a State of Iowa driver’s license. In January 2016, George used the fraudulent driver’s license when stopped by police in Illinois. George also used the victim’s identity when seeking medical treatment. The victim of the identity theft reported that he had his tax refunds withheld, several fraudulent lines of credit were opened up using his identity, and his medical coverage was used by someone else. When the victim confronted George by phone, George threatened the victim and told the victim to stop using his identity. George later filed a complaint against the victim with the Social Security Administration and a credit reporting agency. George had previously been convicted of forgery, theft, conspiracy to violate the drug laws, grand larceny of an auto, and taking a vehicle without owner’s consent. Three of those convictions were under another alias, the name of another real person.
George was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. George was sentenced to 30 months imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
George is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Social Security Administration, Office of Inspector General, and the Bureau of Investigation & Identity Protection, Iowa Department of Transportation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1009-LRR.
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Department of Justice Launches Inaugural National Heroin and Opioid Awareness Week, September 19-23, 2016Read the Press Release
United States Attorney Emily Gray Rice announced that the United States Attorney’s Office for the District of New Hampshire will be joining the United States Department of Justice in recognizing National Heroin and Opioid Abuse Week from September 19, through September 23, 2016.
The purposes of this week of action are to prevent further opioid overdose tragedies, focus on enforcement priorities and underscore the critical importance of treatment resources. To further these objectives, the United States Attorney’s Office for the District of New Hampshire participated in the Rally4Recovery sponsored in Manchester by Hope for New Hampshire Recovery on September 17, 2016. With the help of WMUR-TV Channel 9, United States Attorney Rice joined New Hampshire Attorney General Joseph Foster and Drug Enforcement Administration Assistant Special Agent in Charge, Jon DeLena, in producing a public service announcement sharing treatment resources. United States Attorney Rice will also appear with Manchester Police Chief Nick Willard, Attorney General Foster and DEA ASAC DeLena to bring further awareness to the crisis on Jack Heath’s New Hampshire Today program on WGIR AM 610 and The Wave 96.7 FM on Thursday, September 22, 2016.
Speaking about the week’s events, United States Attorney Rice stated: “As the public is all too well aware, our families, friends and co-workers are challenged by unprecedented levels of opioid addiction, fed by a tide of illicit drugs washing into New Hampshire. Our communities, our law enforcement partners, our public officials, our medical and public health professionals, our treatment providers and so many others are working as hard as they can, every day, to stem this tide. We are committed to working together to educate the community in order to prevent opioid abuse, to provide treatment to those who struggle with addiction and to bring to justice those who engage in the criminal conduct which floods our neighborhoods with illicit drugs and violence. For those who struggle with addiction or who know someone who is struggling, help is just a phone call away at New Hampshire’s Statewide Addiction Crisis Line, 1-844-711-HELP (4357).”
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City of Miami Resident Sentenced to More Than 4 Years in Prison for Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud SchemesRead the Press Release
A City of Miami resident was sentenced to 51 months in prison, to be followed by three years of supervised release, for possessing 242 stolen identities used in unemployment and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Miami Office, and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Yordan Gorotiza, 26, was sentenced by U.S. District Judge Paul C. Huck to 51 months in prison, to be followed by three years of supervised release, a $200 special assessment, and $33,608 in restitution, stemming from his conviction on one count of possession of fifteen or more unauthorized access devices (Social Security numbers) with intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver's license numbers and markings commonly used to represent tax or unemployment benefits filings.
Records from the Florida Department of Economic Opportunity show that between October 1, 2013 and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss attributable to Gorotiza was $281,009.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, the Aventura Police Department and the Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Canadian Man Ordered Detained Pending Federal Trial Relating to an RV Park and Immigrant Investor Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Karamchand “Raj” Doobay (42, Ontario, Canada and Orlando, Florida) with conspiracy to commit mail and wire fraud and substantive counts of mail and wire fraud. If convicted on all counts, he faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Doobay that the United States intends to forfeit $8,248,547, representing the amount of proceeds obtained as a result of the offenses, and several parcels of real property in Hamilton County, Florida, and a residence in Winter Garden, Florida, which are also alleged to be traceable to proceeds of the offenses. Doobay was arrested on September 1, 2016, and was ordered detained pending trial.
