Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
16 September 2016
U.S. Attorney Announces ADA Restaurant InitiativeRead the Press Release
BOISE – The Office of the U.S. Attorney for the District of Idaho is reviewing restaurants in both Coeur d’Alene and Nampa to ensure that they provide the access required by the Americans with Disabilities Act of 1990 (the “ADA”), U.S. Attorney Wendy J. Olson announced. The review stems from the Department of Justice’s congressionally-mandated responsibility to ensure compliance with the ADA and is not in response to any specific complaint against a restaurant.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, which include restaurants. The ADA thus authorizes the U.S. Department of Justice to review restaurants. The ADA requires restaurants to be “designed, constructed and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations.
As part of the review, restaurant owners are first asked to complete a survey regarding their restaurants’ accessibility. Investigators may then visit restaurants to evaluate ADA compliance. If the site visits reveal noncompliance, the U.S. Attorney’s Office will notify the owners and operators. The Department of Justice generally pursues voluntary compliance measures first. It may, however, commence a civil lawsuit in federal court if necessary. It does so, for example, in cases that involve a pattern or practice of discrimination or that raise issues of general public importance.
“People with disabilities who visit, work, or live in Coeur d’Alene and Nampa deserve to have an equal opportunity to enjoy restaurants in these cities, as the ADA requires,” said Olson. “Our goal is to work with restaurant owners to bring them into compliance, so that all their potential patrons have access.”
The U.S. Attorney’s Office for the District of Idaho enforces federal civil rights laws, including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes include monetary penalties, injunctions, civil judgments and more.
Two Marijuana Container Businessmen Charged with Conspiracy to Defraud the U.S. as Part of Securities Fraud Involving Microcap Company FusionPharm, Inc.Read the Press Release
DENVER – William Sears, age 50 of Thornton, Colorado, and Scott Dittman, age 47, now of Boyertown, Pennsylvania, and formerly of Elizabeth, Colorado, were charged by Information yesterday with Conspiracy to Defraud the U.S. as part of a scheme to defraud the U.S. Securities Exchange Commission, the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigations and the U.S. Postal Inspection Service announced. Both defendants made their initial appearance before a U.S. Magistrate Judge in U.S. District Court in Denver.
According to the Information, beginning as early as in or about March 25, 2011 and continuing at least through in or about May 15, 2014, the defendants knowingly and willfully conspired, combined and agreed with each other, and with other persons both known and unknown, to defraud the United States and the United States Securities and Exchange Commission ("SEC"), by impeding, impairing, defeating and obstructing the lawful governmental functions of the SEC. The conspiracy includes the offenses of securities fraud, mail fraud and wire fraud.
FusionPharm, Inc. (“FusionPharm”) was a Nevada corporation with its principal place of business at first in Denver, Colorado and later in Commerce City, Colorado. FusionPharm’s principal business was the development, manufacture and sale of steel shipping containers retrofitted and refurbished for use as hydroponic growing pods, branded as “PharmPods,” for indoor plant cultivation, primarily cannabis. Defendant Dittman was the founder, chief executive officer and sole director of FusionPharm but, in fact, operated FusionPharm, and pursued and developed its business, together and in concert with defendant Sears, and the two defendants together beneficially held and controlled the majority of the shares of FusionPharm’s common and preferred stock, which was convertible into the company’s common stock. FusionPharm’s common stock was publicly traded in the over-the-counter markets, primarily through transactions involving networks of securities broker-dealers.
Sears would cause shares of preferred stock of FusionPharm held in the name of Microcap to be converted into shares of FusionPharm common stock and deposited into brokerage accounts established in the name of Microcap. He would induce brokers overseeing these accounts to consider and treat these common shares as unrestricted securities that could be immediately sold in the public securities markets by falsely representing to them that neither he nor Microcap was an affiliate of FusionPharm or a control person of the company. Dittman facilitated the deposit of these shares, and their treatment as unrestricted securities, by executing FusionPharm officer certificates and other documentation affirming that Microcap was not an affiliate of FusionPharm.
Sears would then cause the remainder of these preferred shares to be transferred from Microcap’s name into the names of family members or entities held in the name of family members, in order to make it appear that neither he nor Microcap had shareholdings in FusionPharm in such amounts as to deem either Sears or Microcap to be affiliates or control persons under the federal securities laws or to trigger their disclosure as significant shareholders under reporting guidelines. Sears would thereafter cause portions of the FusionPharm preferred shares that had been transferred into the names of these family members and entities, in turn, to be converted into additional common shares of FusionPharm that could be publicly sold later on or that he and Dittman could later use to raise funds for the company in private sales to select FusionPharm investors.
Sears, working in coordination with another individual, would thereafter cause the FusionPharm common shares that had been deposited into the Microcap brokerage accounts to be sold in the public securities markets and, in consultation with defendant Dittman, would deposit significant portions of the proceeds of these FusionPharm stock sales into operating bank accounts of FusionPharm – both directly and through a series of transactions involving Bayside, Meadpoint or Vertifresh – so that the money could then be used to capitalize and operate the company, as well as be used for the defendants’ own financial support.
Sears and Dittman both face one count of Conspiracy to Defraud the U.S., which carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. In addition, Sear also faces one count of Filing a False Income Tax Return. That crime carries a penalty of not more than 3 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorneys Kenneth Harmon and Tonya Andrews with Special Assistant U.S. Attorney Scott Mascianica.
Two Former Maui Residents Sentenced for Fraud Charges Related to Operation of $26 Million Dollar Ponzi SchemeRead the Press Release
HONOLULU -- United States District Judge Derrick K. Watson yesterday sentenced George Lindell, 68, and Holly Hoaeae, 41, both formerly of Maui, to 210 months and 120 months imprisonment, respectively, for their involvement in operating an extensive Ponzi scheme in which 166 individuals were induced to invest over $26 million dollars. A federal jury found Lindell and Hoaeae guilty of eight counts of mail fraud and two counts of wire fraud after a 27-day trial concluding in May 2015. Lindell was also convicted of four counts of money laundering.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Judge Watson also ordered both defendants to pay restitution of $8.9 million dollars representing the net loss to investors in the case. According to evidence produced in court, Lindell and Hoaeae began an investment scheme in connection with their operation of their business "The Mortgage Store", in which they issued promissory notes promising to pay a guaranteed rate of return of seven percent. Lindell and Hoaeae, using radio ads, magazines and a weekly radio show, urged potential investors to attend their weekly workshops at "The Mortgage Store" where they taught seminars on how to "harness" or use the equity in their homes for investment purposes. Lindell and Hoaeae would then utilize their status as mortgage brokers to refinance investor residences in order to extract the equity in investor homes for the purposes of investment. Lindell and Hoaeae would then urge investors to invest money in their investment scheme, known as "The Parking Lot", where investors could "park" their money and earn guaranteed rates of interest. Lindell and Hoaeae advertised the Parking Lot as "safe" and invested largely in secure corporate bonds in Fortune 500 companies. In truth and fact, Lindell and Hoaeae were investing in "junk" bonds and/or marginal real estate investment activity and using the bulk of the funds to support their luxurious lifestyles and pay existing investors with new investor funds. During the scheme Lindell built a $3.5 million dollar residence above Lahaina in large part with investor funds and Hoaeae used hundreds of thousands of dollars in investor funds to fund her personal lifestyle including trips, automobiles and pay extensive credit card debt.
The investigation of this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Ken Sorenson and Andrea Hattan.
Two Former Executives of Foreign Defense Contractor Charged in Expanding Fraud and Corruption ProbeRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – September 15, 2016
SAN DIEGO, CA – Two former executives of foreign defense contractor Glenn Defense Marine Asia have been charged with participating in a conspiracy to submit fraudulent information, price quotes, claims and invoices to the U.S. Navy in an effort to steal millions of dollars as part of a years-long corruption and fraud scheme.
Neil Peterson, 38, and Linda Raja, 43, both of Singapore, worked as chief deputies for foreign defense contractor Leonard Glenn Francis to fill the coffers of their company, Glenn Defense Marine Asia (GDMA), at the expense of the U.S. Navy. Peterson served as the Vice President for Global Operations for GDMA and Raja served as GDMA’s General Manager for Singapore, Australia, and the Pacific Isles. Both defendants have been arrested and are currently being held in custody in Singapore, awaiting extradition to the United States to answer charges relating to their participation in the massive scheme to defraud the U.S Navy.
The indictment, unsealed yesterday by order of U.S. District Judge Janis L. Sammartino in the Southern District of California, alleges that Peterson and Raja submitted false claims of well over $5 million to the U.S. Navy. According to the indictment, in addition to the submission of fraudulent claims and invoices, Peterson and Raja worked to perpetuate and cover up their fraud by consistently misrepresenting to the U.S. Navy the cost of providing services to its ships in Asia, even going so far as to submit false price quotes from non-existent companies, on letterhead created from graphics cut and pasted from the Internet.
Peterson and Raja are each charged with one count of conspiracy to defraud the United States with respect to claims; one count of conspiracy to commit wire fraud; and multiple counts of making false claims.
Including Peterson and Raja, a total of 16 named individual defendants have been charged in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials, including Admiral Robert Gilbeau, believed to be the first active-duty U.S. Navy flag officer charged in a federal criminal case; Captain (ret.) Michael Brooks; Commander Bobby Pitts; Lt. Commander Gentry Debord; Captain Daniel Dusek; Commander Michael Misiewicz; Lt. Commander Todd Malaki; Commander Jose Luis Sanchez; Petty Officer First Class Daniel Layug; Naval Criminal Investigative Service Supervisory Special Agent John Beliveau; and Paul Simpkins, a former DoD civilian employee, who oversaw contracting in Singapore.
Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug, and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and ordered to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and ordered to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and ordered to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Gilbeau, Beliveau, Sanchez, and Simpkins await sentencing.
Brooks, Pitts and Debord were charged in May 2016 and their cases are pending.
Also charged are three additional GDMA executives – Francis, Alex Wisidagama and Ed Aruffo. All three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing.
The Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case. The Justice Department’s Office of International Affairs provided substantial assistance in this matter.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANTS Case Number: 14-CR-3703-JLS
Neil Peterson 38 Singapore
Linda Raja 43 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States with Respect to Claims, in violation of 18 U.S.C. § 286
Maximum Penalty: 10 years in prison, a $250,000 fine.
Conspiracy to Commit Wire Fraud, in violation of 18 U.S.C. § 1349
Maximum Penalty: 20 years in prison, a $250,000 fine.
False Claims, in violation of 18 U.S.C. § 287
Maximum Penalty: 5 years in prison, a $250,000 fine.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Three Pennsylvania Men Indicted on Carjacking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Dimas Colon-Cruz, 36, Denis Cruz, 29, and Michael Gonzalez-Colon, 20, all of Erie, Pennsylvania, with carjacking, use of a firearm in furtherance of a crime of violence, and interstate transportation of stolen property. The charges carry a mandatory minimum penalty of seven years in prison and a maximum of life.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 20, 2015, the defendants traveled from Erie, Pennsylvania to Dunkirk, NY on stolen all-terrain vehicles. Shortly after arriving in Dunkirk, the ATV's were seized by the Dunkirk Police Department leaving the defendants without their means of transportation.
Subsequently, the defendants assaulted an individual (Victim 1) in the vicinity of Robin and Second Streets in Dunkirk. The defendants brandished firearms during the assault, struck Victim 1 in the face during the assault and stole several items from Victim 1. Almost immediately after Victim 1 was assaulted, a second victim (Victim 2) was assaulted by the defendants in the vicinity of 209 Robin Street. After exiting a car, Victim 2 was approached by the defendants and ordered to lie on the ground at which time the victim was struck in the head with a handgun. Following the assault, the defendants stole Victim 2’s car, a 2004 Pontiac Grand Am. Also on July 20, 2015, Lakeside Lawncare in Fredonia, NY, was burglarized and several items were stolen including a gray 2002 GMC Sierra pickup truck. On July 22, 2015, both the 2004 Pontiac Grand Am and the 2002 GMC Sierra pickup truck were recovered in Erie, Pennsylvania.
