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Tuesday 26 July 2016
U.S. Attorney Zachary T. Fardon and Other Law Enforcement Officials to Hold News Conference Today at 2:00 P.M.Read the Press Release
U.S. Attorney Zachary T. Fardon, FBI Chicago Special Agent in Charge Michael J. Anderson, Chicago Police Superintendent Eddie T. Johnson and other law enforcement officials will hold a news conference today to announce significant new indictments.
The news conference will begin at 2:00 p.m. in the 9th Floor Press Room of the U.S. Attorney’s Office, Dirksen Federal Building, 219 S. Dearborn, Chicago IL 60604. Media credentials will be required to access the Press Room, which will be open beginning at 1:15 p.m.
WHO: Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago Office of the FBI; Eddie T. Johnson, Superintendent of the Chicago Police Department; and several other law enforcement officials from the Chicago area and Indiana.
WHAT: The officials will announce significant new indictments against numerous alleged gang members.
WHERE: U.S. Attorney’s Office, 9th Floor Press Room in the Dirksen Federal Building, 219 S. Dearborn, Chicago IL 60604
WHEN: Tuesday, July 26, 2016, 2:00 p.m.
Two Pittsburgh Men Charged in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - Two Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Darnell Payne, 30, and Daniel Jones, 29, as defendants.
According to the indictment, from in and around January 2016, and continuing thereafter to in and around July 2016, Payne and Jones conspired with one another and others both known and unknown to distribute and possess with intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with assistance from the Borough of McKees Rocks Police Department, the Borough of Ambridge Police Department, the Borough of Sewickley Police Department, the Crescent Township Police Department, the City of Aliquippa Police Department, the Borough of New Brighton Police Department, and the Pennsylvania Attorney General’s Office, conducted the investigation leading to the indictment in this case. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Dubbed the ‘Cowboy Gun Bandits’ Found Guilty of Armed Robbery Spree Involving Large-Caliber HandgunRead the Press Release
LOS ANGELES – Two men who earned the moniker the “Cowboy Gun Bandits” for brandishing a large-caliber revolver during a series of robberies – starting with gas stations and culminating in a bank robbery that netted them over $55,000 – were convicted today in federal court.
Dominic Dorsey, 48, of Hollywood, and Reginald Bailey, 71, of the Jefferson Park district of Los Angeles, were found guilty of 11 felony counts – conspiracy to interfere with commerce in violation of the Hobbs Act, five specific Hobbs Act robberies and five counts of using a firearm during the robberies.
The jury that heard evidence during a trial that lasted just over two weeks found Dorsey and Bailey guilty of five robberies:
• a September 24, 2013, robbery at a Shell gas station in Woodland Hills;
• an October 6, 2013, robbery at an ARCO gas station in Newhall;
• an October 18, 2013, robbery at a Chevron gas station in Woodland Hills;
• an October 25, 2013, robbery at an ARCO gas station in Encino; and
• a November 5, 2013, robbery of a Citibank branch in Glendale that netted more than $55,000.
In addition to these robberies, the jury heard evidence in relation to the conspiracy count that Dorsey and Bailey also committed robberies at three other gas stations in October 2013.
Many of the robberies were captured by video surveillance, which allowed investigators to determine that one of the robbers was missing part of his ring finger on his left hand. The video surveillance evidence helped lead authorities to Bailey, whose left hand is missing a portion of his ring finger.
“These defendants participated in a series of brazen robberies involving guns aimed at terrorized employees,” said United States Attorney Eileen M. Decker. “While the robbers were extremely careful in concealing their identities during the robberies, the excellent work of law enforcement authorities led to their identification and convictions at trial.”
“Task Force members who partnered to work this case and others are able to identify and remove violent armed robbers from the streets of Los Angeles by utilizing resources at the state and federal level,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Field Office. “A collaborative effort by detectives, agents and prosecutors paid off as evidenced by today’s verdicts, and as scores of victims robbed at gunpoint during the defendants’ robbery spree receive justice.”
“I am always impressed by the collective talents of our Robbery Homicide detectives who worked tirelessly on this case along with our law enforcement partners to identify and locate these violent offenders who preyed upon our communities” LAPD Chief Charlie Beck said. “This is truly another example of solid investigative police work,” Beck concluded.
Each of the Hobbs Act violations – a total of six – carries a statutory maximum penalty of 20 years in federal prison. The gun violations carry potential life sentences, but also would bring mandatory minimum sentences of seven years for the first count and 25 years for each of the four additional counts, which means Dorsey and Bailey are expected to receive sentences of at least 107 years in federal prison.
United States District Judge Christina A. Snyder, who presided over the trial, is scheduled to sentence the two defendants on November 14.
The investigation into the string of robberies by the “Cowboy Gun Bandits” was conducted by Los Angeles Metropolitan Task Force on Violent Crime, which is made up of investigators with the Federal Bureau of Investigation, the Los Angeles Police Department and the Los Angeles Sheriff’s Department. The Glendale Police Department provided substantial assistance during the investigation.
This case was prosecuted by Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section and Assistant United States Attorney Joseph D. Axelrad of the Organized Crime and Drug Enforcement Task Force.
Tulsa Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB HORTON MASTERS JR., age 55, of , Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A).
The Indictment alleged that beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally conspire, confederate and agree with others to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, while an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. MASTERS was a methamphetamine distributor and maintained money for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
Assistant United States Attorney Shannon Henson represented the United States.
Three Local Restaurants Resolve Access Complaints Under the American with Disabilities ActRead the Press Release
CEDAR RAPIDS, IA – The U.S. Attorney’s Office recently settled access complaints against three local restaurants under the Americans with Disabilities Act (“ADA”). The Hacienda Las Glorias, Lone Star Steakhouse, and The Irish Democrat, all covered under Title III of the ADA, agreed to comply with the Act’s provisions ensuring equal access within the restaurants.
United States Attorney for the Northern District of Iowa Kevin W. Techau stated, “This office is committed to the full and fair enforcement of the Americans with Disabilities Act. These agreements demonstrate the vital importance of the Act so that people with disabilities can enjoy access to restaurants and businesses.”
The Hacienda Las Glorias, Cedar Rapids, Iowa, agreed to address several access issues including agreeing to install a first floor bathroom in its restaurant by August 15, 2016, which previously was only provided in its basement. Hacienda Las Glorias will also ensure accessibility to its parking, restaurant entrances, waiting area, bar area, and dining areas by June 15, 2017.
Delaine Petersen, a longtime ADA advocate and former Executive Director at The Arc of East Central Iowa, stated she “Appreciates the perseverance that the Justice Department exerted to gain ADA compliance at Hacienda Las Glorias. The result of the department’s efforts will allow all citizens with disabilities or without the right to fully access and patronize this establishment. The settlement is a strong statement that all citizens can and should be able to fully utilize the community.”
Lone Star Steakhouse & Saloon, Cedar Rapids, Iowa, agreed to correct certain features of the restaurant that prevented persons with disabilities from accessing portions of the restaurant. Lone Star agreed to bring ramps, dining areas, and bathrooms into compliance with the Act. Lone Star will submit reports to the U.S. Attorney’s Office for three years or until all barriers to access are resolved.
The Irish Democrat Pub & Grill, Cedar Rapids, Iowa, agreed to remove barriers that prevented persons with disabilities from accessing portions of the restaurant. The Irish Democrat agreed to make the front entrance, dining areas (including free standing tables, bars and booths) and its toilet rooms accessible to persons with disabilities. The Irish Democrat will submit reports to the U.S. Attorney’s Office for three years or until all barriers to access are resolved.
David Thielen, Executive Director of The ARC of East Central Iowa offered, “The mission at The Arc is to empower people with intellectual and related disabilities to engage in lifelong opportunities to live, learn, work and play with dignity, freedom, and full inclusion in their communities. This settlement will now afford the freedom of so many people with disabilities of full inclusion in our community, especially at these dining facilities. We are pleased at the outcome of this decision and pleased to see these restaurants will remedy the issues.”
The settlement documents detailing the terms of the agreements are attached to this release.
These matters were handled by Assistant United States Attorney Stephanie Wright and the Disabilities Rights Section of the United States Department of Justice.
The public may access the U.S. Attorney’s website to file an ADA complaint at www.justice.gov/usao/ian. After completing the form, it may be sent by mail, fax, or e mail. You may learn more about the Americans with Disabilities Act by going to the Department of Justice web page at www.ada.gov.
Today is the 26th anniversary of the signing of the ADA.
Follow us on Twitter @USAO_NDIA.
Three Brooklyn Men Charged in Manhattan Federal Court for Two Bank BurglariesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that MICHAEL MAZZARA, CHARLES KERRIGAN, and ANTHONY MASCUZZIO were arrested this morning for their roles in bank burglaries in Brooklyn and Queens, New York, earlier this year. MAZZARA, KERRIGAN, and MASCUZZIO will be presented later today in Manhattan federal court before United States Magistrate Judge Ronald L. Ellis.
Manhattan U.S. Attorney Preet Bharara said: “In the dark of the night, these defendants allegedly blowtorched their way through the roofs and into the vaults of two different banks, stealing over $5 million in cash and customer valuables kept in safe deposit boxes. Through their brazen bank heists, the defendants allegedly stole not just people’s money, but their memories too, leaving in their destructive wake gaping holes and looted vaults. But these bank jobs also left enough of a trace for the FBI and NYPD, whose good old-fashioned police work led to the charges and arrests announced today.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “The Mazzara bank robbery crew did more than just allegedly steal money from banks, they took irreplaceable mementos from people who believed those items were far too valuable to be kept at home. These men were allegedly after the money, but they also took heirlooms, jewelry, documents and family photos and tossed them aside. Those items held little value to the men accused in this case, but we hope the community finds some solace in the fact that they will no longer be able to commit these thefts.”
NYPD Commissioner William J. Bratton said: “These heists resembled scenes from the movie Heat – the work of a crew that was well organized, meticulous, and elusive to law enforcement. This investigation was conducted with painstaking persistence. Left with few clues after the heists, our crime scene teams hunted for every shred of evidence. From the plywood purchased at a nearby Home Depot, to the torches from a Brooklyn welder used to muscle into the vault, the picture slowly came into focus, resulting in today’s arrests and charges.”
According to the Complaint[1]:
Between April 2016 and the present, MAZZARA, KERRIGAN, and MASCUZZIO were part of a crew that burglarized banks in Brooklyn and Queens, New York, by cutting into the banks’ vaults, and stealing a total of approximately $5 million in cash, jewelry, diamonds, stock certificates, and other valuables. Specifically, from about April 8 to April 10, 2016, MAZZARA, KERRIGAN, and others burglarized an HSBC Bank branch in Brooklyn, and from about May 19 to May 22, 2016, MAZZARA, KERRIGAN, MASCUZZIO, and others burglarized a Maspeth Federal Savings Bank branch in Queens. On both occasions, the burglars used acetylene blowtorches to cut into the top of the banks’ vaults from the roof of the building. At the Maspeth Federal Savings Bank branch, they shielded their activities from view by constructing a plywood shed on the roof of the bank. The burglars then entered the vaults from above, broke open safe deposit boxes, and took both cash belonging to the bank and customers’ valuables from the safe deposit boxes. The crew obtained approximately $330,000 in cash and an unknown amount in valuables from the HSBC branch, and approximately $296,000 in cash and $4.3 million in valuables from the Maspeth bank. Surveillance footage captured some of MAZZARA, KERRIGAN, and MASCUZZIO’s activities as they prepared for and executed the burglaries. Financial records and video surveillance also showed MAZZARA and MASCUZZIO purchasing some of the supplies that appear to have been used in the Maspeth burglary.
