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14 September 2016
Osceola Man Found Guilty of Meth Distribution Following First Trial in Operation Blynd JustusRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Shepard, Assistant Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a federal jury found James Edward Watson, Jr., 30, of Osceola, guilty of distribution of methamphetamine following a two-day trial. Due to the nature of the charge and his past criminal history, Watson will serve a minimum of 10 years in federal prison.
Following approximately 20 minutes of deliberation the jury returned its verdict to Chief United States District Judge Brian Miller on Tuesday, September 13. Judge Miller will sentence Watson at a later date.
Watson was the first defendant indicted in Operation Blynd Justus to go to federal trial. On August 11, 2015, Watson and 69 other defendants were arrested in a wide-sweeping roundup in Northeast Arkansas as part of a major operation aimed at curbing drug trafficking and gun violence in Blytheville and Mississippi County. Blynd Justus targeted violent and repeat drug and gun offenders and resulted in 40 separate federal indictments. Following the initial roundup, four additional defendants have been indicted on drug charges in the overall case, and federal law enforcement remains active in the area.
"A coordinated effort from multiple law enforcement agencies successfully removed dozens of violent and dangerous drug dealers from the streets of Mississippi County 13 months ago, but the work of protecting these communities continues," Thyer said. "Mr. Watson was a repeat offender who had committed violent acts in the past. Just as the other defendants arrested in Blynd Justus will learn, Mr. Watson now knows that his criminal actions only led to prison time."
"Our resolve has not faltered in our efforts to disrupt violent gang activity and dismantle illegal sales of firearms and drugs in our state," Assistant Special Agent in Charge Shepard said. "We are determined to fight for our community and work hand-in-hand with federal, state and local agencies to achieve this goal."
Watson is a convicted felon who on August 29, 2014, sold three ounces of methamphetamine (approximately 84 grams) to a confidential informant for $3,000. Watson met the informant in Blytheville to purchase and then sell the methamphetamine. Additionally, as detailed in the trial, Watson sold the informant four ounces of counterfeit methamphetamine in a separate transaction in September 2014. The jury found that Watson sold more than 5 grams of actual methamphetamine in the August 29th transaction.
The statutory penalty for distribution of more than 5 grams of actual methamphetamine, a violation of 21 U.S.C. § 841(b)(1)(B), with an enhancement for being previously convicted of a drug felony, is not less than 10 years and not more than life, not more than an $8 million fine, or both, and not less than 8 years of supervised release. Watson’s actual sentence will be determined at a later date.
While Watson is the first defendant indicted in the Blynd Justus operation to go to trial, he is not the first defendant to be convicted. To date, 25 defendants have pleaded guilty. Eight have been sentenced—all to prison time (including James Walton–120 months, Markese Durden–120 months, John Franklin–87 months, Darius Goodman–87 months, Juan Pineda–60 months, Dexter Anderson–48 months, Jarvis Reed–30 months, and Harmanjeet Khatrao–5 months). The others who pleaded guilty are awaiting sentencing. Another three defendants (Derrick Palmore, Andrew Armstrong, and Vincent Talley) are scheduled to change their pleas to guilty on September 16, 2016. The remaining defendants have trials scheduled.
Northeast Arkansas saw an immediate impact as a result of Blynd Justus. According to Blytheville Police Chief Ross Thompson, violent crime went down in six key areas charted by law enforcement. In the six months following the August 2015 takedown Blytheville saw incidents of aggravated assault, robbery, larceny, motor vehicle theft, rape, and murder all decrease as compared to the six months prior, in some cases dramatically. There were seven homicides in Blytheville in the six months prior to Blynd Justus. Following the takedown, there were zero murders in the next seven months.
"The goal of Blynd Justus was to help an ailing community combat drugs and violence, remove dangerous people from the streets, and help the great citizens of Northeast Arkansas sleep a little easier at night," Thyer said. "While we will never eradicate all crime, Blynd Justus serves as a continuing reminder to criminals that you will spend time in prison if you choose to poison and terrorize these communities."
Assistant United States Attorney Benecia Moore prosecuted the case against Watson. The overall Blynd Justus investigation was conducted by the FBI, in partnership with the 2nd Judicial District Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys.
Operators of Atlanta Stores Sentenced for Stealing Millions of Dollars in an Extensive Food Stamp Fraud SchemeRead the Press Release
ATLANTA – Local grocery store operators Rodney Byrd and Reginald Byrd have been sentenced for conspiring to commit food stamp fraud. The defendants utilized a series of stores in the Atlanta area to unlawfully purchase over $5.7 million in vouchers of the Georgia Women, Infants and Children (WIC) program and debit cards of the Supplemental Nutrition Assistance Program (“SNAP”).
“These defendants brazenly stole millions of dollars from government programs designed to help the poor and needy,” said U. S. Attorney John Horn. “Their sentences show that people who line their pockets with money from government programs will go to prison.”
“The prosecution of these individuals sends a strong message that we will not tolerate fraudulent abuse of our federally funded Food and Nutrition Service programs. Rodney Byrd and his brother, Reginald Byrd, created and managed businesses for the sole purpose of profiting financially from the benefits of families that needed assistance from the Supplemental Nutrition Assistance Program (SNAP) as well as the Georgia Women, Infants, and Children (WIC) program. We will continue to maintain our aggressive approach to investigate those that are trying to fraudulently take advantage of such programs. We would like to thank the U.S. Attorney’s Office, the Internal Revenue Service, the Georgia Department of Public Health as well as the Georgia Department of Human Services, Office of Inspector General for assisting us with this investigation,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
“Americans expect and deserve a government that ensures their tax dollars are managed efficiently and with integrity”, said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The SNAP and WIC programs cannot succeed without strong public confidence, so good stewardship of tax dollars is one of our most important objectives. Today’s sentencing of Rodney and Reginald Byrd is critical to preserving benefits for the vast majority of participants who play by the rules and need help to ensure their families have access to adequate and nutritious food.”
According to U.S. Attorney Horn, the charges and other information presented in court: Rodney Byrd owned and operated several metropolitan Atlanta area stores named “Tweet Baby Tweet,” “Chicos and Chicas Variety Store,” and “Tweets, Treats, and Nic Nacs.” Reginald Byrd managed at least one of these stores. The defendants directed employees of the stores to make cash payments to customers in return for the customers’ WIC vouchers and for the use of the customers’ SNAP debit cards, which is a violation of the terms of the WIC program and SNAP.
As a result, tens of thousands of WIC vouchers totaling millions of dollars were deposited into bank accounts under the control of Rodney Byrd. A large number of these vouchers were for prescribed infant formula that is supposed to be given to malnourished infants or infants who cannot use traditional formula. Instead of selling products such as this to needy recipients, the defendants and their co-conspirators unlawfully purchased the vouchers for cash. This scheme resulted in an estimated loss to the government of $5,747,817.18.
U.S. District Judge Leigh Martin May sentenced Rodney Byrd, 41, of Atlanta, Georgia to four years in prison and Reginald Byrd, 40 of Atlanta, Georgia to one year and one day in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $5,747,817.18. The defendants were convicted of conspiracy to commit WIC and SNAP fraud on July 17, 2015, when they pled guilty to these charges.
This case was investigated by the United States Department of Agriculture, Office of the Inspector General and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
North Carolina Tax Return Preparer Sentenced to PrisonRead the Press Release
A Durham, North Carolina, tax return preparer was sentenced today to 12 months and one day in prison for aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to documents filed with the court, Reyna Nembiu Montes, operated “Su Manu Amiga,” a tax return preparation business in Durham. Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds. She further admitted that she failed to disclose the existence of her tax return preparation business on her personal income tax returns.
Montes pleaded guilty on June 26. In addition to serving her prison sentence, Montes was ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).
Principal Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON – A Durham, North Carolina, tax return preparer was sentenced today to 12 months and one day in prison for aiding in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
According to documents filed with the court, Reyna Nembiu Montes, operated “Su Manu Amiga,” a tax return preparation business in Durham. Montes admitted that she prepared multiple false individual income tax returns for clients, claiming false dependents in order to generate fraudulent refunds. She further admitted that she failed to disclose the existence of her tax return preparation business on her personal income tax returns.
Montes pleaded guilty on June 26. In addition to serving her prison sentence, Montes was ordered to serve one year of supervised release and to pay restitution in the amount of $115,287 to the Internal Revenue Service (IRS).
Principal Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New Hampshire Man Sentenced to 15 Years for Armed Bank RobberiesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Joseph Richards, 47, of Manchester, New Hampshire, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 15 years in prison and five years of supervised release for armed bank robbery. The charges arose from the August 3, 2015 armed bank robbery of Norway Savings Bank (NSB) in Freeport, Maine; the August 14, 2015 armed bank robbery of Franklin Savings Bank (FSB) in Franklin, New Hampshire; the September 4, 2015 armed bank robbery of University Credit Union (UCU) in Portland; and the September 12, 2015 armed bank robbery of TD Bank (TDB) in Lewiston, Maine.
According to court records, the defendant used a pellet gun in each robbery and absconded with $5,854 from NSB, $13,240 from FSB, $12,308 from UCU and $9,888 from TDB. At the time of the robberies, the defendant was on federal supervised release for a 2003 federal bank robbery conviction in New Hampshire, for which he received a 12½ year sentence.
On July 28, 2016, one of Richards’ co-conspirators, Neil West, Sr., of Portland, Maine, was found guilty following a jury trial in U.S. District Court of armed bank robbery and conspiracy to commit bank robbery arising out of the UCU and TDB robberies. West served as the getaway driver for both robberies. The TD Bank robbery resulted in a high-speed chase which culminated in Saco. Following the chase, West and Richards were arrested.
Before imposing sentence, Chief Judge Torresen stated the seriousness of these offenses is impossible to overstate. People’s lives were put at risk. The emotional harm that the tellers suffered will last a lifetime.
The joint investigation was conducted by the Franklin (New Hampshire), Manchester (New Hampshire), Freeport, Portland, Lewiston, Old Orchard Beach and Saco (Maine) Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments.