The indictment is the result of an investigation by the Dunkirk Police Department, under the direction of Chief David Ortolano, the Erie, Pennsylvania Police Department, under the direction of Chief Randy Bowers, the New York State Police, under the direction of Major Steven Nigrelli, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Third Man Sentenced in Altered Military ID ScamRead the Press Release
COLUMBUS, Ohio – Michael Edwin Goins, 62, of Columbus was sentenced to 57 months in prison for his role in a conspiracy to steal identities by using altered military identification cards at many “big-box” chain stores throughout Southern Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Reynoldsburg Police Chief Jim O’Neill announced the sentence imposed today by Senior U.S. District James L. Graham.
Goins, Harold Ross, 60, and Darrick Corley Hackney, 41, both also of Columbus, pleaded guilty earlier this year to charges of conspiracy to commit identity fraud, aggravated identity theft and access device fraud, and conspiracy to commit mail fraud. Ross was sentenced on August 29 to serve 71 months in prison and pay $152,719.18 in restitution. On June 17, Judge Graham sentenced Hackney to serve 27 months in prison and pay $24,250.07 in restitution.
In January 2015, Reynoldsburg police began investigating a series of six identity theft cases that appeared to be related. Each of the cases involved victims that had their personal identifying information used to open multiple credit card accounts at national retailers in Central Ohio. Most of the lines of credit used an altered United States Military Dependent ID card that had been stolen from a woman whose husband was serving out of the country.
To execute the scheme, Ross and Goins photographed other co-conspirators and gave them a fraudulent United States Military Dependent ID with the co-conspirator’s picture. The card would include some information of the true holder of the military ID, as well as the name and date of birth of the victim they were impersonating. Ross and Goins would often provide the co-conspirators with a list of items to purchase in the store once the line of credit was obtained. After the items were purchased, they would sell them on the street for half of the retail cost.
Upon executing search warrants, investigators found multiple documents containing personal identifying information of a number of victims, equipment used to produce ID cards and several appliances such as a washer, dryer, refrigerator, TVs, speakers and tablets that were typical of the fraudulent purchases.
The total loss between November 2015 and March 2016 is known to be more than $150,000, but the scheme included many more retailers who were unable to provide records.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Reynoldsburg Police Department and Assistant United States Attorneys Deborah A. Solove and Jessica H. Kim, who represented the United States in this case.
Tennessee Man Charged with Threatening to Murder Member of United States CongressRead the Press Release
A Murfreesboro, Tennessee, man was taken into custody this morning by FBI agents and U.S. Capitol Police, after a criminal complaint was issued, charging him with threatening to murder a United States official and transmitting in interstate commerce, a communication containing a threat, announced U.S. Attorney David Rivera for the Middle District of Tennessee.
Agents arrested Keahiokahouna Stewart, 36, at his Murfreesboro home this morning without incident. Stewart is scheduled to make an initial appearance later today before a U.S. magistrate judge in Nashville, Tennessee.
According to the criminal complaint, beginning in August and continuing through Sept. 12, Stewart sent threatening emails and posted threatening videos to Instagram accounts, which he created. In an email dated on Aug. 19, Stewart specifically indicates that he will fly from Nashville to Honolulu, Hawaii, on Nov. 1, with the intent to shoot people at the Princess Jonah Federal Building. The specific targets of these threats were U.S. Senator Mazie Hirono, who represents the state of Hawaii and Congresswoman Tulsi Gabbard, who represents the 2nd District for the state of Hawaii.
The complaint outlines that beginning in November 2013, Stewart sent a series of “Grievances” to various U.S. officials and departments, including President Barack Obama, Senator Hirono and Congresswoman Gabbard, inquiring about Stewart’s social security number. Stewart falsely believed that his social security number had been duplicated and issued to a fellow soldier he met while stationed at Camp Stanley in Korea, in 2002. In subsequent correspondence to the Social Security Administration and Department of Defense, Stewart demands he be awarded 100 percent disability and $50 billion.
As set forth in the complaint, Stewart’s actions continued to be investigated by law enforcement including a May 2015 visit to Senator Hirono’s office in Washington, D.C., which resulted in the U.S. Capitol Police being called. In subsequent Facebook and Instagram posts, Stewart continued to post comments about the issue and display photos of himself with firearms. In an Instagram video posted by Stewart on Sept. 8, he states that he is flying to Honolulu on Nov. 1, and will be traveling with an AR-15 and two handguns. Stewart further states that he has already shipped a silencer for one of the handguns and that it is stored in a garage in Waianae, Hawaii.
Investigators recently determined that Stewart had purchased an airline ticket to travel from Nashville to Honolulu on Nov. 1, however it had been “exchanged,” which would allow the ticket holder to travel on any other date.
If convicted, Stewart faces up to 10 years in prison on the charge of threatening to murder a U.S. official and up to five years in prison on the charge of communicating threats through interstate commerce.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI and the U.S. Capitol Police. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
Syracuse Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Carl Switala, 34, of Syracuse, New York, was sentenced to serve one (1) year and one (1) day in prison, followed by 5 years of supervised release, for failing to register as a sex offender, announced United States Attorney Richard S. Hartunian.
Switala pled guilty on May 18, 2016 to violating the Sex Offender Registration and Notification Act, which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides, is employed, or is a student. As part of his guilty plea, Switala admitted that he was previously convicted of Criminal Sexual Conduct in the First Degree in Michigan, which required him to register as a sex offender for the rest of his life, and that he had moved from North Carolina to Syracuse in November 2015 without ever registering in New York or updating his registration in North Carolina.
This case was investigated by the United States Marshal Service, Sex Offender Investigation Branch, and was prosecuted by Assistant U.S. Attorney Robert S. Levine.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Sudanese Man Sentenced in Manhattan Federal Court to 7 Years in Prison for Bank Fraud, Credit Card Fraud, and Identity Theft Schemes Exceeding $3 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ASHRAF LAKOU was sentenced to seven years in prison for bank fraud, credit card fraud, passport fraud, and aggravated identity theft charges in connection with orchestrating a scheme to use stolen victim identification information to make fraudulent credit card purchases and to defraud financial institutions by depositing counterfeit checks into accounts controlled by LAKOU and his co-conspirators. Through these schemes, LAKOU and his co-conspirators attempted to defraud individuals, businesses, and financial institutions out of more than $3 million. On April 12, 2016, LAKOU pled guilty before United States Magistrate Judge James L. Cott. United States District Judge Victor Marrero imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Ashraf Lakou engaged in all means of fraud, from bank and credit card fraud to identity theft and passport fraud. Today, Lakou received a significant sentence matching the seriousness of his crimes.”
According to the criminal complaint, indictment, and other documents filed in Manhattan federal court, as well as statements made at related court proceedings:
From September 2013 through July 2015, LAKOU and his co-conspirators engaged in a scheme to defraud businesses and financial institutions by obtaining checks made out to legitimate businesses, opening fraudulent bank accounts in the names of the victim businesses, depositing the checks into the fraudulent accounts, and withdrawing funds from the fraudulent accounts. LAKOU and his co-conspirators carried out this scheme by, among other means, stealing checks from the mail, submitting false documentation in connection with bank account applications, and forging the signatures of other actual persons.
From May 2014 through July 2015, LAKOU and his co-conspirators also engaged in a scheme to commit credit card fraud by using stolen credit card information to make fraudulent purchases of jewelry and other merchandise. LAKOU and his co-conspirators carried out this credit card fraud scheme by, among other means, adding their own names as authorized users of pre-existing victim credit cards without the knowledge or consent of the victims and by submitting fraudulent applications for new credit card accounts in the names and identities of their victims.
* * *
In addition to the prison term, LAKOU, 27, of Manhattan, was sentenced to three years of supervised release and was ordered to pay $557,894.50 in restitution, $557,894.50 in forfeiture, and a $600 special assessment.
Zoheb Qamran, 29, of Manhattan, and Jessica Hattar, 26, of Manhattan, have been separately charged in connection with the bank fraud and credit card fraud schemes. On May 19, 2016, Qamran pled guilty to credit card fraud, bank fraud, and aggravated identity theft charges before United States Magistrate Judge Barbara C. Moses. On May 6, 2016, Hattar pled guilty to credit card fraud and aggravated identity theft charges before United States Magistrate Judge Sarah Netburn.
Mr. Bharara praised the outstanding efforts of Department of State, Diplomatic Security Service, in the investigation.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
Shelton Attorney Charged with Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER G. KRUZYNSKI, 50, of Shelton, was arrested today on a criminal complaint charging him with production and possession of child pornography.
According to the criminal complaint, KRUZYNSKI repeatedly engaged in sexual acts with a male victim beginning in 2009, when the victim was 12 years old, and continuing until August 2016, when the victim was 18 years old. KRUZYNSKI also used his Apple iPhone to take photographs of the victim engaged in sexually explicit conduct. The victim was a minor at the time the photographs were taken. KRUZYNSKI threatened to send the photographs to others if the victim did not see him again.
KRUZYNSKI is an attorney with a law office in Shelton.
KRUZYNSKI appeared this afternoon before U.S. Magistrate Judge Joan G. Margolis in New Haven and was released on a $250,000 bond and electronic monitoring.
KRUZYNSKI was arrested on August 30, 2016 on related state charges.
If convicted of the production of child pornography charge, KRUZYNSKI faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years, and a fine of up to $250,000. The charge of possession of child pornography carries 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 Federal Bureau of Investigation, the Shelton Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Shavertown Man Is Charged with Failing to File His Company's Employment Taxes and His Own Personal TaxesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Shavertown man with failing to pay his company's employment taxes and failing to pay his personal taxes.
According to United States Attorney Peter Smith, from the first quarter of 2010 to the last quarter of 2012, Jeffrey Miller, age 45, of Shavertown, failed to pay the employment taxes for JMSI Environmental Corporation which he owned and operated. Additionally, Mr. Miller failed to file his own personal income tax returns from 2008 through 2011. These actions resulted in a tax loss of more than $473,000.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charges stem from an investigation by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 6 years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $350,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
San Francisco-Based Tax Preparer Convicted of Tax FraudRead the Press Release
SAN FRANCISCO – A federal jury convicted Josiah Larkin of conspiracy to file false claims and presenting false claims to the IRS, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty verdicts, reached yesterday, followed a six-day jury trial before the Honorable Susan Illston, U.S. District Court Judge.
Evidence at trial showed that Larkin, 40, of San Francisco, set up a storefront on Third Street in the Bayview/Hunter’s Point neighborhood of San Francisco in December of 2012. Although not authorized to do so, he identified the shop as a Colbert Ball Tax franchise. Larkin advertised “Get Up to $600- Even if Unemployed, On SSA or SSI.” Larkin prepared false tax returns for clients, reporting that they had no income and that they paid $4,000 in qualified education expenses to attend college. This combination of zero income and $4,000 in qualified education expenses resulted in a $1,000 tax refund based on the American Opportunity Tax Credit (“AOTC”). Larkin took approximately half of the fraudulently-obtained tax refunds and gave the remaining half to his clients. Larkin was indicted on January 6, 2015, and charged with one count of conspiracy to file false federal income tax returns as well as multiple counts of filing false claims and aiding and abetting filing false claims, all in violation of 18 U.S.C. §§ 286 and 287. The jury found Larkin guilty of the conspiracy charge and five counts of filing false claims.
“The fraudulent preparation of tax returns is an insidious drain on the public fisc,” said U.S. Attorney Brian J. Stretch. “This office will continue to devote resources to prosecute those who seek to profit by submitting fraudulently prepared tax returns to the IRS.”
