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15 September 2016
New York Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN ANATE, also known as “Pills” and “Che Pills,” 26, most recently of the Bronx, N.Y., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, on March 5, 2015, East Hartford Police encountered an underage girl in a room at a local motel. The victim stated that she had met ANATE in New York and that, beginning in approximately December 2014, she had engaged in acts of prostitution at ANATE’s direction in various locations, including multiple trips to Connecticut.
The investigation revealed that the victim was prostituted by ANATE at hotels in Hartford, Manchester, New Britain and East Hartford. The victim had seen several clients per week, giving all of the money to ANATE.
When ANATE pleaded guilty to the offense on June 9, 2016, he admitted that he knew the victim was under the age of 18.
Judge Bryant ordered ANATE to pay $42,000 in restitution to the victim.
ANATE has been detained since his arrest on March 5, 2015.
This matter was investigated by the Federal Bureau of Investigation, East Hartford Police and West Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
New York Man Convicted in Federal Court for His Role in Counterfeit Gift Card Shopping SpreeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 14, a jury sitting in Harrisburg, Pennsylvania convicted Shavouy Paisley, age 24 of Queens, New York of criminal conspiracy to possess counterfeit or unauthorized access devices after a trial presided over by Senior U.S. District Court Judge William W. Caldwell.
According to United States Attorney Peter Smith, following a two and a half day trial, the jury deliberated approximately one hour before delivering its verdict. The charges stemmed from an incident in 2014 where Paisley and others were stopped by Hampden Township Police Department after making several suspicious purchases at CVS and Rite Aid establishments located in Mechanicsburg, Pennsylvania. The Hampden Township Police Department seized more than 100 counterfeit Visa gift cards from the vehicle the three men had been traveling in, along with 25 cartons of cigarettes, high end handbags and other merchandise. During the investigation, the United States Secret Service determined the cards had been altered and the account numbers associated with the magnetic strips on the cards belonged to account holders from dozens of banks and institutions across the country. After reviewing the evidence, the United States Secret Service identified more than a half a dozen retail establishments on the Carlisle Pike where the defendants attempted to or actually did make purchases using these stolen account numbers.
The investigation was conducted by the United States Secret Service and the Hampden Township Police Department. The case is being prosecuted by Assistant United States Attorneys Meredith A. Taylor and Joseph J. Terz.
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 5 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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New Jersey U.S. Attorney’s Office and Department of Justice Seek Forfeiture of Six Dogs Seized in Connection with Interstate Dog Fighting VentureRead the Press Release
NEWARK, N.J. – The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, U.S. Attorney Paul Fishman for the District of New Jersey and Assistant Attorney General John Cruden for the Environment and Natural Resources Division of the Department of Justice announced today.
According to the complaint filed yesterday in Newark federal court:
The six pit bull-type dogs were seized on June 1, 2016 from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.
The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.
Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as “flirt” poles,” which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.
Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.
Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.
Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey, and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.
The charges and allegations against Love are merely accusations, and he is presumed innocent unless and until proven guilty.
Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
Navajo Man from Newcomb Sentenced to Ten Years for Discharging a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Eli Hunt, 37, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison for discharging a firearm during a crime of violence. Hunt will be on supervised release for three years after completing his prison sentence.
Hunt was arrested in Dec. 2015, on a criminal complaint charging him with assault with a dangerous weapon, discharging a firearm during a crime of violence, and burglary. The complaint alleged that he committed the crimes on Dec. 3, 2015, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Hunt broke into a home in Little Water, N.M., and threatened a man and woman who lived there with a tire iron and a firearm. Hunt also fired shots into the air as he chased the victims around their residence and property while threatening to kill them.
Hunt was subsequently indicted on Dec. 17, 2015, and was charged with aggravated burglary, assault with a dangerous weapon, and discharging a firearm during a crime of violence.
On May 24, 2016, Hunt pled guilty to Count 3 of the indictment charging him with discharging a firearm during a crime of violence. In entering his plea, Hunt admitted discharging a firearm while assaulting a person with a deadly weapon.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case.
Mexican Citizen Deported Six Times Admits Illegally Returning to United StatesRead the Press Release
PITTSBURGH, PA - An illegal alien found in Uniontown, Pennsylvania, has pleaded guilty in federal court to a charge of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
Juan Mendez Patishtan, 33, of Mexico, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Juan Mendez Patishtan, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on Oct. 23, 2010, Jan. 26, 2011, March 9, 2011, Sept. 21, 2011, April 5, 2014, and April 16, 2015.
Judge Bissoon scheduled the sentencing for Nov. 16, 2016, at 2:15 p.m. The law provides for a maximum total sentence of 2 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.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Juan Mendez Patishtan.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Methamphetamine Trafficker in San Antonio Sentenced to More Than 21 Years in Federal PrisonRead the Press Release
In San Antonio yesterday, 60-year-old Elias Mejia, a citizen of Mexico, was sentenced to 262 months in federal prison for trafficking in methamphetamine announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
On March 9, 2016, Mejia pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. By pleading guilty, Mejia admitted that from October 2, 2014, until November 5, 2015, he was responsible for the trafficking and distribution of approximately 34.5 kilograms of “crystal” methamphetamine in the San Antonio area.
Mejia was arrested on November 5, 2014, in San Antonio and has remained in federal custody since.
“Today’s sentence highlights the success agencies can achieve and the impact they can have when they bring their resources together. DEA will continue to work together with our law enforcement partners and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs,” stated DEA Special Agent in Charge Joseph M. Arabit.
“The sentencing of Mejia, to a total of 262 months in federal prison, sends a clear message of the serious consequences awaiting those who engage criminal activity,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “HSI will continue to utilize its broad authorities, in concert with its federal, state and local partners, to bring to justice those who blatantly ignore the laws of this nation.”
The case resulted from an investigation by the High Intensity Drug Trafficking Area (HITDA) Task Force led by the DEA and HSI. This case was prosecuted by Assistant United States Attorneys Charlie Strauss and Matthew Lathrop.
Meridian Man Sentenced to Five Years in Federal Prison for Selling MethamphetamineRead the Press Release
BOISE – Charles Wilson Yarnell, 35, of Meridian, Idaho, was sentenced yesterday to five years in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also sentenced Yarnell to serve three years of supervised release after completion of his five-year prison sentence. Yarnell pleaded guilty to the offense on June 30, 2016.
According to court proceedings, Yarnell sold approximately six ounces of methamphetamine to undercover officers in Meridian, Idaho, between April and July of 2015.
This case is the result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, Bureau of Land Management (BLM), Nampa Police Department Special Investigations Unit (SIU). Other agencies include Ada County Sheriff’s Office, United States Forest Service (USFS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise County Sheriff’s Office, Boise Police Department, Gooding County Sheriff’s Office, Idaho Department of Fish and Game, Idaho National Guard—Counterdrug Support Office, Meridian Police Department, Milton-Freewater Police Department, Oregon State Police, Power County Sheriff’s Office, Spokane Police Department, Valley County Sheriff’s Office, Walla Walla Police Department, and Washington State Patrol. The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Massachusetts Man Sentenced to Six Years for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Matthew McElroy, 39, of Chicopee, Massachusetts, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to six years in prison and five years of supervised release for transporting child pornography. McElroy pleaded guilty to the charge on April 15, 2016.
According to court records, in January 2016, a federal agent was investigating the distribution and production of child pornography over the internet when he received an email message attaching three child pornography images from an individual later identified as McElroy, who claimed that the images depicted his niece and that he had sexual contact with her. A search warrant was obtained for McElroy’s Chicopee residence and he was arrested on a criminal complaint. McElroy later admitted that he used his email account to trade child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Chicopee, Massachusetts Police Department.