Nebraska Man Sentenced to 35 Years in Prison for Being Part of a Child Exploitation EnterpriseRead the Press Release
A Fairbury, Nebraska man was sentenced today to 35 years’ in federal prison for his participation in a child exploitation enterprise, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Sentenced was Brandon L. Hennerberg, age 31. Hennerberg was sentenced by U.S. District Court Judge Richard G. Kopf in Lincoln, Nebraska. He was originally charged, along with five co-defendants, in the Eastern District of Michigan in a 28-count indictment with the crimes of child exploitation enterprise, numerous counts of conspiracy to produce child pornography, conspiracy to receive and access with intent to view child pornography, and aiding and abetting online enticement. Hennerberg pleaded guilty to one count of child exploitation enterprise, carrying a 20-year mandatory minimum sentence, on June 21, 2016.
The investigation determined that from at least January of 2014 to February of 2016, Hennerberg was a member of a group of individuals that worked together online to entice minor females to produce child pornography. The group members created fraudulent social media accounts posing as teenagers. Using the assumed identities, group members searched social media websites and engaged minor females, specifically targeting 10 to 14 year-old girls, in conversation using internet chat and video applications. The group members worked together for hours and sometimes even days to deceive their victims and convince them to undress and engage in sexually explicit activity live on webcamera, which the group members recorded.
The group members used an elaborate scheme to entice, coerce, and deceive their victims. Each group member had at least one role, although at times a group member would play more than one role or switch from one role to another. The “hunters” visited social media websites commonly used by minors to locate minors and bring them back to the other group members. The “talkers” were primarily responsible for conversing with the minors. They asked the minors to do “dares” which escalated into sexual activity. If a victim was suspicious of the group members or reluctant to engage in sexual activity, the “loopers” would then play a previously recorded video of a minor engaged in sexual activity, pretending to be that minor, in order to convince the victim to engage in the same type of activity. Meanwhile, the “watchers” in the group were in charge of ensuring that no suspected law enforcement members or unwanted persons were present.
The group victimized at least 100 minor girls, most of whom have yet to be identified. If you have any information to help identify victims of this online conspiracy, fill out the FBI’s confidential survey at fbi.gov/sextortion or contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com. A confidential email can also be sent to [email protected]. Or call 1-800-CALL-FBI FREE (225-5324).
Co-defendants Virgil Napier, Jr. and John Garrison entered guilty pleas in June and July respectively and are currently scheduled to be sentenced in October by U.S. District Court Judge Judith E. Levy in Ann Arbor, Michigan. Co-defendants Justin Fuller, Thomas Dougherty and Dantly Nicart cases are at various stages in the proceedings.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and prosecuted by Assistant U.S. Attorneys April Russo and Sara Woodward.
Monroe County, Kentucky, Physician Guilty of Prescribing Pain Medications Outside the Course of Professional Medical PracticeRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician pleaded guilty today, in U.S. District Court, before Magistrate Judge H. Brent Brennenstuhl, with prescribing pain medications outside the course of professional medical practice, during a more than six year period, to five patients announced United States Attorney John E. Kuhn, Jr.
Clella Louise Hayes, whose medical practice is located in Tompkinsville, Kentucky, pleaded guilty to five counts of a grand jury indictment charging her with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice. Hayes, age 41, of Glasgow, Kentucky, pleaded guilty to authorizing prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone and Klonopin. According to the plea agreement, the illegal activities occurred between March 2008 through March 2014 and included five patients.
Specifically, between June 2009 and September 2011, Hayes intentionally dispensed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, and Demerol. During the same time period, Hayes failed to establish a legitimate diagnosis of A.R.’s (the patient) pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion. On September 19, 2011, Dr. Hayes prescribed fentanyl to A.R. On September 23, 2011, at age 55, A.R. died as a result of a fentanyl overdose, with post-mortem toxicology reports reflecting fentanyl at five times the therapeutic range in A.R.’s blood.
In a similar instance, Between November 2011 and November 2012, A.H. was Dr. Hayes’s patient. During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II controlled substances to A.H. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and Demerol.
Dr. Hayes failed to establish a legitimate diagnosis of A.H.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On November 27, 2012, A.H. died at age 48 as a result of a poly-pharmacy overdose, with post-mortem toxicology reports reflecting high blood concentrations of medications Dr. Hayes prescribed to A.H., including Oxycodone and Klonopin.
Further, Between June 2010 and January 2014, K.S. was Dr. Hayes’s patient. During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II and Schedule III controlled substances to K.S. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and hydrocodone.
Dr. Hayes failed to establish a legitimate diagnosis of K.S.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On January 1, 2014, K.S. died at age 53 as a result of a poly-pharmacy overdose, with post-mortem toxicology results reflecting oxycodone, and hydrocodone at ten (10) times the therapeutic dose, both of which Dr. Hayes prescribed to K.S in December 2013.
Sentencing is scheduled before Senior Judge Thomas B. Russell, in Bowling Green on January 18, 2017.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
Medina man indicted for stealing $275,000 from employer, using money to pay for vehicles, country club membershipRead the Press Release
A Medina man was named in a 22-count indictment, charged with stealing approximately $275,000 from his employer and using the money to pay for a country club membership, vehicles and purchases at Victoria’s Secret and GNC, law enforcement officials said.
Brian K. Stepp, 50, was charged with multiple counts of conspiracy to commit wire fraud, wire fraud, making false statements and other charges. Rachel M. Penn, 41, of Wellington, was also indicted on charges of conspiracy to commit wire fraud and wire fraud.
“These defendants used this company’s coffers like their own personal bank, stealing from their employer to provide for a lavish lifestyle,” U.S. Attorney Carole S. Rendon said.
“These two conspired in a variety of fraudulent financial schemes to steal money for car and country club membership purchases and exorbitant retail purchases,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “The FBI will continue to root out financial fraudsters and hold them accountable for their criminal actions.”
Stepp and Penn worked together at Variety Contractors, Inc., a company based in Medina County that provided general contracting services for large public and commercial retail construction projects in Ohio and other states.
Stepp joined the company as vice president and eventually was promoted to acting president, although the company owner retained ultimate decision-making authority. Penn worked in the company’s accounting department. Her duties included reviewing expense claims submitted by employees and issuing reimbursement checks, according to the indictment.
Stepp and Penn conspired together between February 2014 and May 2015 to defraud Variety Contractors.
Stepp incorporated S&S Kelsey LN, a shell company that did not engage in any actual business. He submitted a variety of fake invoices from S&S and other vendors to Variety Contractors of goods and services that were not provided. Stepp and Penn caused Variety Contractors to make payments on those fraudulent invoices, according to the indictment.
For example, in September 2014, a check request for $31,500 was made for payment to G.C.I. for “Deposit for Exterior Metal Panels”. Three days later, Penn issued a check in the same amount made payable to Ganley, which Penn knew that Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to the indictment.
Stepp also fraudulently used a company credit card to pay for personal expenses, such as membership and related fees at Weymouth Country Club, payments made to purchase vehicles to himself and his family, local hotel charges, legal fees, and charges at stores including Victoria’s Secret and GNC, according to the indictment.
The loss to Variety Contractors was approximately $275,000, according to the indictment.
Stepp also made numerous false statements in attempting to get several loans, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Marijuana Cultivator Pleads Guilty to Environmental Damage Caused by Marijuana Grown in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Juan Carlos Martinez-Tinoco (Martinez), 42, of Mexico, pleaded guilty today to committing a depredation against public land and natural resources in the vicinity of The Needles, a series of massive granite rock formations in the Sequoia National Forest in Tulare County, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 1, 2015, and August 4, 2015, Martinez was involved in a marijuana cultivation operation consisting of approximately 2,608 marijuana plants in the Needles area of the Sequoia National Park. The operation caused extensive damage to public land and natural resources. Agents observed evidence of the use of harmful poisons, including 50-pound bags of high-nitrogen fertilizer. They also noted that many native plants and trees had been cut to make room for the marijuana plants. Large piles of trash were stuffed under boulders and buried along a stream. Water was diverted from a spring that supports wildlife. The water source for the grow site drains into the Upper Kern River, which contains the Kern River Rainbow Trout, a localized species of rainbow trout that has been designated in the state of California as a “Species of Special Concern.” Martinez has also agreed to pay $4,286 in restitution to the U.S. Forest Service to clean up the damaged area.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, the Tulare County Sheriff’s Office, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Martinez, who is detained, is scheduled for sentencing on December 5, 2016. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Admits Defrauding VA with False Claim That He Served in Viet NamRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David Vincent Borry, age 58, pleaded guilty yesterday before U.S. District Court Judge J. Garvan Murtha in Brattleboro to knowingly defrauding a health care plan administered by the U.S. Department of Veterans Affairs.
A Grand Jury Indictment filed on February 11, 2016, alleged that Borry obtained medical services from the Veterans Administration Medical Center in White River Junction, Vermont, by falsely claiming to be a veteran of the United States Army. In Court yesterday before Judge Murtha, Borry admitted claiming to be an Army veteran who served in the Vietnam War in order to obtain veterans benefits. Judge Murtha ordered a presentence investigation and scheduled sentencing for January 17, 2017. Borry is at liberty subject to pretrial release conditions.
The case was investigated by the Veterans Administration Office of the Inspector General, Criminal Investigation Division, and the Veterans Administration police in White River Junction. Borry is represented by Federal Public Defender Michael Desautels. The United States is represented by Assistant U.S. Attorney William Darrow.
Lincoln Man Sentenced for Being a User/Addict in Possession of a FirearmRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on September 14, 2016, Domonique A. Camacho, 23, of Lincoln, was sentenced to 15 months in prison for possessing firearms while being a user of and/or addicted to marijuana between December 26, 2015, and January 9, 2016. The charge arose from an investigation into photos posted to Facebook showing Camacho holding two handguns and an SKS rifle. Camacho was contacted by Lincoln Police officers. He said the guns belonged to friends, and he admitted holding the guns shown in the Facebook photos at a friend’s residence. Camacho also admitted he was a daily user of marijuana.
Camacho was arrested on the federal charge on February 22, 2016, and has been detained since that time. Following the completion of his prison term, Camacho will serve two years on supervised release.
This case was investigated by the Lincoln Police Department.
