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13 September 2016
Vacaville Man Sentenced for Defrauding the California Air National Guard of Approximately $200,000 in Leave and False Expenses SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Thomas Venable, 46, of Vacaville, today to one year and one day in prison for theft concerning programs receiving federal funds in connection with his operation of a sustained leave and false expenses scheme while he was a member of the California Air National Guard, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2008 and April 2010, Venable obtained nearly $195,528 from the California Air National Guard (CA ANG) in wages, benefits, and expense reimbursements to which he was not entitled. Venable was assigned to a detail with the California Emergency Management Authority (Cal-EMA) that was available only to active duty CA ANG members. At the same time, Venable was frequently deployed for training and duty with the U.S. Air Force, and he was employed full time by the University of California-San Francisco Police Department (UCSF-PD). While deployed on federal duty or while working for the UCSF-PD between April 2008 and April 2010, Venable intentionally failed to use required military or other leave and collected double compensation from the federal government and the state of California. During the same period, Venable also filed at least 19 false travel and expense reimbursement claims that were unrelated to his CA ANG work but that were paid as though they were legitimate.
Venable also admitted that, for more than a year, he concealed from his direct supervisors at the CA ANG that he had joined the Texas Air National Guard in February 2009, resulting in Venable’s discharge from the CA ANG and his ineligibility for employment with Cal-EMA. In doing so, Venable affirmatively misrepresented his duty status to CA ANG staff.
“The California National Guard is an institution built on integrity and character,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “We applaud the U.S. Attorney's Office in its latest effort to ensure the Cal Guard remains free from fraudulent and unethical behavior.”
This case was the product of an investigation by the United States Department of Defense, Defense Criminal Investigative Service, and the California Highway Patrol, Office of Internal Affairs. Assistant United States Attorney André M. Espinosa prosecuted the case.
US Postal Service Employee Charged with Destroying 2,300+ Pieces of MailRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of delay or destruction of mail, United States Attorney David J. Hickton announced today.
The indictment named Darren E. Hill, 47, of Johnstown, Pa., as the sole defendant.
According to the indictment presented to the court, on August 12, 2014, while an employee of the United States Postal Service, he unlawfully secreted and detained approximately 2,343 pieces of mail which were intended to be conveyed by the United States mail.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Honorary Guest Speaker at 9/11 Memorial Ceremony National Patriot Day & National Service and Remembrance DayRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be the honorary guest speaker at the 9/11 Memorial Ceremony and 1st National Patriot Day & National Service and Remembrance Day, which was held at the Guam Community College on September 11, 2016, and hosted by the Guam Community College Veterans Club (GCCVC) and AmeriCorps.
U.S. Attorney Limtiaco spoke about the events of September 11, 2001 remaining forever engrained and deeply rooted in our memories and in our national consciousness, and honoring the many heroes and paying tribute to the survivors and to the family members of those whose lives were lost. She spoke about the true patriotism these men and women displayed in the face of unconscionable and horrific violence, death and destruction.
U.S. Attorney Limtiaco thanked the veterans and service members for their unwavering commitment and service to ensuring our nation’s security and protecting our freedoms, and for inspiring us to persevere, even in the darkest of times, in our pursuit of freedom and justice for all.
Two Broward County Residents Plead Guilty in Identity Theft Tax Fraud Scheme Involving the Use of Unauthorized Debit Card Account NumbersRead the Press Release
Two Broward County residents pled guilty for their involvement in an identity theft tax fraud scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Dan Giustino, Chief, Pembroke Pines Police Department, made the announcement.
Wilna Joseph, 36, and Maraldy Necker Jean, 39, both of Broward County, each pled guilty to one count of trafficking in and using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, fraudulent tax returns were filed using the names and Social Security numbers of individuals without their permission. On February 6, 2014, the defendants drove to a Wells Fargo Bank in Pembroke Pines and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants had fifteen unauthorized debit cards registered in the names of other persons. The debit cards had been funded with fraudulently obtained federal income tax refunds totaling approximately $76,249.20.
Joseph and Jean are scheduled to be sentenced on November 18, 2016 before United States District Judge William J. Zloch. At sentencing, the defendants face up to ten years in prison for the access device charge, and two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, the FBI, and the Pembroke Pines Police Department. The case is being prosecuted by Assistant United States Attorneys Daya Nathan and Jonathan K. Osborne and Special Assistant United States Attorney Tyler Jett.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ten Eastern California Real Estate Investors Sentenced for Roles in Bid-Rigging and Mail-Fraud Conspiracies Involving Real Estate Purchased at Public Foreclosure AuctionsRead the Press Release
More than $6 Million in Fines and Restitution Imposed
Ten Eastern California real estate investors were sentenced yesterday for their participation in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Eastern California, the Department of Justice announced.
The primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Joaquin County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties.
“These defendants rigged foreclosure auctions to profit at the expense of mortgage holders and homeowners,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division. “Yesterday’s sentences send a strong message that conspiracies to eliminate competition in any area of our economy will not be tolerated.”
“My office will continue to fight real estate fraud in all its forms, including bringing to justice those who would subvert public foreclosure auctions for their own personal gain,” said Acting United States Attorney Phillip A. Talbert of the Eastern District of California.
The following individuals were sentenced in the U.S. District Court for the Eastern District of California in Sacramento:
- Anthony B. Ghio, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $214,544 in restitution to the victims of the crime.
- John R. Vanzetti, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $1 million criminal fine and $271,454 in restitution to the victims of the crime.
- Theodore B. Hutz, of Stockton, California, was sentenced to serve five months in prison and ordered to pay a $250,000 criminal fine and $76,670 in restitution to the victims of the crime.
- Richard Northcutt, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $1 million criminal fine and $614,982 in restitution to the victims of the crime.
- Kennen A. Swanger, of Alta, California, was sentenced to serve five months in prison and ordered to pay a $5,000 criminal fine.
- Wiley C. Chandler, of Stockton, California, was sentenced to serve seven months in prison and ordered to pay a $500,000 criminal fine and $614,982 in restitution to the victims of the crime.
- Walter Daniel Olmstead, of San Francisco, California, was sentenced to serve eight months in prison and ordered to pay a $29,687 in restitution to the victims of the crime.
- Gregory L. Jackson, of Lodi, California, was sentenced to pay a $150,000 criminal fine and $20,900 in restitution to the victims of the crime.
- Robert Rose, of Danville, California, was sentenced to pay a $100,000 criminal fine and $24,128 in restitution to the victims of the crime.
- Anthony B. Joachim, of Stockton, California, was sentenced to pay a $175,000 criminal fine and $94,154 in restitution to the victims of the crime.
Two other real estate investors, Andrew B. Katakis and Donald M. Parker, were convicted at trial of bid rigging in March 2014.
A total of thirteen individuals pleaded guilty or were convicted in the U.S. District Court for the Eastern District of California in connection with this investigation. The sentences announced yesterday resulted from an ongoing investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
Yesterday’s action was brought in connection with the President’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
Taxpayers Warned About IRS Telephone Impersonation ScamRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Gary Smith, Deputy Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA) for the Mid-States Field Division are warning taxpayers about an aggressive impersonation telephone scam targeting taxpayers.
Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees. The Treasury Inspector General for Tax Administration (TIGTA) has received reports of over 1.6 million impersonation related calls with over 8,600 victims reporting losses of almost $47 million. Deputy Special Agent in Charge Gary Smith, on behalf of TIGTA, stated, “Victimizing taxpayers by impersonating Internal Revenue Service employees is a serious crime. TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.”
“My office takes these crimes very seriously,” said U.S. Attorney Thyer. “Those involved in the impersonation of IRS officials will be held accountable, and my office will aggressively pursue and prosecute those individuals committing these crimes against innocent taxpayers when we find them. Please notify TIGTA at 1-800-366-4484 immediately if you feel that you have received one of these calls. You can also file a complaint online on TIGTA’s website, www.tigta.gov. Lastly, please remember that you should never provide your personal information to callers if you are not sure of their identity, and never provide your personal information in response to emails from unsolicited email sources.”
Tallulah tax preparer sentenced to 24 months for aiding in the filing of false tax returnRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Tallulah based tax preparer was sentenced Monday to two years in prison for aiding and assisting in the preparation and filing of a tax return containing false information.
Frankie Cammack, 48, of Tallulah, La., was sentenced by U.S. District Judge Robert G. James on one count of aiding and assisting in making and subscribing a fraudulent and false tax return. The defendant was also ordered to pay $92,339 in restitution to the U.S. Treasury. According to testimony presented during the June 16, 2016 guilty plea, Cammack prepared 26 returns for eight different taxpayers for tax years 2009 through 2012, all of which contained false information regarding either business expenses or education credits. The false information was used to generate excessive refunds totaling $114,791 to the taxpayers.
“Preparers have a duty to make sure that the documents they file follow the law,” Finley stated. “Tax fraud hurts those who pay their taxes, and they should get legitimate refunds.”
“We are pleased with the sentence handed down today for Ms. Cammack,” stated Special Agent in Charge of IRS Criminal Investigation Jerome R. McDuffie. “The tax system is built on the premise that taxpayers file accurate and timely tax returns. Ms. Cammack was in the business of preparing tax returns for others and willfully prepared and submitted false documents to the IRS. To ensure confidence in our tax system, special agents of IRS Criminal Investigation are committed to the aggressive pursuit and prosecution of individuals who intentionally violate the nation’s laws.”