“Josiah Larkin’s verdict today marks another example of a tax return preparer who preyed on the vulnerable,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “He used personal identifying information to make a quick buck. Educating the public about these schemes is a continuing focus for IRS-CI. Tax preparers should take note that if they attempt to defraud the IRS they will be caught and held accountable.”
Defendant's sentencing hearing is scheduled for January 13, 2017, before Judge Illston. The maximum statutory penalty for conspiracy to file false claims is ten years’ imprisonment and a fine of $250,000. The maximum statutory penalty for presenting false claims to an agency of the United States is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Cynthia Stier and Laurie Gray prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Gilbert Nick Montes, 36, of Roswell, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to federal methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Montes was arrested on Nov. 30, 2015, on a criminal complaint charging him with committing a methamphetamine trafficking offense in Chaves County, N.M. According to the complaint, on July 31, 2015, Montes received four pounds of methamphetamine, which he intended to distribute to other people.
Montes was subsequently indicted on March 8, 2016, and was charged with conspiracy and possession of methamphetamine with intent to distribute. During today’s proceedings, Montes pled guilty to indictment, and admitted conspiring with others to distribute four pounds of methamphetamine.
At sentencing, Montes faces a statutory minimum penalty of ten years and maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and is being prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
Roanoke Chemical Distributor Sentenced for Illegally Storing and Transporting Hazardous WasteRead the Press Release
ROANOKE, VIRGINIA – A Roanoke-based chemical distributing company, which previously pleaded guilty to illegally storing hazardous waste and to transporting hazardous waste from its facility in Roanoke to another facility, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr., announced.
Chem-Solv, formerly known as Chemicals and Solvents Inc., entered into a plea agreement with the United States in December 2015 in which it agreed to pay a $1million criminal fine for these violations, as well as an additional $250,000 to fund environmental community service projects. Chem-Solv has agreed to serve five years’ probation, during which time it must develop and implement an environmental compliance plan and be subjected to yearly independent environmental audits. In conjunction with the criminal settlement, the U.S. Environmental Protection Agency reached a civil settlement with Chem-Solv and the company paid a $250,000 penalty to settle alleged violations of improper hazardous waste storage at Chem-Solv’s Roanoke facility. Today in District Court, Chem-Solv was sentenced as described in the Plea Agreement.
“This prosecution should send a clear and consistent message to all business operating in the Western District of Virginia, that this United States Attorney’s Office, along with our partners on the Blue Ridge Environmental Crimes Task Force, will not allow profits and corporate bottom lines to harm our environment,” United States Attorney Fishwick said today. “When we find environmental violations, we will pursue righteous cases, both criminally or civilly, to protect our natural resources.”
"Today’s sentencing of Chem-Solv, Inc. stemming from illegal transportation and storage of hazardous waste is a clear signal that such illegal acts will not be tolerated,” said Floyd Sherman, US DOT-OIG regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the public’s safety from those that would seek to circumvent DOT-related laws and regulations.”
“Laws for storing and transporting hazardous waste and toxic chemicals are designed to protect public health and safety,” said Jennifer Lynn, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Virginia. “Today’s sentence sends a strong message that violators who ignore those laws, putting workers and the public at risk, can expect to face the consequences in court.”
Chem-Solv operates a chemical blending and distribution facility on Industry Avenue S.E. in Roanoke as well as distribution facilities in Colonial Heights, Virginia, Rock Hill, South Carolina, and Piney Flats, Tennessee. Chem-Solv is in the business of purchasing chemicals and then reselling them to customers, either directly or after repackaging. Occasionally, Chem-Solv generated hazardous waste. A hazardous waste is waste which, because of its designation, quantity, concentration, or characteristics, poses a substantial present or potential hazard to human health or the environment.
Count One of the Information is based on a spill of several hundred gallons of ferric chloride – a hazardous substance – on the Chem-Solv facility in Roanoke in June 2012. Although most of the waste was cleaned up using vacuum trucks, some of the ferric chloride flowed from the Chem-Solv facility onto an adjoining property both before, and during, the cleanup. The pleadings allege that the adjoining property owner was not notified that ferric chloride had leaked onto their property. Chem-Solv then employed a waste transportation company to transport the waste to a disposal facility. Hazardous waste may only be transported by permitted carriers, and it must be properly placarded and be accompanied by a hazardous waste manifest identifying the waste and its characteristics. The pleadings allege that, although Chem-Solv was aware of the hazardous nature of ferric chloride, it did not properly test the waste and instructed the transporter to transport the waste as non-hazardous, without the proper placards and manifests.
Count Two of the Information charges Chem-Solv with the improper storage of hazardous waste. Chem-Solv was given advance notice of an EPA inspection in December 2013. At the time the advance notice was given, Chem-Solv was storing numerous containers of chemical waste on its facility that should have been disposed of properly. The pleadings allege that Chem-Solv directed its employees to load three trailers with the chemical waste in an attempt to prevent EPA inspectors from discovering it. Two of the three trailers were taken offsite. The third trailer, which was not road worthy, was stored on the Chem-Solv property for almost a year and its contents were discovered by law enforcement officers on Nov. 19, 2014, while executing a search warrant. That trailer was found to contain hazardous waste that Chem-Solv did not have a permit to store on its facility.
The investigation was conducted by Special Agents of EPA’s Criminal Investigation Division and the U.S. Department of Transportation’s Office of Inspector General. Assistance in the investigation was provided by the Roanoke Fire-EMS Department, the Virginia Department of Environmental Quality, Roanoke City Police Department, and other members of the Blue Ridge Environmental Task Force. The prosecution was handled by Assistant U.S. Attorney Jennie L. M. Waering, Senior Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section, and Special Assistant United States Attorney and EPA Regional Criminal Enforcement Counsel David Lastra.
Rio Rancho Woman Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Frances Chavez, 32, of Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M., to federal heroin trafficking charges. Under the terms of her plea agreement, Chavez will be sentenced within the range of 15 to 27 months in prison followed by a term of supervised release to be determined by the court.
Chavez was arrested on Dec. 29, 2015, on a seven-count indictment charging her with heroin trafficking offenses. The indictment alleged that Chavez distributed heroin on five occasions in Oct. 2015, and possessed heroin with intent to distribute on Nov. 10, 2015. The indictment alleged that Chavez committed these drug trafficking crimes in Sandoval County, N.M. The indictment also charged Chavez with maintaining a place for the purpose of manufacturing and distributing heroin from Oct. 6, 2015 through Nov. 10, 2015, in Bernalillo County, N.M.
During today’s proceedings, Chavez pled guilty to the indictment and admitted that she sold heroin on five occasions in Oct. 2015, from her home in Rio Rancho. Chavez further admitted that on Nov. 10, 2015, law enforcement agents discovered a distribution amount of heroin and drug paraphernalia while executing a federal search warrant at her residence. Chavez admitted that that she used her Rio Rancho residence for the purpose of distributing heroin.
Chavez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Joel R. Meyers, Shaheen P. Torgoley and Stephen R. Kotz are prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Rapid City Man Sentenced for Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 13, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Silas Lee High Hawk, age 25, was sentenced to 36 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and register as a sex offender.
High Hawk was charged on November 17, 2015, and pleaded guilty on June 3, 2016. The conviction stems from High Hawk engaging in sexual contact with a woman who was unable to give consent.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
High Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Prior Felon from Roswell Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Enrique Chavarria, 33, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws by unlawfully possessing a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
Chavarria was arrested on July 21, 2016, in Chaves County, N.M., by the U.S. Marshals Service, and was charged by criminal complaint with being a felon in possession of a firearm and ammunition. At the time, Chavarria was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine and cocaine with intent to distribute.
During today’s proceedings, Chavarria pled guilty to a felony information charging him with being a felon in possession of a firearm. At sentencing, Chavarria faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces offices of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Prescription Opioid and Heroin Awareness Week September 19-26, 2016Read the Press Release
Attorney General Loretta Lynch has designated the week of September 19-23, 2016 as Prescription Opioid and Heroin Awareness Week. The prescription opioid and heroin epidemic has taken a heartbreaking toll on too many Americans and their families, while straining resources of law enforcement and treatment programs.
More Americans now die every year from drug overdoses than they do in motor vehicle crashes—and most of those involve prescription opioids or heroin. Some of the commonly abused drugs are codeine cough syrup, heroin, fentanyl, hydrocodone, methadone, and oxycodone.
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 use disorder who seeks treatment can get care.
Federal agencies will continue to use all available tools to combat this epidemic. States and communities are also working to save lives through innovative partnerships between public safety and public health.
Recovery from opioid and other substance use disorders 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 use disorder who wants treatment can get it and start the road to recovery.
We all have a role to play in turning the tide of this epidemic. Talk with your teens about the consequences of using prescription and over-the-counter drugs for non-medical uses; follow disposal guidelines on unused medicines; lock up powerful medications in a safe place other than your medicine cabinet; count your pills when you receive them and periodically check to see how many are in the container.
During Prescription Opioid and Heroin Awareness Week, Americans can learn more about the disease of addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those suffering from a substance use disorder or in recovery—to let them know they are not alone.
The United States Attorney’s Office for the Middle District of Georgia has copies of a documentary called “Chasing the Dragon”. The video was produced by the Federal Bureau of Investigation and Drug Enforcement Administration. It is a resource for law enforcement, educators, and parents to educate young people on how opiate addiction destroys lives. If you would like to show the video to an audience, contact Pamela Lightsey at 478-621-2603 or [email protected].
For more information about the current heroin and opioid addiction epidemic, go to the Drug Enforcement Administration’s website at dea.gov.
Police and Prosecutors Join Pensacola Students for Youth Dialogue EventRead the Press Release
PENSACOLA, FLORIDA – The United States Attorney’s Office for the Northern District of Florida developed and presented the district’s first BLAST youth dialogue event on Tuesday in coordination with the Pensacola Police Department. The program offered local students an opportunity to meet law enforcement officers in their community and ask the officers questions, share their perceptions of law enforcement, and interact with the officers in a familiar setting. Officers also provided students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The event was held at Camelot Academy of Escambia County, a transitional school for 11 to 18-year-olds, who have been removed from a traditional school. Approximately 59 students from the school attended the event.
Participating agencies included:
-
United States Attorney’s Office, Northern District of Florida
-
Pensacola Police Department
-
Federal Bureau of Investigation
-
Bureau of Alcohol, Tobacco, Firearms and Explosives
-
United States Probation Office
-
Florida Department of Law Enforcement
The schedule included the following breakout sessions, during which students had a chance to participate in role play with law enforcement officers:
-
Crime and Justice Overview: Students learned about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
-
Domestic Violence: Students participated in a scenario in which police respond to an injured victim. Discussion topics included de-escalation in a stressful environment, rights of witnesses and suspects, and the benefits of providing information to the police.
-
Traffic Stop Simulation: Students took turns playing the roles of civilians and officers in a traffic stop scenario in which some participants were compliant and some were argumentative. Discussion topics included vehicle searches based on probable cause and the dangers faced by officers during a traffic stop.
-
Use of Force: Facilitators and students discussed when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
After lunch, students heard two formerly incarcerated individuals speak about the consequences of criminal activity and the difficulties of living with a felony record. The day ended with a basketball game between officers and youth. The United States Attorney’s Office plans to expand the BLAST program across the district, which runs from Escambia to Alachua Counties.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Watch Video
-
Police Officer Arrested on Honest Services Wire FraudRead the Press Release
HONOLULU -- Agents of the Federal Bureau of Investigation today arrested Maulia LaBarre, 34, a resident of Honolulu, and a Honolulu Police Department (HPD) officer, after a federal grand jury returned an indictment on September 14, charging him with five counts of honest services wire fraud. LaBarre will have an initial appearance and arraignment before U.S. Magistrate Judge Richard L. Puglisi on September 19.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, LaBarre breached his duty of honesty and loyalty to the citizens of the City and County of Honolulu and the HPD to act in the public’s interest and not for his own illicit enrichment. The indictment alleges that, between January and March 2016, LaBarre solicited, and agreed to accept, sex from an individual by promising to arrange to have an arresting officer not appear to testify in a pending case involving prostitution charges against that individual. LaBarre is alleged to have sent wire communications in the form of text messages for the purpose of executing his criminal scheme.