* * *
MAZZARA, 44, KERRIGAN, 40, and MASCUZZIO, 36, all of Brooklyn, New York, are each charged with one count of conspiracy to commit bank burglary, which carries a maximum sentence of five years in prison; and one count of bank burglary, which carries a maximum sentence of 20 years in prison. MAZZARA and KERRIGAN have also been charged with a second count of bank burglary, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the efforts of the FBI, the NYPD, and the Drug Enforcement Administration in this investigation. He also thanked the U.S. Probation Office, the New York State Police, and the New York National Guard Counter Drug Task Force for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Benet J. Kearney and David W. Denton, Jr., are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Thomas Martinez Sentenced to 27.5 Years for Federal Carjacking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Thomas Martinez, 26, of Albuquerque, N.M., was sentenced today to 330 months in prison for his conviction on federal carjacking and firearms charges arising out of a one-day violent crime spree. Martinez will be on supervised release for five years after he completes his prison sentence
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
The U.S. Attorney said that Martinez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. “As a general matter, the initiative targets violent and repeat offenders based on their prior felony convictions. Periodically, we prosecute individuals without prior serious convictions because they are have engaged in extraordinarily violent conduct that seriously jeopardized the community’s safety,” said U.S. Attorney Martinez. “Martinez was prosecuted under the initiative based on a one-day violent crime spree on July 22, 2015, which endangered the lives of numerous Albuquerque residents and several officers.”
“This case reflects the partnership we have with the U.S. Attorney’s Office and other critical agencies. Our community is safer when we work together,” said 2nd Judicial District Attorney Kari E. Brandenburg.
ATF Special Agent in Charge Thomas G. Atteberry added, “Today’s sentencing reflects how seriously we enforce the federal firearms laws. If a criminal chooses to use a firearm during the commission of a violent crime as Martinez did, he better be prepared to spend a long time in federal prison.”
“Mr. Martinez showed a blatant disregard for our victim, three children, our officer and our community during his dangerous crime spree,” APD Police Chief Police Gorden E. Eden Jr. said. “We truly appreciate our law enforcement partners and the U.S. Attorney’s Office for their efforts to ensure this violent offender was sentenced under the ‘worst of the worst’ initiative.”
Martinez was charged with carjacking and firearms offenses in a criminal complaint filed on July 23, 2015. He subsequently was indicted on Aug. 11, 2015, and charged with two counts of carjacking and two counts of brandishing and discharging a firearm during a crime of violence. According to the indictment, Martinez committed all four crimes on July 22, 2015, in Bernalillo County, N.M., as he attempted to evade APD officers who were seeking to arrest him on a warrant arising out of an unrelated state court case.
Martinez committed the first carjacking as he attempted to flee from officers who were conducting surveillance near a hotel in northeast Albuquerque. Martinez ran to a sedan occupied by a driver and three children as the driver was entering a ramp onto Interstate 40. Martinez brandished a firearm at the driver, pushed the driver into the sedan’s passenger seat, and used the sedan to continue his flight from the officers. The children were able to get out of the vehicle before Martinez drove away with the driver. An APD officer who was attempting to prevent the carjacking was dragged by the Chevrolet as Martinez drove away. As Martinez continued his flight, the driver of the sedan attempted to get Martinez to stop the vehicle, and Martinez responded by discharging the firearm in an attempt to shoot the driver. When Martinez slowed down, the driver was able to jump out of the sedan.
Martinez continued his flight in the sedan and abandoned the vehicle in a neighborhood in southeast Albuquerque. There Martinez forced his way into another vehicle which was occupied by an older man seated in the front passenger seat. As Martinez began to drive away, another man confronted Martinez, got into the vehicle, and began fighting with Martinez. During the fight, Martinez attempted to discharge his gun at the man. Shortly thereafter, the man was able to disarm Martinez, and Martinez was arrested by APD officers on state charges.
Martinez was arrested on the federal charges on Oct. 7, 2015, after he was transferred from state custody to federal custody. The related state charges against Martinez were dismissed in favor of federal prosecution.
On Dec. 11, 2015, Martinez pled guilty to two counts of carjacking and one count of discharging a firearm during a crime of violence.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec prosecuted the case as part of the “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Thirty Four Alleged Gang Members Charged with Participating in Racketeering Conspiracy Involving Guns, Assaults and Attempted Murders in Chicago and SuburbsRead the Press Release
CHICAGO — Two federal indictments unsealed in Chicago today charged 34 members of the Latin Kings street gang with participating in a criminal organization that assaults and attempts to murder its rivals and violently protects its territories in the city and suburbs.
Authorities uncovered the alleged gang activity through dual investigations conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF). During the course of the multi-year probes, law enforcement agents confiscated more than 40 firearms, including two AR-15 assault rifles.
The indictments allege that members of the Latin Kings violently enforced discipline within its ranks and retaliated against rivals and former members to prevent cooperation with law enforcement. Its members and associates engaged in various acts of violence, including murder, attempted murder, assault with dangerous weapons, arson, and extortion, according to the indictments. The charges include the attempted murders of rival gang members and a Melrose Park Police officer.
Thirty four alleged Latin Kings are charged with racketeering conspiracy. A 35th alleged Latin King is charged in the indictment with selling a firearm without a license. The 36th and final defendant is an alleged Latin King charged in a criminal complaint with being a felon in possession of a firearm.
Several of the defendants were arrested this week and have begun making initial appearances in federal court in Chicago.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lindsay Murphy, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The officials recognized the substantial investigative assistance of the Melrose Park Police Department, Maywood Police Department, Cook County Sheriff's Police Department, Joliet Police Department, Evergreen Park Police Department, Bolingbrook Police Department, Orland Park Police Department, Palos Park Police Department, Hammond (Ind.) Police Department, and East Chicago (Ind.) Police Department.
The indictments pertain to alleged Latin King activities in two Chicagoland areas – the Southeast Side of Chicago, including the south suburbs, and the western suburbs of Maywood and Melrose Park.
Southeast Region (Chicago and South Suburbs)
U.S.A. v. Cavillo, et al, 16 CR 463
The Southeast Region of the Latin Kings contains over a dozen chapters, all of which answer to a regional structure of leadership, according to the indictment. Each chapter is typically named after the city in which it operates, or by a street or streets that run through the chapter. Among the Chicago chapters included in the Southeast Region were 82nd Street, 88th and 89th Streets, 97th Street, 99th Street, 102nd Street, 104th Street, and the Roseland neighborhood. Other regional chapters operated in the south suburbs of Blue Island, Dolton, Harvey and Chicago Heights, as well as in Kankakee and communities across the border in Indiana, according to the indictment.
The indictment charges three alleged high-ranking Latin Kings who enforced discipline and adherence to the gang’s rules and were known as “Regional Enforcers.” The three Southeast Regional Enforcers charged in the indictment are RAUL CAVILLO, 33, of Chicago; JOEL NUNEZ, 39, of Chicago; and CARLOS PADILLA JR., 35, of Chicago.
Also charged in the indictment are several alleged chapter leaders, known within the hierarchy as “Incas,” and their second in command, known as “Caciques.” According to the indictment, PAUL VASQUEZ, 43, of Chicago, served as Inca of the 82nd Street chapter; RUBEN PORRAZ, 36, of Chicago, was Inca of the 89th Street chapter; EDWARD DELGADO JR., 31, of Chicago, and LUIS GOMEZ, 31, of Chicago, were at times Incas of the 97th Street chapter; MIGUEL DENAVA, 27, of Chicago, served as Inca of the 99th Street chapter; and ELOY FUENTES, 31, of Chicago, was Inca of the 104th Street chapter. Incas are considered the highest authority within a chapter and oversaw the unlawful affairs of the Latin Kings in their areas, according to the indictment.
Caciques charged in the indictment include RAYMOND VASQUEZ, 30, of Chicago, who worked in the 97th Street chapter; and CARLOS CARTAGENA, 35, of Calumet City, in the 102nd Street chapter, according to the indictment.
Raymond Vasquez and three “Soldiers” of the chapter are charged in the indictment with using a dangerous weapon to assault an individual on Dec. 2, 2012, in south suburban Burnham. The purpose of the assault was to maintain and increase their position in the Latin Kings, the indictment states. The soldiers are identified in the indictment as FERNANDO CHAVEZ, 31, of Lansing; ISRAEL MATA, 33, most recently in state custody in Indiana on firearm charges; and EDGAR GONZALEZ, 32, of Whiting, Ind. Chavez is a convicted felon who is also charged with illegally possessing a Smith & Wesson .38-caliber pistol in Chicago in the summer of 2014, the indictment states.
Several other firearm-related offenses are charged in the indictment. A chapter soldier, ROY VEGA, 33, of Chicago, is charged with brandishing and discharging a firearm during a violent assault on July 5, 2014, in Chicago. Paul Vasquez is charged with attempting to transfer a loaded Tec-DC9 semi-automatic pistol to other Latin King members on Oct. 25, 2015, in Chicago, according to the indictment. Delgado is charged with being a felon in possession of a loaded Tauras .380-caliber semi-automatic pistol in Chicago, the indictment states. Delgado also faces a drug-related charge for allegedly distributing cocaine in the city in April 2014.
Also charged in the indictment is JUAN JIMENEZ, 33, of Blue Island, who allegedly served as the Southeast Regional Treasurer. Jimenez collected dues from the chapters as a way of financially supporting the activities of the region, the indictment states.
“M-Town” Section (Melrose Park and Maywood)
U.S.A. v. Gennell, et al, 16 CR 462
Included within the Midwest Region of the Latin Kings were numerous sections of the gang, including the Maywood section and the Melrose Park section, which collectively were referred to as the “M-Town” section. The geographical location controlled by the Maywood section included the area east of 25th Avenue, west of 1st Avenue, north of Lake Street, and south of North Avenue, in the western suburbs of Maywood and Melrose Park, according to the indictment.
The M-Town section was divided into two groups, known as “circles,” the indictment states. A group of older members were referred to as the “junior” circle or “older” circle, while a group of younger members were referred to as the “Pee-Wee” or “Shorty” circle. During periods when the M-Town section was split into an older and younger circle, each circle had its own set of leaders, but the ranking members of the younger circle still reported to the ranking members of the older circle, according to the indictment.
The hierarchy within the M-Town section was similar to the rankings in other Latin King sections, including the roles of Incas, Caciques, Enforcers, Soldiers and others, the indictment states. Several leaders of the M-Section, including three Incas and three Caciques, have been charged in the indictment. The three Incas are identified as PIERE PAOLO GENNELL, 30, of Melrose Park, and JOSE F. HERNANDEZ, 45, of Maywood, both of whom served at various times as Inca of the older circle; and DAVID PEREZ, 26, of Melrose Park, an Inca of the younger circle. The Caciques include older circle members ULISES DE LA CRUZ, 28, of Melrose Park, and MIGUEL MARTINEZ, 31, of Grayslake; and younger circle Cacique RUBEN MORENO, 24, of Melrose Park.
Gennell and Perez, along with two younger circle enforcers and a soldier, are charged in the indictment with attempting to murder an individual in Melrose Park on May 11, 2014, according to the indictment. During the attempted murder, the two enforcers, EFRAIN MEDINA, 26, of Maywood, and JOSE PENA, 21, of Melrose Park, personally discharged a firearm that left the victim badly injured and permanently disfigured, according to the indictment.
EDGAR VELARDE-SALDANA, 33, of Maywood, a soldier in the younger circle of the M-Town section, is charged in the indictment with attempting to murder a Melrose Park police officer on July 6, 2014. The officer was assisting agents from the Federal Bureau of Investigation at the time of the attempted killing, according to the indictment. The following month, Velarde-Saldana brandished and discharged a .45-caliber pistol during the course of a separate violent crime in Maywood, the indictment states.
Several other firearm-related offenses are charged in the indictment. Perez is facing gun charges for being a felon in possession of five pistols, a shotgun and a rifle in Maywood, Melrose Park and Hinsdale in the summer of 2014, according to the indictment. MARIO A. HERNANDEZ, 41, of Maywood, is a convicted felon who allegedly illegally possessed a Smith & Wesson 556-caliber rifle.
The investigations were conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The racketeering conspiracy charge generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities referenced in the indictments. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Brian Wallach, Derek Owens and Vikas Didwania are representing the government in the Cavillo, et al, case.
Assistant U.S. Attorneys Jennie Levin, Matthew Hernandez and Morris Pasqual are representing the government in the Gennell, et al, case.
Gennell et al indictment
Cavillo et al indictment
Texan Sentenced to 90 Months in Prison for Trafficking Drugs in Lea CountyRead the Press Release
ALBUQUERQUE – Arturo Dominguez Morales, 45, of Lamesa, Texas, was sentenced today in federal court in Las Cruces, N.M., to 90 months in prison for his methamphetamine trafficking conviction. Morales will be on supervised release for 6 years after completing his prison sentence.