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted the case.
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIFELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Greene County, Mo.
Torell D. Wallace, 31, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years and four months in federal prison without parole.
On Feb. 4, 2016, Wallace pleaded guilty to participating in a conspiracy to distribute 50 grams or more of methamphetamine in Greene County and elsewhere from Jan. 13 to June 15, 2015.
On Jan. 13, 2015, Wallace was stopped in Arkansas after the state police observed him swerve onto the left shoulder several times. When they approached him, Wallace appeared very nervous and made several inconsistent statements. Officers searched his vehicle and found a large Tupperware container with a vacuum-sealed bag inside, which contained 539.1 grams of pure methamphetamine. Wallace was transporting the methamphetamine to co-defendant Clint L. Stewart, 35, of Springfield.
On June 10 and 15, 2015, law enforcement officers made controlled buys of heroin and methamphetamine from Wallace and co-defendant George E. Baumgartner, 35, of Springfield.
Wallace is the third defendant to be sentenced after pleading guilty to participating in the drug-trafficking conspiracy. Stewart was sentenced to nine years in federal prison without parole. Baumgartner was sentenced to six years and eight months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Arkansas State Police, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
South Carolina Man Sentenced for Sex Trafficking a ChildRead the Press Release
NORFOLK, Va. – Travis C. Brown, 25, of Columbia, South Carolina, was sentenced today to 126 months in prison for his role in a conspiracy to engage in sex trafficking of a child. Brown was also sentenced to 10 years of supervised release and will be required to register as a sex offender upon release from prison.
Brown pleaded guilty on June 7. According to court documents, in March 2016, the Virginia Beach Police Department (VBPD) discovered a minor female who was being prostituted out of a hotel in Virginia Beach by Brown and a co-conspirator. Brown met the minor female through some friends at a hotel room party during which she was supplied with alcohol, marijuana, and the drug “molly.” Two days after meeting her, Brown and his co-conspirator bought the girl lingerie and took her to another hotel where they posed her and took photographs of her to post Internet advertisements for commercial sex acts. Brown then arranged appointments for her, set the prices for her acts, provided condoms, monitored the progress of her appointments by text message, and collected the proceeds she earned. After a tip from the management at the hotel where the girl was taking appointments and another source, VBPD rescued the girl and arrested Brown.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and James A Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted 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. 2:16cr81.
Silver Spring Man Sentenced to 7 Years in Federal Prison for Internet Romance Scheme in Which Victims Were Defrauded of over $300,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Evans Appiah, a/k/a Sean Carter, age 28, of Silver Spring, Maryland, on September 12, 2016, to seven years in prison, followed by four years of supervised release, for conspiracy, mail and wire fraud, and aggravated identity theft arising from an internet romance scheme in which the victims were defrauded of more than $300,000. Judge Hazel also ordered Appiah to forfeit and pay restitution of $303,800.11, the total amount of the loss. Appiah has been detained since Judge Hazel ordered that he be immediately taken into custody following the jury’s guilty verdict on May 4, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to testimony at his six day trial, Appiah and his co-conspirators searched online dating websites and initiated romantic relationships with male and female victims in order to obtain money from them. The relationships began with emails and instant messaging and escalated to telephone calls and primarily text messages. After gaining the victims trust, Appiah and his co-conspirators began asking for money for a variety of reasons, often invoking false stories and promises to convince the victims to send them money.
According to evidence presented at trial, from December 2013 through June 2015, Appiah opened and maintained accounts in order to receive money from the victims. Once the victims had deposited the funds requested by Appiah and the co-conspirators into the accounts controlled by Appiah, he disbursed the money by transferring it to other accounts, withdrawing cash, and by purchasing goods for shipment to co-conspirators outside of the United States. At least eleven confirmed victims were defrauded of more than $300,000.
Appiah also used the name and identifying information of one victim in particular, while depositing one of the victim cashier’s checks into his own bank account.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom and Special Assistant U.S. Attorney Jennifer L. Wine, who prosecuted the case.
Shreveport felon sentenced to 97 months in prison for firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 97 months in prison for being a felon in possession of a firearm and possessing the firearm during and in furtherance of a drug trafficking crime.
Carlos Tramell Russell, 30, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm and ammunition by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking offense. He was also sentenced to three years of supervised release. According to the June 23, 2016 guilty plea, Shreveport Police responded to a domestic dispute call on July 8, 2015. Russell was reported to have been seen with a firearm during an incident at a Shreveport residence. Officers then searched Russell’s home and found a Romarm pistol, model Micro Draco, 7.62 by 39 mm and ammunition in his home. They also found three bags of cocaine. Russell had prior felony convictions in 2005 and 2010.