If convicted of the charges in the indictment, LaBarre faces a maximum of 20 years in prison on each count. The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
The arrest and charges resulted from a joint investigation conducted by the Federal Bureau of Investigation and the Investigations Division of the Department of the Attorney General for the State of Hawaii. Homeland Security Investigations also provided assistance during the joint investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Nammar.
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Bert Cottier, a/k/a Bert Chang, age 50, was indicted on July 26, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on September 9, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Cottier stabbing a man with a knife at Pine Ridge. The charge is merely an accusation and Cottier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Cottier was released pending trial. A trial date has been set for November 15, 2016.
Orland Woman Pleads Guilty to EmbezzlementRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Carolyn J. Saunders, 57, of Orland, Maine, pled guilty yesterday in U.S. District Court to embezzlement in connection with health care.
According to court records, from November of 2011 until April 2015, Saunders, while employed as a financial administrator for Coastal Eye Care, PA and Coastal Eye Surgery Center, LLC, embezzled money by stealing cash from the practices’ bank deposits.
Saunders faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General and the Ellsworth Police Department.
Norfolk Businessman Pleads Guilty to Bribery and Bank FraudRead the Press Release
NORFOLK, Va. – Ronald W. Boone, Sr., 67, of Norfolk, pleaded guilty today to charges related to bribing the Norfolk City Treasurer and multiple other high-ranking Norfolk city officials, in addition to bank fraud.
Conspiracy involving bribery of Norfolk city officials
According to the statement of facts filed with the plea agreement, from March 2004 through December 2015, Boone provided cash, gifts, other things of value, and free access to a beach house to Anthony Burfoot, who is the current Norfolk City Treasurer and a former Norfolk City Councilman. In exchange, Burfoot performed specific official actions and promised to engage in future official actions to benefit Boone and his business interests. Throughout the conspiracy, Boone routinely gave Burfoot cash in increments of several thousand dollars, but typically not less than $2,500 at a time. Burfoot always demanded the payments in cash. In addition to the cash payments, on numerous occasions Burfoot asked Boone to “loan” him a few thousand dollars, which Boone provided in cash, and totaled at least $20,000. Burfoot never made payments on these “loans,” and Boone never asked Burfoot for payments on the “loans.”
According to the statement of facts filed with the plea agreement, on numerous occasions throughout the conspiracy, Burfoot took different friends to Kitty Hawk, North Carolina, to stay free of charge at Boone’s beach house. Burfoot never paid for any of his overnight or daily stays at the beach house. Burfoot used the beach house so regularly that Boone gave Burfoot a key to the beach house. To conceal Boone’s ownership of the beach house, Burfoot repeatedly told friends that the beach house was his, and claimed to at least three individuals who went to the beach house with him – each on separate occasions – that he owned the beach house.
According to the statement of facts filed with the plea agreement, in exchange for things of value provided to Burfoot, Boone regularly sought Burfoot’s support for important issues before City Council. In addition to assisting Boone by ensuring that a particular individual was removed from the Board of Commissioners for the Norfolk Redevelopment and Housing Authority, Burfoot repeatedly voted in accordance with Boone’s wishes in numerous matters before the council, including but not limited to: special exceptions for a Boone business; special exceptions for business that operated out of Boone’s properties, ordinances dealing with Boone’s properties, and ordinances that directly and indirectly impacted Boone’s business interests. Prior to a certain vote, Boone paid Burfoot between $5,000 and $10,000 in cash, and Burfoot subsequently voted as Boone requested.
According to the statement of facts filed with the plea agreement, from in or about 2002 through in or about 2012, Boone engaged in a corrupt quid-pro-quo relationship with another high-ranking Norfolk City Official, again providing cash and other things of value in exchange for the public official using his position to benefit Boone.
According to the statement of facts filed with the plea agreement, in or about early 2015, Boone gave an undisclosed, interest-free, undocumented loan of at least $5,000 to another high-ranking employee of the Norfolk City Treasurer’s Office.
Bank Fraud
According to the statement of facts filed with the plea agreement, in November 2011, Boone obtained a $1 million loan from BB&T Bank, pledging dozens of properties as collateral for the loan, including vacant lots. In October 2015, Boone contacted BB&T and advised them he had agreed to sell two vacant lots for $105,000, and asked BB&T what it would require to release the liens on the properties. In reality, and unbeknownst to BB&T Bank, Boone had built a house on the vacant lots and had agreed to sell the property for $290,000. After BB&T responded indicating they would release the liens for 90 percent of gross sales proceeds, but no less than $94,500, Boone, or someone at his direction, altered the documents to reflect that BB&T would receive a fixed amount of $94,500. After the sale for of the properties for $290,000, Boone pocketed $167,444, and sent BB&T a check for $94,500. In reality, BB&T should have received 90 percent of the sale proceeds, which was $261,000.
According to the statement of facts filed with the plea agreement, Boone also defrauded Fulton Bank to obtain a $13.2 million loan, providing false and fraudulent documents and information to qualify for the loan. The materially false documents included falsified personal financial statements, false tax returns, falsified cash flow statements, falsified lease agreements, inflated rent rolls, and fraudulently inflated bank statements.
Boone was charged yesterday by criminal information with one count of bank fraud and one count of conspiracy to commit honest services wire fraud. Boone faces a maximum penalty of 35 years in prison on January 26, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Gordon B. Johnson, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-126.
Niagara County Man Sentenced for Threatening the PresidentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jared Brown, 19, of Niagara County, NY, who was convicted of threatening the President of the United States, was sentenced to 15 months by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Scott S. Allen, Jr., who handled the case, stated that on September 6, 2015, the defendant called the Lockport City Police Department through the 911 Emergency Call Center and made oral threats over the telephone. During this call, Brown stated to an employee that he would kill President Obama. When a Secret Service Agent asked the hypothetical question what Brown would do if the President walked into the interview room, Brown said he would shoot him.
The sentence was the culmination of an investigation by the United States Secret Service, under the direction of Assistant Special Agent in Charge Thomas Braun.
New York Man Pleads Guilty to Falsifying Firearms Forms, Illegally Transporting a GunRead the Press Release
PITTSBURGH - A New York resident pleaded guilty in federal court to conspiracy and firearms offenses, United States Attorney David J. Hickton announced today.
Donovan Crawford, 21, of Bronx, NY, pleaded guilty on Wednesday to one count of conspiracy to commit offenses against the United States, one count of falsification of Firearms Purchase Form, and one count of illegal transportation in state of residency of firearm purchased outside of state of residency, before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from on or about March 27, 2015, and continuing thereafter until on or about Aug. 15, 2015, in the Western District of Pennsylvania and elsewhere, Donovan Crawford and others known and unknown to the grand jury, conspired to commit, and did commit, offenses against the United States, that is, to falsify firearms purchase forms, and to illegally transport a firearm from out of state into a state of residency. The court was further advised that Crawford did so by using third parties to purchase firearms on his behalf, both in the state of Pennsylvania, and in the state of West Virginia.
Judge Bissoon scheduled sentencing for Dec. 21, 2016, at 10 a.m. The law provides for a maximum total sentence of incarceration of up to 40 years, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington Police Department conducted the investigation that led to the prosecution of Donovan Crawford.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
National Heroin and Opioid Awareness Week Set for September 18-24, 2016Read the Press Release
ALBUQUERQUE – Following President Obama’s announcement of a “week of action” to raise awareness about the public health crisis caused by the growing heroin and opioid epidemic, U.S. Attorney General Loretta E. Lynch has designated the week of September 18, 2016, as National Heroin and Opioid Awareness Week. U.S. Attorneys throughout the country are sponsoring events geared towards increasing awareness and developing solutions to the growing epidemic of heroin and opioid abuse in our country during the awareness week.
The importance of this national awareness effort is underscored by devastating impact of the heroin and opioid epidemic. Nationwide heroin overdoses have increased 244 percent between 2007 and 2013. Many of the new heroin users are youths, with an average age of 24 ½ years old for first-time users. Nationwide, on an average day, 78 people will die from an opioid-related overdose.
In New Mexico, 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, will host a series of education events during National Heroin and Opioid Awareness Week. 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 Justice Department wants to highlight the incredible work that the U.S. Attorney’s Office and its HOPE partners are doing to combat the heroin and opioid epidemic in New Mexico,” said Associate Deputy Attorney General Bruce G. Ohr. “The hardest-hit communities in New Mexico, including many tribal communities, are benefitting from the HOPE initiative’s comprehensive approach, which looks beyond enforcement to incorporate prevention and treatment. HOPE is a model for communities across the nation suffering from this deadly epidemic.”
The HOPE Initiative’s events will include discussions with tribal leaders, high school students and student athletes, and law enforcement officials, to offer solutions and help raise awareness. There will also be discussions with local law enforcement agencies and medical professionals about new treatment options and delivery methods for overdose medications such as Naloxone. Discussion details from the events will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
“We are committed to improving the health and well-being of all New Mexicans,” said Paul B. Roth, MD, MS, Chancellor for Health Sciences at the University of New Mexico. “This partnership with the U.S. Attorney’s Office presents us with an extraordinary opportunity to help reduce opioid overdose deaths and help alleviate the awful personal and social costs that accompany drug dependency.”
“In 2014, New Mexico had the second-highest per capita overdose death rate in the country. Our community has acknowledged that we are in an epidemic, and we are coming together to take control of our future and our destiny,” said U.S. Attorney Damon P. Martinez for the District of New Mexico. “Through the HOPE Initiative, we are pursuing a comprehensive strategy to deal with, and defeat, this epidemic, and we will highlight our efforts in the coming week.”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.
Murfreesboro Man Charged with Threatening to Murder Member of United States CongressRead the Press Release
A Murfreesboro, Tenn. man was taken into custody this morning by FBI agents and U.S. Capitol Police, after a criminal complaint was issued, charging him with threatening to murder a United States official and transmitting in interstate commerce, a communication containing a threat, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Agents arrested Keahiokahouna Stewart, 36, at his Murfreesboro home this morning without incident. Stewart is scheduled to make an initial appearance later today before a U.S. magistrate judge in Nashville.
According to the criminal complaint, beginning in August 2016 and continuing through September 12, 2016, Stewart sent threatening emails and posted threatening videos to Instagram accounts, which he created. In an email dated August 19, 2016, Stewart indicates that he will fly from Nashville to Honolulu on November 1, 2016, with the intent to shoot people at the Princess Jonah Federal Building. The specific targets of these threats were U.S. Senator Mazie Hirono, who represents the State of Hawaii and Congresswoman Tulsi Gabbard, who represents the 2nd District for the State of Hawaii.
The complaint outlines that beginning in November 2013, Stewart sent a series of “Grievances” to various U.S. officials and departments, including Senator Hirono and Congresswoman Gabbard, inquiring about Stewart’s Social Security number. Stewart falsely believed that his SSN had been duplicated and issued to a fellow soldier he met while stationed at Camp Stanley in Korea, in 2002. In subsequent correspondence to the Social Security Administration and Department of Defense, Stewart demands he be awarded 100% disability and $50 billion.