Justice Department’s Office of Justice Programs Awards Nearly $6 Million to Project Safe Neighborhoods ProgramRead the Press Release
The Office of Justice Programs’ Bureau of Justice Assistance today awarded grants totaling $5.7 million to create safer neighborhoods through a sustained reduction in gang violence and gun crime. The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program. The goal of PSN is to create safer neighborhoods through a sustained reduction in gang violence and gun crime.
The program's effectiveness is based on a cooperative approach and unified strategies led by the local U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners. The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.
"Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities," said Attorney General Loretta E. Lynch. "These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope."
“Although crime rates remain at historically low levels nationally, some communities – and particularly, certain segments of those communities – continue to struggle with gun crimes and gang violence,” said Assistant Attorney General Karol V. Mason. “The funding provided through Project Safe Neighborhoods gives these jurisdictions the resources they need to improve outreach and education, prosecute gun and gang cases, and restore peace to their streets and homes.”
This year’s recipients of approximately $500,000 each include Black Family Development, Inc. of Michigan; the California Governor’s Office of Emergency Services; the Denver Police Department; City of Brookhaven, Georgia; the Governor’s Office of Crime Control Prevention in Maryland; the Ohio Office of Criminal Justice Services; and Texas’ Safe City Commission. Awards of approximately $300,000 went to the City of Greensboro, North Carolina; The Justice Education Center, Inc. of Connecticut; the Wisconsin Department of Justice; City of Columbia, South Carolina; and the Indiana Criminal Justice Institute (two awards). The City of Memphis, Tennessee, the City of Omaha, Nebraska and Louisiana State University each received awards of $150,000.
Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
Joplin Man Sentenced for Distributing Child Porn over the InternetRead 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 distributing and possessing child pornography.
James Allen Crippen, 45, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and seven months in federal prison without parole.
On Sept. 23, 2015, Crippen pleaded guilty to distributing child pornography over the Internet and to possessing child pornography.
On Sept. 24, 2014, members of the Southwest Missouri Cyber Crime Task Force received two Cyber Tips from the National Center for Missing and Exploited Children, which reported that Crippen had uploaded two images of child pornography to his Tumblr account.
Law enforcement officers executed a search warrant at Crippen’s residence and conducted a forensic analysis on the items seized. Investigators discovered 61 child pornography graphics and a multimedia file containing child pornography on Crippen’s desktop computers. Investigators also found child pornography on Crippen’s iPhone.
Crippen forfeited to the government two desktop computers, an iPhone, two cell phones, 42 optical media disks and other electronic media storage devices that were used to commit the offense.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cybercrimes Task Force, the FBI 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."
Ivory Coast Diplomat Convicted of Conspiracy and FraudRead the Press Release
ALEXANDRIA, Va. – Koissy Thomas Kemmeth, 52, of New York, New York, pleaded guilty today to conspiracy to commit wire fraud and making a false, fictitious and fraudulent claim against the United States.
According to court documents, Kemmeth was a native and citizen of the Ivory Coast who had worked as a driver for the Ivory Coast Mission to the United States. From 2010 through February 2015, Kemmeth worked with another national of the Ivory Coast, Kouame Tanoh, to defraud others of money and property. As part of the conspiracy, Kemmeth created false and fraudulent employment verification letters for Tanoh, and his aliases, on the official letterhead of the Ivory Coast Mission to the United Nations and claimed to have been issued in line with the official authority of the Mission. These letters falsely represented that Tanoh, or one of his aliases, was employed by the Mission. At least one of these letters alleged to have been from another diplomat who had previously served at the Mission, but had returned to the Ivory Coast by the date of the letter.
During that same time period, Kemmeth assisted Tanoh with a scheme that involved the preparation and electronic filing of false and fictitious federal and state income tax returns that requested fraudulent refunds. Some of these false claims were filed on behalf of Kemmeth, who knew he was not supposed to be filing any federal or state tax returns because he was in the United States as a foreign diplomat. Kemmeth assisted with the scheme by providing his bank account information to Tanoh so that fraudulent refunds could be deposited into Kemmeth’s account. Tanoh also used the mailing address for the Ivory Coast Mission to the United States on some of the income tax returns. Kemmeth would then collect any mail sent to the Mission for these returns.
Kemmeth was indicted by a federal grand jury on May 26. Kemmeth faces a maximum penalty of 20 years in prison when sentenced on December 2. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Inspector in Charge Terrence P. McKeown, US Postal Inspection Service, Washington Division.; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-129.
Inland Empire Woman Arrested on Federal Charges of Helping Her Husband Flee United States While He Was Pending SentencingRead the Press Release
RIVERSIDE, California – A Moreno Valley woman was arrested this morning on federal charges after she allegedly helped her husband flee the United States after he had pleaded guilty in a federal criminal case.
Elba Soto, 36, was arrested without incident this morning by the U.S. Marshals Service. Soto made her initial appearance this afternoon in United States District Court in Riverside, where she was ordered detained (held without bond). An arraignment in the case was scheduled for October 19.
Soto was arrested pursuant to a criminal complaint that charges her with being an accessory after the fact for allegedly driving her husband to Mexico so he could avoid being sentenced after pleading guilty to illegal reentry after deportation.
Soto’s husband, Jose Guadalupe Vega-Zuniga, pleaded guilty on August 3 and remains scheduled to be sentenced on October 17. Vega-Zuniga admitted that he was in the United States without authorization after being deported to his native Mexico on four occasions between 2000 and 2008. When he pleaded guilty before United States District Judge Michael W. Fitzgerald in Los Angeles, Vega-Zuniga admitted that he previously had been convicted of drug trafficking and assault with a deadly weapon in state court, as well as being found guilty in 2000 of a felony offense of illegally being in the United States. At the time of his guilty plea, Vega-Zuniga was free on a $100,000 unsecured bond and was subject to electronic location monitoring.
According to the criminal complaint filed against Soto, Vega-Zuniga removed his location monitoring bracelet about four days after pleading guilty. On August 8, a person resembling Soto went to the court’s Pretrial Services Office and returned the electronic monitoring bracelet, explaining that Vega-Zuniga had removed the device and she did not know his whereabouts.
An investigation by the U.S. Marshals Service revealed that Soto’s vehicle entered Mexico through the Otay Mesa port of entry on August 18. Photographs taken during the crossing show Soto in the driver’s seat of the vehicle, with Vega-Zuniga in the passenger seat.
“The evidence in this case indicates the defendant knowingly transported her husband to Mexico while he was pending sentencing in the latest of his criminal cases,” said United States Attorney Eileen M. Decker. “If these allegations are proven, the defendant knowingly assisted a convicted felon avoid justice. As a result, the defendant now faces her own criminal case and a significant prison term.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If she is found guilty of being an accessory after the fact by helping Vega-Zuniga flee the United States, Soto would face half of the maximum prison sentence that Vega-Zuniga faces as a result of his guilty plea. Vega-Zuniga faces a statutory maximum sentence of 20 years in prison, so therefore Soto would face a sentence of up to 10 years in prison.
The case against Soto is being prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Independence Man Sentenced to 30 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who sexually assaulted five children over a period of several years was sentenced in federal court today for producing child pornography.
Kenneth R. Davis, 36, of Independence, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole. The court also sentenced Davis to spend the rest of his life on supervised release following incarceration.
Davis and co-defendant Randy Mull, 38, both of Independence, each pleaded guilty on April 6, 2016, to aiding and abetting one another to produce child pornography. They admitted to taking a series of pornographic photos of a 14-year-old child victim (identified as “John Doe #2) in their bedroom on July 15, 2010.
Mull was sentenced on Aug. 23, 2016, to 30 years in federal prison without parole followed by a lifetime of supervised release after incarceration.
According to court documents, two victims (a brother and sister, identified as Victim #1 and Victim #2) reported to the Independence Police Department on Sept. 15, 2014, that they had been sexually assaulted by Mull and Davis over a four-year period. Victim #1 told investigators that he was molested an amount of times described as in “double” or “triple” digits. During the sex acts with Victim #1, which began when he was 14 years old, photographs were taken by Davis and Mull.
Investigators found images of child pornography on Davis’s computer, including pornographic images of additional child victims apparently taken over a period of several years. In all, five children were identified as victims of the sexual assaults and child pornography production. In some instances, the minors were allowed to stay overnight in the care of Davis and Mull at their residence with the permission of the victims’ parents.
A forensic examination of Davis’s computer uncovered 104 videos and 944 images of child pornography, including images of a 10-to-14-month-old female and a 3-year-old female being raped by adult males.
Davis must pay $5,000 in restitution to each of five separate victims whose images of child sexual abuse he received or possessed; or $3,000 to each victim if he can pay restitution within 30 days of the sentencing date.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Independence, Mo., Police Department and the Kansas City, Kan., 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."
Former president of Steelworkers Union Local 5000 charged with stealing hundreds of thousands of dollars from labor unionRead the Press Release
A 29-count federal indictment was unsealed charging the former president of the Steelworkers Local 5000 with stealing hundreds of thousands of dollars from the labor union.
David R. Sager, 58, of Gibsonburg, was indicted on nine counts of embezzlement or theft from a labor union, 18 counts of mail fraud, one count of obstruction of justice and one count of making false statements to law enforcement.
“This defendant betrayed the union membership he promised to represent,” said U.S. Attorney Carole S. Rendon.
Local 5000 is based in Middelburg Heights and a subordinate organization of the United Steelworkers union. It represented approximately 100 employees working for private companies in and around the Great Lakes. Sager served as president from 1999 through April 2016, according to the indictment.
Local 5000 went on strike in 2009 after failing to reach a contract agreement with a company identified in the indictment as Company 2. The company proposed eliminating the position of contract coordinator, which Sager held. The union membership did not vote on the strike. Local 5000 took steps to establish a Strike Fund – designed to provide financial relief to striking members, based on their need – with Sager and two other union officials as the signatories on the bank account, according to the indictment.
In order to claim Strike Fund benefits, members had to submit a voucher and a copy of a bill. That voucher was then reviewed by a committee on which Sager served. Once approved, the voucher and documentation was forwarded to the Strike Fund signatories for approval. If approved, a union official identified in the indictment as Labor Official 2 issued checks as payment on the vouchers, according to the indictment.