Louisiana Tax Return Preparer Sentenced to Prison for Theft of Public Money and Aggravated Identity TheftRead the Press Release
A former tax return preparer and resident of New Orleans, Louisiana was sentenced today to 36 months in prison, announced Principal Deputy Assistant Attorney General Caroline Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
According to court-filed documents, Donald Stewart, 60, previously pleaded guilty to one count of theft of public funds and one count of aggravated identity theft. From approximately 2001 through 2008, Stewart acted as a return preparer under the business names Stewart’s Tax Service and Stewart LTD, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number. From January 2011 through February 2012, Stewart admitted causing federal tax refunds in the names of others to be electronically deposited into bank accounts under his control. Stewart also admitted to cashing or depositing U.S. Treasury checks made payable to others, which represented federal income tax refunds totaling approximately $539,393, at a bank in the New Orleans area. In addition, Stewart obtained and used the means of identification of another individual, including their social security number, during and in relation to wire fraud, when he filed a false tax return using another individual’s name and took the resulting refund for himself.
In addition to his prison sentence, Stewart was sentenced to serve one year of supervised release and ordered to pay restitution in the amount of $577,202.97 to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lake in the Hills Man Charged with $340,000 Scheme to DefraudRead the Press Release
ROCKFORD — A Lake in the Hills, Ill. man appeared today before U.S. Magistrate Judge Iain D. Johnston on wire fraud charges.
SALVATORE CRIBARI, also known as “Sal Fradillio,” 59, was indicted on Sept. 13, 2016, by a federal grand jury in Rockford and charged with nine counts of wire fraud, in connection with a scheme to defraud "Company A," an operator of a nationwide chain of home improvement stores. Cribari was arrested on Sept. 15, 2016, in Algonquin, Ill. Cribari pleaded not guilty during his arraignment today before U.S. Magistrate Judge Iain D. Johnston, and he was ordered detained pending a hearing scheduled for Sept. 19, 2016 at 1:00 p.m.
According to the indictment, Cribari knowingly and intentionally stole merchandise from Company A stores located in the Northern District of Illinois. The indictment alleges that Cribari returned the stolen merchandise to Company A without receipts, and he falsely and fraudulently presented the stolen merchandise as legitimately having been purchased from Company A. Cribari received store credit in the form of Company A gift cards during those non-receipted returns. The indictment alleges that Cribari fraudulently obtained more than $340,000 in Company A gift cards as part of the scheme to defraud, and Cribari subsequently used those gift cards to purchase over $310,000 of merchandise and services from Company A. It is alleged that Cribari provided over 1,300 false Illinois driver’s license and state identification numbers to conduct non-receipted returns of stolen merchandise at Company A.
Wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, a term of supervised release of up to three years, and restitution. If Cribari is convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment and arrest were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Lake Zurich and Lake in the Hills Police Departments provided assistance in the investigation.
The government is represented by Assistant U.S. Attorney Talia Bucci.
Indictment
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Danny Wright, 62, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole. Wright has been in federal custody since his arrest on June 23, 2014.
On Dec. 17, 2014, Wright pleaded guilty to receiving and distributing child pornography.
The investigation began when law enforcement received Cyber Tips from the National Center for Missing and Exploited Children regarding two e-mails that contained seven images of child pornography, depicting children that range in age from one or two years old to seven years old. On May 19, 2014, law enforcement agents executed a search warrant at the Joplin residence of James and Gina Hajny. James Hajny has pleaded guilty in a separate case to the sexual exploitation of two child victims and awaits sentencing. His wife, Gina Hajny, pleaded guilty to possessing child pornography and was sentenced on March 1, 2016, to five years in federal prison without parole.
Hajny told investigators that he had met Wright on a Russian website. He said he has never met Wright in person but they had exchanged pornographic photographs of children. On June 16, 2014, agents executed a search warrant at Wright’s residence. Wright admitted to investigators that he had distributed and downloaded child pornography over the Internet for several years.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jackson Man to Pay $5.4 Million in Restitution to Bankruptcy EstateRead the Press Release
Jackson, Miss - William David Dickson, aka "Butch" Dickson, 60, of Jackson, was ordered by U.S. District Court Judge Tom S. Lee to pay restitution to the bankruptcy estate of Community Home Financial Services, Inc., in the amount of $5,442,004.58, announced U.S. Attorney Gregory K. Davis, Acting U.S. Trustee Henry G. Hobbs, Jr. of Region 5, FBI Special Agent in Charge Donald Alway and U.S. Marshal George White.
In December, 2015, Dickson was sentenced to 57 months in federal prison followed by three years of supervised release for the fraudulent receipt of over $9 million and concealment of bank accounts containing funds belonging to the bankruptcy estate of Community Home Financial Services, Inc. Total losses to the bankruptcy estate were determined to be in excess of $12 million as a result of Dickson’s criminal conduct. The government has already recovered a portion of these losses through asset forfeiture of funds and other property. Efforts to recover additional funds and property remain ongoing.
William David Dickson placed Community Home Financial Services, Inc. in bankruptcy on May 23, 2012, in the Southern District of Mississippi. Dickson devised a scheme and artifice to defraud the bankruptcy court and the Chapter 11 Trustee by fraudulently causing funds of the debtor’s bankruptcy estate to be transferred to multiple accounts outside of the United States, including accounts in Panama and Costa Rica, that were controlled by Dickson. Dickson was expelled by authorities from Panama, and he was arrested by the FBI when he arrived at Miami International Airport in Florida on March 14, 2014.
The Chapter 11 Trustee, Kristina M. Johnson, along with the U.S. Trustee’s Jackson, Mississippi office referred this matter to the U.S. Attorney’s office. The investigation was conducted by the FBI, with assistance from the Chapter 11 Trustee and the United States Marshals Service. The case was handled by Assistant United States Attorney Dave Fulcher and Special Assistant United States Attorney Sammye S. Tharpe.
Houston Man Heads to Prison for Credit Card FraudRead the Press Release
HOUSTON – A 29-year-old Houston resident has been ordered to federal prison following his convictions of conspiring to commit credit card fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Darnell Wayne Menard pleaded guilty Jan. 21, 2016.
Today, U.S. District Judge Nancy Atlas sentenced Menard to 57 months for the conspiracy as well as a mandatory and consecutive 24 months for aggravated identity theft. The total 81-month-term will also be immediately followed by three years of supervised release. In handing down the sentence, Judge Atlas noted that Menard committed the offense while he was on bond after having been charged in state court with similar offense. The judge also said that this type of fraud imposes costs on everybody because merchants and credit card issuers pass the costs along to the public.
Menard admitted he purchased approximately 1,000 stolen credit card numbers over the Internet from websites outside the United States. He then created fraudulent credit cards by encoding stolen credit card numbers onto magnetic stripes on the back of gift and debit cards. He then used those fraudulent cards to purchase legitimate gift cards from Kroger and HEB grocery stores in Conroe and others during 2014 and 2015.
Menard was first arrested for credit card fraud and charged in state court. However, upon his release on bond, Menard continued to engage in the same activity.
He was arrested again on federal charges in June 2015, at which time authorities found an electronic encoder device that Menard had been using to encode stolen credit card numbers onto cards. They also found and seized a computer containing files listing numerous additional stolen credit card numbers, seven gift cards that Menard had encoded with stolen credit and debit card numbers.
Menard will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service and the Texas Department of Public Safety investigated. Assistant U.S. Attorney John R. Lewis is prosecuting the case.
Hingham Woman Sentenced for Mortgage FraudRead the Press Release
BOSTON – A Hingham woman was sentenced today in U.S. District Court in Boston for defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence.
Denise Bruce, 56, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to two years in prison, five years of supervised release and restitution of $2,810,497. In May 2016, Bruce pleaded guilty to five counts of bank fraud.
Between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham property by submitting false information regarding her employment history, income, assets, and debt. Bruce also filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid. In total, Bruce obtained $2,129,000 in proceeds from her fraudulent loans.