As set forth in the complaint, Stewart’s actions continued to be investigated by law enforcement including a May 2015 visit to Senator Hirono’s office in Washington, D.C., which resulted in the U.S. Capitol Police being called. In subsequent Facebook and Instagram posts, Stewart continued to post comments about the issue and display photos of himself with firearms. In an Instagram video posted by Stewart on September 8, 2016, he states that he is flying to Honolulu on November 1, 2016, and will be traveling with an AR-15 and two handguns. Stewart further states that he has already shipped a silencer for one of the handguns and that it is stored in a garage in Waianae, Hawaii.
Investigators recently determined that Stewart had purchased an airline ticket to travel from Nashville to Honolulu on November 1, 2016, however it had been “exchanged,” which would allow the ticket holder to travel on any other date.
If convicted, Stewart faces up to 10 years in prison on the charge of threatening to murder a U.S. official and up to 5 years in prison on the charge of communicating threats through interstate commerce.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI and the United States Capitol Police. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
McLaughlin Man Sentenced for LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Larceny was sentenced on September 12, 2016, by U.S. District Judge Charles B. Kornmann.
Blaze Miles Thundershield, age 21, was sentenced to time served of 14 months custody, 3 years of supervised release, restitution in the amount of $10,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thundershield was indicted by a federal grand jury on October 14, 2015. He pled guilty on July 11, 2016.
The conviction stemmed from an incident on July 18, 2015, when a Corson County Sherriff’s Deputy was approached by the manager of the feedlot in McLaughlin, who informed the deputy that a blue Dodge Ram 2500 pickup truck, with a red horse trailer, had been stolen. The manager observed the vehicle “spinning cookies” in the lot, and he thought the vehicle’s owner was messing around. However, when he called the owner of the vehicle, he learned he was working near Kennel, South Dakota, and was not driving his vehicle. It was at this point that the manager noticed the deputy across the street and informed him of the stolen vehicle. The victim also called dispatch to report his truck stolen. The deputy left to search for the vehicle, which he was unable to locate.
Later in the evening, Bureau of Indian Affairs law enforcement was dispatched to McLaughlin after receiving several reports of shots being fired in the area. Responding officers were informed that four young male individuals were seen walking in the area with a handgun firing it in the air. Law enforcement was also informed that two young males were seen driving a blue pick-up truck, with a red horse trailer.
While law enforcement was collecting statements, a neighbor pointed up the street to a group of young boys approaching the location of the officers. Officers began running towards the boys, ordering them to lie on the ground. Three of the boys complied. One boy fled on foot, heading towards the McLaughlin rodeo grounds. He was eventually apprehended, hiding in a bed of weeds, and identified as Thundershield, the Defendant. Thundershield and another person were arrested on tribal charges.
Officers later found the stolen pick-up truck and trailer in a stand of trees near the golf course. The truck had been shot multiple times and was declared a total loss by the insurance company. The victim’s loss was valued in excess of $20,000 by his insurance company. The gun has not yet been recovered.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Thundershield remained in custody due to an outstanding warrant on an unrelated matter.
Massage Parlor Owner Sentenced for Sex Trafficking of Illegal AliensRead the Press Release
COLUMBUS, Ohio – Hui Li, 47, of Columbus was sentenced to one year and one day in prison for promoting prostitution involving aliens unauthorized to work in the United States through massage parlors she owned in Columbus and Dublin, Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Documents filed with the court by the U.S. Attorney’s Office prior to sentencing say that Li used online classified ad websites to advertise massage parlors she owned. Li transported Asian female employees to and from her Columbus massage parlors on a daily basis. The employees worked for 11 to 12 hours per day, seven days a week. Interviews of the employees and online postings revealed that sexual favors were being performed at the massage parlors.
Li pleaded guilty on November 18, 2015 to one count of travelling in interstate commerce to promote unlawful business enterprise and one count of hiring aliens unauthorized to work in the United States.
Li, a naturalized U.S. citizen, was also sentenced to serve two years under court supervision after completing her prison term.
Acting U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Ohio Organized Crime Investigations Commission Human Trafficking Task Force, which includes authorities from the U.S. Homeland Security Investigations, Columbus Division of Police, the Powell Police Department, Ohio State Highway Patrol, the Franklin County Sheriff’s Office, the Franklin County Prosecutor’s Office and the Delaware County Prosecutor's Office. He also commended Assistant United States Attorney Heather A. Hill who represented the United States in this case.
Marianna Man Pleads Guilty in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Friday that James E. Franklin, Jr., 34, of Marianna, pleaded guilty to an information charging him with conspiracy to commit wire fraud. Franklin conspired to steal money intended to feed children in low income areas during the school year.
Friday’s plea hearing took place in Little Rock before United States District Judge D.P. Marshall, Jr., who will sentence Franklin at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk, after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
At Friday’s hearing Franklin admitted that in the summer of 2013, he and Anthony Waits drove to meet a lady named Dorothy Harper at a bank. Harper lived in England and was a sponsor who participated in the feeding program. Waits got out of the vehicle, approached Harper’s vehicle and then returned with a stack of cash. Franklin estimated that it was around $12,000. Harper and Waits have been indicted on similar charges in Case No. 4:14CR00250-JM.
Prior to the trip, Franklin had limited knowledge of the feeding program from Waits. But after Franklin saw the large amount of cash, Waits explained the fraud to him in more detail. Franklin admitted that he agreed to participate with Waits in a fraudulent scheme to obtain money from the feeding program. Gladys Waits, Anthony Waits’ estranged wife, was also indicted on similar charges in Case No. 4:14CR00250-JM. Gladys Waits pleaded guilty to those charges on March 30, 2016.
Franklin was a sponsor for a feeding program through an organization called "JL&N Outreach." In the 2013 and 2014 contract years, Franklin submitted approximately 12 inflated claims for feeding sites in Brinkley, Ark., and Hughes, Ark. In Brinkley, Franklin falsely claimed they served from 217 to 287 children per day. In Hughes, Franklin falsely claimed they served from 184 to 244 children per day. According to witnesses, no more than 10 children per day were fed in Brinkley and no more than 15 children per day were fed in Hughes.
Because of the inflated claims, Franklin received a total of approximately $380,055.36 from DHS. Franklin withdrew in cash approximately $252,000 of the money he received. Franklin paid Anthony Waits approximately 40% of the total amount of money he received.
Franklin is the tenth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit mail fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg and Cameron McCree.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
MEDIA ADVISORY-- New Mexico Hope Initiative to Launch Naloxone ProjectRead the Press Release
ALBUQUERQUE – U.S. Attorney General Loretta E. Lynch has designated the week of September 18, 2016, as National Heroin and Opioid Awareness Week, and U.S. Attorneys throughout the country are sponsoring events geared towards increasing awareness and developing solutions to the growing epidemic of heroin and opioid abuse in our country during the awareness week.
In New Mexico, 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, will host a series of education events during National Heroin and Opioid Awareness Week. 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.
One key component in the fight against addiction and overdose death is the availability of life-saving medications like Naloxone. Naloxone is a prescription drug that reverses the effects of an opioid overdose; it is easy to administer and safe to use. U.S. Attorney Damon P. Martinez and Dr. Joanna G. Katzman, Director of the UNM Pain Clinic, will launch the HOPE Initiative’s Naloxone Project during a press conference at 10:00 a.m. on Monday, September 19, 2016 at the Hotel Andaluz in Albuquerque, N.M. The goal of the Naloxone Project is to enlist law enforcement agencies throughout New Mexico to join HOPE’s life-saving efforts by implementing Naloxone protocols and carrying Naloxone. U.S. Attorney Martinez and Dr. Katzman will be joined by Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Council President Dan Lewis, Albuquerque City Councilor Diane Gibson, and representatives of law enforcement agencies that are carrying Naloxone, or are seeking to do so. Discussion details from this event will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
WHO:
Associate Deputy Attorney General Bruce G. Ohr
U.S. Attorney Damon P. Martinez
Dr. Joanna G. Katzman, Director of the UNM Pain Clinic
Bernalillo County Commissioner Maggie Hart Stebbins
Albuquerque City Council President Dan Lewis
Albuquerque City Councilor Diane Gibson
Assistant Special Agent in Charge John Burge, BIA
Group Supervisor Richard Stark, DEA
New Mexico State Police Chief Pete N. Kassetas
Bernalillo County Sheriff Manuel Gonzales III
Rio Arriba Sheriff James Lujan
Santa Fe County Sheriff Robert Garcia
Taos County Sheriff Jeffrey Hogrefe
Rio Rancho Police Chief Michael Geier
Captain Randy Sanchez, Rio Arriba County Sheriff’s Office
Major Gabriel Gonzales, Santa Fe County Sheriff’s Office
Rio Rancho Deputy Chief Paul Rogers
Mark Payne, Executive Director of New Mexico HIDTA
Jack Jones, Executive Director, New Mexico Sheriffs Association
Capt. Sonny Leeper, Capt. APD (Retired)
Participant List in Formation
WHAT:
Press conference to announce HOPE’s Naloxone Project
WHEN:
Monday, September 19, 2016 at 10:00 am
WHERE:
Hotel Andaluz (downtown Albuquerque) – Majorca Room
125 Second Street N.W., Albuquerque, New Mexico 87102
(hotel entrance at southeast corner of 2nd & Copper)
complimentary valet parking are located on Copper Street
Note: Additional street parking is available near hotel/downtown area
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 9:45 am. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
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.
Last of Group of Griffin Unlicensed Gun Dealers SentencedRead the Press Release
NEWNAN, Ga. - Tony Anthony Goodman has been sentenced on charges of dealing firearms without a license, felon in possession of a firearm, possession of sawed off shotguns, and possessing with intent to distribute cocaine and the drug commonly known as “Molly.”
“Goodman repeatedly broke the law by possessing and distributing drugs and firearms, even after having been convicted of a felony on a previous occasion,” said U. S. Attorney John Horn. “Guns that are trafficked illegally often turn up in other criminal offenses and place citizens and police alike in danger.”
“The criminal history of the defendant, Tony Goodman, shows a complete and utter disregard for the lives of others residing in our community,” said ATF Acting Special Agent in Charge James Deir. “ATF will continue to work with our state and local partners to protect the public by investigating and prosecuting violent habitual criminals who unlawfully use firearms to terrorize our communities and reduce our overall quality of life.”
According to U.S. Attorney Horn, the charges and other information presented in court: Goodman had at least eight prior felony convictions between 1984 and 1997 on charges including forgery, drug dealing, burglary, aggravated assault, possession of a firearm during the commission of a crime, and possession of a firearm by a convicted felon. From 1997 until he was paroled in 2012 Goodman was in the custody of the Georgia Department of Corrections. Between January and February, 2015, Goodman sold twelve separate firearms to an undercover ATF officer. At the time of his arrest on March 18, 2015, Goodman was found in possession of two additional firearms along with various narcotics packaged for distribution.
Goodman was originally indicted on March 4, 2015, along with co-defendants David Combs, Demetrice Coggins, and Shedrick Howard. Howard pled guilty to four counts of being a felon in possession of 10 separate firearms and was sentenced to eight years, three months in federal prison on October 13, 2015. Combs pled guilty to two separate counts of being a felon in possession of firearms and was sentenced on January 7, 2016, to two years, ten months in federal prison. Coggins pled guilty to one count of being a felon in possession of a firearm and was sentenced on September 22, 2015, to one year and a day in federal prison.
Tony Anthony Goodman, 51, of Griffin, Georgia, has been sentenced by United States District Judge Timothy C. Batten, Sr., to 17 years in prison to be followed by three years of supervised release. Goodman was found guilty after a bench trial presided over by Judge Batten on May 9, 2016.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Matthew S. Carrico prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Kenel Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kenel, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer, was sentenced on September 12, 2016, by U.S. District Judge Charles B. Kornmann.
Dylan Demery, age 23, was sentenced to 12 months and a day in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Demery was indicted by a federal grand jury on January 21, 2016. He pled guilty on June 6, 2016.
The conviction stemmed from an incident which happened during the early morning hours of January 1, 2016, when an officer with the Bureau of Indian Affairs was dispatched to Kenel, in response to a report of a drunk driver.