Sager submitted more than $185,000 in vouchers to receive Strike Fund benefits for his family’s expenses between 2010 and 2012. He and his wife had nearly $160,000 in income during the same time period. While collecting Strike Fund benefits, Sager made and caused to be made numerous retail purchases of non-necessity items, such as dining out at several restaurants and the purchase of Carrie Underwood concert tickets, according to the indictment.
The strike ended in 2012. A year later, Company 2 reinstated Sager as a wheelsman and assigned him to work aboard a vessel. He received personal leave and then did not return to work on the vessel. Company 2 terminated his employment, according to the indictment.
On May 16, 2013, an employee of Company 5 wrote an email to some employees which noted, “We are on the verge of losing Local 5000 if we can’t come up with an arrangement an I am afraid (another union) will pick up the pieces and become the sole course of crew manpower on the lakes,” according to the union.
On July 11, 2013, Companies 4 and 5 and Local 5000 signed a joint employment trust agreement, which they renewed a year later. Company 3 refused to participate in the agreement and told Sager and others that it violated the Taft-Hartley Act, according to the indictment.
On May 28, 2014, an employee of Company 3 sent an email to employees stating: “You will notice that [Local 5000 is] coming back at us for the Joint Employment Trust [aka Sager’s pay],” according to the indictment.
In 2013, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $56,061 payable from Local 5000 checks. In 2014, Companies 4 and 5 paid approximately $57,750 to Local 5000 through the trust agreement, and Sager received approximately $73,418 payable from Local 5000 checks. In 2015, Companies 4 and 5 paid approximately $77,000 to Local 5000 through the trust agreement, and Sager received approximately $74,003 payable from Local 5000 checks, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Antoinette T. Bacon following an investigation by the U.S. Department of Labor – Office of Inspector General, the U.S. Department of Labor's Office of Labor Management Standards and the Internal Revenue Service.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Railroad Employee’s Disability Fraud Netted over $447KRead the Press Release
NORFOLK, Va. – Jeffrey A. Ratliff, 60, of Chesapeake, pleaded guilty today to charges of theft of government property related to claiming over $447,000 in disability benefits from the U.S. Railroad Retirement Board (RBB) over the last 20 years.
According to the statement of facts filed with the plea agreement, Ratliff worked as a pipefitter for Norfolk Southern railroad from September 1974 until March 1995. From April 1995 to August 2015, Ratliff collected monthly disability benefits from the RRB while concealing his employment as a real estate agent. In July 1995, Ratliff applied for a disability annuity for injuries sustained on the job in 1990. In his application Ratliff falsely claimed that his injuries prevented him from working and that he had stopped working for the real estate firm in May 1995.
Each year, Ratliff was sent a “Disability Reminder Notice” from the RRB, reminding him of his legal obligation to notify the Board if there was a change in his employment status. Ratliff never notified the RRB that he was working as a real estate agent, and continued to receive disability benefits for 20 years, totaling $447,483.74. On July 22, 2015, Ratliff submitted to a voluntary interview with federal agents, and after being confronted with evidence, admitted that he worked as a real estate agent and was paid using his wife’s social security number to hide his income.
Ratliff was charged by criminal information on August 8 and faces a maximum penalty of 10 years in prison and a $250,000 fine when sentenced on January 20, 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 Acting Special Agent in Charge James Ellis, U.S. Railroad Retirement Board- Office of the Inspector General, Office of Investigations, made the announcement after the plea was accepted by Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Melissa E. O’Boyle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-110.
Former Joliet Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a former Joliet police officer for using unreasonable force against an individual while on duty.
THOMAS O’CONNOR, 40, of Joliet, is charged with one count of deprivation of rights under color of law. O’Conner is alleged to have used unreasonable force while on duty as an officer of the Joliet Police Department on Feb. 9, 2012. The victim suffered bodily injury as a result of the unreasonable force, the indictment states.
The indictment was returned Tuesday in federal court in Chicago. U.S. District Judge Charles P. Kocoras scheduled arraignment for Sept. 20, 2016, at 9:30 a.m.
The indictment 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 the Federal Bureau of Investigation.
The charge is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment 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 government is represented by Assistant U.S. Attorneys Kelly Greening and Christine M. O’Neill.
Indictment
Former Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt Payments, as Well as Filing A False Tax ReturnRead the Press Release
NEWARK, N.J. – A former Jersey City police officer today admitted accepting more than $230,000 in corrupt payments, in violation of the Jersey City Municipal Code provisions governing off-duty employment, from employers who were operating worksites around the city, U.S. Attorney Paul J. Fishman announced.
Juan Romaniello, 54, of East Hanover, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments and one count of filing a false tax return. He was released on $250,000 unsecured bond.
According to documents filed in this case and statements made in court:
Romaniello was a police officer with the Jersey City Police Department (JCPD) from 1988 to 2014. From 2004 to 2014, his duties included serving as the “pick coordinator” for Jersey City’s North District. In that role, it was his job to assign police officers to off-duty details. Under Jersey City’s Municipal Code, police officers could perform off-duty assignments only when the police officer was not on duty. The code mandated that Jersey City control the hiring and compensation process through which employers hired off-duty police officers. Off-duty police officers are not permitted to receive cash payments from the employer, nor can they accept checks or money orders made payable directly to them. The employers are supposed to pay Jersey City, which pays the off-duty police officer after withholding certain fees, taxes and deductions, including an administrative fee payable to the city.
Romaniello agreed with numerous employers to cut Jersey City out of the process to hire and pay off-duty police officers. He permitted employers to operate at worksites without the presence of a police officer when it was required by law for public safety reasons, such as ensuring that obstructions at construction sites did not pose a danger to vehicular or pedestrian traffic. Sometimes Romaniello actually provided the public safety services, but did not notify Jersey City. On most occasions, Romaniello collected payments in cash, money orders and checks payable to him, directly from the employers, depriving Jersey City of money that it would have received otherwise and avoiding reporting requirements to Jersey City and the IRS. The JCPD is cooperating in the investigation.
Under terms of the plea agreement, Romaniello will forfeit approximately $297,000, a substantial part of which were monies that he obtained through this corrupt and fraudulent activity and which he kept at his residence. In addition, for tax years 2009 to 2013, Romaniello did not report to the IRS $201,340 of ill-gotten gains. The plea agreement requires him to pay the IRS approximately $90,000 in restitution for unpaid taxes.
The count of conspiracy to commit fraud and accept corrupt payments carries a maximum potential penalty of five years in prison; the tax fraud count carries a maximum of three years in prison. Both counts also carry a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Former Greene County Sheriff's Deputy Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Greene County, Mo., Deputy Sheriff was sentenced in federal court today for receiving and distributing child pornography.
Juan T. Jones, 28, of Springfield, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to seven years in federal prison without parole. The court also sentenced Jones to 10 years of supervised release following incarceration.
Jones, who pleaded guilty on April 18, 2016, was a Greene County Deputy Sheriff from 2013 until his arrest in 2016.
An officer with the Southwest Missouri Cyber Crimes Task Force Officer opened the investigation on Sept. 25, 2015, after a CyberTip from Dropbox to the National Center for Missing and Exploited Children. Dropbox had discovered many video and image files that contained child pornography, which had been uploaded by Jones.
Investigators executed a search warrant at Jones’s residence on Jan. 6, 2016. While the warrant was being executed, they contacted Jones at his place of employment, the Greene County Sheriff’s Department. Jones admitted to investigators that he had looked at child pornography for as long as 10 years. Jones also admitted that he had exchanged child pornography images on Tumblr. Investigators discovered numerous images of child pornography on Jones’s cell phone.
According to court documents, Jones had more than 1,500 images and 451 videos of child pornography. Jones possessed multiple videos and images depicting children engaged in bestiality, bondage and sadistic conduct, including infants and very young children. Jones used multiple mediums and websites to not only view child pornography, but to receive and distribute it. He was actively e-mailing others, and using applications such as Tumblr, to trade in child pornography images.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Former Fairbury Man Sentenced to 35 Years in Prison for Being Part of a Child Exploitation EnterpriseRead the Press Release
United States Attorney Deborah R. Gilg for the District of Nebraska and Barbara L. McQuade for the Eastern District of Michigan announced that Brandon L. Hennerberg, 31, formerly of Fairbury, Nebraska, was sentenced today to 35 years in federal prison for his participation in a child exploitation enterprise. Hennerberg was sentenced by U.S. Senior District Court Judge Richard G. Kopf in Lincoln, Nebraska. He was originally charged, along with five co-defendants, in the Eastern District of Michigan in a 28-count indictment with the crimes of child exploitation enterprise, numerous counts of conspiracy to produce child pornography, conspiracy to receive and access with intent to view child pornography, and aiding and abetting online enticement. On June 21, 2016, in Lincoln, Nebraska, Hennerberg pleaded guilty to one count of child exploitation enterprise, carrying a 20-year mandatory minimum sentence.
The investigation determined that from at least January of 2014 to February of 2016, Hennerberg was a member of a group of individuals that worked together online to entice minor females to produce child pornography. The group members created fraudulent social media accounts posing as teenagers. Using the assumed identities, group members searched social media websites and engaged minor females, specifically targeting 10 to 14 year-old girls, in conversation using internet chat and video applications. The group members worked together for hours and sometimes even days to deceive their victims and convince them to undress and engage in sexually explicit activity live on a webcamera, which the group members recorded.
The group members used an elaborate scheme to entice, coerce, and deceive their victims. Each group member had at least one role, although at times a group member would play more than one role or switch from one role to another. The “hunters” visited social media websites commonly used by minors to locate minors and bring them back to the other group members. The “talkers” were primarily responsible for conversing with the minors. They asked the minors to do “dares” which escalated into sexual activity. If a victim was suspicious of the group members or reluctant to engage in sexual activity, the “loopers” would then play a previously recorded video of a minor engaged in sexual activity, pretending to be that minor, in order to convince the victim to engage in the same type of activity. Meanwhile, the “watchers” in the group were in charge of ensuring that no suspected law enforcement members or unwanted persons were present.
The group victimized at least 100 minor girls, most of whom have yet to be identified. If you have any information to help identify victims of this online conspiracy, fill out the FBI’s confidential survey at fbi.gov/sextortion or contact the National Center for Missing and Exploited Children (NCMEC) at www.missingkids.com. A confidential email can also be sent to [email protected]. Or call 1-800-CALL-FBI FREE (225-5324).