Morales was arrested on June 30, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute in Lea County, N.M. According to the complaint, agents with the Lea County Drug Task Force (LCDTF) discovered more than 230 grams of methamphetamine in Morales’ vehicle after learning from confidential sources that Morales was bringing large amounts of methamphetamine into Hobbs, N.M., for distribution.
On Sept. 30, 2015, Morales pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Morales admitted that on June 28, 2015, the LCDTF found 232 grams of methamphetamine in his vehicle. Morales also admitted that he was delivering the methamphetamine to another individual.
This case was investigated by the Las Cruces office of the DEA and the LCDTF and was prosecuted by Assistant U.S. Attorney Terri J. Abernathy.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
State Street Bank to Pay $382 Million to Settle Allegations of Fraudulent Foreign Currency Exchange PracticesRead the Press Release
BOSTON – Carmen M. Ortiz, the United States Attorney for the District of Massachusetts, Andrew J. Ceresney, Director of the Division of Enforcement for the Securities and Exchange Commission (SEC), and Thomas E. Perez, the United States Secretary of Labor (DOL), announced today that State Street Bank and Trust Company, a Massachusetts-based financial institution, agreed to pay a total of at least $382.4 million, including $155 million to the Department of Justice (DOJ), $167.4 million in disgorgement and penalties to the SEC, and at least $60 million to ERISA plan clients in an agreement with the DOL, to settle allegations that it deceived some of its custody clients when providing them with indirect foreign currency exchange (FX) services.
As part of the settlement with the Department of Justice, State Street, a Massachusetts-based financial company, admitted that contrary to its representations to certain custody clients, its State Street Global Markets division (SSGM) generally did not price FX transactions at prevailing interbank market rates. Instead, State Street admitted that SSGM executed FX transactions by applying a predetermined, uniform mark-up (if the custody client was a FX purchaser) or mark-down (if the custody client was an FX seller) to the prevailing interbank rate for FX. State Street is also alleged to have falsely informed custody clients that it provided “best execution” on FX transactions, that it guaranteed the most competitive rates available on FX transactions, and that it priced FX transactions based on a variety of factors when, in fact, prices were largely driven by hidden mark-ups designed to maximize State Street’s profits.
“State Street’s custody clients, many of whom were public pension funds, financial institutions, and non-profit organizations, had a right to expect that State Street would execute transactions in an honest and forthright manner,” said United States Attorney Carmen M. Ortiz. “Instead, State Street executed FX transactions in a manner that enabled it to reap substantial profits at the expense of its custody clients. Today’s settlement reflects a significant and appropriate penalty for State Street’s deceptive conduct.”
“State Street misled custody clients about how it priced their trades and tucked its hidden markups into a corner where they were unlikely to notice,” said Andrew J. Ceresney, Director of the SEC’s Division of Enforcement. “Financial institutions cannot mislead their customers about their trading costs.”
“When financial institutions charged with safeguarding retirement plan assets put the firm’s interests ahead of the best interest of their plan clients, or fail to candidly disclose fees, we will hold them accountable. Retirement security is a pillar of middle class life, and the Labor Department and our federal partners are committed to using our authority to protect it,” said Secretary of Labor Thomas E. Perez.
Pursuant to the proposed settlements and other agreements, State Street will pay a total of $382.4 million, of which $155 million will be paid as a civil penalty to the United States to resolve the allegations made by the Department of Justice that State Street violated the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), by committing fraud affecting financial institutions. The United States’ investigation arose from whistleblowers who filed a declaration pursuant to FIRREA.
The SEC has approved a separate agreement to settle the SEC’s investigation concerning State Street’s indirect FX services. Under the terms of the agreement, the Commission will enter an administrative order against State Street, only after the U.S. District Court gives final approval to State Street’s proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its indirect FX pricing service. The administrative order will find that State Street violated Section 34(b) of the Investment Company Act of 1940 (Investment Company Act) and caused violations of Section 31(a) of the Investment Company Act and Rule 31a-1(b) thereunder, by providing its registered investment company (RIC) clients with trade confirmations and monthly transaction reports that were materially misleading in light of State Street’s representations about how it priced FX transactions. Under the terms of the order, State Street will be required to disgorge $75 million in ill-gotten gains and $17.4 million in prejudgment interest, to be paid to RIC clients, and also pay the SEC a civil penalty of $75 million.State Street is simultaneously resolving DOL’s claims under the Employee Retirement Income Security Act (ERISA) by agreeing to pay at least $60 million to State Street’s ERISA plan customers who, DOL found, sustained losses in connection with the conduct alleged above. This amount will be distributed to ERISA plan customers in conjunction with the settlement of certain private class action lawsuits. DOL alleges in the settlement that State Street made false or misleading representations concerning certain FX trades, and concealed from its plan customers how it priced those trades. In the settlement State Street represents that it now makes and will continue to make detailed disclosures to its customers with respect to its FX pricing, and that it now refrains and will continue to refrain from making representations regarding its FX pricing that are not accurate.
State Street will pay an additional $147.6 to resolve private class action lawsuits filed by the Bank’s customers alleging similar misconduct.
The case was handled by Assistant U.S. Attorneys Justin O’Connell and Abraham George of Ortiz’s Civil Division. The SEC’s investigation was conducted by Senior Enforcement Counsels Sue Curtin, Cynthia Storer Baran and Andrew Palid, Senior Trial Counsel Deena Bernstein, and Assistant Regional Director Celia Moore, all of the Boston Regional SEC Office, and Stuart Jackson of the Division of Economic and Risk Analysis. The DOL’s case was investigated by the Employee Benefits Security Administration’s Boston Regional Office with assistance from Senior Trial Attorneys Suzanne Reilly, Nathan Goldstein, and Nathan Henderson, and ERISA Counsel Marjorie Butler.
State Street Bank to Pay $382 Million to Settle Allegations of Fraudulent Foreign Currency Exchange PracticesRead the Press Release
U.S. Attorney Carmen M. Ortiz for the District of Massachusetts, Director Andrew J. Ceresney of the Division of Enforcement for the Securities and Exchange Commission (SEC) and Secretary Thomas E. Perez of the U.S. Department of Labor (DOL), announced today that State Street Bank and Trust Company, a Massachusetts-based financial institution, agreed to pay a total of at least $382.4 million, including $155 million to the Department of Justice, $167.4 million in disgorgement and penalties to the SEC and at least $60 million to ERISA plan clients in an agreement with the DOL, to settle allegations that it deceived some of its custody clients when providing them with indirect foreign currency exchange (FX) services.
As part of the settlement with the Department of Justice, State Street admitted that contrary to its representations to certain custody clients, its State Street Global Markets division (SSGM) generally did not price FX transactions at prevailing interbank market rates. Instead, State Street admitted that SSGM executed FX transactions by applying a predetermined, uniform mark-up (if the custody client was a FX purchaser) or mark-down (if the custody client was an FX seller) to the prevailing interbank rate for FX. State Street is also alleged to have falsely informed custody clients that it provided “best execution” on FX transactions, that it guaranteed the most competitive rates available on FX transactions and that it priced FX transactions based on a variety of factors when, in fact, prices were largely driven by hidden mark-ups designed to maximize State Street’s profits.
“State Street’s custody clients, many of whom were public pension funds, financial institutions and non-profit organizations, had a right to expect that State Street would execute transactions in an honest and forthright manner,” said U.S. Attorney Ortiz. “Instead, State Street executed FX transactions in a manner that enabled it to reap substantial profits at the expense of its custody clients. Today’s settlement reflects a significant and appropriate penalty for State Street’s deceptive conduct.”
“State Street misled custody clients about how it priced their trades and tucked its hidden markups into a corner where they were unlikely to notice,” said Director Ceresney. “Financial institutions cannot mislead their customers about their trading costs.”
“When financial institutions charged with safeguarding retirement plan assets put the firm’s interests ahead of the best interest of their plan clients, or fail to candidly disclose fees, we will hold them accountable,” Secretary Perez. “Retirement security is a pillar of middle class life, and the Labor Department and our federal partners are committed to using our authority to protect it.”
Pursuant to the proposed settlements and other agreements, State Street will pay a total of $382.4 million, of which $155 million will be paid as a civil penalty to the United States to resolve the allegations made by the Department of Justice that State Street violated the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), by committing fraud affecting financial institutions. The United States’ investigation arose from whistleblowers who filed a declaration pursuant to FIRREA.
The SEC has approved a separate agreement to settle the SEC’s investigation concerning State Street’s indirect FX services. Under the terms of the agreement, the Commission will enter an administrative order against State Street, only after the U.S. District Court gives final approval to State Street’s proposed settlement with private plaintiffs in pending securities class action lawsuits concerning its indirect FX pricing service. The administrative order will find that State Street violated Section 34(b) of the Investment Company Act of 1940 (Investment Company Act) and caused violations of Section 31(a) of the Investment Company Act and Rule 31a-1(b) thereunder, by providing its registered investment company (RIC) clients with trade confirmations and monthly transaction reports that were materially misleading in light of State Street’s representations about how it priced FX transactions. Under the terms of the order, State Street will be required to disgorge $75 million in ill-gotten gains and $17.4 million in prejudgment interest, to be paid to RIC clients, and also pay the SEC a civil penalty of $75 million.
State Street is simultaneously resolving DOL’s claims under the Employee Retirement Income Security Act (ERISA) by agreeing to pay at least $60 million to State Street’s ERISA plan customers who, DOL found, sustained losses in connection with the conduct alleged above. This amount will be distributed to ERISA plan customers in conjunction with the settlement of certain private class action lawsuits. DOL alleges in the settlement that State Street made false or misleading representations concerning certain FX trades, and concealed from its plan customers how it priced those trades. In the settlement State Street represents that it now makes and will continue to make detailed disclosures to its customers with respect to its FX pricing and that it now refrains and will continue to refrain from making representations regarding its FX pricing that are not accurate.
State Street will pay an additional $147.6 to resolve private class action lawsuits filed by the bank’s customers alleging similar misconduct.
The case was handled by Assistant U.S. Attorneys Justin O’Connell and Abraham George of Ortiz’s Civil Division. The SEC’s investigation was conducted by Senior Enforcement Counsels Sue Curtin, Cynthia Storer Baran and Andrew Palid, Senior Trial Counsel Deena Bernstein and Assistant Regional Director Celia Moore, all of the Boston Regional SEC Office and Stuart Jackson of the Division of Economic and Risk Analysis. The DOL’s case was investigated by the Employee Benefits Security Administration’s Boston Regional Office with assistance from Senior Trial Attorneys Suzanne Reilly, Nathan Goldstein and Nathan Henderson, and ERISA Counsel Marjorie Butler.
Spokane Doctor Sentenced to Life Imprisonment Following a Jury Verdict for 12 Counts of Aggravated Sexual Abuse of ChildrenRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Craig A. Morgenstern, age 47, of Nine Mile Falls, Washington was sentenced to 12 life terms in federal prison after a jury found him guilty of 12 counts of Aggravated Sexual Abuse of a Child. Senior United States District Judge W. Fremming Nielsen also imposed a 30-year term of imprisonment for each of Morgenstern’s 18 convictions for Production and Attempted Production of Child Pornography; a 20-year term of imprisonment for Morgenstern’s two convictions for Travel with Intent to Engage in Illicit Sexual Contact with a Minor; and, a 20-year term of imprisonment for Morgenstern’s conviction for Receipt of Child Pornography.
According to evidence introduced at trial, Morgenstern sexually assaulted six young boys and produced child pornography images of the assaults from 2008 through 2014. The victims ranged in age from 7 to 15 years old at the time of the assaults. Evidence at trial also established that Morgenstern traveled to Idaho, Mississippi, and Tennessee in order to sexually molest the same victims and produce child pornography images for his own sexual gratification. Evidence also established that Morgenstern would incapacitate his victims using drugs so that the victims were unaware of the sexual abuse and so that Morgenstern to continue his crimes and avoid detection.