United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Grants Man Sentenced to Ten Years in Federal Prison for Distributing Child PornographyRead the Press Release
ALBUQUERQUE – Richard J. Dates, 71, of Grants, N.M., was sentenced today in federal court in Albuquerque, N.M., to 120 months in prison followed by a lifetime of supervised release for his conviction on a distribution of child pornography charge. Dates will be required to register as a sex offender after completing his prison sentence. Dates also was ordered to pay $1,000.00 to each of eight victims who requested restitution.
In announcing the sentence, U.S. Attorney Damon P. Martinez commended the exemplary investigative efforts of the Homeland Security Investigations (HSI) agents responsible for the investigation leading to Dates’ conviction. The U.S. Attorney added, “The victims in these cases are children who cannot protect themselves from harm. We greatly appreciate the time and resources HSI dedicates to bringing individuals who exploit children to justice.”
“This case shows again how HSI works with its law enforcement partners to investigate and get internet child pornographers out of our communities,” said Special Agent in Charge Waldemar Rodriguez of HSI El Paso.
Dates was arrested in Grants in Aug. 2012, on a criminal complaint charging him with possession of visual depictions of minors engaged in sexually explicit conduct. The complaint alleged that Dates engaged in this conduct from Aug. 2009 through Aug. 2012. Dates was arrested by HSI agents after an investigation by HSI in Boston, Mass., identified him as an individual who was distributing child pornography images through the internet.
Dates was indicted in Sept. 2012, and was charged with possessing visual depictions of minors engaging in sexually explicit conduct from Aug. 2009 through Aug. 2012. A superseding indictment was filed in Sept. 2013, charging Dates with two counts of distribution of child pornography, two counts of receiving child pornography, and possession of visual depictions of child pornography. A second superseding indictment was filed in June 2014, charging Dates with one count of advertising child pornography, three counts of distribution of child pornography, two counts of receipt of child pornography, and seven counts of possession of child pornography.
On Aug. 3, 2015, Dates pled guilty to one count of distribution of child pornography, and admitted distributing child pornography on June 15, 2011.
This case was investigated by the Albuquerque office of HSI and was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Marisa A. Ong as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Former Ypsilanti Resident and Registered Sex Offender Sentenced to 35 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
A former Ypsilanti man was sentenced today to 35 years in federal prison after having pleaded guilty to production of child pornography involving a three-year-old victim and committing an enumerated sex offense against a child while being subject to the sex offender register, announced United States Attorney Barbara L. McQuade. Following his time in prison, Vaughn will spend the rest of his life on supervised release.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Matthew Leon Vaughn,33, was sentenced by United States District Judge Nancy G. Edumunds.
According to court records, FBI agents in Alaska began investigating Vaughn as part of a group of individuals who obtained child pornography from a shared cloud storage system. The Alaska investigation led to the identification of Vaughn, who at the time lived in Ypsilanti, Michigan. The Detroit FBI searched Vaughn’s Ypsilanti apartment, recovering several pieces of computer media. A forensic analysis of that computer media revealed a vast collection—more than 30,000 images and 3,000 videos—of child pornography. An FBI agent in Detroit dug through Vaughn’s collection, eventually identifying child pornographic images Vaughn took inside that Ypsilanti apartment of a three-year-old girl that had been in Vaughn‘s care. Vaughn was arrested by the FBI in Toledo, Ohio, where he had moved after the execution of the Ypsilanti search warrant.
In 2003, Vaughn was convicted in state court for possession of child pornographic material. As a result of that conviction, Vaughn had been a registered sex offender when he produced child pornography in Ypsilanti.
“I continue to be astonished by the prevalence and severe nature of child exploitation cases." McQuade said. "We are very grateful for the dedication of agents and prosecutors who work to rescue children from the predators who abuse them."
“As both an FBI Special Agent and father, I find the actions of this young victim’s family member to be of the most heinous one could imagine”, said David P. Gelios, Special Agent in Charge of the Detroit Division. “Children are among the most vulnerable and innocent victims of crimes. These types of crimes are sometimes perpetrated by relatives, caretakers and others who are considered to be responsible adults in their lives. The FBI considers the investigation and prosecution of sexual predators who commit crimes against children, one of its top priorities”.
This case was investigated by the Federal Bureau of Investigation in Alaska, Detroit, and Toledo, Ohio, and prosecuted by Assistant United States Attorney Kevin M. Mulcahy.
Former Winnebago County Purchasing Director Sally Claassen Sentenced to Two Years in Federal Prison for Stealing More Than $400,000Read the Press Release
ROCKFORD — The former Winnebago County Purchasing Director was sentenced in federal court today by U.S. District Court Judge Frederick J. Kapala for two counts of theft from a program receiving federal funds.
SALLY A. CLAASSEN, 57, of Roscoe, Ill., was sentenced to two years in federal prison, to be followed by one year of supervised release, and was ordered to pay restitution of $440,369.83 to the Winnebago County Treasurer, and a fine of $5,000.
Claassen pleaded guilty to the charges on June 1, 2016. In the written plea agreement, Claassen admitted that as Purchasing Director for Winnebago County, Claassen was responsible for receiving and reviewing invoices submitted by vendors and submitting payment to vendors. From Feb. 25, 2014 through April 27, 2015, Claassen used her position as the approver for payments from Winnebago County to vendors to steal approximately $368,137 from the County. Claassen further admitted in the plea agreement that from April 15, 2014 to July 1, 2015, she used her Winnebago County-issued credit card and checks from Winnebago County to purchase items for her personal use, including home remodeling items and personal vacations.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Former Wilton Manors Resident Indicted for Posting Threatening Communications on FacebookRead the Press Release
Former resident of Wilton Manors indicted in Fort Lauderdale today for posting threatening communications on Facebook.
Wifredo A. Ferrer, Unites States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Craig Allen Jungwirth, 50, of Orlando, Florida, is charged by indictment with the interstate transmission of a threatening communication, in violation of Title 18, United States Code, Section 875(c). If convicted, Jungwirth faces a statutory maximum sentence of five years in prison, three years of supervised release, and up to a $250,000 fine.
According to the allegations contained in the court record, including a previously filed criminal complaint, on August 30, 2016, the FBI’s Miami Division was notified by local law enforcement, other FBI field offices, and members of the public via the public tip line, that alarming threats towards the LGBT community located within Wilton Manors, FL had been posted on Facebook. Specifically, on August 30, 2016, Jungwirth posting the following during an online written exchange, “My events are selling out ‘cause you faggots are total patsies. None of you deserve to live. If you losers thought the Pulse nightclub shooting was bad, wait till you see what I’m planning for Labor Day . . . You can never catch a genius from MIT and since you faggots aren’t dying from AIDS anymore, I have a better solution to exterminate you losers . . . I’m gonna be killing you fags…. It’s time to clean up Wilton Manors from all you AIDS infested losers.”
Jungwirth, was previously arrested by the FBI in Orlando and is currently in the custody of the U.S. Marshal’s Service. On September 12, 2016, a U.S. Magistrate Judge in Orlando ordered Jungwirth removed to the Southern District of Florida to face further legal proceedings.
Mr. Ferrer commended the investigative efforts of the FBI and JTTF. The case is being prosecuted by Assistant U.S. Attorney Marc S. Anton.
A complaint and indictment are merely accusations and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former West Haven Housing Authority Employee Admits Unlawful Receipt of FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN SANDELLA, 54, of Orange, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving unlawful compensation while serving as an employee of the West Haven Housing Authority.
According to court documents and statements made in court, SANDELLA was employed as the Clerk of the Works for the West Haven Housing Authority (“WHHA”), a federally-funded program through the U.S. Department of Housing and Urban Development. (“HUD”). HUD’s rules and regulations prohibited the WHHA from entering into any contract in which an officer or employee of the WHHA who influenced decisions with respect to the underlying project had an interest.