Co-defendants Virgil Napier, Jr. and John Garrison entered guilty pleas in June and July respectively and are currently scheduled to be sentenced in October by U.S. District Court Judge Judith E. Levy in Ann Arbor, Michigan. Co-defendants Justin Fuller, Thomas Dougherty and Dantly Nicart cases are at various stages in the proceedings.
This case was investigated by the Federal Bureau of Investigation’s Southeast Michigan Trafficking and Exploitation Crimes Task Force and prosecuted by Assistant U.S. Attorneys April Russo and Sara Woodward.
First of North Idaho Drug Trafficking Organization Defendants Pleads GuiltyRead the Press Release
COEUR D'ALENE - Geena Lauren Milho, 25, of Williston, North Dakota, pleaded guilty yesterday to conspiracy to distribute heroin, oxycodone and methamphetamine, U.S. Attorney Wendy J. Olson announced. Milho was indicted by a federal grand Jury in Coeur d'Alene on April 19, 2016.
According to the plea agreement, Milho admitted that she was part of a drug trafficking organization which involved at least 20 people. The organization sold heroin, oxycodone and methamphetamine in Idaho, Montana, North Dakota and Eastern Washington. Milho helped the organization by concealing and transporting the controlled substances and making sure the profits went to the appropriate coconspirator. Milho is the first individual to plead guilty out of an indictment which charges 11 individuals. In addition to pleading guilty, Milho agreed to forfeit any interest she has in real property, jewelry or cash held by herself or coconspirators and outlined in the indictment.
The charge of conspiracy to distribute controlled substance is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least 3 years supervised release.
Sentencing is set for January 18, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by CDA Police, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service, Criminal Investigations (IRS-CI), Kootenai County Sheriff, North Idaho Violent Crimes Task Force (NIVCTF), and U.S. Customs and Border Protection.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. 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.
Federal Jury Finds Wilmington Man Guilty of Drug and Firearms ChargesRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that Wednesday, a federal jury in New Bern found KRISTOPHER OWEN DANIELS, 31, of Wilmington guilty of four criminal charges: possession with the intent to distribute cocaine base (crack) and marijuana; knowingly used and carried a firearm during and in relation to a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of firearm by a convicted felon.
Daniels was named in an Indictment originally filed on November 12, 2014. DANIELS was arrested on May 31, 2014, after police responded to a when a 911 call requesting police assistance at a residence in Wilmington. After uniformed Wilmington Police officers responded, DANIELS ran towards the back yard of the house, and threw a bag of crack (over 20 grams) and a black Taurus .380 firearm while officers were chasing him. A fence in the backyard prevented him from fleeing and he turned and threw marijuana at one of the pursuing officers. Currency in the amount of $2,100.00 also was recovered from DANIELS.
A Wilmington Police Department detective obtained a search warrant for the home. A search of DANIELS’ bedroom revealed a box of .380 ammunition, more United States currency, marijuana seeds, and a Charter Arms .38 revolver.
At sentencing, DANIELS faces a mandatory minimum sentence of 5 years imprisonment and a maximum of life imprisonment.
Investigation of this case was conducted by the Bureau of Alcohol Tobacco Firearms and Explosives; the Wilmington Police Department, including the Wilmington Police Department Crime Laboratory; and the New Hanover County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette represented the government.
Federal Correctional Officer Pleads Guilty to Bribery ChargesRead the Press Release
Contact Person: Bradley Parham (843) 727-4381
Florence, South Carolina ---- Acting United States Attorney Beth Drake stated that Angela McLeod, age 44, of Dillon, South Carolina has entered a guilty plea in federal court in Florence, to bribery, a violation of 18 U.S.C. § 201(b)(2)(C). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the guilty plea hearing established that from 2013 to 2015, McLeod, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, specifically tobacco, to inmates at the Federal Correctional Institution in Bennettsville. Ms. Drake stated the maximum penalty for bribery is imprisonment for 15 years and/or a fine of $250,000.
The case was investigated by agents of the Office of Inspector General for the Department of Justice. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Fayetteville Man Sentenced for Violent Hobbs Act Robbery and Discharging of a Firearm During a Crime of ViolenceRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced ERNEST TULSIDA CARPENTER, 44, of Fayetteville to 190 months imprisonment followed by 5 years of supervised release.
On December 9, 2014, CARPENTER was armed with a semi-automatic handgun when he entered Moe’s Southwest Grill at 201 N. McPherson Street in Fayetteville, North Carolina, as an employee was taking the trash out. CARPENTER, who wore a black mask to conceal his face, approached the employee and demanded money from the safe. CARPENTER threatened that he would “shoot every employee in the business” if the safe was not opened. At the time of the robbery, four employees and several customers were inside the restaurant. CARPENTER forced the employees, at gunpoint, to the rear of the building where the office was located. After the manager opened the safe, the defendant leaned down to retrieve money and an employee lunged at CARPENTER. A struggle ensued and the defendant fired two rounds from his firearm. One employee was shot in the foot and a second employee was shot in the abdomen. During the struggle, the defendant’s ski mask was partially removed and CARPENTER’s face was exposed. CARPENTER fled on foot, without taking any money, but was apprehended shortly after the robbery. Once detained, CARPENTER’s eye began to swell as a result of the struggle with the employee.
On May 9, 2016, CARPENTER pled guilty to the charges of Interference with Commerce by Robbery and Discharging of a Firearm During and in Relation to a Crime of Violence.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jane Jackson represented the government.
Dominican Republic Man Sentenced to 32 months for Possession of a Firearm by an Illegal AlienRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Pedro Beltre Guzman, 35, of the Dominican Republic to 32 months’ imprisonment followed by three years of supervised release for possession of a firearm by an illegal alien. Judge Gomez ordered Guzman to pay a $100 special assessment and perform 200 hours of community service.
According to evidence presented at trial, on the morning of September 3, 2015, Guzman and co-defendants Gerandino-Aracena and Cardona, traveled from Fajardo, Puerto Rico, to St. Thomas, Virgin Islands in a private vessel equipped with a hidden compartment that contained three assault rifles. Sentencing hearings for Gerandino-Aracena and Cardona are pending without a date.
This case was investigated by the U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Sigrid M. Tejo-Sprotte and Delia Smith.
District Man Pleads Guilty to Series of Armed Robberies of Commercial Establishments in Washington, D.C. and MarylandRead the Press Release
WASHINGTON – Curtis Fogg, 29, of Washington, D.C., pled guilty today to offenses stemming from a series of armed robberies that targeted commercial businesses in Washington, D.C. and Maryland during a three-week period in 2014.
The guilty plea was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Rod J. Rosenstein, U.S. Attorney for the District of Maryland; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Hank Stawinski, Chief of the Prince George’s County, Md. Police Department.
Fogg pled guilty in the U.S. District Court for the District of Columbia to nine counts of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of armed robbery. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 20 to 22 ½ years. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Jan. 11, 2017.
According to the government’s evidence, Fogg brandished a firearm while committing 10 separate armed robberies of commercial businesses in August and September 2014. In many instances, store surveillance video captured Fogg and his distinct tattoos.
“For nearly three weeks, Curtis Fogg armed himself with a gun and held up restaurants, convenience markets and cellphone stores,” said U.S. Attorney Phillips. “He was apprehended after a concerted effort by law enforcement and now has taken responsibility for his crimes. This prosecution demonstrates the commitment shared by federal and local law enforcement to target violent offenders who threaten the safety of our communities.”
“Curtis Fogg violently targeted our local area business community, threatening and endangering lives for his own financial gain,” said Assistant Director in Charge Abbate. “The FBI will continue to work closely with our exceptional partners at the Metropolitan and Prince George’s County Police Departments to track down and stop those who threaten our citizens with violence. Today’s guilty plea sends a strong message that crime that does not pay.”
“The Prince George’s County Police Department thanks our federal and local law enforcement partners for their tremendous efforts in this case. Together, we were able to arrest and prosecute a suspect who brazenly targeted businesses in our community in the summer of 2014. We are pleased he can no longer victimize anyone in our region,” said Chief Stawinski.
The robberies included:
- Aug. 14, 2014, approximately 10:30 p.m.: Fogg stole $250 and phones from two women who were in the New Look Hair Salon, in the 4300 block of Sheriff Road NE.
- Aug. 14, 2014, approximately 11:15 p.m.: Fogg stole about $100 from the register of a Papa John’s pizza restaurant in the 900 block of 11th Street SE.
- Aug. 15, 2014, approximately 9:30 p.m.: Fogg stole about $600 from registers at the Patron Convenience Store in the 3200 block of Pennsylvania Avenue SE.
- Aug. 27, 2014, approximately 2:45 p.m.: Fogg again stole about $100 from the register of the Papa John’s restaurant in the 900 block of 11th Street SE.
- Aug. 28, 2014, approximately 3 p.m.: Fogg stole $513 from a Cricket cellular telephone store in the 5500 block of Georgia Avenue NW.
- Aug. 30, 2014, approximately 5:10 p.m.: Fogg stole $284 from the cash register of a Subway sandwich shop in the 2800 block of Alabama Avenue SE.
- Aug. 31, 2014, approximately 6:30 p.m.: Fogg stole $60 from the register of Mama’s Pizza Kitchen, in the 2000 block of Martin Luther King Avenue SE, while also robbing the store’s owner of $100 in cash.
- Sept. 1, 2014, approximately 7:25 p.m: Fogg stole $469 from the register of a Metro PCS cellular telephone store in the 4100 block of Wheeler Road SE.
- Sept. 2, 2014, approximately 7:10 p.m.: Fogg stole $500 from the Boost Mobile cellular telephone store in the 6200 block of Oxon Hill Road in Oxon Hill, Md.
- Sept. 3, 2014, approximately 2:10 p.m.: Fogg entered a Metro PCS store in the 5200 block of Indian Head Highway in Oxon Hill, Md. and took about 15 new cellular telephones that were for sale on the counter, $539.75 in cash, and personal items from the individuals inside the store.
Fogg was arrested on Sept. 5, 2014 and has been in custody ever since. At the time of his arrest, he was on supervised release following a 2009 conviction in the Superior Court of the District of Columbia for possession with the intent to distribute cocaine.