According to the indictment, Doobay operated business entities in Hamilton County, through which he acquired a parcel of land located at 7516 SE 113th Blvd., in Jasper. From about March 2009, through December 2015, Doobay solicited investors to purchase subdivided lots on the land, guaranteeing them returns between 9 percent and 41 percent for investments in RV lots and other lots for sale by his entity, Florida Gateway Resort. He utilized various bank accounts to collect funds for the purchase of RV lots that he purported to sell to investor purchasers. However, Doobay failed to disclose that he had previously contracted to sell and purportedly sold the same RV lots to other investors.
The indictment also alleges that, from about May 2011, through about May 2016, Doobay conspired to commit wire fraud by promising to immigrant investors to use their investments for the development, renovation and/or new construction of Senior Premier Living, a retirement community in the city of Jasper. In fact, Doobay used a portion of the investors’ funds to pay Florida Gateway Resort investors and for his own personal use and enjoyment. This included a withdrawal of $190,000 in immigrant investor funds on or about October 27, 2014.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Hamilton County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelly S. Karase.
Baltimore Fraudster Sentenced to Five Years in Federal Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jose Miguel Tapia, age 30, of Baltimore, to five years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft arising from several schemes in which Tapia fraudulently obtained over $130,000. Chief Judge Blake also entered an order requiring Tapia to pay restitution in the full amount of the victims’ losses, which is $132,548.85.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to Tapia’s plea agreement, from October 2010 through November 2014, Tapia devised multiple schemes to defraud financial institutions. For example, during the time of the fraud Tapia obtained the personal identification information of an individual, which Tapia used to gain access to the victim’s credit accounts. Tapia then made purchases totaling approximately $41,000 against the victim’s credit cards. In addition, Tapia submitted fraudulent applications for the financing of automobiles, using the personal information of the victim in order to qualify for the loans and to purchase the vehicles. Tapia obtained and attempted to obtain vehicles worth approximately $38,000, including a 2011 Infinity G37X luxury vehicle, which Tapia purchased on October 9, 2014, using the social security number of the victim.
From September through November 2014, Tapia and others posed as account holders of two businesses in order to gain access to their business accounts at a home improvement store. Once he gained access to the accounts, he made purchases on the accounts, and changed the phone numbers and passwords for the accounts without the knowledge and consent of the business owners. Tapia made a total of approximately $48,000 in unauthorized purchases at the home improvement store against the business accounts of the victims. To extend the scheme and have access to more credit, Tapia obtained the financial account information of a hotel. Tapia withdrew approximately $45,000 from bank accounts owned by the hotel, which he used to pay down the account balances of the victim businesses at the home improvement store. Tapia also posed as an employee of the hotel to open an account at a phone store in Fullerton, Maryland, then charged approximately $2,800 against that account, which was billed to the victim hotel.
Finally, Tapia gained access to Verizon account information of employees at a university in Baltimore, which he used to obtain approximately $9,199 in smartphones, and other goods and services.
The total actual loss to the victims as a result of Tapia’s fraudulent activities was $132,548.85.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from 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 U.S. Secret Service - Baltimore Field Office and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Albuquerque Man Sentenced to Ten Years for Discharging a Firearm During Robbery of Commercial BusinessRead the Press Release
ALBUQUERQUE – Raiff Harland Hayes, 25, of Albuquerque, N.M., was sentence in federal court this morning to 120 months in prison for discharging a firearm during the robbery of a commercial business. Hayes will be on supervised release for three years after completing his prison sentence.
Hayes was arrested on Aug. 18, 2015, on a criminal complaint charging him with violating the Hobbs Act and federal firearms laws. According to the complaint, Hayes robbed ABQ Interlock, a business located at 2444 Menaul Blvd. NE in Albuquerque, on the afternoon of July 27, 2015. According to surveillance video, Hayes pointed a firearm at two employees, fired a shot into the ceiling, placed a bag on the counter, and demanded that the employees put cash into his bag. On July 28, 2015, one of the employees identified Hayes as the robber from a photo array. Thereafter Hayes was arrested on state charges that were later dismissed in favor of federal prosecution.