Evidence at trial established that Morgenstern’s crimes were discovered after one of his victims, then a minor child less than 14 years old, escaped from the Morgenstern’s residence in Stevens County on October 18, 2014 after awaking to Morgenstern sexually assaulting him during the early morning hours. Subsequent investigation and evidence lead to the discovery of the additional victims.
At sentencing, Senior Judge Nielsen recounted the basis for the Jury’s 33 guilty verdicts against Morgenstern and noted that the evidence against him was overwhelming. Senior Judge Nielsen also found that Morgenstern obstructed justice by attempting to destroy much of the evidence of his crimes prior to his arrest. Prior the Court’s imposition of sentence, several victims and members of the victims’ families addressed the Court and Morgenstern, recounting the effect of Morgenstern’s crimes.
In addition to imposing imprisonment, Senior Judge Nielsen also ordered the forfeiture of numerous electronic devices and other materials that Morgenstern used to produce and maintain his collection of child pornography, the forfeiture of approximately $30,000 remaining from the sale of Morgenstern’s house, and restitution of approximately $10,000 to the families of the victims.
Michael C. Ormsby said “Morgenstern is every parent’s nightmare. Morgenstern preyed on families by grooming both the parents and children into trusting him so that he could be alone with his victims. Once alone with his victims he would drug them, sexually molest them and produce graphic images and videos of his molestation of the victims. The trauma associated with Morgenstern’s actions cannot be overstated and the damage caused by the Morgenstern to the victims by his sexual exploitation of them and breach of their trust is immeasurable.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Stevens County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister and James A. Goeke, Assistant U.S. Attorneys for the Eastern District of Washington, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Schenectady Felon Pleads Guilty to Possessing GunRead the Press Release
ALBANY, NEW YORK – Lawrence Giggetts, age 36, of Schenectady, New York, pled guilty today to illegally possessing a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his plea, Giggetts admitted to possessing a Raven .25 caliber handgun with a serial number that had been defaced in an attempt to remove it. A prior felony conviction prevented Giggetts from legally possessing a firearm.
Giggetts faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on November 22, 2016 by Senior United States District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
San Bernardino Woman Pleads Guilty to Sex Trafficking a 16 Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Christina Ann Traylor, 27, of San Bernardino, California, pleaded guilty today to charges of sex trafficking a minor.
According to the statement of facts filed with the plea agreement, Traylor, together with her boyfriend, recruited the minor victim for the purposes of having her engage in commercial sex work. Traylor caused the minor to perform commercial sex acts in Harrisonburg and Craigsville. Together with her boyfriend, Traylor drove the minor to New Orleans, Louisiana, where she demanded that the minor continue to perform commercial sex acts. After the minor refused to prostitute, Traylor assaulted her and drove her across the country to San Bernadino, California, where Traylor forced the minor to prostitute on the street. The minor was recovered by law enforcement and returned to Virginia.
Traylor faces a mandatory minimum of ten years and a maximum penalty of life in prison when sentenced on December 2. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Whitney Dougherty Russell 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. 1:16CR159.
San Antonio Man Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
Earlier today, 34-year-old Luis Armando Ontiveros of San Antonio was sentenced to 145 months in federal prison followed by a 30 years of supervised release for receiving of child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On April 25, 2016, Ontiveros pleaded guilty to the charge. By pleading guilty, Ontiveros admitted that from July 2013 until November 2015, he downloaded images and videos involving child pornography from the Internet.
In November 2015, federal authorities arrested Ontiveros following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 700 images and 270 videos depicting prepubescent children, many of which were engaged in sadistic or masochistic conduct. Ontiveros has remained in federal custody since his arrest.
This investigation was conducted by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rochester Man Sentenced for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jason Cortese, 34, of Greece, NY, who was convicted of enticement of a minor, was sentenced to 135 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Cortese used the internet and a smart phone to persuade a 12 year old minor to engage in sexually explicit activity. This activity included engaging in sexually explicit chats, attempting to have the minor send sexually explicit images of themselves and to receive and distribute images of child pornography.
A family member of the minor notified law enforcement officials after seeing the contents of the 12-year-old’s cell phone which included chats between the minor and the defendant. Cortese was known to the minor as a family friend. The minor disclosed that the two started chatting directly with one another through Facebook and then through Kik and Instagram.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn and the Irondequoit Police Department, under the direction of Chief Richard Tantalo. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Quinault Tribal Member Sentenced to Three Years in Prison for Brutal Assault on Intimate PartnerRead the Press Release
A 24-year-old member of the Quinault Tribe was sentenced today in U.S. District Court in Tacoma to three years in prison and three years of supervised release for Assault Resulting in Serious Bodily Injury, announced U.S. Attorney Annette L. Hayes. RICKY LEE LOGAN, pleaded guilty in March 2016, to repeatedly assaulting his girlfriend during the period May 25-29 while both were on Tribal Trust land on the Quinault Reservation. At sentencing U.S. District Judge Benjamin H. Settle noted that LOGAN was under the influence of methamphetamine at the time of the assaults saying “Your use of drugs has led to violent behavior….(The victim) was seriously injured as the result of this conduct.”
According to records in the case, on May 29, 2015, Quinault Tribal Police found the victim with bruising all over her back, side, face, jaw, and neck, and black eyes. She had puncture wounds on her hands. Her lungs had collapsed from the repeated beatings, and she had broken ribs. The woman was rushed to the hospital and has since recovered. LOGAN was indicted federally for the assault in October 2015.
Because LOGAN is a tribal member and the assault occurred on Tribal land the case is under the jurisdiction of federal courts.
The case was investigated by the Quinault Tribal Police and the FBI.
The case was prosecuted by Assistant United States Attorneys J. Tate London and Ye-Ting Woo.
Press AdvisoryRead the Press Release
There will be a press conference today at 1:00 p.m. to announce federal charges against three men in connection with recent bank burglaries in New York, that resulted in the theft of over $5 million in cash and valuables.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William J. Bratton, Commissioner of the New York City Police Department
WHAT:
Press Conference
WHEN:
Tuesday, July 26th, 2016 at 1:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase (212) 637-2600
NOTE: Please arrive early to permit clearance through security. Please silence all cell phones, PDAs, and pagers before start of press conference.
Orange County Man Who Allegedly Impersonated ICE Agent Faces Federal ChargeRead the Press Release
SANTA ANA, California – An Orange County man who allegedly posed as an agent with U.S. Immigration and Customs Enforcement (ICE) in an attempt to extort money from at least one female victim made his first federal court appearance this afternoon after being charged with impersonating a federal officer.
Luis A. Flores-Mendoza, 26, of Santa Ana, was arrested Monday by Special Agents with ICE Homeland Security Investigations (HSI). He was charged in a criminal complaint that federal prosecutors filed last week.
Flores-Mendoza was initially arrested and charged in state court earlier this month after an investigation by the Placentia Police Department.
According to the federal complaint, the female victim told Placentia police detectives that Flores-Mendoza arrived at her workplace last month clad in police tactical gear, including a vest, badge, and a firearm, which later proved to be a pellet gun. After allegedly identifying himself as an ICE agent, the victim said Flores-Mendoza presented her with a letter, purportedly from ICE, stating there was an immigration case against her. The defendant then allegedly instructed the victim to pay him $5,000 to prevent her and her child from being deported. At the time of his original arrest on the state charge earlier this month, Flores-Mendoza was driving a vehicle equipped with police-style strobe lights and a siren.
“Impersonating a federal agent not only harms the victim who encounters the impersonator, but it can also undermine the public’s confidence in law enforcement officers,” said United States Attorney Eileen M. Decker. “In this case, the defendant allegedly posed as a federal agent in an effort to extort money from a vulnerable victim, who fortunately reported it to police.”
“We’re committed to safeguarding the public from scam artists and others who exploit people’s fears for no other reason than to enrich themselves,” said Joseph Macias, Special Agent in charge of HSI’s Los Angeles office. “We’re concerned this defendant may have preyed on others, and we’re asking anyone who may have been victimized by this individual to come forward.”
HSI and the Placentia Police Department are continuing to investigate this case. Authorities urge members of the public who have information that may be relevant to this ongoing probe to contact the Placentia Police Department or ICE’s toll-free tip line – 1-866-DHS-2ICE – or use the agency’s online tip form.
At his court appearance this afternoon, Flores-Mendoza was ordered freed on a $10,000 bond, and he was directed to appear for his arraignment on August 29.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the impersonation charge, Flores-Mendoza faces a statutory maximum penalty of three years in federal prison.
This case is being prosecuted by Assistant United States Attorney Robert J. Keenan.
Ninth Nigerian Extradited to Mississippi to Face Federal Internet Fraud ChargesRead the Press Release
Gulfport, Miss – A ninth Nigerian national has been extradited from South Africa to face charges on a nine-count federal indictment filed in the Southern District of Mississippi involving various internet fraud schemes, announced U.S. Attorney Gregory K. Davis. Previously one South African was extradited from South Africa and an additional Nigerian from Canada.
Gabriel Oludare Adeniran, 30, appeared before U.S. Magistrate Judge Robert H. Walker in Gulfport on Monday for arraignment on two counts of conspiracy to commit mail, wire and bank fraud, as well as identity theft, access device fraud and theft of government funds, and one count of conspiracy to commit money laundering.
This case is set for trial on January 17, 2017. Adeniran faces a maximum penalty of 55 years in prison on the charges.
The indictment in this case alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs. Potential victims can find information and a claim form on the website for the United States Attorney’s Office for the Southern District of Mississippi at: http://www.justice.gov/usao/mss/scams.
The Department of Homeland Security, Homeland Security Investigations and the United States Postal Inspection Service are investigating this fraud. The case in Mississippi will be prosecuted by Assistant U.S. Attorney Annette Williams, along with Conor Mulroe of the Organized Crime Gang Section and Peter Roman of the Computer Crimes Intellectual Property Section.
An indictment is a formal charge against a defendant. Under the law, an indictment is merely an accusation and a defendant is presumed innocent until proven guilty.
New York Gang Member Sentenced to Federal Prison for Attempted Firearms TraffickingRead the Press Release
BRUNSWICK, GA- Qaaid Reddick, 33, of Brooklyn, New York was sentenced last week by Chief U.S. District Court Judge Lisa Godbey Wood to 82 months in prison for his role in the attempted exchange of heroin and cocaine for a cache of firearms.
According to evidence presented during guilty plea and sentencing hearings, Reddick, a Bloods Gang leader, and Brandon Conway, 22, both New York residents, traveled from New York to Brunswick, Georgia to trade heroin and cocaine for a cache of firearms. Reddick and Conway were attempting to obtain firearms to take back to New York so they could be disseminated to others and used in crimes. Reddick and Conway delivered the drugs to a person at a hotel room in Brunswick, Georgia. In the hotel room, Reddick and Conway were shown the cache of firearms they ordered, which included semi-automatic weapons and an assault rifle. To their surprise, Reddick and Conway were dealing with an undercover ATF agent. Reddick and Conway were quickly arrested in the hotel room without incident.
United States Attorney Ed Tarver stated, “Georgia is often referred to as a ‘source state’ for out-of-state gang members looking for firearms. This U.S. Attorney’s Office and our federal and state law enforcement partners will continue to disrupt the illegal pipeline of guns from Georgia to the hands of those peddling drugs, fear and crime in neighborhoods throughout our great nation.”
At an earlier sentencing hearing, Reddick’s coconspirator, Brandon Conway, was sentenced to 7 months in prison and 3 years of supervised release. There is no parole in the federal system.
The case was investigated by the ATF, the GBI and the Glynn County Sheriff’s Department. Assistant United States Attorney E. Greg Gilluly, Jr. prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Rob Begay, 24, an enrolled member of the Navajo Nation who resides in Twin Lakes, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an indictment charging him with involuntary manslaughter.
Begay was arrested on Dec. 2, 2015, on a criminal complaint charging him with involuntary manslaughter. Begay was indicted on Dec. 17, 2015, and was charged with killing a Navajo woman on Nov. 28, 2015, while driving under the influence of alcohol. According tot the indictment, Begay committed the crime on the Navajo Indian Reservation in McKinley County, N.M.
During today’s change of plea hearing, Begay pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Begay admitted that because of his intoxication he was incapable of exercising clear judgment and a steady hand in operating a vehicle.