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 Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Seventh Member of Oxycodone Money Laundering Conspiracy Pleads GuiltyRead the Press Release
COLUMBUS, Ohio – Tiauna Castro, 27, of Las Vegas pleaded guilty in U.S. District Court today to participating in a conspiracy to launder the proceeds from the illegal sale of Oxycodone in central Ohio.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, Castro deposited the proceeds from the illegal sale of Oxycodone to a bank account in Columbus that was held in the name of a front business. The account was actually controlled by someone Castro knew was trafficking illegally obtained pills from Las Vegas to Columbus.
Castro pleaded guilty to one count of one count of conspiracy to commit money laundering, a crime punishable by up to 20 years in prison, and agreed to forfeit $150,975.00 in currency.
Others convicted in the conspiracy include two people from Las Vegas, Danny R. Williams, 30, who was sentenced on July 28 to 90 months in prison, and Sukita M. Williams, 44, who is awaiting sentencing. Three people from Columbus have pleaded guilty to participating in the conspiracy and are awaiting sentencing, Rashod D. Todd, 29, Joquline D. Harris, 29, and Alfred David James Sr., 36. A fourth Columbus resident, Dontonyo Courtney, 22, pleaded guilty and was sentenced in August to 33 months imprisonment.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Michael J. Hunter, Deputy Criminal Chief of the Organized Crime Drug Enforcement Task Force, who is representing the United States in this case.
San Antonio Man Pleads Guilty to Aiming Laser Pointer at Local News HelicopterRead the Press Release
Christopher B. Evans, age 25, faces up to five years in federal prison after admitting to pointing a laser in the flight path of a helicopter last year announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Appearing before United States Magistrate Judge John W. Primomo in San Antonio this afternoon, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.
Evans remains on a $20,000 bond pending sentencing scheduled for 9:00am on December 12, 2016, before Senior United States District Judge David A. Ezra.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy is prosecuting this case on behalf of the Government.
Sacramento Woman Charged with Failure to Appear for SentencingRead the Press Release
SACRAMENTO, Calif. — A Sacramento couple arraigned today for a grand jury indictment charging Maria Santa, 41, with failing to surrender for service of sentence and obstruction of justice, and charging Virgil Santa, 43, with harboring a fugitive, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Maria Santa was previously sentenced to 20 months in prison for mortgage fraud and was ordered to begin serving her sentence in February 2014. When her motion for bail pending appeal was denied, she fled the jurisdiction and left a note at her residence that made it appear that she had committed suicide. On August 26, 2016, Maria Santa was arrested in Sacramento as a passenger in a vehicle her husband Virgil Santa was driving.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Maria Santa and Virgil Santa face a maximum statutory penalty of 10 years in prison and a $250,000 fine as to each count. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rogers Man Sentenced to Maximum of 20 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Francisco Sanchez, age 37 of Rogers, was sentenced today to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Sanchez was also ordered to pay a $5,000 fine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, on October 13, 2015, deputies of Benton County Sheriff’s Office while conducting surveillance, approached and detained Sanchez while he was parked at a car wash in Rogers. A drug detecting canine conducted an open air sniff on the defendant’s vehicle and alerted for the presence of contraband. Pursuant to this, the vehicle was searched and deputies located two separate packages of methamphetamine and a handgun. The suspected substance was sent to the DEA South Central Laboratory where it was tested and confirmed to be 333.1 grams of actual methamphetamine. Sanchez was indicted by a federal grand jury on May 11, 2016 and pleaded guilty on May 25, 2016.
“Through unprecedented partnerships with local enforcement, we are making major progress in preventing meth trafficking from taking hold in our community. This investigation is a compelling example of that success,” said DEA Assistant Special Agent in Charge Matthew Barden. “We will stand firmly to ensure that criminals who peddle in these poisons and wreak havoc in our communities will face consequences for their criminal activities.”
This case was investigated by the Drug Enforcement Administration and the Benton County Sheriff’s Office. Assistant United States Attorney Brandon Carter 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
Regions Bank Agrees to Pay $52.4 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today. Regions is headquartered in Birmingham, Alabama.
“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to hold responsible lenders that knowingly violate these important requirements.”
“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Lender misconduct that puts this program at risk will not be tolerated.”
Since at least January 2006, Regions has participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness. In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD. Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans. Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved. As a result, the defect rate reported to senior management was understated. Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines. Regions was required to review all loans that became 60 days past due within the first six months. Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.
Additionally, Regions did not fully adhere to HUD’s self-reporting requirements. During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD. Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.
As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel. “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”
“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD. “The bank’s actions impact the solvency of the FHA insurance fund. It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida. The claims asserted against Regions are allegations only, and there has been no determination of liability.