Hayes was indicted on Sept. 10, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence on July 27, 2015, in Bernalillo County, N.M.
On May 23, 2016, Hayes pled guilty to Count 2 of the indictment and admitted discharging a firearm during the armed robbery of a business engaged in interstate commerce.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Norman Cairns prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Albuquerque Community Advocate Participates in National Heroin and Opioid Awareness Week Events in Washington, D.C.Read the Press Release
Lou Duran is Affiliated with Healing Addiction in our Community (HAC) and is Regular Collaborator in HOPE Initiative’s Education and Outreach Efforts
ALBUQUERQUE – The President of the United States, Barack Obama, has designated the week of September 19-24, 2016, Prescription Opioid and Heroin Epidemic Awareness Week, and has called for a “week of action” to raise awareness about the public health crisis caused by the growing heroin and opioid epidemic. As part of the national awareness week, National Drug Control Policy Director Michael Botticelli and Agriculture Secretary Tom Vilsack today hosted a roundtable conversation in the White House with parents from across the country whose family members have been affected by the prescription opioid and heroin epidemic. Lou Duran, of Albuquerque, N.M., was one of 14 parents who participated in the round table. Following the roundtable conversation, Ms. Duran was one of two parents who joined Director Botticelli, Secretary Vilsack and U.S. Attorney General Loretta E. Lynch for a telephonic press conference to discuss the roundtable conversation.
Ms. Duran lost her 19-year-old son Michael to a heroin overdose in 2011, after a 2.5 year struggle with addiction. Michael was a high school athlete who was prescribed opioids for a sports-related injury, got addicted, and moved on to heroin. Following Michael’s death, Ms. Duran decided that no other mother should never suffer the loss of a child to addiction, and began her personal campaign: “his face, my voice.”
Ms. Duran has devoted the last five years to being an advocate in the community by bringing awareness and education to youth and their families, and shedding light on the stigma and shame associated with addiction. Her efforts have included statewide presentations in various community events, school presentations, treatment centers, community groups, seminars, conferences, as well as participating in three documentaries.
A month after losing Michael, Lou joined Healing Addiction in our Community (HAC), which provided a platform for her advocacy. HAC is a nonprofit, grassroots group of parents and grandparents who advocate for those who struggle with addiction and the families of those who struggle. Ms. Duran and her friend Jennifer Weiss-Burke, who lost her son Cameron to a heroin overdose in 2011 and who founded HAC and Serenity Mesa, a substance abuse treatment center for adolescents and young adults, have collaborated with the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative from the time it was launched in Jan. 2015. Ms. Duran and Ms. Weiss-Burke were part of the inspiration that led the U.S. Attorney to approach Chancellor Paul B. Roth of the UNM Health Sciences Center about partnering up in the HOPE Initiative.
“Years before the rest of the country realized that the opioid epidemic was looming, Lou Duran, Jennifer Weiss-Burke and HAC were using their personal stories to draw attention to this critically important issue. They understood that the first step towards defeating this devastating epidemic was to make our communities’ aware of its existence and the devastating impact it was having on all aspects of our society,” said U.S. Attorney Damon P. Martinez. “The HOPE Initiative continues to be inspired by Lou, Jennifer and HAC, and we are proud to partner with them on HOPE’s education and prevention efforts.”
The HOPE Initiative is a partnership established 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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
White House Awareness Week Press Call
"We Are A Community United Against Heroin"Read the Press Release
ASHEVILLE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina in partnership with the U.S. Drug Enforcement Administration, the Eastern Band of Cherokee Indians (EBCI) and the Cherokee Indian Police Department hosted a day long community awareness summit on the epidemic of heroin and prescription opioid abuse and the related overdose deaths in Indian Country and surrounding areas in western North Carolina.