At sentencing, Begay faces a statutory maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Jack Burkhead.
Mount Vernon Tax Preparer Convicted of Obstructing the IRS and 38 Counts of Aiding and Assisting Preparation of False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that tax preparer SAMUEL GENTLE, the owner of a tax preparation business named GenGen, Inc., in Mount Vernon, New York, was found guilty on charges of obstructing the IRS and aiding and assisting the preparation of false and fraudulent individual income tax returns for his clients. GENTLE was convicted yesterday after a five-day jury trial before U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “As a jury found after trial, Samuel Gentle abused his position of trust as a tax preparer by systematically violating the nation’s income tax laws. The investigation that led to this conviction underscores our commitment, as well as that of our partners at the IRS, in pursuing and prosecuting people who circumvent our tax laws.”
As established by the evidence at trial:
From 2010 through 2014, GENTLE’s tax preparation business prepared and submitted to the IRS, on average, 3,200 tax returns each year. Some of these tax returns were false and fraudulent in that they contained various inflated deductions for unreimbursed employee business expenses, gifts to charity, and Schedule C business expenses.
As part of the investigation of this matter, an undercover IRS agent posed as a client of GENTLE’s. During the operation, the agent provided GENTLE with a Form W-2 showing income from wages. Despite being provided no records to support any other deductions, GENTLE included false and fraudulent deductions for unreimbursed employee business expenses and gifts to charity on the tax return he prepared for the undercover agent. GENTLE’s inclusion of these false and fraudulent deductions caused the return to fraudulently claim a refund.
GENTLE also failed to report on his own tax returns nearly half of the $1 million in receipts that he received for his tax preparation services from 2010 through 2014. He spread the receipts across eight bank accounts at five banks. In addition, he failed to issue W-2’s or Forms 1099 to himself or his employees, further concealing from the IRS the amount of receipts he and his business received.
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GENTLE, 59, of Mount Vernon, New York, was found guilty on all 39 counts submitted to the jury, including one count of interfering with the administration of the internal revenue laws and 38 counts of aiding and assisting the preparation of false and fraudulent U.S. tax returns, each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
GENTLE’s sentencing is scheduled for October 25, 2016.
Mr. Bharara praised the IRS for their outstanding work in the investigation.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jennifer Beidel, Margery Feinzig, and James McMahon are in charge of the case.
Mishawaka Man Sentenced to 87 Months for Hobbs Act RobberyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Jamar Crawford, 22, of Mishawaka, Indiana was sentenced before Judge Jon E. DeGuilio for Hobbs Act Robbery and using a firearm in during a crime of violence.
Crawford was sentenced to 87 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, on August 29, 2015, Crawford and a co-defendant entered a liquor store in South Bend armed with a shotgun and robbed the store of cash. They then fled the business and were apprehended by South Bend Police Officers.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Mexican National Indicted for Illegally Re-Entering the United StatesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted Marcos Osorio Villalba for illegally re-entering the United States after having been previously deported.
According to United States Attorney Peter Smith, the Indictment charges a 38 year old Mexican national with unlawfully returning to the United States after having been deported to Mexico in 2014. Osorio Villalba was removed from the country after a conviction in federal court in Ohio for his involvement in a heroin conspiracy.
The investigation was conducted by the U.S. Department of Homeland Security/ Immigration and Customs Enforcement and Removal Operations. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
Indictments 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 20 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.
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Media Advisory: Press Conference on Wednesday at Daytona Beach Police DepartmentRead the Press Release
WHO:
United States Attorney A. Lee Bentley, III
ATF Assistant Special Agent in Charge Trevor A. Velinor
Daytona Beach Police Chief Michael Chitwood
State Attorney R.J. Larizza
WHAT:
Press conference to announce the unsealing of indictments and arrests of multiple individuals involved in firearms and drug trafficking.
WHEN:
Wednesday, July 27, 2016, 11:00 A.M. EST
WHERE:
Daytona Beach Police Department
129 Valor Boulevard (Second Floor)
Daytona Beach, Florida 32114
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license).
Media may begin arriving at 10:15 A.M.
Please RSVP to [email protected] by 5:00 p.m. on Tuesday, July 25, 2016.
Maryland man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Tillman, 50, of Annapolis, Maryland was sentenced to 21 months in prison for heroin distribution, United States Attorney William J. Ihlenfeld, II, announced.
Tillman admitted to distributing heroin in April 2014 in Berkeley County, WV. He pled guilty in April 2016 to one count of “Aiding and Abetting the Distribution of Heroin.”
West Virginia Assistant Attorney General and Special Assistant United States Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maquoketa Man Charged with Distributing Fentanyl AnalogueRead the Press Release
Joshua Manning, age 22, from Maquoketa, Iowa, has been charged with one count of distribution of furanyl fentanyl. The charge is contained in an Indictment unsealed on July 22, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about March 3, 2016, Manning distributed a substance called furanyl fentanyl. The Indictment alleges that furanyl fentanyl is an analogue of fentanyl, and that Manning knew that the substance was intended for human consumption.
If convicted, Manning faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
Manning appeared on July 22, 2016, in federal court in Cedar Rapids and was held without bond. Manning’s next appearance for a status hearing is set for August 24, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Dubuque Drug Task Force, Maquoketa Police Department, and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-01031-LTS.
Follow us on Twitter @USAO_NDIA.
Manitowoc Man Sentenced to 12 years on Drug and Firearm ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 25, 2016, Steven R. Schenian, Jr. (age: 38) of Manitowoc, Wisconsin, appeared in federal court in Green Bay and was sentenced to 12 years in federal prison for his involvement in a conspiracy to distribute cocaine and carrying a firearm in furtherance of a drug trafficking offense.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach noted the “special danger to the community” inherent when drug traffickers possess firearms. The judge condemned Schenian Jr.’s involvement in several violent drug-related acts, including the beating of a drug associate whom he suspected of theft. He concluded that Schenian Jr. was deserving of a substantial prison sentence. Following his release from prison, Schenian Jr. will serve 10 years on federal supervised release.
The case was investigated by the Drug Enforcement Administration, the Manitowoc County Sheriff’s Office, and the Manitowoc Area MEG Unit. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Louisville, Woman Sentenced to Eight Years in Prison for Conspiracy to Sex Traffic A Louisville, Kentucky, MinorRead the Press Release
LOUISVILLE, Ky. – A Louisville, Kentucky, woman was sentenced today in United States District Court by District Judge David J. Hale to eight years in prison, followed by tens years of supervised release, for conspiracy to sex traffic a minor, announced U. S. Attorney John E. Kuhn, Jr.
Crystal Bradshaw, a/k/a Crystal Thurman, 42, pleaded guilty to the charge on March 16, 2016. Her co-defendant, Ralph Goodwin, was sentenced earlier this month, by Judge Hale, to ten years in prison for sex trafficking of the 15-year-old female, including soliciting the minor to engage in commercial sex acts and transporting the minor with the intent that the minor engage in prostitution.
According to court records, Bradshaw admitted that in June of 2015, she made contact with Goodwin through seekingarrangements.com, a “sugar daddy” website. They met shortly thereafter and established a relationship wherein Bradshaw would have sexual relations with Goodwin in exchange for money and other things of value.
On August 7, 2015, Bradshaw approached a 15-year-old female in a Louisville park. Bradshaw took the minor female to a Marriott Hotel in Louisville, where the minor engaged in sexual contact with Goodwin. From August 7, 2015, to August 9, 2015, Goodwin stayed at the hotel in Louisville with Bradshaw and the minor victim.
On August 9, 2015, the three left the hotel and Bradshaw received $600-$700 from Goodwin, but the minor was not paid. Goodwin drove the minor to his home in Clarksville, Tennessee. Eventually, the minor contacted a friend on Goodwin’s computer. The friend contacted the minor’s mother, which resulted in the Montgomery County, TN Sheriff’s Office discovering the minor at Goodwin’s Clarksville home. In Louisville, and in Tennessee, Goodwin provided the victim with things of value.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Little Rock Doctor Sentenced to Prison for Health Care FraudRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Shepard, Assistant Special Agent in Charge for the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Special Agent in Charge CJ Porter of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) announced today that Monday evening Dr. Robert Barrow, 63, of Little Rock, was sentenced to two years in federal prison for conspiring to commit health care fraud, bringing to a close a multi-year federal investigation that began because of an anonymous tip.
At the conclusion Monday’s hearing, U.S. District Court Judge J. Leon Holmes, citing the vulnerability of the healthcare system to abusive billing practices by providers and the need to deter other medical professionals, sentenced Dr. Barrow to 24 months’ imprisonment to be followed by three years of supervised release and ordered him to pay $734,936.52 in total restitution, along with a $100 special assessment.
"Those who defraud the healthcare industry do so at their peril," Thyer said. "Dr. Robert Barrow deceived his patients and their insurers, and now he is going to federal prison. His sentence ought to serve as a warning to anyone tempted to cheat the system. Rooting out those who do not heed this warning will continue to be a focus of the United States Attorney’s Office and its partners at the FBI and HHS-OIG."
Dr. Barrow and his wife, Angela Barrow, owned and operated a Little Rock medical clinic named "Your Doctor’s Office." From 2005 to 2012, he associated with a local massage therapist (Billy Marc Young), to whom Dr. Barrow referred patients and for whom Dr. Barrow billed services under his own provider number, as if they were performing physical therapy. During the scheme "Your Doctor’s Office" became a local insurer’s second-highest biller for physical therapy statewide, ahead of hospitals and dedicated rehab facilities. Although Dr. Barrow purported to supervise Young, he billed for Young’s services at times when Dr. Barrow and his wife were on vacation in places like Las Vegas, Hawaii, and London.
At his change of plea hearing on October 13, 2015, Dr. Barrow admitted that he was "willfully blind" to the illegal nature of his billing practices in relation to Young, that he had abused the trust of his patients and their health insurers, and he had billed millions of dollars for Young’s services.
"As a health care provider, Dr. Barrow chose to commit fraud instead of protecting Medicare and other health care programs," FBI ASAC Shepard said. "Dr. Barrow’s sentencing demonstrates our resolve to bring these actions to justice. We appreciate the efforts of the United States Attorney’s Office in the Eastern District to protect taxpayer dollars and ensure that perpetrators of these fraud schemes are held accountable."
The restitution award included over $32,000 to a group of 40 former patients who bore out-of-pocket expenses for Young’s services believing that they were receiving physical therapy. Dr. Barrow’s single largest victim, Arkansas Blue Cross Blue Shield (ABCBS), was awarded over $680,000 in restitution but agreed to subordinate its claim to those of former patients so that they would receive full compensation before ABCBS is repaid.
Dr. Barrow’s co-conspirator, Young, previously pled guilty in case number 4:14-CR-56 DPM to making false statements in connection with health care and was sentenced in December 2015 to serve one year and one day in federal prison.
This case began because of an anonymous tip to a fraud hotline. Patients are encouraged to be vigilant in the fight against health care fraud. Report any suspicious activity to the FBI (1-800-CALL-FBI), HHS-OIG (1-800-HHS-TIPS), and your insurance provider.
The FBI and HHS-OIG jointly investigated this matter over the course of several years. Assistant United States Attorneys Alex Morgan and Shannon Smith prosecuted the case for the United States.
Lebanese National Extradited from Malaysia to Face Charges in Wide-Ranging Counterfeit Currency Plot with Ties to Lebanon and IranRead the Press Release
Defendant Sold High-Quality Counterfeit U.S. Currency to Undercover Secret Service Agent Posing as Member of New York-Based Criminal Enterprise
On July 22, Louay Ibrahim Hussein had his initial appearance at the federal courthouse in Brooklyn, New York, before U.S. Magistrate Judge Lois Bloom. Hussein is charged in connection with his leadership role in a wide-ranging scheme to distribute large quantities of high-grade counterfeit U.S. currency believed to be produced with support from sponsors in Lebanon and Iran for sale and use in markets across the globe, including in the United States and Europe. Hussein, a Lebanese national, was arrested in Kuala Lumpur, Malaysia, in 2014, and arrived in the United States on Thursday, July 21, following extradition proceedings. Earlier today, Hussein was ordered detained by U.S. Magistrate Judge Robert M. Levy until he can satisfy the terms and conditions of a proposed substantial bond package.