Regions Bank Agrees to Pay $52.4 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Fort Myers, FL – Regions Bank (Regions) has agreed to pay $52.4 million to the United States to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Department of Justice announced today. Regions is headquartered in Birmingham, Alabama.
“The FHA insurance program plays a critical role in the stability of the housing market,” said U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Lender misconduct that puts this program at risk will not be tolerated.”
“Mortgage lenders that participate in the FHA insurance program must follow the requirements intended to safeguard its integrity and to protect homeowners,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to hold responsible lenders that knowingly violate these important requirements.”
Since at least January 2006, Regions has participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlement announced today, Regions admitted that between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance certain mortgage loans that did not meet certain HUD underwriting requirements regarding borrower creditworthiness. In addition, between Jan. 1, 2006 and Dec. 31, 2011, Regions did not maintain a quality control (QC) program that fully complied with the requirements established by HUD. Regions’ QC Department did not consistently review an adequate sample of FHA-insured loans. Moreover, to the extent that Regions’ QC Department identified deficiencies during the course of its loan review, Regions engaged in a pattern of “curing” QC findings by obtaining documentation that was not available to the underwriter at the time the loan was approved. As a result, the defect rate reported to senior management was understated. Regions also failed to review Early Payment Default (EPD) loans in accordance with HUD guidelines. Regions was required to review all loans that became 60 days past due within the first six months. Nevertheless, at certain times prior to 2011, as part of its EPD review, Regions reviewed only those loans that became 90 days past due.
Additionally, Regions did not fully adhere to HUD’s self-reporting requirements. During the period between Jan. 1, 2006, and Dec. 31, 2011, the HUD Handbook required lenders to report “findings of fraud” or “other serious violations” or “serious material deficiencies” to HUD. Although Regions’ monthly QC reviews identified numerous FHA-insured loans for that period that contained material deficiencies, Regions did not begin self-reporting these materially deficient loans to HUD until 2011.
As a result of Regions’ conduct and omissions, HUD insured hundreds of loans approved by Regions that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“FHA-approved lenders have a responsibility to ensure that FHA-insured loans meet our standards, which are in place for the protection of FHA’s insurance fund,” said Helen Kanovsky, HUD’s General Counsel. “The agreement we announce today should serve as a reminder that sustainable homeownership starts with compliance with underwriting requirements.”
“This settlement resolves allegations that a financial institution, trusted to comply with FHA loan origination, underwriting and quality control requirements, failed to meet its obligations as a participant in the FHA program,” said Inspector General David A. Montoya for HUD. “The bank’s actions impact the solvency of the FHA insurance fund. It is through the combined efforts of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, HUD and the Office of Inspector General that we continue to ensure the integrity of this important FHA program to American homeowners.”
The settlement was the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida. It was handled by Assistant U.S. Attorneys Jason Mehta and Kyle Cohen of the Middle District of Florida, and Trial Attorney Michael D. Kass of the Justice Department’s Civil Division. The claims asserted against Regions are allegations only, and there has been no determination of liability.
Postal Employee Pleads Guilty to Stealing Public MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Rochester, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jennifer Passeck, 26, pleaded guilty to theft of public money before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant was a Relief Postmaster in the Sodus Point, NY post office between March 2013 and March 2015. During that time, Passeck stole stamp revenues, post office box rental payments, and issued money orders to herself, all totaling $19,504.
The plea is the culmination of an investigation on the part of Inspectors of the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for November 3, 2016 at 12:30 p.m. before Judge Wolford.
Pocatello Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOISE − Corry Blackmoon Bischoff, 39, of Pocatello, Idaho, pleaded guilty today in United States District Court for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Bischoff was indicted by a federal grand jury on March 8, 2016.
According to the plea agreement, Bischoff was convicted of rape in Madison County, Idaho in 1997. As a result of the conviction, Bischoff was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Bischoff last registered as a sex offender in Idaho in August of 2013. In September of 2013, the State of Idaho Commissions of Pardons and Parole issued a warrant for Bischoff’s arrest for violating his parole conditions. On January 4, 2016, officers with the Vancouver, Washington police arrested Bischoff on the State of Idaho parole warrant. Bischoff had not updated his registry in Idaho prior to moving to Washington, and had not registered as a sex offender in the State of Washington.
The charge of failure to register as a sex offender is punishable by up to ten years in prison, a maximum fine of $250,000.00, and five years up to lifetime supervised release.
Sentencing is scheduled for December 6, 2016 before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the United States Marshals Service (USMS), and the Idaho Department of Corrections, Bureau of Probation and Parole.