From March 2009 through January 2012, SANDELLA used his position as Clerk of the Works to influence the WHHA to enter into a plumbing contract and award plumbing jobs to a plumbing company that was owned and operated by a longtime friend and associate of SANDELLA. Specifically, SANDELLA assisted the plumbing company’s owner in preparing applications and bids for these jobs and promoted the company to the WHHA as a qualified plumbing service. In addition, SANDELLA reviewed the work performed by the company at WHHA properties, submitted the company’s invoices to the WHHA for payment, and delivered WHHA payment checks to the company’s owner or deposited those checks himself into the company’s checking account.
Unbeknownst to HUD and the WHHA, the plumbing company’s owner owed private debts to SANDELLA and lacked the means to repay SANDELLA other than with the money paid to the company by the WHHA.
Following the deposit of the WHHA checks into the plumbing company’s checking account, SANDELLA and the company’s owner worked together to direct certain payments out of that same checking account for the benefit of SANDELLA. Payments included checks written to CJM Construction, which was a plumbing contracting business owned and operated by SANDELLA; checks written to an insurance company for insurance policies for SANDELLA and his family, and checks written to the Regional Water Authority for accounts in the name of SANDELLA and his family.
SANDELLA failed to disclose the existence of his financial interest in the contract between the WHHA and the plumbing company.
Pursuant to the contract in which SANDELLA had an undisclosed interest, the WHHA paid $137,004 to the plumbing company. In turn, the plumbing company paid $26,687.26 to and for the benefit of SANDELLA.
SANDELLA pleaded guilty to one count of receipt of compensation with the unlawful intent to defeat the purposes of the U.S. Department of Housing and Urban Development, a charge that carries a maximum term of imprisonment of one year. Judge Underhill scheduled sentencing for December 8, 2016.
SANDELLA has agreed to pay restitution to the WHHA in the amount of $137,004.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Former Truck Driver Sentenced to More Than 15 Years for Using Internet to Exchange Child PornographyRead the Press Release
Jackson, TN – A former truck driver has been sentenced to 190 months in federal prison for using an Internet messaging app to distribute and receive child pornography. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Seferino Saldivar, 42, of McKenzie, Tennessee, used Kik, an Internet messaging app, to moderate a chat room where sexually explicit images of female minors were shared. Saldivar also used social networking service Mocospace to find individuals with similar interests and motivate them to join the Kik chat room.
In June 2015, an undercover officer in Arizona using Kik entered the aforementioned chat room and observed several users exchange child pornography. Law enforcement submitted an administrative subpoena to Kik for the Internet Protocol (IP) address being used by one of the user’s in the chat room. They were notified that the user used a Samsung Galaxy phone to access the Internet through IP 70.194.100.255. The email address listed for the user was also provided to law enforcement.
After linking Saldivar to the particular user name, agents obtained his McKenzie, Tennessee address. A search warrant was subsequently executed on his residence. Saldivar admitted to law enforcement that he used Kik and moderated the chat room being investigated.
A forensic examination of Saldivar’s phone revealed approximately 50 images of child pornography and Kik chat messages.
Saldivar was employed as a truck driver during his criminal activity.
In May 2016, Saldivar pleaded guilty to one count of knowingly distributing child pornography before Chief U.S. District Judge J. Daniel Breen.
On Tuesday, September 14, Judge Breen sentenced Saldivar to 190 months in federal prison.
This case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who believes they may have information about similar cases or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the
Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Securities Lawyer Pleads Guilty to Securites FraudRead the Press Release
SAN JOSE – James Seltzer, a former attorney and resident of Marin County, pleaded guilty to securities fraud, announced United States Attorney Brian Stretch, FBI Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty plea was accepted yesterday by U.S. District Judge Lucy H. Koh.
According to the plea agreement, beginning no later than October of 2007 through at least May of 2011, Seltzer, 67, formerly of Belvedere, defrauded and deceived multiple individuals in connection with the purchase and sale of securities. Seltzer admitted he misrepresented to the investors that he would use their money to make certain investments for their exclusive benefit but instead diverted the funds to other uses. Seltzer acknowledged that in many cases, he diverted all or virtually all of the monies he had obtained from his investors and spent the monies on his own personal and business expenses after depositing the funds into his own personal bank accounts. Seltzer further admitted that he had more than ten victims resulting in losses of more than $2,500,000.
Seltzer was indicted by a federal grand jury on June 18, 2015. He was charged with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to the plea agreement, Seltzer admitted his guilt to one count of securities fraud and the remaining counts were dismissed. After being apprehended in Hawaii in September 2015, Seltzer was ordered to appear in San Jose to face the charges presented in the indictment.
The maximum term of imprisonment for securities fraud is 20 years. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Seltzer remains free on a bond and is scheduled to appear before Judge Koh on February 15, 2017, for sentencing.
Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation.
Former Orange County Resident Sentenced to 4 Years in Prison for Engaging in A $2.5 Million Fraud Involving Dozens of Fraudulent Loans to Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BALDEV TAL, a/k/a “David Tal,” was sentenced today by the U.S. District Judge Vincent Briccetti to four years in prison for conspiring to commit bank fraud.
Manhattan U.S. Attorney Bharara stated: “Banks, credit unions, and small businesses in our community lost millions of dollars because of the fraud perpetrated by Baldev Tal and his co-conspirators. Today, Tal has been sentenced to federal prison for his crime.”
According to the Information previously filed in White Plains federal court and public information:
From at least in or about 2007 through in or about August 2015, Binder Tal, BALDEV TAL, a/k/a “David Tal,” a/k/a “Ashok Kumar,” Shariful Mintu, and their co-conspirators fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including, but not limited to, false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of the scheme to defraud, the defendants used the proceeds to personally enrich themselves and their families. Fraudulently obtained proceeds from the loans and lines of credit were used toward, among other things, (i) credit card debts for personal expenses of the defendants, (ii) debts arising from business expenses, and (iii) debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included, but were not limited to, multiple members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles, when in fact many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
* * *
Previously, the Judge Briccetti sentenced Binder Tal to 30 months in prison and Shariful Mintu to one year and one day in prison.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Auto Crimes Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins Jr. is in charge of the prosecution.
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Former Letter Carrier Sentenced for Worker’s Compensation FraudRead the Press Release
BOSTON – A former U.S. Postal Service employee was sentenced yesterday for fraudulently obtaining worker’s compensation for medical travel.
Joseph Bouchard, 67, of Georgetown, Mass. was sentenced by U.S. District Court Magistrate Judge Marianne B. Bowler to six months’ probation and ordered to pay a fine of $5,000 and restitution of $50,000. In June 2016, Bouchard pleaded guilty to one count of fraud in obtaining federal employee compensation.
From January 1986 to December 2009, Bouchard was employed as a letter carrier in Reading, Mass. As a civilian employee of the federal government, Bouchard was entitled to obtain reimbursement for medical travel after sustaining an injury while working in his official capacity. From 2008 to 2014, while Bouchard was on medical leave, he submitted dozens of travel vouchers to fitness centers in Lexington, Lynnfield and Bedford for dates when he did not actually use those gyms or used a different gym of closer proximity. During an interview with federal agents in April 2016, Bouchard admitted that he submitted the false claims intentionally and that he was upset with the Postal Service because of the hassles he encountered while seeking accommodations for his injury. Bouchard’s fraudulent submissions totaled approximately $50,000.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General in Boston, made the announcement. This case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Five Indicted for Fraud Against the U.S. Government and Other Purchasers in “Made in the USA” Marketing SchemeRead the Press Release
GREENEVILLE, Tenn. – On Sept. 13, 2016, a federal grand jury in Greeneville returned an indictment against Vincent Lee Ferguson, 65, of Knoxville, Tenn.; Matthew Lee Ferguson, 40, of Lenoir City, Tenn.; Kerry Joseph Ferguson, 35, of Houston, Texas; Matthew Harrison Martland, 32, of Knoxville, Tenn.; and Stephanie Lynn Kaemmerer, 44, of Knoxville, Tenn., for wire fraud, conspiracy to commit wire fraud, major fraud against the United States, and smuggling goods into the United States.