This case was investigated by the FBI’s Washington Field Office, the Metropolitan Police Department, and the Prince George’s County Police Department. Those working on the case from the U.S. Attorney’s Office for the District of Columbia include Legal Assistants Latoya Wade, Brendan Coyne, and Diane Brashears, Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter. Those working on the case from the U.S. Attorney’s Office for the District of Maryland include Assistant U.S. Attorney Thomas Sullivan and Special Assistant U.S. Attorney Matthew L. Paeffgen, who prosecuted the Maryland cases prior to them being transferred to Washington, D.C. for resolution before Judge Friedman.
Crack-Cocaine Dealer for New Jersey Grape Street Crips Gang Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced.
Rakeem Hankerson, a/k/a “Rocco,” 25, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
Another member of the conspiracy, Christopher Coelho, a/k/a “Brazil,”27, of Newark, was sentenced Sept. 13, 2016, to 10 years in prison and five years of supervised release.
In addition to the prison term, Judge Arleo sentenced Hankerson to four years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Hankerson: John P. Holliday Esq., Trenton, New Jersey
Coelho: Samuel M. Braverman Esq., Bronx, New York
Contra Costa Resident Sentenced to 12 Years’ Imprisonment for Trafficking Methamphetamine and Illegally Possessing FirearmsRead the Press Release
OAKLAND – Francisco Gonzalez was sentenced to 144 months’ imprisonment for possession with intent to distribute methamphetamine and for being a felon in possession of a firearm and ammunition, announced United States Attorney Brian J. Stretch and U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down yesterday by the Honorable Jeffrey S. White, United States District Judge, following entry of a guilty plea on June 1, 2016.
Gonzalez, 25, of Concord, Calif., pleaded guilty to drug possession and distribution charges as well as being a felon in possession of firearms and ammunition. According to records filed in connection with his plea agreement, Gonzalez is a known Norteño gang member. As part of his plea agreement, Gonzalez acknowledged that between July 21, 2015, and August 17, 2015, he sold 973 grams of actual methamphetamine, 15 grams of cocaine, nine firearms, and 208 rounds of ammunition to an undercover agent. Several of the firearms were stolen during a residential burglary in Antioch, Calif. According to the plea agreement, Gonzalez made the sales over the course of eight transactions that occurred in numerous venues throughout Concord and Pittsburgh, Calif. Gonzalez also acknowledged he told the undercover agent he could get the agent a “better price” if the agent purchased methamphetamine more frequently and/or in larger quantities. Gonzalez was charged by Information on March 17, 2016, with one count of possession with intent to distribute and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1); and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
In addition to the prison term, Judge White sentenced the defendant to a five-year period of supervised release. Gonzalez has been in custody since his arrest in September 2015 and will begin serving his sentence immediately.
Assistant U.S. Attorney Kimberly Hopkins is prosecuting the case. The prosecution is the result of an investigation by the ATF.
Community forums on Cleveland Police use of force policies to be held this monthRead the Press Release
The City of Cleveland, Cleveland Division of Police, the Department of Justice, the Monitoring Team, and the Cleveland Police Commission have now come to the point in the police reform process where it is time for community feedback on the CPD’s revised Use of Force policies. We are collectively hosting two community roundtables, one on the East Side and one on the West Side, each covering the same content. You are invited to attend one of the roundtables:
Eastside Roundtable RSVP
Westside Roundtable RSVP
5:30- 8:30pm, Thursday, September 15th
5:30-8:30pm, Tuesday, September 20th
Jerry Sue Thornton Center
Urban Community School
2500 East 22nd Street
4909 Lorain Avenue
Cleveland, OH 44115
Cleveland, OH 44102
If you are interested in attending a community roundtable, please use the RSVP links above or send an RSVP to the Monitoring Team at [email protected]. The roundtables will include an overview of the Use of Force policy, with an opportunity for small group discussions for community members to inform the policies.
You are invited to read the policies by going to the Monitoring Team’s website. You may also engage in the process by using our online community feedback form to submit any thoughts on the policies by visiting the Monitoring Team’s website.
We hope you strongly consider being part of this important conversation about how we can work together to create a use of force policies consistent with the goals and interests of the Cleveland community.
This outreach is a part of our ongoing effort to engage the Cleveland community in the police reform process. Earlier this year, we sought community input on the Cleveland Division of Police body-worn camera policy, the mission statement, and several other key policies. We want to thank everyone who participated for their engagement with and contributions to the discussion surrounding police reform under the federal Consent Decree in Cleveland.
We look forward to hearing your thoughts on the Use of Force Policy and seeing you at one of the community roundtables.
Columbus drug trafficker sentenced to over 10 years in prisonRead the Press Release
CHARLESTON, W.Va. – A Columbus man caught with drugs in a Parkersburg hotel room was sentenced today to eight years and four months in federal prison for his conviction at trial and a year and nine months in federal prison for violating his supervised release, announced United States Attorney Carol Casto. Toby Germaine Person, 40, was convicted by a federal jury on June 23, 2015, of possession with intent to distribute heroin, cocaine, and crack. The sentences are to be served consecutively.
On August 4, 2013, after receiving reports that Person had come from Columbus to sell drugs in Parkersburg, law enforcement officers executed a search warrant on his hotel room. Inside the room, officers located heroin, cocaine, crack, digital scales, packaging materials, and other evidence of drug trafficking. Person and his companion, Amanda White, 26, also of Columbus, were arrested. White pleaded guilty in July 2014 to conspiracy charges in Wood County Circuit Court.
At the time of the offense, Person was serving two concurrent terms of federal supervised release. In February 2008, Person was sentenced in federal court in Columbus to five years in prison after pleading guilty to possession with intent to distribute crack. In October 2008, Person was sentenced in federal court in Parkersburg to five years and 11 months in prison after pleading guilty to possession with intent to distribute crack. He was released from prison in October 2012.
The Parkersburg Police Department, the Wood County Sheriff’s Department, and the West Virginia State Police investigated this case. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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. 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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Cleveland man indicted for selling heroinRead the Press Release
A Cleveland man was indicted for selling heroin, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Timothy Smith, 49, was indicted on one count of possession with intent to distribute heroin. He had more than 67 grams of heroin on December 15, 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Marisa Darden following an investigation by the FBI.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Mississippi Hospice Owner Sentenced for Healthcare Fraud and Ordered to Pay over 5 Million Dollars in RestitutionRead the Press Release
Jackson, Miss – Andre Kirkland, 52, of Cleveland, Mississippi was sentenced in U.S. District Court in Oxford on September 1, 2016, on charges that he defrauded Medicare and Medicaid by signing up patients for hospice care who were not terminally ill, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, Special Agent in Charge Derrick L. Jackson with the U.S. Department of Health and Human Services Office of Inspector General, and Mississippi Attorney General Jim Hood.
Kirkland, who owned and operated Revelation Hospice in Clarksdale, pled guilty on May 4, 2016, to conspiracy to commit health care fraud. U.S. District Judge Michael Mills sentenced Kirkland to serve 48 months in home confinement in lieu of imprisonment due to recurrent metastatic cancer, which requires substantial medical care. Kirkland was also ordered to pay restitution in the amount of $5,400,843.50 to Medicare and $66,171.43 to Medicaid.
The investigation revealed that Andre Kirkland and Revelation Hospice were knowingly enrolling non-hospice eligible Medicaid and Medicare recipients and then filing false hospice claims to Medicaid and Medicare for services that were not medically necessary or were not ever provided. Kirkland, as a registered nurse and Revelation’s Director of Nursing, personally admitted non-hospice appropriate Medicaid and Medicare recipients into Revelation and deceived the patients about the true nature of the services in which they were being enrolled. As part of this deception, many patients unknowingly signed Do Not Resuscitate forms along with undated hospice revocation forms. Kirkland would later use the revocation forms to discharge patients from Revelation Hospice without the patient’s knowledge.
As the Director of Nursing for Revelation, Andre Kirkland was responsible for hospice admissions and the supervision of all nursing staff. He also treated patients in the field. According to patient interviews, Kirkland deceived patients about the true nature of the services they were being enrolled in and never told the patients that they were terminally ill. Most of the patients enrolled in hospice care were not terminally ill and were therefore not eligible for hospice care. For example, one of the patients enrolled was a 29 year old pregnant female who was not terminally ill and was not in any way hospice eligible. She remains in good health today, years after Kirkland fraudulently enrolled her in hospice care.
A medical review of a 30-patient Medicare patient sample revealed that 100% of those patients were not eligible. Revelation had a live discharge rate of 93.30%, meaning that 93.30% of patients enrolled were discharged from Revelation Hospice while still living. By comparison, 2010 data shows that the national average live discharge rate for hospices is 18.2%.
“The health care fraud perpetrated by this defendant was an abuse of public trust motivated by greed. Patients were deceived into being signed up for services intended to help those with terminal illnesses. We remain committed to protect the integrity of our health care system and will continue to strictly enforce our federal health care laws,” said U.S. Attorney Gregory K. Davis.
“Health care fraud costs our country billions of dollars each year, and the FBI will continue to seek out those that extort health care in the United States,” said Donald Alway, special agent in charge of the FBI in Mississippi. “These are not victimless crimes, because health care fraud harms our overall economy. The FBI and our partners are committed to identifying and charging those that engage in this type of activity.”
“Hospice fraud has reached epidemic proportions in Northern Mississippi,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Patients are being falsely diagnosed as terminally ill in order to line the pockets of hospice owners who are treating Medicare like their own personal ATM.”
“Joint investigations have proven to be an essential tool in the fight against fraud in healthcare benefit programs,” Attorney General Jim Hood said. “We will continue to work with our federal and state partners in this ongoing battle to protect our most vulnerable citizens.”
The case was investigated by the United States Department of Health and Human Services Office of the Inspector General, the Medicaid Fraud Control Unit of the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Dave Fulcher.Clerk Sentenced to 46 Months in Prison for Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for a prominent, international law firm was sentenced today to 46 months in prison for stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Steven Metro, 42, of Katonah, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 43, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.
In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release and fined him $10,000.