“Heroin addiction is not a public health concern. It is a public health crisis. The alarming rate of deaths attributed to heroin overdoses in the Western District of North Carolina and the increasing rate of addiction to opiates and prescription drugs demand our immediate attention,” said U.S. Attorney Jill Westmoreland Rose. “As law enforcement we cannot arrest our way out of this epidemic. The Justice Department’s three-pronged approach combines law enforcement action with prevention and treatment efforts. Stemming the flow of drugs, stopping more people from using opiates, and treating those who have become addicted requires coordination and collaboration with our state, local and tribal partners, community leaders, healthcare providers, service groups and community members. Working together we can succeed in implementing a comprehensive strategy that offers viable solutions, delivers sustainable results, and brings relief to afflicted communities,” U.S. Attorney Rose added.
Approximately 110 professionals from the fields of law enforcement, medicine, substance abuse and treatment, and interested community members attended the summit, held at the Chief Joyce Dugan Cultural Arts Center in Cherokee, N.C. Speakers from federal and local law enforcement agencies, medical experts and representatives of community organizations presented on a broad range of topics including: the alarming rise in heroin and opioid addiction; prevention efforts and available treatment options; heroin trafficking trends within the boundaries of the Eastern Band of Cherokee Indians and surrounding areas; and tribal, state, local and federal law enforcement efforts to stem the flow of opiates in the area.
U.S. Attorney Rose thanked the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department for co-sponsoring the event and emphasized the importance of the conference stating that, “Today’s summit is part of our ongoing effort to bring attention to heroin addiction and opioid drug abuse and to continue to build upon our collaborative efforts with law enforcement, the healthcare field and our community partners to confront this epidemic and address the problem in real and meaningful ways.”
17 September 2016
Missouri Woman Sentenced for Sex Trafficking ConspiracyRead the Press Release
On September 15, 2016, Robin Thompson, 25, of Park Hills, Missouri, was sentenced for her role in the sex trafficking of a minor last year, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Thompson was sentenced to 20 years in prison, as well as 10 years of supervised release, following her prison term, a mandatory $100 special assessment, and a $1,000 fine. Court proceedings revealed that during a six week period in June and July 2015, Thompson took part in a venture with her husband, co-defendant Marcus Dewayne Thompson, which involved the recruitment, transportation, and advertisement of a minor female from Illinois for commercial sex acts in Florida, Georgia and Louisiana. Along with Marcus Thompson, Robin Thompson took and posted sexually explicit pictures of the minor on an internet site as part of an advertisement for sex with the minor. Thompson also arranged prices, services, and meet locations with customers to engage in sex with the minor.
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 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.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Daniel T. Kapsak.
Former Senior Living Center Employee in Belleville Pleads Guilty to Mail Fraud and Wire FraudRead the Press Release
Tarkeisha Sayles, 36, of Fairview Heights, Illinois, entered pleas of guilty to mail fraud and wire fraud, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sayles worked at the Atrium of Belleville, a senior living center, from August 3, 2014 through August 18, 2015 as an Operation Coordinator. Sayles’s job responsibilities included receiving and holding USPS parcels and letter mail for certain residents. The criminal charges are the result of Sayles using the credit card of a resident of the senior living center and applying for a credit card in the name of a resident as part of a scheme to defraud. Sayles faces a prison sentence of up to 40 years, a fine of up to $500,000, and up to 3 years’ supervised release with mandatory restitution. Sentencing is scheduled for February 3, 2017.
The prosecution is the result of an investigation by the U.S. Postal Inspection Service and the Fairview Heights Police Department. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
16 September 2016
“We Are A Community United Against Heroin": A Heroin and Opioid Community Awareness Summit, Cherokee, N.C.Read the Press Release
****** MEDIA ADVISORY *******
ASHEVILLE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina in partnership with the U.S. Drug Enforcement Administration, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department is hosting a community awareness summit on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. The summit will be held on MONDAY, SEPTEMBER 19, 2016 at 9:00 A.M. EDT.
U.S. Attorney Jill Westmoreland Rose and Principal Chief Patrick Lambert of the Eastern Band of Cherokee Indians will deliver the day’s opening remarks. Speakers and panel participants will discuss a variety of topics, including but not limited to, prescription drug and heroin abuse and addiction, overdose-related fatalities, law enforcement efforts to stem the flow of drugs, availability of community resources, outreach efforts and education to affected communities. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
Help from the media in advancing news of this summit to encourage attendance by parents, teachers, faith-based organizations and other community leaders would be valuable in spreading the message. Attendance is free of charge but seating is limited.