These individuals appeared in court on Sept. 15, 2016 before U.S. Magistrate Judge Clifton Corker and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 1, 2016, in U.S. District Court, in Greeneville.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and smuggling charge, and up to 10 years in prison for the charge of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeiture of approximately $8.1 million.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that these individuals, all of whom were executives and management at Wellco Enterprises, Inc., conspired from December 2008 through August 2012 to defraud the United States government and other purchasers through a scheme to fraudulently import military-style boots that were made in China into the United States and then deceptively market and sell those boots to the United States Armed Forces, government contractors, and the general public as “Made in the USA,” and as compliant with certain domestic content preference laws, including the Trade Agreements Act and the Berry Amendment.
This indictment is the result of an investigation by Homeland Security Investigations, the Defense Criminal Investigative Service, Air Force Office of Special Investigation, General Services Administration Office of Inspector General, and the Defense Contracts Audit Agency. Assistant U.S. Attorney David L. Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Final Defendant Sentenced to 14 Years in Prison for Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — On Wednesday, September 14, 2016, Domonic McCarns, 41, of Irvine, was sentenced to 14 years in prison by U.S. District Judge Kimberly J. Mueller for conspiracy to commit mail fraud for his participation in a nationwide foreclosure-rescue scam, Acting U.S. Attorney Phillip A. Talbert announced.
McCarns is the final defendant to be sentenced for a pair of schemes that lured homeowners with the promise to help them avoid foreclosure and repair their credit. Two indictments were brought in 2008. Four defendants were convicted after two jury trials, 13 defendants pleaded guilty, and now, all 17 defendants have been sentenced. On September 9, 2013, Charles Head was sentenced to 35 years in prison, and on October 29, 2014, his brother and fellow leader in the scheme Jeremy Michael Head was sentenced to 10 years in prison.
Acting U.S. Attorney Talbert said: ‘This scheme purposely targeted the financially vulnerable during their time of greatest distress with promises of help. The defendants tricked the victims into handing over their most valuable assets, their homes. Few economic crimes are more reprehensible. This final sentence in this case will bring some measure of justice for their victims.”
“In large fraud schemes like the one devised by Charles Head, we can’t forget about the individual homeowners who comprised the millions of dollars in losses,” said Monica M. Miller, Special Agent in Charge of the Sacramento division of the FBI. “Today’s sentencing ends an investigation that has been ongoing for more than 10 years and brings some closure to the innocent people who were victimized by Head’s callous scheme.”
“Dominic McCarns and his co-conspirators assured innocent homeowners across the country facing foreclosure that they could turnaround their misfortunes and keep their homes,” said Michael T. Batdorf, Special Agent in Charge, IRS-Criminal Investigation. “However the defendants had other plans which resulted in one of the most harmful mortgage fraud schemes in the country. The sentence handed down today by the court is befitting of this defendant and his actions.”
According to court documents, the defendants solicited homeowners facing foreclosure, and through misrepresentations, fraud, and forgery, substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants, or were solicited on the internet. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings.
Initially, the scam focused on distressed homeowners in California before expanding throughout the United States. In the course of the schemes, between January 2004 and June 2006, the defendants obtained over $90 million in fraudulent loans, caused estimated losses of over $50 million, and stole title to over 300 homes.
On December 2, 2013, McCarns was convicted after a five-week trial along with Charles Head, 36, of Pittsburgh, Pennsylvania, (formerly of Los Angeles); and Benjamin Budoff, 46, of Colorado Springs, Colorado. Head had been previously convicted in a trial in a nearly four-week trial in May 2013 with his brother Jeremy Michael Head, 34, of Huntington Beach.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris prosecuted the case.
Fourteen other defendants have been sentenced:
Elham Assadi, 39, of Irvine, sentenced to 5 years’ probation with 6 months of home detention;
Leonard Bernot, 50, of Laguna Hills, sentenced to 18 months in prison;
Akemi Bottari, 36, of Los Angeles, sentenced to 3 years’ probation with 6 months of home detention;
Keith Brotemarkle, 51, of Johnstown, Penn., sentenced to 5 years, 10 months in prison;
Benjamin Budoff, 49, Colorado Springs, Colo. sentenced to 4 years in prison;
Joshua Coffman, 37, of North Hollywood, sentenced to 20 months in prison;
John Corcoran, 61, of Anaheim, sentenced to 4.5 years in prison;
Sarah Mattson, 33, of Phoenix, Ariz., sentenced to 3 years’ probation with 3 months of home detention;
Omar Sandoval, 36, of Rancho Cucamonga, sentenced to 4 years and 10 months in prison;
Xochitl Sandoval, 37, of Rancho Cucamonga, sentenced to 8 months in prison;
Lisa Vang, 31, of Westminster, sentenced to 3 years’ probation;
Andrew Vu, 38, of Santa Ana, sentenced to 6 months in prison with 6 months of home detention;
Justin Wiley, 37, of Irvine, sentenced to 18 months in prison, and
Kou Yang, 40, of Corona, sentenced to 4 years in prison.
This case was part of the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.
Final Defendant Sentenced in Aggravated Identity Theft and Wire Fraud SchemeRead the Press Release
HOUSTON – A Houston woman has been ordered to federal prison following her conviction of wire fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Alicia Myles, 32, pleaded guilty Oct. 9, 2015.
Today, U.S. District Judge David Hittner ordered Myles to serve a total of 42 months – 18 months for the wire fraud and a consecutive 24 months for the identity theft. She was also ordered to serve three years of supervised release following her sentence and must pay restitution in the amount of $$77,064.86.
Myles, along with Chloe McClendon and Domonique Thomas, were able to engage in this scheme through the theft of personal identifying information (PII) of individuals from the Department of State Passport Agency where McClendon had worked. They used the stolen and unlawfully obtained PII of true persons to create counterfeit identification documents. The defendants then recruited other individuals to assume the stolen identities and use the counterfeit documents to obtain commercial lines of credit and purchase iPhones, iPads and other electronics merchandise.
McClendon and Thomas were previously sentenced to 65 and 96 months in federal prison, respectively.
Previously released on bond, Myles was ordered into custody following the hearing today.
The investigation leading up to the arrest was conducted by the Department of State, Diplomatic Security Service, Houston Field Office and Criminal Fraud Investigations Division and the Houston Police Department. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting this case.
Federal Jury Finds Zephyrhills Felon Guilty of Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Robert William Barton (43, Zephyrhills) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 20, 2017.
According to evidence presented at trial, on August 5, 2014, law enforcement officers pulled Barton and two passengers over after identifying the license plate on the vehicle as stolen. A search of the car revealed a loaded .22 caliber revolver under the passenger seat. Barton initially confessed to possessing the gun, but later claimed it belonged to someone else. Subsequent DNA testing linked the firearm to Barton.
Barton has prior felony convictions for aggravated battery and burglary, as well as three prior felony convictions for robbery, and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Federal Judge Sentences Last of National Drug Trafficking Ring Members in CustodyRead the Press Release
Federal Authorities Continue to Search for Remaining Charged Defendant
GRAND RAPIDS, MICHIGAN —Today, Hon. Robert Holmes Bell, District Court Judge of the Federal District Court for the Western District of Michigan, sentenced Carlos Ramirez-Zuniga to 70 months’ imprisonment. Ramirez-Zuniga was the final in-custody defendant out of five total to be charged in this case which arose from allegations that the defendant conspired to distribute cocaine and marijuana obtained first in Texas, near the Mexican border, into Lansing, Michigan.
The filed indictment indicated that the leader of the conspiracy, Merced Alvarado, aka "Hector," aka "Machine," began distributing drugs into Michigan in 2001 and continued doing so until June of 2014, when members of Homeland Security Investigations and the Lansing Police Department conducted a search of the conspiracy’s Lansing stash house and discovered over 800 grams of cocaine and over $39,000. Information developed in the investigation indicated that the conspiracy obtained marijuana and later cocaine near Alvarado’s Mission, Texas home, and transported the drugs throughout the country in hallowed out drink coolers. The Indictment indicated that more than five kilograms of cocaine and more than 50 kilograms of marijuana were involved. In total, nvestigators recovered over $150,000 in drug proceeds and over two kilograms of cocaine in the course of the investigation.