Bischoff was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Philadelphia Woman Charged with Loan FraudRead the Press Release
United States Attorney Zane David Memeger announced that Tanika V. Little, 37, of Philadelphia, was charged in an Indictment[1] with loan application fraud. According to the indictment, at a time when Little was under the supervision of the United States District Court for the Eastern District of Pennsylvania and awaiting sentencing, Little allegedly submitted a loan application to PNC Bank, N.A. and falsely represented that she was employed by Southeastern Pennsylvania Transportation Authority (SEPTA) and also provided PNC Bank with fraudulent pay stubs in order to influence the actions of the bank upon a $50,400 cash-out refinance loan.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, five years’ supervised release, a $1,000,000 fine, and a $100 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Anita Eve.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Panamanian National Pleads Guilty to False Statement in a Passport Application and Reentry of Removed AlienRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAROL JOHN, a/k/a INES ISABEL RUIZ, a/k/a CAROL ATKINS, age 56, a citizen of Panama, pled guilty today to a two-count Indictment charging her with making a false statement in an application for a U.S. passport and reentry of a removed alien.
According to the Indictment, on or about March 4, 2016, JOHN submitted a false passport application using a fraudulent birth certificate. Further, JOHN was found in the United States after having been officially deported and removed on or about May 24, 1996, after having been convicted of a felony drug offense.
JOHN faces maximum term of imprisonment of ten years for Count 1 and twenty years for Court 2, respectively. JOHN also faces maximum fines of up to $250,000, five years supervised release after imprisonment per count, and a $100 special assessment per count. U.S. District Judge Ivan L.R. Lemelle set sentencing for December 7, 2016.
U.S. Attorney Polite praised the work of the United States Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Oregon Pastor Indicted for Producing and Transporting Child PornographyRead the Press Release
An Oregon man made his initial appearance in Denver for production and transportation of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Bob Troyer of the District of Colorado.
James Parkhurst, 56, of Portland, Oregon, was arrested in Oregon on Aug. 2, 2016, on a federal criminal complaint charging one count of production of child pornography. He was indicted by a federal grand jury sitting in the District of Colorado on Aug. 23, 2016, and appeared yesterday in U.S. District Court in Denver.
According to the indictment, Parkhurst, a pastor, produced images of child pornography in August 2010 and then transported those images using a means of interstate commerce.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service investigated this case with assistance from investigative analysts in the Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit. The U.S. Attorney’s Office of the District of Oregon also provided assistance in the investigation. CEOS Trial Attorney Herbrina D. Sanders and Assistant U.S. Attorney Alecia L. Riewerts of the District of Colorado are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Church Executive Director of Camp and Retreat Ministries Indicted in Colorado for Producing and Transporting Child PornographyRead the Press Release
DENVER – An Oregon man made his initial appearance in Denver for production and transportation of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Bob Troyer of the District of Colorado.
James Parkhurst, 56, of Portland, Oregon, was arrested in Oregon on Aug. 2, 2016, on a federal criminal complaint charging one count of production of child pornography. He was indicted by a federal grand jury sitting in the District of Colorado on Aug. 23, 2016, and appeared yesterday in U.S. District Court in Denver.
According to the indictment, Parkhurst, a pastor, produced images of child pornography in August 2010 and then transported those images using a means of interstate commerce.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service investigated this case with assistance from investigative analysts in the Child Exploitation and Obscenity Section’s (CEOS) High Technology Investigative Unit. The U.S. Attorney’s Office of the District of Oregon also provided assistance in the investigation. CEOS Trial Attorney Herbrina D. Sanders and Assistant U.S. Attorney Alecia L. Riewerts of the District of Colorado are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Niagara Falls Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Daniel Hull, 44 of Niagara Falls, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on February 28, 2016, the National Center for Missing and Exploited Children (NCMEC) received a tip involving the uploading of 11 images depicting child pornography to the internet. The images were ultimately traced to the defendant, who was identified as being a registered sex offender currently under the supervision of the Niagara County Probation Office for a previous conviction.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained. Hull is due back in court on December 12, 2016, at 10:30 a.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge; the Niagara County Probation Department; and the Niagara County Sheriff’s Office, under the direction of James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Newark Man Sentenced on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon West, 40 of Newark, NY, who was convicted of possession of child pornography involving a prepubescent minor following a prior conviction for sexual abuse of a minor, was sentenced to 216 months by U.S. District Court Judge Elizabeth A. Wolford. West was also sentenced to 25 years of supervised release.“This Office will continue to utilize federal resources to protect the public from those who would harm our children,” said U.S. Attorney Hochul.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in 2005, the defendant was convicted in Wayne County, NY of Sexual Abuse, First Degree involving sexual contact he had with an eight-year-old girl. West was sentenced to probation for that offense. In 2014, the defendant became the subject of a new investigation by the New York State Police related to sexual abuse allegations involving a five-year-old girl.During that same time, Special Agents with Homeland Security Investigations received information linking West to online images of a young child. During that investigation, agents learned that West had recently been arrested and sentenced to six months in prison in the Wayne County jail for failure to pay child support. At the time of that arrest, West was in possession of an LG Cellular phone, which agents seized and searched pursuant to a federal warrant. During the forensic examination of West’s phone, HSI recovered sexually explicit photos of the same five-year-old girl that was the victim in the case being investigated by the New York State Police.