Tamayo and Eydelman have both pleaded guilty to their roles in the scheme; Tamayo is scheduled to be sentenced Sept. 15, 2016, and Eydelman is scheduled to be sentenced Sept. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: James R. Froccaro Jr. Esq., Port Washington, New York
Children’s Charity Treasurer Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Robert Lonardo, 67, of Burrillville, treasurer of the Rhode Island Association for Cardiac Children (RIACC), was sentenced today to 6 months in federal prison and ordered to serve 100 hours of community service for converting nearly $186,000 from the charity for his own personal use. RIACC, founded by Lonardo’s mother, raised funds to purchase hospital equipment, support children’s cardiac treatment and research, and help meet the needs of Rhode Island families whose children were undergoing surgery for cardiac disease.
At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Lonardo to serve 2 years supervised release upon completion of his prison term. Restitution in this matter will be determined by the court at a later date.
Lonardo pleaded guilty on June 28, 2016, to one count of wire fraud.
Lonardo’s sentence is announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
At the time of his guilty plea, Lonardo admitted to the court that beginning in January 2013, following the death of his mother, he began withdrawing funds from RIACC bank accounts and converted the money for his own personal use. Lonardo admitted that from January 2013 to August 2015 he converted RIACC funds totaling $185,945.77.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the FBI and IRS Criminal Investigation.
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Charges Brought Against Two Lewisburg Federal Prison Inmates in Separate CasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 13, a federal grand jury in Williamsport indicted two federal inmates in cases resulting from separate incidents.
According to United States Attorney Peter Smith, Deon Hooper, age 36, is charged with possessing contraband in prison. The charge stems from an incident in July 2016 in which Hooper was found to be in possession of two homemade sharpened weapons commonly known as “shanks.”
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Julious Bullock, age 30, formerly of North Carolina, was charged separately with “head-butting” a corrections officer on August 2, 2016.
In this case, the maximum penalty which can be imposed under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
The investigations were conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. 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.
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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California Man, Woman Sentenced for Joplin-Area Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a man and woman from Barstow, Calif., have been sentenced in federal court for their roles in a conspiracy to possess methamphetamine with the intent to distribute in the Joplin, Mo., area.
Jason Jonathan Olsson, 33, of Barstow, was sentenced today by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. Co-defendant Jasmine Regina Bereki, 26, of Barstow, was sentenced on Tuesday, Sept. 13, 2016, to 10 years in federal prison without parole.
Olsson and Bereki each pleaded guilty in May 2016 to participating in a conspiracy to possess methamphetamine with the intent to distribute.
The investigation began in August 2015 when members of the Ozark Drug Enforcement Team received information that Olsson – who was staying at a hotel in Joplin – was receiving shipments of methamphetamine from either California or Arizona in sealed cans. Agents also received information that Olsson was sending large amounts of cash to California once or twice a week.
Olsson sent money orders to California from Harp’s grocery store in Carl Junction, Mo., on Aug. 19, 2015. Law enforcement officers stopped his vehicle after he left the store. A K-9 alerted to the presence of narcotics in Olsson’s vehicle. Officers searched the vehicle and found a black bag that contained seven baggies of methamphetamine with a total weight of approximately 186 grams. They also found money gram receipts totaling approximately $12,000.
Officers learned that Bereki, who rented the room where Olsson had been staying at the Comfort Inn in Joplin, had just left the hotel in a taxi. The taxi had taken Bereki to a Motel 6 in Joplin, and law enforcement officers contacted her outside the motel’s office. When officers searched Bereki’s motel room they found an RG 23 .22-caliber handgun in her luggage.
Law enforcement officers learned that Olsson and Bereki had a storage unit in Webb City, Mo. Officers searched the storage unit and found a black bag that contained three brass-colored cans. The cans contained 34 one-ounce bags of methamphetamine, totaling more than one kilogram. Officers also found a Mossberg 12-gauge shotgun and a Cobray Uzi M-11. They found numerous receipts for money orders, ranging from $500 to $2,501.
This case was prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jasper County, Mo., Sheriff’s Department and the Joplin, Mo., Police Department.
Brett Ferrell of New York Indicted in Vermont for Interstate Travel with Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brett Ferrell, age 31, from New York, has been arrested and indicted for traveling in interstate commerce with the intent to engage in illicit sexual conduct with a minor. Ferrell made his initial appearance in federal court in Burlington on August 30, 2016 and he was arraigned on September 12, 2016. Magistrate Judge John M. Conroy ordered Ferrell detained pending trial.
According to court papers, in mid-August 2016, Ferrell made multiple postings on Craigslist seeking to meet girls under the age of 18 for the purpose of sex. Law enforcement officers responded to one of the Craigslist postings using an undercover persona of a 13-year-old girl. In multiple communications with someone he believed was a 13-year-old girl from Vermont, Ferrell expressed an interest in meeting to have sex. Ferrell, who lived in New York, indicated that he would travel to Vermont for such a meeting, and went as far as to make plans to meet at a particular hotel at a particular time for sex with this supposed 13-year-old. On August 29, 2016, Ferrell traveled from New York to Vermont for this illicit encounter, at which point he was arrested by law enforcement officers at the designated meeting place.
The charges against Ferrell are merely accusations and Ferrell is presumed innocent until proven guilty. If convicted, Ferrell faces a maximum penalty of 30 years in prison, although his actual sentence will be advised by the federal sentencing guidelines.
The collaborative team investigating the case against Ferrell includes law enforcement agents from Homeland Security Investigations in Vermont and New York, agents from Custom and Border Patrol, and agents from the Internet Crimes Against Children Task Force.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Ferrell is represented by Assistant Federal Defender Elizabeth K. Quinn.
Ferrell’s prosecution is part of Project Safe Childhood, a nationwide Department of Justice initiative designed to protect children from online exploitation and abuse. In Vermont, federal prosecutors are teaming up with federal, state, and local law enforcement agents to identify, investigate, and prosecute those individuals who prey upon children and those that distribute, receive, or manufacture child pornography. For more information on Project Safe Childhood, including resources on internet safety education, please visit www.usdoj.gov/psc.
Beggs Man Pleads Guilty to Stealing Firearms from DealerRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that DILLAN JAMES PARKER, age 24, of Beggs, Oklahoma, pled guilty to STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The charge 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 12, 2016, within the Eastern District of Oklahoma, the defendant, DILLAN JAMES PARKER did knowingly steal from Richy’s Gun & Pawn, a federal licensed firearms dealer, firearms.
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.
Baton Rouge Man Convicted of Conspiracy to Distribute Heroin and Money LaunderingRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that on September 13, 2016 AARON LAMBERT, age 33, of Baton Rouge, Louisiana, has pled guilty to conspiracy to distribute and possess with intent to distribute heroin in violation of Title 18, United States Code, Section 846, and money laundering in violation of Title 18, United States Code, Section 1957, as contained in an Indictment filed in October 2015.
During a September 13, 2016, hearing, LAMBERT entered his plea before Chief U.S. District Judge Brian A. Jackson. According to the stipulated factual basis that was presented to the Court in connection with LAMBERT’s guilty plea, between December 1, 2013, and April 16, 2015, LAMBERT conspired with nine (9) individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills in Baton Rouge from California, they were then distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. LAMBERT admitted that, throughout the period of the conspiracy, he knew that the pills contained heroin, and his intent was to sell and profit from the sale of significant amounts of heroin. In addition, in March 2015, LAMBERT also engaged in money laundering from the proceeds of the drug-trafficking conspiracy.
At the conclusion of the hearing, the Court accepted LAMBERT’s guilty pleas, scheduled his sentencing hearing for January 5, 2017, and remanded him to the custody of the United States Marshal.
U.S. Attorney Green stated: “The guilty plea in this case continues to highlight the benefit of working together with our federal, state, and local partners. It also exemplifies our commitment to eliminate to eliminate drug trafficking and the significant harmful effects on our community resulting from heroin distribution and use, along with our efforts to ensure that ill-gotten financial gains are exposed. This defendant’s conduct is consistent with that of others in not only exposing the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – that has been confirmed as a highly dangerous activity resulting in greatly increased overdose deaths throughout the nation. I appreciate the hardworking team of federal, state, parish, and city law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin trafficker.”
“On an average day, 78 people in the United States die from an opioid-related overdose,” said DEA Assistant Special Agent in Charge Brad L. Byerley. “The DEA and our law enforcement partners are committed to targeting those individuals and criminal organizations that are smuggling and distributing this poison and thus fueling this national epidemic.”
Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigation, stated: “Drug trafficking organizations engage in increasingly sophisticated financial and operational networks to disguise the proceeds of narcotics sales. IRS – Criminal Investigation is very proud of the work we do to support federal drug investigations, and we will continue to assist the U.S. Attorney’s Office and other federal agencies in this important mission. Tracing the monetary transactions provides prosecutors with key evidence to support and enhance this vital work.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Baton Rouge Police Department, and Iberville Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Bath Man Pleads Guilty to Attempting to Transfer Obscene Matter to MinorRead 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 Garrett Brosnan, 25, of Bath, Maine, waived indictment and pled guilty today in U.S. District Court to attempting to transfer obscene matter to a minor.
According to court records, in May of this year, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) were investigating a report that an unknown adult male had an inappropriate online interaction with a minor girl in Arizona. Investigators obtained information suggesting that the male was Brosnan. An HSI investigator in Arizona initiated an undercover online conversation with Brosnan in late May. The investigator said she was a 14-year-old girl from Arizona. On June 2, Brosnan sent the investigator a picture of himself exposing his penis.
Brosnan faces a sentence of up to 10 years in prison, a fine of up to $250,000, and supervised release of up to three years. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by HSI offices in Maine and Arizona.