The charges were announced by U.S. Attorney Robert L. Capers for the Eastern District of New York, Special Agent in Charge David E. Beach for the U.S. Secret Service’s New York Field Office and Assistant Director in Charge Diego G. Rodriguez for the Federal Bureau of Investigation’s New York Field Office (FBI).
As alleged in the complaint and related filings, the charges against the defendant arose from a long-term undercover investigation in which the defendant and his co-conspirators sold hundreds of thousands of dollars in counterfeit currency to an agent with the U.S. Secret Service who was posing as a member of a New York-based criminal enterprise. Over the course of several months in 2012, the defendant, through intermediaries located overseas, sold the agent nearly $150,000 in high-quality counterfeit $100 bills and nearly $150,000 in counterfeit Euro notes. In October 2013, the defendant attempted to make another sale to the agent in Cyprus of approximately $300,000 in counterfeit currency, again through intermediaries. In June 2014, the defendant and co-defendant Nazer Al-Shekh Mosa aka Mohammed Hasan Haidar, a Syrian national, sold the undercover agent approximately $170,000 in counterfeit currency in Kuala Lumpur, Malaysia. Hussein and Mosa were arrested in August 2014 in Malaysia, pursuant to provisional arrest requests from the United States, during an attempt to sell additional counterfeit currency to the undercover agent. Mosa waived extradition last year, pleaded guilty to conspiracy to distribute counterfeit currency on April 20, and is awaiting sentence. A U.S. - based co-conspirator, Mouafak Al Sabsabi, also was arrested in August 2014. Al Sabsabi pled guilty to conspiracy to distribute counterfeit currency and was sentenced principally to time served and a three year term of supervised release on May 31.
The investigation has revealed that Hussein and his co-defendants are members of a multinational criminal network engaged in the production and distribution of counterfeit U.S. currency. In conversations with the undercover agent and others, Hussein claimed to have access to as much as $800 million in high-quality counterfeit U.S. currency for sale to clients based in Iran and elsewhere, and offered to procure weapons, narcotics and counterfeit currency and to have them shipped through U.S. ports.
“The reliability of U.S. currency is a pillar of the global financial system. As alleged, counterfeiters such as the defendant and his co-conspirators exploited that reliability and threatened the stability it provides, all to serve their own greed,” said U.S. Attorney Capers. “This investigation sends the message around the world that counterfeiters, wherever located, can and will be brought to justice.”
U.S. Attorney Capers extended his grateful appreciation to the New York Field Offices of the U.S. Secret Service and the FBI, to the Justice Department’s Office of International Affairs and to the Royal Malaysian Police and Attorney General’s Chambers for their assistance in the investigation and in effecting the defendant’s extradition.
“This investigation highlights the immeasurable effectiveness of law enforcement partnerships in combatting fraud,” said Secret Service Special Agent in Charge Beach. “We will continue to work closely with our domestic and international partners to defeat criminal enterprises and protect the Nation’s financial infrastructure.”
“We are pleased that Louay Ibrahim Hussein was extradited and will now face the U.S. justice system for his role in a charged international counterfeit currency ring,” said Assistant Director in Charge Rodriguez. “As uncovered in a multi-year investigation with the U.S. Secret Service, we allege Hussein and his co-conspirators sold more than a half a million dollars of counterfeit U.S. currency with the help of sponsors in Lebanon and Iran. Additionally, Hussein claimed to have access to millions more. Counterfeit currency doesn’t just devalue authentic currency, it weakens markets and global economies.”
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Samuel P. Nitze and J. Matthew Haggans are in charge of the prosecution.
Lebanese National Extradited from Malaysia to Face Charges in Wide-Ranging Counterfeit Currency Plot with Ties to Lebanon and IranRead the Press Release
On July 22, 2016, Louay Ibrahim Hussein had his initial appearance at the federal courthouse in Brooklyn, New York, before U.S. Magistrate Judge Lois Bloom. Hussein is charged in connection with his leadership role in a wide-ranging scheme to distribute large quantities of high-grade counterfeit U.S. currency believed to be produced with support from sponsors in Lebanon and Iran for sale and use in markets across the globe, including in the United States and Europe. Hussein, a Lebanese national, was arrested in Kuala Lumpur, Malaysia, in 2014, and arrived in the United States on Thursday, July 21, following extradition proceedings. Earlier today, Hussein was ordered detained by U.S. Magistrate Judge Robert M. Levy until he can satisfy the terms and conditions of a proposed substantial bond package.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, David E. Beach, Special Agent in Charge, United States Secret Service, New York Field Office, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the complaint and related filings, the charges against the defendant arose from a long-term undercover investigation in which the defendant and his co-conspirators sold hundreds of thousands of dollars in counterfeit currency to an agent with the United States Secret Service who was posing as a member of a New York-based criminal enterprise. Over the course of several months in 2012, the defendant, through intermediaries located overseas, sold the agent nearly $150,000 in high-quality counterfeit $100 bills and nearly $150,000 in counterfeit Euro notes. In October 2013, the defendant attempted to make another sale to the agent in Cyprus of approximately $300,000 in counterfeit currency, again through intermediaries. In June 2014, the defendant and co-defendant Nazer Al-Shekh Mosa, also known as Mohammed Hasan Haidar, a Syrian national, sold the undercover agent approximately $170,000 in counterfeit currency in Kuala Lumpur, Malaysia. Hussein and Mosa were arrested in August 2014 in Malaysia, pursuant to provisional arrest requests from the United States, during an attempt to sell additional counterfeit currency to the undercover agent. Mosa waived extradition last year, pled guilty to conspiracy to distribute counterfeit currency on April 20, 2016, and is awaiting sentence. A U.S. - based co-conspirator, Mouafak Al Sabsabi, also was arrested in August 2014. Al Sabsabi pled guilty to conspiracy to distribute counterfeit currency and was sentenced principally to time served and a three year term of supervised release on May 31, 2016.
The investigation has revealed that Hussein and his co-defendants are members of a multinational criminal network engaged in the production and distribution of counterfeit U.S. currency. In conversations with the undercover agent and others, Hussein claimed to have access to as much as $800 million in high-quality counterfeit U.S. currency for sale to clients based in Iran and elsewhere, and offered to procure weapons, narcotics, and counterfeit currency and to have them shipped through U.S. ports.
“The reliability of U.S. currency is a pillar of the global financial system. As alleged, counterfeiters such as the defendant and his co-conspirators exploited that reliability and threatened the stability it provides, all to serve their own greed,” stated United States Attorney Capers. “This investigation sends the message around the world that counterfeiters, wherever located, can and will be brought to justice.” Mr. Capers extended his grateful appreciation to the New York Field Offices of the United States Secret Service and Federal Bureau of Investigation, to the Justice Department’s Office of International Affairs, and to the Royal Malaysian Police and Attorney General’s Chambers for their assistance in the investigation and in effecting the defendant’s extradition.
“This investigation highlights the immeasurable effectiveness of law enforcement partnerships in combatting fraud,” said Secret Service Special Agent in Charge Beach. “We will continue to work closely with our domestic and international partners to defeat criminal enterprises and protect the Nation’s financial infrastructure.”
“We are pleased that Louay Ibrahim Hussein was extradited and will now face the U.S. justice system for his role in a charged international counterfeit currency ring. As uncovered in a multi-year investigation with the U.S. Secret Service, we allege Hussein and his co-conspirators sold more than a half a million dollars of counterfeit U.S. currency with the help of sponsors in Lebanon and Iran. Additionally, Hussein claimed to have access to millions more. Counterfeit currency doesn’t just devalue authentic currency, it weakens markets and global economies,” stated Assistant Director-in-Charge Rodriguez of the FBI.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Samuel P. Nitze and J. Matthew Haggans are in charge of the prosecution.
The Defendants:
LOUAY IBRAHIM HUSSEIN
Age: 42
LebanonNAZER AL SHEKH MOSA, a/k/a MohammEd HASAN HAIDAR
Age: 29
Damascus, SyriaMOUAFAK ALSABSABI, also known as “Abu Masen,”
Age: 68
Garden City, New YorkE.D.N.Y. Docket No. 14-M-732
E.D.N.Y. Docket No. 16-CR-117 (Defendant HAIDAR)
E.D.N.Y. Docket No. 14-CR-583 (Defendant ALSABSABI)Latin Kings IndictedRead the Press Release
HAMMOND – United States Attorney David Capp announced federal racketeering charges against 9 additional members of the Latin Kings, a criminal enterprise doing business in Chicago and northwest Indiana. Named in this indictment are:
Reynaldo Robles a/k/a “Sneaky,” 24, of Portage;
Nicholas Baez a/k/a “Cali,” 22, of Whiting;
Antonio Gamino a/k/a “Stacks,” 19, of Griffith;
Efren DelAngel a/k/a “Payoso,” 21, of Hammond;
Mark Anthony Toney a/k/a “Slim,” 37, of Lake Village;
William Dennis Salazar, 40, of Hammond;
Darrick Vallodolid, 27, of Hobart;
Robert Nieto a/k/a “Cowboy,” 42, of Gary;
Peter Salinas a/k/a “Pudge,” 30, of Hammond
These 9 individuals were added to the existing Latin King indictment pending in the Northern District of Indiana that had previously charged 17 members or associates of the Latin Kings. Each of the persons named today are charged with a conspiracy to participate in racketeering activity and with a conspiracy to distribute narcotics.
Today’s indictment also details two previously uncharged murders as alleged overt acts in the racketeering conspiracy. On July 18, 2011, Travis Nash was shot and killed in Hammond. The indictment alleges that Reynaldo Robles, acting at the direction of Aldon Perez (indicted previously), shot and killed Nash, believing him to be a rival gang member. The indictment also alleges that on August 14, 2014, Keith Trevor Manuel and Joseph Uvalle (both indicted previously) demanded that members of the Latin Kings take action against Estrella’s Bar in Hammond, Indiana, as the owner of Estrella’s Bar was allowing rival gang members to patronize the bar. It is alleged that Uvalle drove Nicholas Baez and Antonio Gamino to the bar and handed Baez a firearm. Baez shot into the bar, striking and killing Raudel Contreras, while Gamino served as a lookout.
The previous Latin King indictment had charged Anton James with murder in aid of racketeering for his alleged role in the murder of Martin Hurtado Sr. The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. in Hammond believing that he was Martin Hurtado Jr., whom James believed was a rival gang member. This count carries over unchanged from the previous indictment.
The previous Latin King indictment had charged Joseph Uvalle with sex trafficking offenses, and this indictment carries those charges over unchanged from the previous indictment.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick, Dean Lanter and Abizer Zanzi of the Northern District of Indiana.
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Lamar Carter, of Brattleboro, Sentenced to 60 Months’ Imprisonment for Heroin and Crack Cocaine TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 26, 2016, Lamar Carter, a.k.a. “Bando” and “Boogie,” age 25, of Brattleboro, Vermont, was sentenced to 60 months in prison, having pled guilty to the charge of conspiring to distribute heroin and crack cocaine. United States District Judge Geoffrey W. Crawford, sitting in Rutland, also sentenced Carter to 3 years of supervised release.
Court records show that Carter was arrested for the drug trafficking conspiracy in September 2015 in Brattleboro. For about a year and half prior to his arrest, Carter worked with coconspirators from Brattleboro, Northeast Vermont, and New Jersey selling heroin and crack cocaine in the areas of Lyndon and St. Johnsbury. He was ultimately charged as part of an eight-defendant Indictment. Court records also indicate that Carter possessed guns and used violence in furtherance of the conspiracy. The U.S. Attorney’s Office stated that Carter’s codefendant, Miguel Zayas, 29, of New Jersey, also pled guilty to the heroin and crack cocaine conspiracy, receiving a sentence of 8 years’ imprisonment from Judge Crawford on June 29, 2016. Zayas was the leader of the conspiracy.