In addition to those photos, agents recovered approximately 1,500 images of children, including many prepubescent girls and boys, being raped and subjected to sadistic and masochistic sexual conduct.
The sentence was the culmination of an investigation on the part of Special Agents with Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and Investigators and Troopers with the New York State Police, under the direction of Major Craig Hanesworth.
New York Man Sentenced to One Year in Prison for Role in Sales of Illegally Diverted Prescription DrugsRead the Press Release
CINCINNATI – Albert D. Nassar, 59, of New York City, was sentenced to 12 months in prison for conspiring to commit mail and wire fraud in connection with the illegal sale of prescription drugs bearing false pedigrees that misrepresented the sources and origins of the drugs.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Antoinette Henry, Special Agent in Charge, U.S. Food and Drug Administration Office of Criminal Investigations, and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentence imposed today by U.S. District Judge Sandra S. Beckwith.
Nassar pleaded guilty on April 21, 2015. According to court documents, Nassar, the owner of Worldwide Management Consultants, Inc., participated with others in a scheme between 2007 and 2009 to obtain prescription drugs from various illicit or unknown sources - known as diverted drugs - and then resell the drugs to unwitting wholesale drug companies using false pedigrees. The false pedigrees showed legitimate authorized distributors as the source of the drugs, when, the drugs were obtained outside lawful channels.
Other conspirators included Michael Schoenwald, 71, a Hollywood, Florida-based urologist, and Gregory Pfizenmayer, 46, the owner of G & D Enterprises in Foley, Alabama.
As part of the conspiracy, Schoenwald obtained Lupron, an injectable drug used to treat prostate cancer, from the manufacturer at discounted rates due to his status as a health care provider. Federal law prohibits the resale of such drugs by health care providers.
Nassar directed Schoenwald to ship the Lupron to Pfizenmayer, who in turn sold the drugs to wholesale drug companies, providing false pedigrees that concealed the illicit source of the drugs.
Other prescription drugs allegedly involved in the conspiracy included Procrit, used to treat anemia in patients with kidney failure, and Neulasta, used to prevent infections in patients undergoing chemotherapy. The drugs were shipped with the false pedigrees by mail to drug wholesalers in New Jersey, Mississippi and Ohio, and each conspirator received payments including by wire transfer.
Pfizenmayer pleaded guilty on February 2, 2011 and Schoenwald pleaded guilty on February 16, 2012. Both pleaded guilty to one count of conspiracy and received sentences of one day in prison.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FDA and Postal Inspectors, as well as Assistant United States Attorney Christy Muncy, who represented the United States in this case.
New Jersey Woman Charged with Wire FraudRead the Press Release
Tracey Moses, 47, of Sicklerville, New Jersey was charged in an indictment1 returned today with ten counts of wire fraud, announced United States Attorney Zane David Memeger. According to the indictment, from August 2010 until early December 2013, when she was fired for suspected embezzlement, defendant Moses worked as an accounting and payroll administrator for a market planning and research firm in Philadelphia. The indictment charges that from April 2011 until October 2013, defendant Moses schemed to defraud that company, identified in the indictment as Company A, by writing herself unauthorized electronic checks drawn on three of Company A’s bank accounts, in the total amount of approximately $117,000. The indictment charges further that defendant Moses also schemed to defraud the Commonwealth of Pennsylvania Department of Labor by applying for and obtaining unemployment benefits while she was actually working for Company A and her next two employers, identified in the indictment as Company B and Company C.
If convicted, defendant Moses faces a substantial prison term, restitution and fines, and is subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Labor - Office of the Inspector General, with assistance from the Pennsylvania Department of Labor and Industry Internal Audit Division, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
1 An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nevada Woman Sentenced for Stealing Deceased Mother's Social Security BenefitsRead the Press Release
PORTLAND, Ore. – On Monday, September 12, 2016, the daughter of a deceased Social Security beneficiary was sentenced to probation for stealing more than $48,000 of benefits mistakenly paid to her mother following her death. Michelle Lee Cox, 43, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Michael H. Simon on Monday to five years’ probation.
According to court records, Cox’s mother was receiving Social Security benefits at the time of her death in 2009, at the age of 70. The mother’s death was properly recorded in government records, but Treasury checks continued to be mailed each month to the residence the mother shared with Cox. Cox deposited the checks to an account she had jointly owned with her mother and converted the funds to her own use. When Cox moved to Nevada in 2013, she directed the Social Security Administration (SSA) to electronically deposit the benefits to the bank account.