Apalachin Man Pleads Guilty to Receiving Child PornographyRead the Press Release
BINGHAMTON, NEW YORK -Brandon Kie, 30, of Apalachin, New York, pled guilty in federal court to receiving child pornography via the internet.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Sentencing is scheduled for January 27, 2017 before Senior Judge Thomas J. McAvoy. Kie faces a minimum sentence of 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
In pleading guilty, Kie admitted that in 2014 he used a computer to connect to several child pornography web sites via the internet and also connected to other computers using peer-to-peer software programs. Kie received and downloaded more than 500 digital images and more than 12 videos of child pornography via the internet.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
13 September 2016
ZeekRewards' Former Chief Operating Officer and Former Senior Technology Officer Sentenced in Federal CourtRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max Cogburn, Jr., sentenced Dawn Wright Olivares, 48, and Daniel C. Olivares, 34, both of Clarksville, Ark., to 90 and 24 months in prison, respectively, for their involvement in an $850 million Internet Ponzi scheme that promised victims a bogus return on investments, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The two Arkansas residents were associated with the Lexington, N.C. based Rex Venture Group, LLC (RVG), which owned and operated Zeekler and ZeekRewards. In addition to the prison term imposed, Judge Cogburn also ordered each defendant to serve three years under court supervision. The restitution amount will be set at a later date.
Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearings, from January 2010 through August 2012, Dawn Wright Olivares, her step-son, Daniel Olivares, and Paul Burks, the owner of RVG, conspired with each other and engaged in Ponzi scheme that raised more than $850 million through a sham internet-based penny auction company named “Zeekler” and its purported advertising division “ZeekRewards” (collectively “Zeek”). According to court records, the conspirators induced more than 900,000 victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Court documents indicate that, at one point, the conspirators claimed that investors would be guaranteed a 125% return on their investment.
Court records show that the co-conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. The co-conspirators did not keep books and records needed to calculate such daily figures. Instead, Burks simply made up the daily “profit” numbers. Contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.
In addition to promising massive returns on investments, the conspirators used a number of ways to promote Zeek to current and potential investors. For example, the conspirators hosted weekly conference calls and leadership calls, where participants could call in and listen to Burks, Dawn Wright Olivares and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. Burks and Dawn Wright Olivares also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. They also used electronic and print media, including websites, emails and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.
As the Ponzi scheme grew in size and scope it became unsustainable and it eventually began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, the conspirators fraudulently represented to the collective victims that their investments were worth nearly $3 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. Contrary to representations made to victim investors, at that time, the conspirators had only $340 million available to pay out investors.
According to court records, Dawn Wright Olivares was closely involved in the strategic operations and ultimately served as the Chief Operations Officer of Zeek. Dawn Wright Olivares also owned 95% of Wandering Phoenix, LLC, a company that she used, among other things, to receive payments from Zeek and RVG. During the course of the conspiracy, Dawn Wright Olivares and Wandering Phoenix received approximately $7.2 million in victim funds.
Daniel Olivares was RVG’s senior technology officer and was responsible for, among other things, database design, management and operations for Zeek. During the course of the conspiracy, Daniel Olivares personally enriched himself with victim funds totaling approximately $3.1 million. Other unnamed co-conspirators also personally enriched themselves with millions of dollars of victim funds.
Dawn Wright Olivares and Dan Olivares previously pleaded guilty to one count of investment fraud conspiracy. Dawn Wright Olivares also pleaded guilty to one count of tax fraud conspiracy.
In July 2016, a federal jury convicted Paul Burks of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy, following a three-week trial. Burks is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance with the investigation.
The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar and Corey Ellis of the U.S. Attorney’s Office in Charlotte.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: http://www.justice.gov/usao/ncw/ncwvwa.html.
Youngstown man sentenced to more than 10 years in prison for firearms violationRead the Press Release
A Youngstown man sentenced to more than 10 years in prison for firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Brian K. Bellard, 43, was arrested on Oct. 16, 2015 after Youngstown police responded to a call about an armed man arguing with people outside the Eastside Civic Center. Police found Bellard with a Smith and Wesson, model SD40VE, .40 caliber pistol, and ammunition, according to court documents.
Bellard forbidden from possessing firearms because of previous felony convictions dating back to 1992. Those convictions included felonious assault and domestic violence, according to court documents.
He pleaded guilty last year to being a felon in possession of a firearm. He was sentenced to 125 months in federal prison.
This case was prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Youngstown Police Department.
Winter Harbor Man Convicted of Possession of Child PornographyRead the Press Release
Contact: Jody Mullis
Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jack Palmer, 66, of Winter Harbor was convicted following a jury trial in U.S. District Court of possession of child pornography.
The evidence at trial revealed that on October 23, 2014, law enforcement officers executed a search warrant at Palmer’s residence where they recovered a laptop computer and compact disks. A forensic examination of these items revealed over 300 images and videos of child pornography. During two separate interviews with law enforcement, Palmer admitted to searching for, viewing, and collecting child pornography.
Palmer faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Winnfield men sentenced on firearms chargesRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that two Winnfield men were sentenced Monday for possessing stolen firearms.
Ashton L. Howard, 33, and Aaron Thomas, 27, both of Winnfield, La., were sentenced to 27 months and 96 months in prison respectively by U.S. District Judge Robert G. James on one count of possession of a stolen firearm, and Thomas was also sentenced for possession of a firearm and ammunition by a convicted felon. They were also sentenced to three years of supervised release. According to the June 15, 2016 guilty pleas, Howard and Thomas received and possessed 14 firearms, ammunition and other items stolen from a Winnfield firearm seller on March 22, 2015. Howard drove four juveniles to a store where they burglarized it. They took and loaded eight rifles, five shotguns, a revolver, ammunition, firearms parts, knives and other items into Howard’s van, which they took to Howard and Thomas’ house. Police found some of the firearms hidden under the house and other firearms at the house of one of the juveniles.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Winnfield Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
West Fork Man Sentenced to 25 Years in Federal Prison for Production of Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Nathan Robert Wesley Johnson, age 26, of West Fork, was sentenced today to 300 months imprisonment followed by 25 years of supervised release for Production of Child Pornography. The sentencing hearing took place before the Honorable Judge Timothy L. Brooks in the United States District Court in Fayetteville.
According to the plea agreement, Nathan Johnson admitted to chatting online with a 15-year-old girl residing in Fort Smith and encouraging her to send him naked pictures of herself. He admitted to using the Facebook Messenger application on his cell phone to chat with her and obtain these pictures. Johnson was indicted by a federal grand jury on March 16, 2016 and pleaded guilty on April 13, 2016.
“Today’s sentencing reflects Johnson’s despicable conduct in demeaning and subjecting the victim to sexual exploitation,” said Assistant Special Agent in Charge David Shepard with the Federal Bureau of Investigation in Little Rock. “We appreciate the steadfast efforts of the U.S. Attorney’s Office and the Fort Smith Police Department as well as our federal, state, and local partners associated with Project Safe Childhood.”
This case was investigated by Federal Bureau of Investigation and the Fort Smith Police Department. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Virginia Man Sentenced to One Year in Federal Prison for StalkingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James Daniel Hobgood, age 36, of Manakin Sabot, Virginia, was sentenced yesterday to 12 months and one (1) day in prison followed by three (3) years supervised release on one count of Stalking. Hobgood was also ordered to perform 180 hours of community service and to pay over $2,300.00 in victim restitution. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to the plea agreement, in August, 2015, a female contacted law enforcement in the Western District of Arkansas claiming that she was being persistently harassed by James Daniel Hobgood who lived in Richmond, Virginia. The victim reported to agents with Homeland Security Investigations that she had met and to some extent became romantically involved with Hobgood while living in Richmond, however, after a short period of time, she began rebuffing his advances. In January, 2015, she moved from Richmond to Northwest Arkansas and Hobgood began contacting her by email, Facebook messages, and third party text messages, demanding that she apologize to him in person. When she did not acquiesce to Hobgood’s demand, he created publically accessible social media accounts in which he represented her to be an exotic dancer and escort. He sent letters to her employer both by the internet and the U.S. Postal Service, claiming that she was a stripper and an escort in an attempt to get her fired. He repeatedly contacted her and her family demanding that she apologize or that he would continue to expose certain alleged aspects of her past. Hobgood’s behavior caused her substantial emotional distress resulting in her being hospitalized for a short period of time. When agents contacted Hobgood about his involvement with the victim, he informed them that he would not stop contacting her until he cost the victim her job based on her lies, and/or that she repent for the perceived wrongs she committed against him. He admitted to sending the victim, her family, and her employer communications by internet, telephone, and postal service telling them she was an exotic dancer and that he was not going to stop. Law enforcement was able to corroborate the claims of the victim by his cell phone history and Facebook history. Hobgood was indicted by a federal grand jury on October 28, 2015 and pleaded guilty on April 13, 2016.
“This case demonstrates that we will investigate, arrest and seek prosecution of anyone utilizing the internet or mail services for nefarious intentions”, said ICE’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr. “Stalking and harassing someone over the internet or through the mail is a serious matter and we will continue working with our state and local law enforcement partners to ensure these types of criminals are brought to justice.”
This case was investigated by the Homeland Security Investigations, Richmond, Virginia Police Department, and the Henrico County, Virginia Sheriff’s Office. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Vermont Woman Sentenced to 25 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on September 8, 2016, Rebecca Lawrence, 32, of Winooski, Vermont, was sentenced to 25 months in federal prison after her guilty plea to charges that she distributed heroin. U.S. District Court Judge Geoffrey W. Crawford also ordered that Lawrence serve three years of supervised release after her prison term.
According to court records, in 2014, Lawrence was convicted in the Southern District of New York on charges that she conspired to distribute controlled substances. For this offense, she was sentenced to a term of time served followed by five years of supervised release. In March of 2015, responsibility for Lawrence’s supervision was transferred to the District of Vermont.
In November and December of 2015, while Lawrence was still serving her term of federal supervised release, the Vermont State Police Drug Task Force used a confidential informant to conduct a series of controlled purchases of heroin from her. She was arrested on December 18, 2015 and charged with distributing heroin in violation of the Controlled Substances Act. Lawrence pled guilty to this offense on May 6, 2016.
For her crime, Lawrence faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Lawrence receive a prison term of between 21 and 25 months. The Guidelines also recommended that Lawrence receive an additional prison term for violating her federal conditions of release. Judge Crawford decided that Lawrence should serve 15 months for her drug offense followed by an additional 10 months for violating her federal conditions of release, resulting in a total sentence of 25 months in prison. In determining the appropriate sentence, Judge Crawford considered the gravity of the offense and Lawrence’s criminal record, among other factors.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force and the Burlington Police Department. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Lawrence is represented by Michael Shklar from Newport, New Hampshire.