The officer went to the side of a residence in Kenel, and noticed a male exiting a Blazer. The officer called out Demery’s name and ordered him to stop. Demery immediately fled on foot, and the officer pursued.
When they reached the road, both the officer and Demery slipped and fell on the ice. As the officer was attempting to rise, Demery grabbed the left shoulder of the officer’s jacket. The officer grabbed onto Demery’s legs, and Demery began to strike the officer on the left side of his face, as well as a few more times as the officer attempted to regain his footing. The officer then reached for his handcuffs in an attempt to restrain Demery. As he was doing this, Demery struck the officer in the face again, knocking him to his knees.
Multiple officers responded to the area to assist. The officer sustained multiple injuries as a result of this assault, including an injured eye, and shoulder.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Demery was immediately turned over to the custody of the U.S. Marshals Service.
Iowa Woman Sentenced to Prison for Making a False Statement in an Immigration PetitionRead the Press Release
A woman who made a false statement in an immigration petition was sentenced today to more than three months in federal prison.
Tamie Marie Samuels, age 46, from North Liberty, Iowa, received the prison term after a May 9, 2016, jury verdict finding her guilty of one count of making a false statement in an immigration matter.
The evidence at trial showed that on March 11, 2015, Samuels filed an immigration petition to help her fourth husband, who she married on February 3, 2015, gain legal status to remain in the United States. Samuels’ husband is from Jamaica and he entered the United States on a visitor visa on February 1, 2015. In the immigration petition, Samuels falsely claimed she had never filed a petition for an alien relative before. Samuels had previously filed a petition for an alien relative in 1997 for her second husband who was from Peru. United States Citizenship and Immigration Services (USCIS) reviews immigration petitions and investigates whether the marital relationships indicate marriage fraud. By denying that she filed a previous immigration petition, USCIS was unaware of Samuels previous filing which could have impacted USCIS’ review of the new petition. The investigation of Samuels began in February 2015 when Homeland Security Investigations learned that Samuels had booked a flight and given her third husband’s U.S. passport to another individual to use to attempt to illegally enter the United States from an island in the Caribbean in May 2014.
Samuels was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Samuels was sentenced to three months’ imprisonment. A special assessment of $100 was imposed. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Samuels was released on the bond previously set and is to surrender to the United States Marshal on October 10, 2016.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by investigated by the Department of Homeland Security, United States Immigration and Customs Enforcement, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-0001.
Follow us on Twitter @USAO_NDIA.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnson in Great Falls on September 15, 2016 and entering pleas of Not Guilty were:
-
KEITH JOSEPH HANKS, a 433year-old resident of Minneapolis, Minnesota, appeared on charges of second degree murder.If convicted of the charge contained in the indictment, HANKS faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-59
-
JANELLE RED DOG, a 42-year-old resident of Poplar, appeared on charges of first degree murder, second degree murder, felony child abuse and accessory after the fact.If convicted of the most serious charges contained in the indictment, RED DOG faces life in prison, $250,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-60
Appearing before U.S. Magistrate Ostby in Billings on September 12, 2016 and entering pleas of Not Guilty were:
-
KERIANN RUTH REED, a 27-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.If convicted of the most serious charge contained in the indictment, REED faces life in prison, $5,000,000 in fines, and 5 years supervised release.The case was investigated by the Drug Enforcement Administration.PACER Case Reference. 16-65
Appearing before U.S. Magistrate Ostby in Billings on September 6, 2016 and entering pleas of Not Guilty were:
-
JUSTIN R. SUNDSTROM, a 30-year-old resident of Billings, appeared on charges of felon in possession of a firearm.If convicted of the charge contained in the indictment, SUNDSTROM faces 10 years in prison, $250,000 in fines, and 3 years supervised release.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.PACER Case Reference. 16-22
Appearing before U.S. Magistrate Lynch in Missoula on September 1, 2016 and entering pleas of Not Guilty were:
-
NICHOLAS DENNIS LAMERE, JR., a 44-year-old resident of Marion, appeared on charges of failure to register as a sex offender.If convicted of the charge contained in the indictment, LAMERE faces 10 years in prison, $250,000 in fines, and lifetime supervised release.The case was investigated by the United States Marshals Service.PACER Case Reference. 16-33
-
MICHAEL WAYNE POWELL, a 38-year-old resident of Lolo, appeared on charges of conspiracy to distribute methamphetamine, and distribution of methamphetamine.If convicted of the most serious charges contained in the indictment, POWELL faces life in prison, $10,000,000 in fines, and 5 years supervised release.The case was investigated by the Federal Bureau of Investigation.PACER Case Reference. 16-35
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
-
Fort Thompson Man Sentenced for False Statements Relating to Health Care MattersRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of False Statements Relating to Health Care Matters was sentenced on September 8, 2016, by U.S. District Judge Roberto A. Lange.
Bryce Damon Drapeau, age 42, was sentenced to 1 year of unsupervised probation, and a $100 special assessment to the Federal Crime Victims Fund.
Drapeau was indicted by a federal grand jury on October 14, 2015, for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud. He pled guilty on June 8, 2016.
The conviction stems from an incident that occurred in July of 2015, when Drapeau altered his prescription increasing the number of Norco (Hydrocodone) tablets and attempted to fill the prescription at the Fort Thompson Indian Health Service Hospital Pharmacy. The pharmacist refused to fill the prescription, after suspecting it had been altered, and confirmed those suspicions with Drapeau’s treating physician.
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Former Selmer Police Lieutenant Pleads Guilty to Accessing Child PornographyRead the Press Release
Jackson, TN – A former Selmer Police Department lieutenant has pleaded guilty to accessing child pornography on a hidden website. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Tony O. Miller, 36, of Finger, Tennessee, was a member of a website dedicated to sharing child pornography. Miller used special technology to access it regularly between early January and March 2015. The website could not be found using traditional search engines, like Google or Bing; members had to use special technology designed to conceal their identity in order to access it. Images of minor children engaging in sexual activity with adults were featured on the website. Some of the minors were under 12 years of age.
An undercover investigation conducted by the Federal Bureau of Investigation (FBI) identified users of a website set up for the purposes of sharing child pornography. Visitors to the website could view, download, and comment on other users' material, as well as upload their own. Miller was identified as one of the website’s users.
At the time of the aforementioned conduct, Miller was a lieutenant with the Selmer Police Department.
Miller admitted that he used the Internet and work-issued digital devices to access the website and view child pornography. He also admitted to using technology to try to hide his criminal activity.
On Thursday, September 15, 2016, Miller pleaded guilty before Chief U.S. District Judge J. Daniel Breen to one count of accessing with intent to view child pornography.
Miller is scheduled to be sentenced on Friday, December 16th.
He faces up to 20 years in federal prison and a fine of up to $250,000.
This case was investigated by the FBI, with assistance from the FBI Major Case Coordination Unit in Linthicum, Maryland, and the Selmer Police Department.
Assistant U.S. Attorney Debra Ireland is prosecuting this case on the government’s behalf.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former San Francisco Restaurant Owner Pleads Guilty to Concealing Facts About Employee WagesRead the Press Release
SAN FRANCISCO – Ming Lian Zhou pleaded guilty in federal court in San Francisco today to a scheme to conceal a material fact from a government agency, announced United States Attorney Brian J. Stretch and Department of Labor Office of the Inspector General Special Agent in Charge Abel Salinas.
In pleading guilty, Zhou, 58, of San Francisco, admitted that he covered up the fact that he had not paid back wages to employees at two San Francisco restaurants he formerly owned, Hong Kong Lounge and Hong Kong Lounge II. On March 16, 2012, Zhou was notified by a representative of the Department of Labor Wage and Hour Division that he owed employees of those two restaurants $92,966.51 in overtime wages. Zhou admitted that, on or about March 27, 2012, he signed and submitted to the Wage and Hour Division two Forms WH-56, in which he represented and agreed that he would pay his employees the assessed amount and would mail proof of that payment to the Wage and Hour Division. In April 2012, he deliberately signed and submitted to the Wage and Hour Division 46 Forms WH-58, in which he reported that he had paid 46 employees their overtime back wages. In truth, he did not pay the employees their overtime back wages. He nevertheless signed the forms, and asked his employees to sign the forms, confirming that the employees had received their wages.
This case originated with an investigation by the Department of Labor’s Wage and Hour Division into whether restaurants in the Bay Area were in compliance with the Fair Labor Standard Act.
Zhou was indicted by a federal Grand Jury on September 17, 2015. He was charged with one count of concealing a material fact from a government agency, in violation of 18 U.S.C. § 1001(a)(1), and three counts of interfering with commerce by threats of economic harm, in violation of 18 U.S.C. § 1951. Under the plea agreement, Zhou pleaded guilty to a single count under 18 U.S.C. § 1001(a)1(1).
Zhou is currently on release on bond. Zhou’s sentencing hearing is scheduled for January 17, 2017, at 2:30 p.m., before the Honorable Richard Seeborg, U.S. District Judge, in San Francisco. The maximum statutory penalty for a count in violation of 18 U.S.C. § 1001(a)(1) is five years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant U.S. Attorney John Hemann and Special Assistant U.S. Attorney Katherine Lloyd-Lovett with the assistance of Marina Ponomarchuk and Matthew Swartsfager. The prosecution is the result of an investigation by the Department of Labor’s Office of the Inspector General and the Wage and Hour Division.
Former Owner of Investment Firms Pleads Guilty to $9 Million FraudRead the Press Release
RICHMOND, Va. – Sherman Carl Vaughn, 45, of Blackstone, pleaded guilty today to charges related to his role in an investment fraud scheme that caused more than $9 million in losses to over 50 investors.
According to the statement of facts filed with the plea agreement, in 2009, Vaughn and co-conspirator Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC. From 2009-2016, Vaughn and Robertson solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and the National Football League, while Vaughn focused on developing investment opportunities.
According to the statement of facts, Vaughn and Robertson led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
As a result of this conspiracy, Vaughn and Robertson fraudulently obtained more than $9 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
Vaughn faces a maximum penalty of 20 years in prison when sentenced on December 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the guilty plea was accepted by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.
This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-111.
Florida Man Convicted of Engaging in Child Exploitation EnterpriseRead the Press Release
A federal jury today convicted a Naples, Florida, man of engaging in a child exploitation enterprise and related charges for creating and running a website dedicated to the sexual abuse of children.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division; and Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Division made the announcement.
Steven W. Chase, 57, was found guilty of one count of engaging in a child exploitation enterprise, one count of advertising child pornography, three counts of transportation of child pornography and one count of possession of child pornography. The jury also returned a special verdict determining that Chase should be ordered to forfeit all property derived from, involved in, or traceable to his criminal activities, to include his Naples residence.
Evidence at trial established that Chase created and served as the primary administrator of a highly-sophisticated global enterprise dedicated to the sexual abuse of children, via a website that operated on the Tor anonymity network, through which he and more than 150,000 other members authored and viewed tens of thousands of postings involving child pornography. Images and videos shared through the website were highly categorized towards victim age and gender, as well as the type of sexual activity, according to trial evidence. Testimony at trial also established that website members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor network and elaborate file encryption.
Chase was arrested following a court-authorized search of his home on Feb. 19, 2015. Forensic examination of a computer and devices seized pursuant to the search revealed that he was in possession of thousands of images depicting the sexual abuse of children as young as toddlers.
Chase’s co-defendants Michael Fluckiger, 46, of Portland, Indiana, and David Lynn Browning, 47, of Wooton, Kentucky, the co-administrator and global moderator of the website, respectively, pleaded guilty in December 2015 to engaging in a child exploitation enterprise for their roles in helping Chase run the website.
The FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation, with assistance from the FBI’s Charlotte, Tampa and Boston Field Offices. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Cortney Randall of the Western District of North Carolina prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Law Enforcement Leaders to Hold Community Open House September 27 at Coeur d’Alene Public LibraryRead the Press Release
COEUR D’ALENE – U.S. Marshal Brian Underwood, FBI Supervisory Special Agent Richard Collodi and U.S. Attorney Wendy Olson will hold a community open house meeting Tuesday, September 27, at the Coeur d’Alene Public Library, 702 East Front Street. Underwood, Collodi and Olson will be in the public meeting room from 3 p.m. to 4:30 p.m. to meet and visit with persons interested in learning more about federal law enforcement in Idaho.
“We will be available for any question, concern or issue community members would like to talk about,” said Olson. “Frankly, we simply want members of the public, whom we serve, to have a chance to personally visit with their federal law enforcement leaders in Idaho. We recognize that it is not always practical for people to come to our offices.”
“Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people,” said Underwood. “In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Like our local law enforcement partners, we want to ensure that we are doing our part in community policing and relationship building.”
“We are honored to be part of a strong and dedicated law enforcement community serving northern Idaho,” said Collodi. “It is important to take every opportunity to maintain lasting relationships with the community in which we serve.”
Underwood and Olson were both appointed to their positions in 2010 by the President. They serve the entire state of Idaho, which is a single federal judicial district. Collodi supervises the FBI’s Coeur d’Alene office. He has been with the FBI since 2002, and has served in three offices.
El Salvadoran Man Convicted for Hindering His Removal from the United States and Assaulting Federal Law Enforcement OfficersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 15, a jury in Harrisburg convicted Jose Luis Benitez-Hernandez, age 30, an El Salvadoran national, of hindering his removal from the United States and assaulting law enforcement officers.
According to United States Attorney Peter Smith, following a two-day trial, the jury deliberated approximately one hour before delivering its verdict. The charges stemmed from an incident in February 2016 in which Immigration and Customs Enforcement (ICE) Officers located Benitez-Hernandez in Mechanicsburg after he failed to leave the United States in accordance with an Immigration Judge’s order.
After identifying Benitez-Hernandez leaving his home in a vehicle, the officers activated their emergency equipment in their vehicles. Benitez-Hernandez failed to stop, charged at one of the vehicles repeatedly, ultimately bumping the front bumper of one of the ICE vehicles. Benitez-Hernandez then refused to exit his vehicle and had to be forcibly removed. Before ultimately being apprehended, Benitez-Hernandez bit one of the ICE Officers and scratched another.
The investigation was conducted by U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorneys Scott Ford and Daryl Bloom.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Eagle Butte Man Sentenced for Robbery and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Robbery and Assault by Striking, Beating, and Wounding was sentenced on September 14, 2016, by U.S. District Judge Roberto A. Lange.
Chad Ryan Lara, age 34, was sentenced to 42 months in custody, followed by 30 months of supervised release, $26.25 in restitution, and a $100 special assessment to the Federal Crime Victims Fund on the robbery charge. Lara was sentenced to 6 months in custody, and ordered to pay $181.50 in restitution, along with a $25 special assessment to the Federal Crime Victims Fund on the assault case. The two sentences are to be served consecutively.
Lara was indicted on the robbery charge by a federal grand jury on March 15, 2016. Lara was indicted on the assault charge by a federal grand jury on May 17, 2016. He pled guilty to both charges on June 8, 2016.
The conviction on the robbery stemmed from an incident on March 9, 2016, when Lara entered the Mini Mart in Eagle Butte, wearing a black ski mask over his face, brandished a large knife, and demanded money from the cash register. When the clerks were unable to open the cash register, Lara grabbed it and pulled on it. One of the clerks prevented Lara from grabbing the cash register, so Lara threw down the knife, grabbed a case of Hurricane beer off the counter and fled the store. Some customers went after Lara and were able to apprehend him nearby. He was detained until the police arrived.
The conviction on the assault stemmed from an incident on April 7, 2016, when Lara was appearing on the above charge for a bail review hearing. Following the hearing, he was ordered to be detained pending trial. While awaiting transfer back to the Hughes County jail, Lara assaulted another inmate by striking him with closed fits in the face and chest area.
This cases were investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe. Assistant U.S. Attorney Jay Miller prosecuted both cases.
Lara was immediately turned over to the custody of the U.S. Marshals Service
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily Injury and Failure to AppearRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Failure to Appear was sentenced on September 14, 2016, by U.S. District Judge Roberto A. Lange.
Raymond Uses The Knife, III, a/k/a Yamni Uses The Knife, III, age 25, was sentenced to 37 months in custody, to be followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 on the assault charge. Uses The Knife was sentenced to 2 months in custody, and ordered to pay a special assessment of $100 to the Federal Crime Victims Fund on the failure to appear charge. The two sentences are to be served consecutively.
Uses The Knife was indicted on the assault charge by a federal grand jury on February 17, 2016. Uses The Knife was indicted on the failure to appear charge by a federal grand jury on April 13, 2016. He pled guilty on both charges on June 1, 2016.
The conviction on the assault stemmed from an incident on July 25, 2015 when Uses The Knife, along with three other co-defendants (one of them a juvenile), assaulted a male victim. One co-defendant confronted the victim. The victim kept backing away. Uses the Knife and his co-defendants encouraged the other co-defendant to fight the victim, who eventually took off running. Uses The Knife and one co-defendant started running after the victim, while the other adult co-defendant and the juvenile co-defendant followed in a car, eventually catching up with the victim and blocking his way, but the victim was able to get away and continued to run. The juvenile followed on foot and was able to catch up with the victim, knocking the victim to the ground. All three adult co-defendants caught up and started hitting and kicking the victim repeatedly, then fled the scene and drove off together. As a result of the assault, the victim had a broken arm. He also received six sutures to his head from a laceration. He also had numerous “bumps” on his head from the attack.
The conviction on the failure to appear stemmed from an incident on April 5, 2016, when Uses The Knife, who was directed to appear in court for a bond violation, failed to appear for the hearing.
These cases were investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe. Assistant U.S. Attorney Jay Miller prosecuted both cases.
Uses The Knife was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact with a Child.
Luther Blue Thunder, age 35, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 1, 2011, and September 1, 2012, and again between September 1, 2013, and December 31, 2013, at Mission, South Dakota, Blue Thunder knowingly engaged in and attempted to engage in sexual acts or contact with three different victims. All three victims were children who had not attained the age of 12 years.
The charges are merely accusations and Blue Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Blue Thunder was released on bond pending trial. A trial date has not been set.
District Man Sentenced to Six Years in Prison for Failing to Register as Sex Offender and Felony ThreatsRead the Press Release
WASHINGTON – Azeik Keys, 38, of Washington, D.C., has been sentenced to six years in prison on charges stemming from his failure to register as a sex offender and threats he made to kill the mother of his son, U.S. Attorney Channing D. Phillips and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia, announced today.
Keys was found guilty in June 2016, in the Superior Court of the District of Columbia, of failure to register as a sex offender, and felony threats. He was sentenced on Sept. 15, 2016, by the Honorable Todd E. Edelman. After his prison term, Keys will be placed on five years of supervised release.
Keys was convicted in 2004 in the Superior Court of the District of Columbia of first-degree sex abuse, sentenced to a six-year prison term, and ordered to register as a sex offender. He was required to register quarterly for the rest of his life. In 2013, he was convicted in the District of Columbia of failing to register as a sex offender. He registered the following year, using his parents’ address in Northeast Washington. Despite moving from that residence, he continued to register that address between November 2014 and April 2015 as his own.
The U.S. Marshals Service began an investigation in January 2015, and Keys’s true residence was ultimately located in Southeast Washington. On April 15, 2015, when Deputy U.S. Marshals entered his house to arrest him, Keys attempted to flee out his bedroom window. He was apprehended on the scene. Additional evidence linking Keys to the address was found in the defendant’s bedroom.
In late 2015, while Keys was in jail awaiting trial on charges stemming from this incident, the mother of his young son brought to the government a letter that Keys had sent her from jail threatening to kill her or to have her killed. Fingerprint and handwriting analysis and recorded calls made by Keys from jail confirmed that Keys sent the letter.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation to target sex offenders who violate registration laws by knowingly failing to comply with their sex offender registration requirements.
In announcing the sentence, U.S. Attorney Phillips and Marshal Hughes commended the work of those who investigated the case from the U.S. Marshals Service, particularly Deputy Marshals William Straw, Justin Bankert, and Jesse Miller. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorney Elizabeth Danello; Supervisor Security Specialist Michael Hailey; Victim/Witness Advocate Tracey Hawkins; and Paralegal Specialist D'Yvonne Key. Finally, they commended the work of Assistant U.S. Attorney Michael Marando, who was responsible for the initial investigation, and Assistant U.S. Attorneys John Timmer and Sumit Mallick, who secured the indictment and tried the case.
District Business Owner Sentenced for Conspiring to Violate Campaign Laws and to Obstruct Justice in a Federal InvestigationRead the Press Release
WASHINGTON - Eugenia C. Harris, a business owner in the District of Columbia, was sentenced today to 90 days in a halfway house or community corrections facility and an additional 180 days of home confinement for taking part in a conspiracy to disguise the source of campaign contributions in federal and local elections, including the 2010 District of Columbia mayoral campaign, and then taking steps to conceal the illegal activities from investigators.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Harris pled guilty on July 10, 2012, in the U.S. District Court for the District of Columbia, to three charges: one count of conspiring to violate federal campaign finance law and to obstruct justice; one count of engaging in fraud and making false statements, and one count of conspiring to violate District of Columbia campaign finance law. The Honorable Colleen Kollar-Kotelly sentenced Harris to one day in jail, which she already has served, and three years of supervised release. The 90 days in a halfway house or community corrections center and the 180 days of home confinement are to take place at the start of the period of supervised release. Judge Kollar-Kotelly also fined Harris $1,000.
Harris, 79, of Washington, D.C., admitted to participating in a scheme with business owner Jeffrey E. Thompson and others, in which Thompson’s funds were used to make conduit contributions to various federal and District of Columbia political candidates and to finance “shadow campaigns” of unreported contributions and expenditures in support of candidates.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea, Thompson admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012. He was sentenced on Aug. 15, 2016 to three months of incarceration, to be followed by 90 days of home confinement. Both Thompson and Harris ultimately cooperated with the investigation.
Harris and Thompson are among 14 people who pled guilty to charges in a broader investigation related to federal and local political campaigns. They are among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election. All 14 defendants charged in this investigation have now been sentenced.
According to the government’s evidence, Harris, Thompson, and others conspired with each other to make contributions in violation of the prohibition against disguised contributions made through conduits in various District of Columbia and federal elections.
Further, in 2010, Harris conspired with Thompson and others to use over $653,000 of Thompson’s funds to implement a shadow get-out-the-vote effort to support a candidate running for Mayor of the District of Columbia. Money for this campaign passed through Belle International, Inc., one of Harris’s companies.
In 2011, when the mayoral shadow campaign was being investigated, Harris conspired to, and did, obstruct the investigation. Among other things, she created false documentation and filed false 2010 federal and District of Columbia tax returns for Belle International - essentially characterizing the shadow campaign payments from Thompson as a legitimate business arrangement. By deducting these non-deductible expenses of the shadow campaign from her company, Harris caused a total tax loss of $402,366.
The Federal Election Campaign Act establishes limits on the amounts that individuals can contribute to individual and multi-candidate political action committees. It also prohibits a person from making a political contribution in the name of another person. The act bars a person from reimbursing a donor who has already given to a candidate. In addition, the law bans corporations from contributing money to candidates for federal public office.
The District of Columbia Campaign Finance Reform Act and Conflict of Interest Act similarly regulates financial activity intended to influence the election of candidates for District of Columbia office.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Ellen Chubin Epstein and Lionel André, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Michael K. Atkinson and Special Assistant U.S. Attorney Jonathan P. Hooks, who represented the government at sentencing.