Yesterday, Carter’s mother, Jacobina Carter, age 41, also of Brattleboro, was sentenced in Burlington by The Honorable William K. Sessions III, Senior United States District Judge, following her guilty plea to heroin trafficking. Judge Sessions gave Jacobina Carter a 42-month term of imprisonment. Court records further show that Carter began selling narcotics in Vermont in 2006. She started trafficking heroin in 2011 and continued to do so until her arrest in September 2015.
For his crime, Lamar Carter faced a maximum penalty of 20 years in prison. In sentencing Carter, Judge Crawford noted the seriousness of the offense, describing heroin as Vermont’s greatest public health crisis. On the other hand, he observed that Carter had an extremely traumatic childhood and answered to the conspiracy leader, Zayas, during the offense conduct.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Brattleboro, Vermont Police Department; the St. Johnsbury, Vermont Police Department; Homeland Security Investigations; and the Federal Bureau of Investigation.
Assistant United States Attorney Christina Nolan prosecuted the case. Carter is represented by Paul Volk, Esq., of Burlington, Vermont.
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department filed a lawsuit today in the Eastern District of Michigan to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
“No servicemember should be penalized for honorably serving our country,” said Principal Deputy Associate Attorney General Bill Baer. “COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors.”
“The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember.”
“This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
COPOCO Complaint
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Department of Justice Civil Rights Division and the U.S. Attorney's Office for the Eastern District of Michigan filed a lawsuit today to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
"No servicemember should be penalized for honorably serving our country," said Principal Deputy Associate Attorney General Bill Baer. "COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors."
"The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember."
"This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty," said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. "We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country."
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Jewelry Thieves Convicted in $4 Million Armed, Multistate ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Yesterday evening, a federal jury convicted Lewis Jones III, 36, Larry Bernard Gilmore, 43, and Michael Bernard Gilmore, 46, all of Atlanta, GA, of conspiracy, interfering with commerce by robbery, and using a firearm during a crime of violence. Co-conspirator Abigail Lee Kemp, 25, of Smyrna, GA, pled guilty on July 11. The verdicts and guilty plea were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between April 2015 and January 2016, the conspirators committed armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock and Dawsonville, Georgia; Bluffton, South Carolina; Sevierville, Tennessee; and Mebane, North Carolina. More than $4 million of jewelry was stolen during the time frame of the conspiracy.
After the April 2015 robbery, Jones and the Gilmores began training Kemp to rob the jewelry stores on her own. The training took place at the Gilmore's window tint shop in Atlanta, Georgia. Jones and the Gilmores reviewed jewelry store layouts with Kemp and taught her how to handle a gun, secure employees with zip ties, and what merchandise to steal. They also gave Kemp various code words, decided her clothes and disguises, and then purchased supplies for her. Jones and the Gilmores always selected the dates and locations of the jewelry stores to be robbed.
Thereafter, Kemp would enter an outlet mall jewelry store at approximately the same time of day, brandish a firearm, order the employees to the back of the store, and force them to lie face down while she zip tied their hands behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases. Kemp would use an earpiece to communicate with her conspirators while Jones and the Gilmores conducted surveillance and security outside.
In December 2015, a jewelry store manager believed Kemp matched the description of the white female who was previously linked to the armed robberies of various jewelry stores in the southeast. The store manager requested that another employee contact the police. The conspirators decided to call off the robbery and left the store. Five days later, they robbed the Mebane, North Carolina, jewelry store.
For each of the conspiracy and robbery charges, the defendants face a maximum of 20 years in prison. For each of the firearm charges, the defendants face a consecutive term of imprisonment of at least seven years and up to life on the first conviction, and a consecutive term of imprisonment of at least 25 years and up to life on the second conviction. The sentencing hearings are scheduled for October 12, 2016, at 9:00 a.m. (Kemp) and 2:00 p.m. (Jones and the Gilmores) at the United States Courthouse in Panama City, Florida.
This case resulted from an investigation by the Federal Bureau of Investigation and the Panama City Beach Police Department. Assistant United States Attorneys Kathryn D. Risinger and Michael J. Frank are prosecuting the case.
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]Jamaican Charged with Violating Immigration LawsRead the Press Release
PITTSBURGH - A citizen of Jamaica, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Gervan Hall, 33, of Jamaica, as the sole defendant.
According to the indictment, on or about June 23, 2016, Hall was found in Penn Hills, Allegheny County, Pa., after having unlawfully re-entered the United States following removal on May 27, 2004.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The Court continued the detention of Sanchez-Lara.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Doctor Convicted for Distributing Prescription NarcoticsRead the Press Release
HOUSTON – A federal jury has returned guilty verdicts on all 19 counts as charged against a Houston doctor for distributing oxycodone and hydrocodone, announced U.S. Atttorney Kenneth Magidson.
The jury deliberated for approximately eight hours before convicted Richard Arthur Evans, 71. He now faces up to life in prison. The jury heard testimony for 14 days from 15 witnesses, including other doctors who appeared as expert witnesses. The government presented more than 175 exhibits during the course of the trial.
Co-defendant David Devido, 78, of Houston, pleaded guilty on the first day of trial.
The two defendants conspired to distribute oxycodone and hydrocodone - controlled narcotic substances that are highly addictive and highly abused pain relievers. Both drugs are semi-synthetic opiates which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido, a pharmacist, dispensed the drugs. Witnesses testified these pill are sold for approximately $40 each on the street.
The jury heard that Evans distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. He saw patients from Louisiana and other states, prescribed oxycodone and hydrocodone products and directed patients to the pharmacy Devido had owned.
Some of the patients testified as to lax procedures at the clinic and the ease with which they were able to obtain prescriptions. Evans charged patients $200-$240 cash for an initial office visit, at which time they would obtain a first prescription. Refills are not permitted for narcotics. However, the jury heard that patients were told they could obtain a new prescription in 30 days without an office visit as long as the patient sent a money order to Evans for $200-$240. Patients were also told they could obtain a third prescription without an office visit as long as they again sent the payment to Evans.
Once the patients sent in their money orders, Evans and his staff delivered the prescriptions to Devido at Briargrove Pharmacy. Devido and his staff would then send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The jury saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. They also heard from a defense expert witness physician who testified he was surprised that more than 800 of the patients were from the Baton Rouge, Louisiana, area. The expert could only bring himself to say that a doctor who pre-signs prescriptions is practicing “poorly.”
As a result of the conspiracy, Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a two-year-period. The jury heard that the total money attributed to the diversion scheme was approximately $2.4 million.
The jury convicted Evans on one count of conspiracy, five counts of illegal distribution of narcotics, eight counts of mail fraud and five counts of money laundering. He could also be ordered to pay up to $5 million in fines. He faces a mandatory minimum of 10 years and up to life in prison.
U.S. District Judge Kenneth Hoyt presided over the trial and set sentencing for Oct. 17, 2016. Devido is set for sentencing Sept. 26, 2016. Both were permitted to remain on bond pending their hearings.
The Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, Department of Health and Human Services and the Texas State Board of Pharmacy conducted the investigation, which was dubbed Operation Oxy Overload. Assistant U.S Attorneys Cedric L. Joubert and Quincy L. Ollison prosecuted the case.
Head of Schaumburg Home Health Company Sentenced to Six Years for Scheming to Fraudulently Bill Medicare for Unnecessary CareRead the Press Release
CHICAGO — A federal judge today sentenced the head of a Schaumburg home health company to six years in prison for scheming to bill Medicare for millions of dollars in unnecessary services.
As the manager of Suburban Home Physicians, which did business as Doctor at Home, DIANA JOCELYN GUMILA directed employees to perform in-home visits with patients who were physically capable of leaving their residences and not in need of in-home treatment. Gumila also inflated the costs incurred by Medicare by directing employees to bill the treatment at the most complicated levels, even though the visits were typically routine and did not qualify for the elevated billing.
A jury in April convicted Gumila, 47, of Streamwood, on 21 counts of health care fraud and three counts of making false statements in a health care matter. In addition to the 72-month sentence, U.S. District Judge Charles P. Kocoras ordered the defendant to pay $15.6 million in restitution.
“Home-health fraud has become a significant problem nationally and particularly in the Chicago area,” Assistant U.S. Attorney Stephen Chahn Lee argued in the government’s sentencing memorandum. “Such fraud cannot happen without people like defendant, who abuse Medicare’s rules and abuse the trust placed in them by Medicare and their patients.”
Gumila is one of several defendants convicted in the federal investigation of Doctor at Home. The prior convictions include ALAN NEWMAN, a physician from Chicago, and JAMES ADEMIJU, a nurse from Matteson who operated two nursing agencies. In a plea agreement, Newman admitted falsely certifying patients for nursing services even when he knew the patients did not need such care. Newman admitted causing approximately $2.6 million in losses to Medicare, according to his plea agreement. Ademiju pleaded guilty to billing for unnecessary services that were improperly authorized by physicians from Doctor at Home, and he acknowledged making illegal payments for patient referrals.
Evidence presented at Gumila’s two-week trial included a surreptitious audio recording in which Gumila can be heard telling a new doctor to “paint the picture” of patients so as to make them appear confined to their homes. Emails from Gumila were also shown to the jury, including one in which she referred to a physician who did not read orders before signing them as “the type of doctor we need [b]ecause he will just do what we tell him to do.”
Gumila’s conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Kristie Osswald, Special Agent-in-Charge of the Chicago Office of the Railroad Retirement Board Office of the Inspector General.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
The government is represented by Mr. Lee and Assistant U.S. Attorney Vikas Didwania.
Georgia Lottery Winner Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
BRUNSWICK GA - Ronnie Music, Jr.,45, of Waycross, Georgia, pled guilty last week before Chief U.S. District Court Judge Lisa Godbey Wood to federal drug trafficking and firearm charges.
According to evidence presented during his guilty plea hearing, Music conspired with others to possess and distribute kilograms of methamphetamine in Ware County, Georgia and elsewhere. The investigation revealed that in September, 2015, Music’s coconspirators were caught attempting to sell approximately 11 pounds of crystal meth, with a street value in excess of $500,000. Music was identified as a source of supply for the meth. The investigation further revealed that Music purchased the methamphetamine for resale with his own lottery winnings. In 2015, Music won $3,000,000 in a Georgia scratch-off lottery game. As part of the case, investigating agents seized over $1 million worth of methamphetamine, a large cache of firearms, thousands of rounds of ammunition, multiple vehicles, and over $600,000 in cash.
United States Attorney Ed Tarver stated, “Defendant Music decided to test his luck by sinking millions of dollars of lottery winnings into the purchase and sale of crystal meth. As a result of his unsound investment strategy, Music now faces decades in a federal prison.”
Music and other members of the conspiracy will be sentenced by Chief Judge Wood after the United States Probation Office conducts a presentence investigation. Music faces a maximum possible sentence of life in prison.
The case was investigated by the ATF, DEA, and the Glynn-Brunswick Narcotics Enforcement Team (GBNET). Assistant United States Attorneys E. Greg Gilluly, Jr. and Theodore Hertzberg are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Fredonia Man Sentenced to 25 Years for Sexually Molesting Minor Victim on Kaibab ReservationRead the Press Release
PHOENIX – On July 25, 2016, Christopher Nigel Benn, 24, of Fredonia, Ariz., an enrolled member of the Kaibab Band of Paiute Indian Tribe, was sentenced by U.S. District Judge Susan R. Bolton to 25 years’ imprisonment after Benn had previously pleaded guilty to one count of abusive sexual contact of a minor. The Court also imposed a lifetime term of supervised release to follow Benn’s term of imprisonment.
The investigation revealed that Benn sexually abused the minor victim, who was under the age of 12, on the Kaibab Band of Paiute Indian Reservation in 2013.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8092-PCT-SRB
RELEASE NUMBER: 2016-057_BENN
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Four Arrested in Chambers County on Federal Drug ChargesRead the Press Release
Montgomery, Alabama– Roberto Anguiano (24), Deedre D. Diaz (22), Mario Verduzco (20), and Angela P. Quach (26) all from Laredo, Texas, were arrested in Chambers County on July 7, 2016 for their roles in a drug operation that involved the possession of and conspiracy to distribute fourteen (14) kilograms of cocaine, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. These arrests are the result of an investigation that includes numerous agencies.