"We will continue to work with our federal and state partners to detect and bring to justice those drug traffickers seeking to move wholesale quantities of drugs into our state," stated U.S. Attorney Patrick Miles, "This case presents an excellent example of state and local cooperation in an investigation which ended a multistate drug conspiracy."
For his crime, the Court sentenced Alvarado, the recognized leader of the conspiracy, to 130 months’ imprisonment. Jonathan Galvan, a courier working for Alvarado delivering the drugs to Michigan and other states, received 48 months’ imprisonment. Elva Medrano, the Michigan resident who distributed drugs on Alvarado’s behalf, collected proceeds and maintained a home for the storage of the drugs in Michigan, received a sentence of 36 months’ imprisonment. Ramirez-Zuniga was Alvarado’s largest Lansing-based drug customer.
"These prison sentences are a testament to HSI’s commitment to aggressively investigating drug smuggling organizations and ending the violence they bring to our communities," said Marlon Miller, special agent in charge of HSI Detroit. "We are committed to making our communities safer, and we will continue close collaboration with our law enforcement partners at every level to further that objective."
City of Lansing Police Chief Michael Yankowski added: "The results of this investigation is confirmation of the dedication of Law Enforcement to stop illegal narcotic distribution in our neighborhoods. The long term effects of this investigation will have a positive influence for the reduction of violent crime and quality of life in our local communities."
Investigators continue to seek information about the location of the final defendant, Raymundo Perea, another of Alvarado’s couriers who remains a fugitive, who is pictured below. Perea was last known to law enforcement to be in the area of Mission, Texas. Anyone with information about the whereabouts of Perea should contact Homeland Security Investigations at (313) 226-0533. Of course, the charges in an indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.
Raymundo PereaEND
Douglas Allen Pleads Not Guilty to Merchants Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Douglas Allen, 58, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Allen be detained pending trial, which has not been scheduled.
According to court records, on May 21, 2016, a man wearing a hat and sunglasses entered the College Street branch of Merchants Bank in Burlington and presented the teller with a note which asked for $6000. The teller gave the robber approximately $1780. Burlington Police officers arrested Allen five days later, on May 26, after receiving several tips from persons who were able to identify Allen from bank surveillance pictures. Allen was originally charged in state court with grand larceny, but that charge was dismissed after a federal grand jury indicted Allen for robbery last week.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Allen faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Allen is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
District Man Sentenced to Seven Years in Prison for Shooting That Wounded 7-Year-Old GirlRead the Press Release
WASHINGTON – Michael Wiggins, 27, of Washington, D.C., was sentenced today to a seven-year prison term on charges stemming from a shooting last spring that injured a 7-year-old bystander, U.S. Attorney Channing D. Phillips announced.
Wiggins pled guilty on Aug. 19, 2016, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed and one count of possession of a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for a seven-year prison term. The Honorable Zoe Bush accepted the plea and sentenced Wiggins accordingly. After his prison term, Wiggins will be placed on five years of supervised release.
In his plea, Wiggins admitted that on April 8, 2016, at about 9:30 p.m., he was in the 2900 block of Knox Place SE, and had been fighting with his cousin. As his cousin was leaving Knox Place by car, Wiggins fired four shots at the vehicle, shattering its back windshield. Meanwhile, the victim, a 7-year-old girl, was arriving home with her family after an outing to Chuck E. Cheese. One of the shots hit her in the chest and she fell to the ground. The victim was immediately transported to Children’s National Medical Center and has made a full recovery.
Officers with the Metropolitan Police Department (MPD) were swift to identify Wiggins as the shooter and he was arrested on April 11, 2016. Wiggins admitted that he was shooting at his cousin that night.
In announcing the sentence, U.S. Attorney Phillips commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the work of those handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Margaret E. Barr, who prosecuted the matter.
Department of Justice and U.S. Attorney’s Office Seek Forfeiture of Six Dogs Seized in Connection with Interstate Dog Fighting VentureRead the Press Release
The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
According to the complaint filed yesterday in Newark, New Jersey, federal court:
The six pit bull-type dogs were seized on June 1, from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.
The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.
Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as flirt poles, which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.
Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.
Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.
Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.
The charges and allegations against Love are merely accusations and he is presumed innocent unless and until proven guilty.
Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
Defendant Pleads Guilty to Providing Material Support to Islamic Movement of UzbekistanRead the Press Release
WASHINGTON – Irfan Demirtas, 58, a dual Dutch-Turkish citizen, pleaded guilty today to providing material support to the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Demirtas pleaded guilty in the U.S. District Court for the District of Columbia and is to be sentenced on Nov. 30, 2016 by the Honorable Randolph D. Moss. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. The plea agreement calls for Demirtas to be removed from the United States upon completion of his prison term.
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least Jan. 2006 through May 2008, when Demirtas was a resident of the Netherlands and acted as an IMU fundraiser and facilitator. In Jan. 2015, Demirtas was arrested in Germany based on an Interpol red notice that had been issued on these charges. He was detained and then extradited to the United States on July 17, 2015.
According to the government’s evidence, the IMU is a militant Islamic group which was formed in 1991 with the stated purpose to overthrow the government of Uzbekistan and to create an Islamic state under Sharia law. Since its inception, the IMU has been conducting military operations in Uzbekistan and Pakistan and participated in combat operations against coalition forces in Afghanistan. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001.
Between January 2006 and May 2008, according to the government’s evidence, Demirtas acted on the IMU’s behalf in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the United States. During this period, he provided, attempted to provide, and conspired to provide personnel and funding to the IMU, knowing that it is a designated terrorist organization that has engaged and engages in terrorism. Specifically, Demirtas admitted in his plea to providing funds to the leader of the IMU.
The case is being investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Ari B. Redbord of the District of Columbia and Trial Attorney Brian K. Morgan of the National Security Division’s Counterterrorism Section. Assistance was provided by the Department of Justice’s Office of International Affairs.
DeLand Man Convicted of Possessing Ethylone with Intent to DistributeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Jason Alexander Phifer (33, DeLand) guilty of possession with intent to distribute ethylone, commonly marketed as the street drug “Molly.” He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for December 5, 2016. Phifer was indicted on February 10, 2016.
According to evidence presented at trial, between January and May 2015, Phifer ordered four shipments of ethylone, totaling approximately 5.25 kilograms, from a supplier in China. In May 2015, agents discovered a shipment of 1.5 kilograms of ethylone that was destined for Phifer’s residence. On May 20, 2015, undercover agents made a controlled delivery of the ethylone to Phifer at his home. Immediately after the delivery, they executed a search warrant at the home and recovered the 1.5 kilograms of ethylone, and found additional quantities in Phifer’s bedroom. Phifer admitted to agents that he had received the ethylone so he could distribute it to customers throughout the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Vincent S. Chiu and Sean P. Shecter.
Corapeake Woman Pleads Guilty to Virginia Unemployment Fraud SchemeRead the Press Release
NORFOLK, Va. – Paula Lane, a.k.a. Paula Hipps, 47, formerly of Corapeake, North Carolina, pleaded guilty today to charges of mail fraud and aggravated identity theft.
According to the statement of facts filed with the plea agreement, Lane created fake companies and reported employees and wages to the Virginia Employment Commission (VEC). The employees’ identifications were stolen or otherwise used without authorization. She then filed unemployment claims under the names of these individuals as if they had been laid off. She received payment from the VEC through EPPICards (debit cards issued to claimants) and direct deposits into her bank account. A search warrant of her home led to the discovery of handwritten documents with personal identifying information, including dates of birth and social security numbers. There were approximately 30 victims of identity theft, and in one-year Lane collected approximately $130,000.