Media is invited to cover the event from 9:00 to 10:00 a.m., beginning with welcome remarks of agency representatives who will also be available for on-camera interviews.
PRESENTERS: Jill Westmoreland Rose, United States Attorney, Western District of North Carolina
Principal Chief Patrick Lambert, Eastern Band of Cherokee Indians
Chris Fletcher, Special Agent, U.S. Drug Enforcement Administration
Richard Hutchinson, Special Agent, U.S. Drug Enforcement Administration Department
Dr. Steven Lloyd, Internal Medicine
Local Health Officials
Victims of Heroin and Opioids
WHAT: Heroin & Opioid Awareness Summit
WHEN: Monday, September 19, 2016, at 9:00 A.M. EDT
WHERE: Chief Joyce Dugan Cultural Arts Center
Cherokee Central Schools
260 Elk Crossing Lane
Cherokee, NC
(Enter through the Cherokee Middle School)
NOTE: Please arrive no later than 8:45 a.m. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to Lia Bantavani at [email protected] or 704-338-3140.
NOT FOR RELEASE OR PUBLICATION, FOR PLANNING PURPOSES ONLY
Wallingford Man Admits Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH A. CASTELLANO, 59, of Wallingford, pleaded guilty today in Hartford federal court to fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of nearly $1.5 million.
According to court documents and statements made in court, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
Beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including making “interest” payments to other victim-investors. CASTELLANO also made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, CASTELLANO defrauded more than 10 victim-investors of approximately $1.45 million.
CASTELLANO was arrested on April 6, 2016.
CASTELLANO pleaded guilty to one count of mail fraud and one count of money laundering. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 22, 2016, at which time he faces a maximum term of imprisonment of 30 years. He is released on a $250,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
US Attorney to Launch Heroin and Opioid Awareness Week in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced a series of public discussions and town hall meetings to raise awareness about the rising public health crisis in Rhode Island of opioid addiction, and opioid and heroin overdoses. The programs, to begin on Monday, September 19, 2016, will reinforce the Department of Justice’s three-fold approach to the opioid and heroin epidemic - prevention and awareness; enforcement; and treatment.
On Friday, President Barack Obama and Attorney General Loretta E. Lynch designated the week of September 19-23, 2016, as National Heroin and Opioid Awareness Week.
Regional town hall meetings and discussions organized in collaboration with Prevention Coalitions from across Rhode Island, and open to the public, will be held in Providence, South Kingstown, Woonsocket and Middletown on Monday, September 19 thru Thursday, September 22, respectively. Each program will include the screening of the powerful documentary Chasing the Dragon: The Life of an Opioid Addict; the personal stories of our neighbors touched by the epidemic of drug overdoses that is devastating families across Rhode Island; and a discussion with members of the medical, treatment, education, community-outreach and law enforcement communities. Parents, students, teachers, school administrators and the public are strongly encouraged to join the discussion at these events.
“We are all aware of the opioid/heroin overdose numbers in Rhode Island and across the country. They are staggering, so staggering that it can sometimes be hard to get a handle on this epidemic's real human cost. But behind each number is a person, a real person, with great potential, and with family and others who love them. Some are gone forever, and others are on a path that may soon take them there” said United States Attorney Peter F. Neronha. “Heroin and Opioid Awareness Week is about raising awareness about existing treatment that can divert people from that path, and about preventing addiction in the first place. Thanks to the continuing, terrific work of so many, Rhode Island is an opioid/heroin treatment and prevention leader. Hopefully our discussions can contribute to this effort.”
On Monday, September 19, 2016, at 10:00 am, at the Brown University School of Professional Studies, 200 Dyer Street, Providence, United States Attorney Peter F. Neronha, joined by United States Senators Jack Reed and Sheldon Whitehouse, will kick off National Heroin and Opioid Awareness Week in Rhode Island with a screening of the powerful documentary Chasing the Dragon; the personal story of a local person impacted by addiction; and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
Town hall meetings and discussion events around Rhode Island will continue on Tuesday, September 20, 2016. Each program will include a screening of Chasing the Dragon, the personal stories of local families and individuals impacted by addiction, and a discussion about heroin and opioid addiction awareness with local physicians, treatment specialists, educators, and the leadership of the FBI, DEA, and local law enforcement.