According to court documents, a member of the Chamber’s County Sheriff’s Office conducted a traffic stop on a 2014 Toyota Tundra for a traffic violation. Over the course of the traffic stop, consent to search the vehicle was obtained and approximately fourteen (14) kilograms of cocaine was discovered. According a statement from Anguiano after waiving his Miranda rights, he was transporting the cocaine to Atlanta, Georgia. He further stated he would be paid $1,100 for each kilogram of cocaine he delivered to Atlanta.
The cocaine that was seized has an approximate value of $420,000. A conviction for conspiracy to possess with intent to distribute cocaine hydrochloride carries a potential sentence ranging from 10 years to life in prison.
On Monday, July 25, 2016, a preliminary hearing was held before Chief United States Magistrate Susan S. Walker. Following the presentation of evidence the four were ordered to be bound over to the grand jury for the presentation of an Indictment. They were also detained without bond pending trial.
A Criminal Complaint or Indictment is merely a method of charging a defendant and each defendant is presumed innocent unless and until the defendant=s guilt has been proven beyond a reasonable doubt at trial.
U.S. Attorney Beck would like to thank the following agencies for their involvement in this case: the United States Department of Homeland Security Investigations (HIS), the State of Alabama Law Enforcement Agency (ALEA), the Chambers County Alabama Sheriff’s Office (CCSO), the Valley, Alabama Police Department (VPD), and the Lee County Sheriff’s Office (LCSO). The case is being prosecuted by Assistant United States Attorney Curtis Ivy, Jr.
Former extra-curricular treasurer at Castle High School sentencedRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler, announced today the sentencing of a former Castle High School employee responsible for embezzling large amounts of cash and checks that were to be used for extra-curricular activities. Rebecca A. McKee, 61, Newburgh, was sentenced to one year and one day imprisonment by U.S. District Chief Judge Richard L. Young following her plea of guilty to three counts of theft from programs receiving federal funds.
"The citizens of Warrick County deserve better from officials in positions of trust,” said Minkler. “Those who choose to steal from our public institutions will be held accountable.”
McKee served as the extra-curricular treasurer at Castle High School in Newburgh, from 2008 through 2012. Her responsibilities included handling large amounts of cash for school activities and disbursing checks for dances, clubs, fundraisers and sporting events within Castle High School. She was also the primary person controlling the Newburgh National Bank School Extra-Curricular Account for the high school.
A State Board of Accounts audit revealed that McKee issued unauthorized checks, made fraudulent claims for re-imbursement and kept cash received for extra-curricular events. From July 2010 until August 2012, she embezzled a total of over $135,000 during the following fiscal years from the Warrick County School Corporation:
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2010 -2011--$19,863.49
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2011 -2012--$89,819.06
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2012 -2013--$24,325.40
This investigation was a collaborative effort between the Federal Bureau of Investigation, Indiana State Police, and the Indiana State Board of Accounts.
“The Board of Accounts will continue to work in cooperation with its federal, state, and local partners to identify, investigate, and prosecute those who would violate the public’s trust,” said Paul Joyce, State Examiner. “We all have the right to expect honest representation from our elected and/or appointed officials at all levels of government. I hope that those few public servants who decide to violate this trust will see that we are prosecuting these officials and realize that this is not acceptable and we will hold them accountable.”
According to Assistant United States Attorney Kyle Sawa who prosecuted this case for the government, McKee must serve one year of supervised release following her term of imprisonment and make full restitution of $135,000.
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Former Utz Quality Foods Executive Pleads Guilty to $1.4 Million False Invoice Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Utz Quality Foods, Inc. executive has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.
Kevin Myers, age 38, a former resident of Abbottstown, Pennsylvania, and the former Director of Purchasing for Utz, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to a one count Information charging him with Wire Fraud.
Myers and Jonathan Haas, age 45 of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, were charged in June of this year with wire fraud. The Information was filed against Myers and Haas pursuant to plea agreements with the government.
According to United States Attorney Peter Smith, Haas Packaging & Design was a vendor that supplied Utz with shelving and packaging products between January 2007 and August 2014. The defendants allegedly defrauded Utz by Haas’ submission of approximately 83 false invoices and approximately 43 bogus purchase orders prepared by Myers for products Utz never actually received. After Myers approved Haas’ false invoices for payment, Haas allegedly would kickback a portion of the proceeds to Myers. Haas allegedly received approximately $1,474,765 from Utz as a result of the false invoices and kicked back approximately $651,000 of that amount to Myers.
The defendants also allegedly attempted to conceal kickbacks to Myers as payments for consulting services. Some of the kickbacks were in the form of checks payable to “Myers Packaging Consulting,” a fictional business entity created by Myers.
The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 check into a Myers Packaging Consulting bank account in January 2014. The government is also seeking forfeiture of approximately $1.4 million as proceeds of the scheme.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Talladega Correctional Officer Sentenced to a Month in Prison for Accepting Bribe to Smuggle Phone to InmateRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former corrections officer at the Federal Correctional Institution in Talladega to one month in prison for accepting a bribe to provide a cell phone to an inmate, announced U.S. Attorney Joyce White Vance and U.S. Department of Justice Office of the Inspector General Special Agent in Charge Robert A. Bourbon.
STACIE MARIE GARDNER, 31, of Weaver, pleaded guilty in March to accepting $1,474 in January 2015, while she was working as a correctional officer, in exchange for smuggling a cell phone into the prison and providing it to an inmate. U.S. District Judge L. Scott Coogler sentenced her to the month in prison, to be followed by three years of supervised release. Gardner also must forfeit $1,474 to the government.
DOJ OIG investigated the case, which Assistant U.S. Attorney Davis A. Barlow prosecuted.
Former Pharmacy Owner Sentenced to 75 Months for Fraud SchemeRead the Press Release
LEXINGTON, Ky. – A Lexington man has been sentenced to 75 months in federal prison for wire fraud, aggravated identity theft, and money laundering.
On Saturday, U.S. District Judge Danny C. Reeves formally sentenced 37 year-old Adam Sloan for his offenses. He also sentenced Sloan’s girlfriend, Jennifer Houska, 30, to thirty months in federal prison for wire fraud and aggravated identity theft. Under Federal law, Sloan and Houska must serve at least 85 percent of their sentences.
According to Sloan’s plea agreement, from January 2011 to September 2015, Sloan developed and executed a scheme to defraud Chronic Disease Fund, Inc. d/b/a Good Days from CDF (“Good Days”). Good Days was a Section 501(c)(3) charitable organization based in Plano, Texas that provided copayment assistance for low income individuals suffering from chronic diseases, including cancer.
As part of the scheme, Sloan used real patient information he acquired through Bluegrass Pharmacy of Lexington, a legitimate business he co-owned until June 30, 2015. Sloan used names, social security numbers, medical benefit cards, and documentation reflecting the patients’ income to fraudulently enroll patients for benefits from Good Days, based on false diagnoses and prescriptions. He would then withdraw the funds allocated to those patients to his personal bank account. Sloan submitted 260 fraudulent applications to Good Days, using personal identifying information for at least 125 real patients, and fraudulently stole approximately $1,129,264.
According to Houska’s plea agreement, she assisted in the scheme by using real patient information to fill out 26 applications for fraudulent benefits.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentences.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Kate Smith and Kate Anderson prosecuted the case on behalf of the federal government.
Former Payroll Clerk at Two Family-Owned Businesses Agrees to Plead Guilty to Wire Fraud Charge in $2 Million EmbezzlementRead the Press Release
LOS ANGELES – A longtime employee of two Los Angeles-area businesses involved in earring manufacturing was charged today with wire fraud for stealing approximately $2 million from the companies.
In conjunction with the case filed today, Claudia Alvarez Calderon, 45, of La Crescenta, agreed to plead guilty to the wire fraud charge.
In a plea agreement filed today in United States District Court, Calderon admitted that she used the names of several non-existent or former employees who were no longer entitled to receive pay to fraudulently obtain wages and expense reimbursements from Onyx, Inc., a Harbor City-based manufacturer of earrings and ear piercing equipment, and Quadrtech, Inc., a Gardena-based company that finished and packaged the earrings and ear-piercing systems.
“At times, defendant would cause deposits of up to four fake employees into one bank account in her own name,” according to the plea agreement. “These direct deposits were often over $18,000 a month, and sometimes as high as $28,000 a month.”
Over the course of nearly a decade, Calderon fraudulently entered information into a computer system that caused Automatic Data Processing, Inc. (ADP) to make direct deposits or issue checks for the bogus employees. Calderon maintained several bank accounts to receive the money from Onyx and Quadrtech.
“Calderon stole money from her longtime employers to support a lifestyle that included multiple daily trips to restaurants, trips to Europe and Hawaii, cosmetic surgery and furnishing a second home in Florida,” said United States Attorney Eileen M. Decker. “Calderon’s violation of her employers’ trust cost the companies millions, money that should have gone to the companies and their employees.”
Over the course of her scheme, Calderon fraudulently obtained approximately $2 million from Onyx and Quadrtech.
Calderon will be directed to appear in United States District Court in Los Angeles, likely on August 8.
“Our trusted private sector partnerships led to a thorough investigation culminating in the perpetrator’s guilty plea. Would-be fraudsters should be deterred from plotting similar schemes,” said L. Robert Savage, U.S. Secret Service Special Agent in Charge of the Los Angeles Field Office.
The charge of wire fraud carries a statutory maximum sentence of 20 years in federal prison.
This case was investigated by the United States Secret Service.
This case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Former Norton Parks and Recreation Maintenance Supervisor Indicted on Federal Civil Rights ViolationsRead the Press Release
ABINGDON, VIRGINIA – The former Parks and Recreation Department Maintenance Supervisor for the City of Norton was indicted today by a federal grand jury for violating the civil rights of two female victims after he allegedly used his authority to engage in, and attempt to engage in, sexual activity with women under his supervision while performing community service hours, United States Attorney John P. Fishwick Jr. announced today.
Michael Todd Lintz, 52, of Norton, Virginia, was indicted today by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon. Lintz is charged with one misdemeanor count of using his authority to engage in coercive sexual relations with Female Worker 1, willfully depriving her of her right to bodily integrity, one misdemeanor count of using his authority to attempt to engage in coercive sexual relations with Female Worker 2, willfully depriving her of her right to bodily integrity, one felony count of obstruction of justice and one felony count of making a false statement to a federal law enforcement officer.
According to the indictment, from July 2015 through November 2015, Lintz, while acting under color of law, used his authority to engage in coercive sexual relations with Female Worker 1, willfully depriving her of the right, secured and protected by the Constitution and laws of the United States, to bodily integrity.
In addition, the indictment alleges that from August 2015 through November 2015, Linz, while acting under color of law, used his authority to attempt to engage in coercive sexual relations with Female Worker 2, willfully depriving her of the right, secured and protected by the Constitution and laws of the United States, to bodily integrity.
On or about September 16, 2015, the indictment alleges, that Lintz obstructed justice by providing false testimony, under oath, in an effort to secure the release of Female Worker 1 on bond. Lintz knowingly concealed material information from the United States Magistrate Court for the Western District of Virginia, testifying that his only relationship with Female Worker 1 was as her supervisor on community service and testifying that Female Worker 1 had completed all of the community service hours to which she had been assigned. The testimony of Lintz was false because he had, in fact, had sexual contact with Female Worker 1 while supervising her on community service, had personal contact with Female Worker 1 outside of work, and the time card for which Lintz was testifying included hours that Lintz told Female Worker 1 to falsely claim hours in exchange for sexual favors.
The indictment also alleges that on or about February 16, 2016, Lintz knowingly made a false statement to a federal law enforcement officer, specifically an officer with the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding his sexual contact with individuals that Lintz supervised on community service. Lintz falsely denied having a sexual relationship with Female Worker 1 in 2015 and falsely represented that he had not engaged in a sexual relationship with anyone during the time he supervised them on community service. The statements were false, because as Lintz then and there knew, he had engaged in sexual relations with Female Worker 1 during the time he supervised her on community service in 2015 and he had also engaged in sexual relations with other female workers during the time he supervised them on community service.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Erin M. Kulpa will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt. Lintz is scheduled to appear in federal court in Abingdon on these charges on Thursday, July 28, 2016, at 10:00 a.m.