Lane was indicted by a federal grand jury on June 9 and faces a maximum penalty of 20 years in prison for the mail fraud count and a mandatory consecutive two years in prison for the aggravated identity theft count when sentenced on Jan. 17, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia and Robin Blake, Special Agent in Charge of the Washington, D.C. Regional Office, U.S. Department of Labor, Office of Inspector General, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-089.
Clark County Man Pleads Guilty to Producing, Distributing Child PornographyRead the Press Release
DAYTON – James Edward Risner III, 34, of New Carlisle, Ohio pleaded guilty in U.S. District Court to producing and distributing child pornography involving a seven-year old victim.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Clark County Sheriff Gene Kelly and Clark County Prosecuting Attorney D. Andrew Wilson announced the pleas entered Wednesday, September 14 before Chief U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, Risner engaged in various sexual activities with the victim at his home and business between July 2015 and November 2015, took pictures of the activities then shared the photos on various websites.
FBI agents and Clark County Sheriff’s deputies patrolling the Internet found the photos, traced them to Risner and arrested him in November 2015. He has been in custody since his arrest.
Risner’s plea agreement includes a sentencing range between 360 and 480 months in prison and a life term of supervised release following his prison term. U.S. District Judge Timothy S. Black will determine whether or not to accept the terms of the plea agreement and if he does, will schedule a date for sentencing.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Sheriff Kelly’s Office, Assistant United States Attorneys Dwight Keller and Sheila Lafferty, and Special Assistant U.S. Attorney Amy Smith from the Clark County Prosecutor’s Office, who are representing the United States in this case.
California methamphetamine trafficker pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A California man who traveled to West Virginia to facilitate methamphetamine trafficking pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Gary Liberty, 52, entered his guilty plea to attempted possession with intent to distribute methamphetamine.
Liberty admitted that in January 2012, he made arrangements with a confidential informant working with law enforcement to ship crystal methamphetamine from California to West Virginia. On January 5, 2012, Liberty traveled from California to West Virginia by airplane. The next day, Liberty provided the confidential informant with a U.S. Postal Service tracking number for a package containing crystal methamphetamine that Liberty had arranged to be sent from California to the informant’s residence in Sissonville. On January 7, 2012, officers intercepted the package and seized over 80 grams of methamphetamine. Officers then conducted a controlled delivery of the package to the confidential informant’s residence with a fake substance in the package. After the informant took delivery of the package, officers entered the informant’s home and found Liberty standing over the package with the package open and several items from inside the package on the table. Liberty then gave a statement to law enforcement and admitted his involvement with methamphetamine trafficking.
Liberty faces at least five and up to 40 years in federal prison when he is sentenced on December 7, 2016.
The Metropolitan Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Biloxi Businessman Sentenced for Kickback Scheme with Mississippi Department of Corrections CommissionerRead the Press Release
Gulfport, Miss - Robert Simmons, 60, of Biloxi, was sentenced by U.S. District Judge Sul Ozerden to 87 months in prison followed by three years of supervised release for carrying out a complicated kickback scheme in which he paid money to the commissioner of the Mississippi Department of Corrections (MDOC) and to a Harrison County Supervisor in exchange for lucrative contracts with the state and county, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Donald Alway. Simmons was also ordered to pay a $10,000 fine.
By virtue of Simmons’ relationship with the commissioner and supervisor and the kickbacks which he paid to both, he was successful in securing and keeping contracts with both governmental entities. Specifically, from 2012 through August 2014, Simmons was paid $4,000 a month as a consultant for Sentinel Offender Services, L.L.C. (Sentinel). Since 2012, Sentinel was under contract with the Mississippi Department of Corrections (MDOC) to provide services to aid in the monitoring and managing of offenders sentenced to probation or parole. Simmons deposited a portion of his monthly pay, a kickback of $1400, directly into the bank account of Christopher Epps, the Commissioner of the MDOC, at bank branch locations along the Mississippi Gulf Coast.
AJA Management and Technical Services (AJA) provided construction management services to the MDOC for the construction of the $40,000,000 expansion to the East Mississippi Correctional Facility and a $40,000,000 expansion to the Walnut Grove Youth Correctional Facility. Throughout the eighteen month period of construction, Simmons received a monthly consulting fee from AJA of $10,000. Every month, a portion of Simmons’ consulting fee was paid to the Commissioner of the MDOC.
From approximately 2005 through 2011, Health Assurance L.L.C. contracted with the Harrison County Jail to provide inmate medical services. The owner of Health Assurance L.L.C. paid Simmons a consulting fee which, at the end of the contract, was as high as $10,000 a month. Throughout this period of time, Simmons made payments in the amount of $2,000 a month to a Harrison County Supervisor for assistance provided in securing the contract at the Harrison County Jail for inmate medical services.
Throughout the relevant time period, the Commissioner of the MDOC exercised influence in the awarding of contracts with the MDOC. In return for these contracts and in order to secure future contracts and favors, Simmons began paying Commissioner Epps.
In summary, Simmons paid bribes and kickbacks to a Harrison county supervisor and to the commissioner of the Mississippi Department of Corrections, and both Harrison County and the Mississippi Department of Corrections received more than $10,000 during each one year period beginning in 2008 and continuing through 2014.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jay Golden.
Beggs Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JACKIE LEON PARKER, JR., age 42, of Beggs, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1).
The charges arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in July, 2016.
The Indictment alleged that on or about May 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Bank Employee Sentenced for $213,000 TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for embezzling more than $213,000 from Bank of America.
Elisha Nicole Araiza, 36, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 21 months in federal prison without parole. The court also ordered Araiza to pay $213,090 in restitution to Bank of America.
On April 5, 2016, Araiza pleaded guilty to embezzlement by a bank employee.
Araiza was employed by Bank of America on May 17, 2004, and worked as a portfolio officer in the Special Assets Group on the Small Business Accounts Team. Her duties included contacting small business borrowers to arrange payments on past due loans, and in that regard she had authority to negotiate settlements, create payment plans, and forgive portions of the debts owed.
Araiza admitted that she had been experiencing overdrafts in her personal bank account for about a year when, in July 2011, she deposited a bank customer’s money order into her own account. Thereafter, the diversion of client checks to Araiza’s personal accounts continued until March 19, 2015, at which point the embezzlement was detected by Bank of America.
Bank of America found 121 diverted loan payment checks totaling $213,090 deposited into Araiza’s personal account over a period of approximately four years.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Secret Service.
Alpha Corporation Agrees to Plead Guilty in Price-Fixing and Bid-Rigging ConspiracyRead the Press Release
Alpha Corporation (Alpha) has agreed to plead guilty and to pay a $9 million criminal fine for its role in a price-fixing and bid-rigging conspiracy involving automotive access mechanisms for installation in cars manufactured and sold in the United States and elsewhere, the Justice Department announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Japan-based Alpha conspired from at least as early as 2002 until at least September 2011 to fix prices and rig bids for automotive access mechanisms sold to Nissan Motor Co. Ltd. and certain of its subsidiaries, including Nissan North America Inc. Access mechanisms consist of inside and outside door handles, tailgate or trunk handles, keys, lock sets (also called key sets), door locks and electrical and mechanical steering column locks.
“Alpha is the 46th corporation to be charged with participating in an anticompetitive scheme involving auto parts,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to uncovering each and every conspiracy to fix prices in the auto parts industry.”
“Crimes of this nature weaken the integrity of the bidding process and deny consumers the benefit of free and open competition in the marketplace,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “The FBI will continue to work with the Antitrust Division to ensure fair bidding practices are employed across all sectors of our economy.”
The Antitrust Division charges that Alpha and its co-conspirator engaged in meetings and conversations to discuss and agree upon the bids and price quotations to be submitted to Nissan for the sale of access mechanisms. As part of its plea, Alpha has agreed to cooperate in the Division’s ongoing investigation. The plea agreement is subject to court approval.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Alpha, 46 companies and 64 executives have been charged in the division’s investigation and have agreed to pay a total of more than $2.8 billion in criminal fines.