The schedule for Heroin and Opioid Awareness Week programs in Rhode Island for the week of September 19, 2016, is as follows:
Monday, September 19, 2016
10:00 a.m.
Brown University School of Professional Studies
200 Dyer Street, Providence
Tuesday, September 20, 6:30 p.m.
South Kingstown High School Auditorium
215 Columbia Street, Wakefield
Wednesday, September 21, 6:00 p.m.
Woonsocket City Hall, Harris Hall
169 Main Street, Woonsocket
Thursday, September 22, 6:30 p.m.
Middletown Town Hall, Council Chambers
350 Main Road, Middletown
The public and the media are strongly encouraged to attend and to participate in the discussion.
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U.S. Attorney’s Office, FBI, and DEA to Present Heroin/Opioid Addiction Awareness Events in Alaskan CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that representatives from the U.S. Attorney’s Office, FBI, and DEA are holding events this month in a series of rural Alaskan communities, as part of National Heroin and Opioid Awareness Week, to increase awareness about the dangers of opioids and heroin addiction.
The Obama Administration is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses. As part of this effort, the Department of Justice designated the week of Sept. 18-24, 2016, as National Heroin and Opioid Awareness Week. Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, as well as how everyone can participate in the effort to help stop the epidemic that is killing so many of our children, friends and neighbors. For those communities hardest hit by this epidemic it is truly terrifying, and it is spreading rapidly across the country, including Alaskan communities.
Here in Alaska, we are holding a series of community events. Each will feature a screening of “Chasing the Dragon,” a documentary film collaboratively produced by the FBI and DEA, which depicts the harsh reality of heroin and opioid addiction. The film was designed to better educate students and young adults about these drugs’ dangers and the tragic consequences that often accompany them. The film will be followed by an interactive community discussion with federal, state, and local law enforcement partners, as well as behavioral health and medical professionals, about the issues that the film raises and how this epidemic is impacting Alaskan communities.
In addition, similar presentations are being held in schools in each community the U.S. Attorney’s Office, FBI, and DEA are visiting as part of this initiative.
Earlier this month, events were held in Kotzebue for the Northwest Arctic Borough School District’s Youth Leaders Program, and Kotzebue Middle/High School. Yesterday, in Barrow, events were held for Barrow High School students, and the community.
Future community events are listed below:
HEROIN/OPIOID AWARENESS EVENT IN BETHEL, ALASKA
WHEN: MONDAY, SEPTEMBER 19, 2016; 5:30-7:30 p.m.
WHERE: Bethel City Hall, Council Chambers, 300 State Highway, Bethel, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KETCHIKAN, ALASKA
WHEN: TUESDAY, SEPTEMBER 20, 2016; 5:00-7:30 p.m.
WHERE: Discovery Center, 50 Main Street, Ketchikan, Alaska
HEROIN/OPIOID AWARENESS EVENT IN NOME, ALASKA
WHEN: THURSDAY, SEPTEMBER 22, 2016; 5:30-7:30 p.m.
WHERE: Nome Eskimo Community Trigg Hall, 200 W. 5th Avenue, Nome, Alaska
HEROIN/OPIOID AWARENESS EVENT IN KODIAK, ALASKA
WHEN: WEDNESDAY, SEPTEMBER 28, 2016; 7:00-9:30 p.m.
WHERE: Kodiak High School Auditorium, 917 Rezanof East, Kodiak, Alaska
HEROIN/OPIOID AWARENESS EVENT IN PETERSBURGH, ALASKA
WHEN: (Date/time TBD)
WHERE: Petersburg High School, 109 Charles W St., Petersburg, Alaska 99833
Additional events are being planned this fall in other Alaskan communities.
U.S. Attorney Loeffler commends the Alaska State Troopers and local law enforcement partners, as well as the behavioral and medical health professionals, in each of these communities for their assistance with these events.
Note: Additional Resources and guidance can be found at: www.FBI.gov/ChasingTheDragon.
Press inquiries regarding logistics should be directed to Chloe Martin at [email protected].