16-171
Department of Justice to Launch Inaugural National Prescription Opioid and Heroin Epidemic Awareness WeekRead the Press Release
Attorney General Lynch will Travel to Lexington, Kentucky, as Part of the Justice Department’s Awareness Campaign to Address the Rising Public Health Crisis of Drug Addiction
The Obama Administration has designated the week of Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. As part of this effort, the Department of Justice is announcing a “week of action” to raise awareness about the rising public health crisis caused by drug overdoses. Senior Department of Justice officials, members of the President’s Cabinet and other federal agencies will hold events focused on the work being done to address the national prescription opioid and heroin epidemic.
Attorney General Loretta E. Lynch will travel to Lexington, Kentucky, tomorrow, TUESDAY, SEPTEMBER 20, 2016, to hold a youth town hall at a local high school; meet with parents who have lost their children due to overdoses and now work with the Heroin Education Action Team (H.E.A.T.); and deliver a policy speech regarding the actions and resources the Justice Department is bringing to bear on this issue.
“The heroin and opioid epidemic is one of the most urgent law enforcement and public health challenges facing our country,” said Attorney General Lynch. “Through Prescription Opioid and Heroin Epidemic Awareness Week, the Department of Justice seeks to raise awareness and prevent new victims from succumbing to addiction; to highlight the department’s ongoing commitment to holding accountable traffickers and others responsible for this epidemic; and to help provide treatment to those grappling with addiction. To be successful in this important endeavor, we need the help of all our federal, tribal, state and local partners. In the months ahead, we will continue working to erase this scourge from our communities and to ensure a brighter future for all Americans.”
Prescription Opioid and Heroin Epidemic Awareness Week will reinforce the Justice Department’s three-fold approach to the opioid and heroin epidemic: prevent further tragedies by raising awareness regarding the Opioid and Heroin epidemic; focus on enforcement priorities and highlight best practices; and deploy resources for treatment. As part of the initiative, over 70 U.S. Attorneys around the country have already committed to doing over 160 different events around the country and over 90 events are planned at Bureau of Prison (BOP) facilities.
As part of the week of action, the Attorney General is expected to announce a new strategy memo directed to the department that focuses on the three-fold prevention, enforcement and treatment approach to combatting the opioid epidemic. The President issued a proclamation designating Sept. 18-23, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week on Friday, Sept. 16.
ATTORNEY GENERAL LYNCH HOSTS TOWN HALL AT MADISON CENTRAL HIGH SCHOOL
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky
WHEN: TUESDAY, SEPTEMBER 20, 2016
9:15 a.m. EDT
WHERE: Madison Central High School
Auditorium
705 North 2nd St
Richmond, KY 40475
OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 8:30 a.m. EDT; Final Access: 9:00 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky
WHEN: TUESDAY, SEPTEMBER 20, 2016
10:30 a.m. EDT
WHERE: Madison Central High School
Lecture Lab
705 North 2nd Street
Richmond, KY 40475
OPEN PRESS (Camera Preset: 7:30 a.m. EDT for an 8:00 a.m. EDT K9 sweep; Media Access: 9:30 a.m. EDT; Final Access: 10:00 a.m. EDT)
NOTE: All cameras planning to attend the media availability must be preset in the auditorium prior to the Town Hall as there will be only one K9 sweep. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
ATTORNEY GENERAL LYNCH DELIVERS REMARKS AT UNIVERSITY OF KENTUCKY
WHO: Attorney General Loretta E. Lynch
WHEN: TUESDAY, SEPTEMBER 20, 2016
3:45 p.m. EDT
WHERE: University of Kentucky
BioPharm Complex
Lecture Hall 124
789 S. Limestone St
Lexington, KY 40508
OPEN PRESS (Camera Preset: 2:00 p.m. EDT for a 2:30 p.m. EDT K9 sweep; Media Access: 3:00 p.m. EDT; Final Access: 3:30 p.m. EDT)
NOTE: Media parking is available in the UK HealthCare Parking Garage, 140 Transcript Avenue, located south of the Pharmacy Building (789 South Limestone St). All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP for the above events to [email protected] by Monday, Sept. 19, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected].
Senior Administration, DOJ Officials Events for National Prescription Opioid and Heroin Epidemic Awareness Week of Action:
Monday, Sept. 19, 2016
Deputy Attorney General Sally Q. Yates will visit a BOP Community Treatment Services program at the Renaissance Medical Group in Washington, D.C. The Community Treatment Program is the final stage of BOP’s Residential Drug Abuse Program, as the inmates completing their sentences transition through Residential Reentry Centers. This visit will highlight BOP’s efforts to provide treatment to inmates with substance abuse issues, particularly prescription and other forms of opioids.
Monday, Sept. 19, 2016
Acting Bureau of Prisons Director Thomas Kane will meet participants in a Residential Drug Abuse Program (RDAP) at the Federal Correctional Institution in Cumberland, Maryland. This event is in conjunction with other special programming created during the administration’s week of action within the 90 RDAPs around the country to help raise awareness about the severity of heroin and prescription opioid abuse. Activities will also include presentations by mental health service providers, inmate panel discussions and observing moments of silence during community meetings for lives lost to opioid addiction.
Tuesday, Sept. 20, 2016
Attorney General Lynch will travel to Lexington, Kentucky to hold a student town hall at a high school, meet with H.E.A.T. parents that have lost their children to heroin abuse, and then close the day at the University of Kentucky for a policy speech on how the department is addressing the issue through prevention, enforcement and treatment.
Tuesday, Sept. 20, 2016
Organized Crime Drug Enforcement Task Forces Director Bruce Ohr will travel to New Mexico to hold a meeting with the leaders of three pueblo communities in the Espanola Valley, which has the highest heroin overdose death rate in the country on a per capita basis. He will also do additional outreach meetings with tribal leaders to discuss DOJ assistance to address the heroin/opioid crisis in Indian Country and best practices for first responders to carry naloxone.
Tuesday, Sept. 20, 2016
Secretary of the Veteran’s Administration Robert McDonald, Principal Associate Attorney General Bill Baer, and Office of National Drug Control Policy Director Michael Botticelli will participate in a roundtable discussion on the administration's efforts to assist our nation's veterans suffering from opioid abuse.
Wednesday, Sept. 21, 2016
Attorney General Lynch will deliver welcoming remarks prior to a screening of the “Chasing the Dragon” documentary, a film created jointly by the FBI and the Drug Enforcement Administration (DEA). FBI Director James Comey and DEA Acting Administrator Chuck Rosenberg will also participate in a question and answer session.
Thursday, Sept. 22, 2016
Office of Community Oriented Policing Services (COPS Office) Director Ron Davis will participate in a joint event at the Indiana State Police headquarters to announce grant funding to support law enforcement efforts to combat the distribution and trafficking of heroin, methamphetamine and other harmful opioids. The COPS Office will also release a new report, “Building Successful Partnerships Between Law Enforcement and Public Health Officials to Address Opioid Abuse” to serve as a resource to better assist law enforcement strategies in addressing the complex challenges posed by opioid overdoses.Defendant Involved in Multi-Million Dollar ‘High-Yield Prime Bank’ Scheme Found Guilty of Federal Fraud ChargesRead the Press Release
SANTA ANA, California – A Marina Del Rey man has been found guilty of federal fraud charges for participating in a “high-yield prime bank” scam by bringing in approximately $5 million from victims who were promised huge returns on investments, purportedly with little or no risk.
Mark Gelazela, who was also known as Mark Zella, 43, of Marina Del Rey, who operated IDLYC Holdings Trust, was found guilty yesterday afternoon by a federal jury of two counts of wire fraud related to the scheme.
Gelazela lured victims to invest in a scheme that claimed to be using money to lease and monetize bank guarantees. According to Gelazela, once the bank instruments were leased, a credit line would be drawn from the instruments that would then be used for trading, leading to extraordinary profits.
Once money came in from investors, Gelazela and his co-conspirators almost immediately used the money to pay themselves. In some cases, money from new victims was used to pay off older investors to keep the scheme running. When victims began inquiring about the status of payouts under the program and then began seeking the return of their capital, Gelazela lulled them with falsehoods and took steps to conceal the fraud.
The evidence presented at trial showed that Gelazela brought 18 victims into the scheme with false promises of astronomical returns on their investments.
“The victims in this case suffered losses of approximately $5 million after the defendant convinced them to invest with a series of lies,” said United States Attorney Eileen M. Decker. “This scheme was based on extravagant promises of high returns, which underscores the importance of exercising extreme caution when a deal sounds too good to be true.”
Gelazela was found guilty following a five-day trial before United States District Judge David O. Carter, who is scheduled to sentence Gelazela on December 12. At sentencing, Gelazela faces a statutory maximum sentence of 40 years in federal prison.
“Mr. Gelazela and his co-defendants solicited victims by claiming to be an international finance guru, only to lie about how investors’ money would be used, make excuses for delays in payment and convince victims to avoid cooperating with investigators,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As is typical of Ponzi schemes, investors did not receive returns on their investments.”
Previously in this case, a co-defendant who participated in the scheme pleaded guilty. Francis Wilde, 65, of Mountain View, California, who was the chief executive officer of Riptide Worldwide Inc. and the owner of Matrix Holdings, LLC, pleaded guilty in May to wire fraud and admitted that he was involved in 26 deals that cost victims more than $6.3 million. Judge Carter is scheduled to sentence Wilde on December 5, at which time he faces a statutory maximum sentence of 20 years in federal prison.
Charges against two other defendants named in a grand jury indictment are still pending. Those defendants are Steven Woods, a 55-year-old Missouri man, who operated company called BMW Majestic, and attorney Bruce Haglund, a 65-year-old Irvine resident, who acted as an escrow “paymaster” in deals made by his co-defendants.
“Financial fraud schemes are often described as a house of cards. The underlying structure can fall apart at any time and expose the individuals responsible,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint investigation and help put a stop to this and other types of white collar crime.”
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Daniel H. Ahn of the Santa Ana Branch Office.
Conspirator in Prison Tax Fraud Ring Sentenced to Additional 2.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Scott Albert Johnson, 36, of Turlock, was sentenced today by United States District Judge Garland E. Burrell Jr. to two years and six months in prison and ordered to pay $13,854 in restitution for his role in a conspiracy to defraud the United States by filing false claims for federal tax refunds, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Johnson, who was incarcerated on state charges at the California Correctional Center in Susanville, and three fellow inmates participated in a conspiracy to file false claims for federal tax refunds. Johnson and his fellow conspirators obtained the personal identification information of other inmates, with or without their consent, and provided it to three other co-defendants located outside the prison. The co-defendants then used that information to prepare and file false income tax returns with the Internal Revenue Service, claiming refunds that they knew to be false and to which the inmates were not entitled. The proceeds from these refunds were deposited into bank accounts for the personal benefit of the conspirators, and transferred to the inmate commissary accounts. Johnson also filed at least four tax returns in his own name seeking false refunds.
The conspirators filed at least 247 false claims for income tax returns in tax years 2008 through 2011. The IRS stopped some of these refunds, however, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
“This fraud was perpetrated from behind bars,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Johnson and his co-defendants had the time to concoct a scheme to systematically defraud the government and the taxpaying public. Refund fraud is a top priority, and we will continue to aggressively pursue those who undermine the integrity of the U.S. tax system.”
This case is the product of an investigation by the by the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
To date, three other co-defendants have pleaded guilty and have been sentenced: on July 15, 2015, Edwin Ludwig IV was sentenced to seven years in prison; on July 29, 2016, Judy Mullin was sentenced to 21 months in prison; and on August 19, 2016, Daniel Coats was sentenced to 18 months in prison. The charges against the three remaining defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.