Alpha is being prosecuted by the Antitrust Division’s New York Office and the FBI’s New York Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s New York Field Office at 212-384-1000.
Alpha Corporation Information
Accountant Convicted of Embezzling More than $3 Million from Houston CompanyRead the Press Release
HOUSTON – An accountant from Georgia has admitted he committed wire fraud and stole more than $3 million from Houston company Airis International Holdings, announced U.S. Attorney Kenneth Magidson.
Daniel Nathan West, 50, of Duluth, Georgia, was previously employed as the treasurer and chief financial officer for Airis International Holdings. In this role, he was to manage Airis finances during construction projects, control the company’s monetary assets, administer payments and payroll, among other things.
In 2005, West resigned from Airis to start his accounting firm - Westtree Financial. Shortly thereafter, Airis contracted with Westtree Financial to provide accounting services to Airis. Although West no longer worked directly for Airis, through his company he continued to have signature authority on Airis’ bank accounts and authority to transfer funds on behalf of Airis.
From 2005 to 2012, West embezzled $3,616,563.45 from Airis, admitting he used the monies to purchase a luxury home in Georgia, a beach house in Florida, an office building in Georgia and luxury vehicles.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 5, 2016. At that time, he faces up to 20 years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
7th Street Gang Associate Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 7th Street Gang associate Joseph Whitely, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012. Defendant Whitely, as a 7th Street Gang associate, sold heroin on behalf of the gang.
Regarding violence, Whitely served as the getaway driver for 7th Street Gang member Efrain Hidalgo, who had moments earlier participated with others in the murder of rival 10th Street Gang member Eric Morrow on August 11, 2009. In doing so, Whitely assisted Hidalgo to avoid capture by the Buffalo Police Department.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted. The prosecution of the 10th Street gang, meanwhile, involved 44 defendants, all of whom were convicted.The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie Patterson.
14 September 2016
Wilkes-Barre Man Charged with Federal Crack Cocaine Trafficking Offense in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton for crack cocaine trafficking.
According to United States Attorney Peter Smith, the Indictment charges Jahkel Lamar, age 29, of Wilkes-Barre, with possession with intent to distribute crack cocaine.
The charges stem from an investigation in which the Scranton Police Department allegedly found Lamar to be in possession of approximately 127 grams of crack cocaine at a bus terminal in Scranton.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Scranton Police Department, Special Investigations Division. Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
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 up to forty years in prison, 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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Wilkes Barre Man Indicted on Marijuana Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton on marijuana trafficking and firearms offenses.
According to United States Attorney Peter Smith, the Indictment charges Christian Rosado, age 26, with charges that stemmed from a joint investigation of the Federal Bureau of Investigation (FBI) and the Hazelton Police Department in connection with a shooting incident in Hazleton in July 2016.
The investigation was conducted by the FBI, working in conjunction with the Hazelton Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
Rosado faces a minimum of 10 years and up to a lifetime term of incarceration as well as fines totaling $1,750,000.
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.
Under the Federal Sentencing Guidelines, the Judge is 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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Venezuelan Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – Alejandro Marva-Romero, 32, of Venezuela, pleaded guilty today in federal court on St. Croix to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On November 13, 2015, Marva-Romero and other co-defendants, who were on a boat, retrieved a load of cocaine mid-sea from another boat. They transported the drugs to St. Croix and offloaded them at a beach called Knight’s Bay. Law enforcement tracked the boat returning to St. Croix and apprehended Marva-Romero and two co-defendants on the beach in close proximity to the suitcases. The suitcases contained 87 kilograms of cocaine.
Marva-Romero faces up to life imprisonment for the offense and a fine of up to $10,000,000. A sentencing date has been set for January 13, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
United States Settles False Claims Act Allegations Against Compound Pharmacy Owners for $7.75 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Andy Miller, Tracy Miller, and the Healthmark Investment Trust have agreed to pay to the government $7.75 million to resolve allegations that they violated the False Claims Act.
The United States contends that QMedRx, a compound pharmacy in Maitland, Florida, knowingly billed federal healthcare programs for services that were not reimbursable. Specifically, the government contends that from January 1, 2013, until January 22, 2014, QMedRx submitted to federal healthcare programs, compounded prescriptions that were tainted within the meaning of the Anti-Kickback Statute. Because Healthmark Investment Trust was a partial owner of QMedRx, the government sought penalties and fines from the owners who participated in the fraud. The government is still pursuing penalties and fines from other owners and participants within QMedRx.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Those who violate the Anti-Kickback Statute to generate business will be held accountable.”
This case was developed through an initiative to track and prosecute compound pharmacies that submitted millions of dollars in improper claims to the TRICARE program. The government estimates that up to $2 billion of tainted and unnecessary compound prescriptions were submitted and paid by the government. In the Middle District of Florida, the government has recovered almost $60 million in fines and penalties over the past 18 months.
“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
USP Canaan Inmates Charged in Assault of Prisoner with A Dangerous WeaponRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Indictment was returned by a federal grand jury in Scranton on September 13, charging federal prison inmates, Miguel Grado, age 26 and Rafael Torres-Villanueva, age 43.
According to United States Attorney Peter Smith, Grado and Torres-Villanueva were charged with assaulting a third inmate on June 4, 2016, with a dangerous weapon, a “shank,” at the U.S. Bureau of Prisons Canaan facility in Waymart, PA.
If convicted, Grado and Torres-Villanueva could be imprisoned for a maximum sentence of up to ten years and a fine in the amount of $250,000.
The investigation was conducted by the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
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 10 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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U.S. Attorney’s Office to Host September 20th Event for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict,” to be followed by a panel discussion, at 6:30 p.m. on Tuesday, September 20, 2016. The event will be held at Augustana University’s Kresge Recital Hall, located at 2120 S. Grange Avenue in Sioux Falls.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, an individual in recovery from opiate addiction, as well as staff from Face It TOGETHER and Keystone Treatment Center.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
Two Men Plead Guilty for Their Roles in Identity Trafficking SchemeRead the Press Release
Two individuals each pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to their respective roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Francisco Matos-Beltre, 42, a U.S. citizen formerly of Philadelphia, and Alejandro Tello-Rojas, aka Joel Ocasio-Cancel, aka William Davila, 36, a Mexican citizen formerly of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Matos-Beltre, an identity document supplier, and Tello-Rojas, an identity document broker, were charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, eight defendants have pleaded guilty and six individuals remain fugitives.
According to admissions made in connection with today’s pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, the defendants admitted. The defendants acknowledged that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.
The defendants also admitted that they sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreements. At the time of his arrest, Tello-Rojas had assumed the identity of Ocasio-Cancel, a Puerto Rican U.S. citizen.
The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the HSI San Juan Office and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Tulsa Teacher Sentenced to 13 Years for Receiving Child PornographyRead the Press Release
TULSA, Okla.—A Union Public Schools teacher was sentenced today to serve 13 years in federal prison for receiving child pornography followed by 20 years of supervised release, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
James Russell Wilson, 32, of Tulsa, was indicted by a grand jury in April 2016, and pleaded guilty on June 14, 2016.
According to court documents, from October 2014 to about December 2014, Wilson found the public profile of a 12 year-old girl on Instagram and began sending messages to her username on Kik, an online-messaging program. In the course of “chatting” with the child over several months, Wilson requested increasingly more revealing and ultimately sexual photos of her and enticed the child to expose herself and perform sexual acts on herself. Wilson sent her pictures in which he exposed himself and engaged in masturbation. Wilson convinced the 12 year-old girl to send, and Wilson received, photos of her engaging in sexually explicit conduct, including the lascivious exhibition of her genitalia through her underwear or other clothing, and both simulated and actual masturbation.
United States Immigration Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and the Royal Canadian Mounted Police were the investigating agencies. Assistant United States Attorneys Andrew J. Hofland and Allen J. Litchfield prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, 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 and internet safety education, please visit www.justice.gov/psc.
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