U.S. Attorney’s Office to Host September 22nd Event in Pierre for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict” and a panel discussion at 7:00 p.m. on Thursday, September 22nd, 2016. The event will be held at T.F. Riggs High School Theatre, located at 1010 E. Broadway Avenue in Pierre.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, Wendy Kloeppner, Hughes County State’s Attorney, Katie Sieverding Chemist at South Dakota State Health Laboratory, and Assistant U.S. Attorney SaraBeth Donovan.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
U.S. Attorney’s Office to Host September 22nd Event in Pierre for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict" and a panel discussion at 7:00 p.m. on Thursday, September 22nd, 2016. The event will be held at T.F. Riggs High School Theatre, located at 1010 E. Broadway Avenue in Pierre.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, Wendy Kloeppner, Hughes County State’s Attorney, Katie Sieverding Chemist at South Dakota State Health Laboratory, and Assistant U.S. Attorney SaraBeth Donovan.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
U.S. Attorney Rod Rosenstein, Attorney General Frosh, Mark Week of September 19th “Heroin and Opioid Awareness Week”Read the Press Release
Baltimore, MD –U.S. Attorney Rod Rosenstein and Maryland Attorney General Brian Frosh joined state and federal officials throughout the country in proclaiming the week of September 19th as “Heroin and Opioid Awareness Week” to bring attention to the epidemic of heroin and opioid-related overdose deaths in Maryland.
Opioid and heroin addiction and abuse across the nation is rampant. In Maryland alone, heroin-related deaths increased by over 200% from 2011 to 2015, rising from 247 to 748. There has also been an alarming spike in deaths from fentanyl, rising 105% during the first quarter of 2016 as compared to the same time in 2015. The increases in overdose deaths are not just seen in Maryland’s larger cities – they have been reported throughout the state, including western and central Maryland and the Eastern Shore.
“Heroin and Opioid Awareness Week gives us the chance to educate the public about the dangers of heroin and opioid abuse, and strategies to stop this epidemic that is killing our children, friends, and neighbors,” said U.S. Attorney Rod Rosenstein. “We will continue to work closely with our law enforcement partners to prosecute those who are putting these drugs on our streets, and to build community coalitions to fight this epidemic.”
“Raising awareness is just one step in addressing this widespread, complex epidemic in our State,” said Attorney General Frosh. “Opioids are highly addictive and extremely dangerous, altering the users’ brain permanently, even after just one use. Our goal is to educate as many people as possible so that we save lives, and prosecute those that traffic illegal heroin into Maryland. Addiction to opiates is dangerous, whether obtained through prescriptions or on the street.”
Every heroin overdose in Maryland is being investigated as a homicide, in an effort to identify the distributor. Together with the Drug Enforcement Agency and the State’s Attorneys of Maryland, the Maryland Attorney General’s Office and the U.S. Attorney’s Office are developing a best practices model on gathering evidence required for criminal prosecution.
The Organized Crime Unit of the Attorney General’s Office has prioritized combatting the heroin epidemic by focusing on dismantling the most dangerous drug organizations across the State. Since its inception in 2015, the Organized Crime Unit has indicted over 50 drug traffickers – from the traffickers who knowingly distribute fatal doses of heroin – usually cut or mixed with fentanyl – to the violent trafficking organizations that profit off of addicted individuals. The Unit, in coordination with local, state, and federal prosecutors and law enforcement agencies, is currently investigating dozens more and is committed to continuing to aid in the fight against this tragic epidemic.
Many people become addicted to legally prescribed opiates, but switch to heroin, fentanyl or other drugs, when they can no longer obtain their prescription. A 2014 national survey found an estimated 1.4 million people in the U.S. abused a prescription painkiller for the first time that year. Approximately one in five high school seniors reports misusing prescription drugs at least once.
The U.S. Attorney’s Office and Maryland Attorney General’s Office will continue to work with federal, state and local law enforcement as well as medical and public health authorities, community groups and concerned citizens to develop a coordinated response across all elements of government. Our enforcement efforts are much more effective when they are part of a larger strategy that seeks to educate potential drug users and prevent their involvement with opioids in the first place.