Among Cox’s conditions of probation were several financial conditions and the requirement that Cox participate in a mental health treatment program approved by her probation officer. Cox was also ordered to pay full restitution to the SSA in the amount of $48,700, and to perform 200 hours of community service.
The case was investigated by the SSA Office of the Inspector General, Office of Investigations, and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the SSA Seattle Region, SSA Office of the General Counsel, and the U.S. Attorney’s Office in Portland, Oregon.
Nashua Man Pleads Guilty to Armed Bank RobberyRead the Press Release
CONCORD, N.H. – Daniel Quinn, 48, of Nashua, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to armed bank robbery, reports United States Attorney Emily Gray Rice.
Shortly before noon on June 25, 2015, Daniel Quinn entered the St. Mary’s Bank at 3 Winnhaven Drive in Hudson, New Hampshire wearing a black hat, a mask and gloves, and carrying a knife in his left hand while keeping a brown leather satchel over his left shoulder hanging by his waist on the right side in which it appeared he had a handgun. Quinn forced all of the patrons and employees, other than those behind the teller counters, to line up against a wall while he robbed one of the tellers using the knife. After getting the money from the teller, Quinn took one of the bank employees hostage in order to make his escape. Shortly after Quinn and the hostage left the bank the hostage was able to get away from Quinn and ran back into the bank, while Quinn ran in the opposite direction. Fortunately, the hostage was not physically harmed.
The Hudson Police Department responded to the bank within minutes of the robbery and a police canine, which quickly picked up Quinn’s scent, led police to a residential neighborhood close to the bank where Quinn was found hiding in the side yard of a home. Quinn was taken into custody without incident and the leather satchel, which was found within a few feet of Quinn partially covered with leaves, was seized. Inside the satchel, the money from the robbery, the knife, the gloves, the mask and other things related to the robbery were recovered. What had been thought to be a handgun, but which turned out to be a BB gun, was also found in the satchel.
Quinn, who is facing a maximum prison sentence of 25 years and a fine of up to $250,000, will be sentenced on January 6, 2017 at 10:00 AM. Quinn has been in custody since his arrest on the day of the robbery and will remain in custody until his sentencing hearing.
This case was investigated by the FBI and the Hudson, NH Police Department and is being prosecuted by Assistant United States Attorney Arnold H. Huftalen.
Moundsville woman pleads guilty to embezzlementRead the Press Release
WHEELING, WEST VIRGINIA – Shawna Tolpa, 48, of Moundsville, West Virginia, pled guilty in federal court today to embezzling over $52,000 from United Bank in Marshall County, United States Attorney William J. Ihlenfeld, II, announced.
Tolpa pled guilty today to one count of “Bank Theft.” She faces up to thirty years in prison and a fine of up to $1,000,000.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The investigation was led by the Federal Bureau of Investigation.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Morgantown man pleads guilty to failure to pay taxesRead the Press Release
MORGANTOWN, WEST VIRGINIA – Brian E. Dawson, 29, of Morgantown, West Virginia, pled guilty in federal court today to failing to pay $123,166.50 in taxes for his Morgantown business, United States Attorney William J. Ihlenfeld, II, announced.
Dawson pled guilty today to one count of “Willful Failure to Collect and Pay Over Taxes for 2011 Tax Year.” He faces up to five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Robert H. McWilliams prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Methamphetamine Trafficker Sentenced to More than 21 YearsRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees sentenced yesterday Eduardo Trejo-Munoz, a/k/a “Lalo,” 24, of Hickory, N.C., to 262 months in prison and five years of supervised release for trafficking high purity crystal methamphetamine worth over $5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In November 2015, Trejo-Munoz was convicted of five charges following a two-day federal trial, including conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Sheriff Coy Reid of the Catawba County Sheriff’s Office; Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office; and Chief Thurman Whisnant of the Hickory Police Department.
According to filed court documents, the sentencing hearing and evidence presented at trial, from in or about 2013 through September 2014 in Catawba and Mecklenburg counties and elsewhere, Trejo-Munoz trafficked more than 50 kilograms of near-pure crystal methamphetamine, which constitutes approximately 500,000 dosage units, with a street value of more than $5 million. Evidence presented at trial established that, over the course of the investigation, law enforcement purchased 133 grams of methamphetamine from Trejo-Munoz. According to court records, law enforcement also seized another 54 grams of methamphetamine from the defendant, as well as drug paraphernalia and a handgun with laser site from his residence.
This prosecution stems from investigation of the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 55 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Trejo-Munoz has been in federal custody since September 2014 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the DEA, HSI, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office and Hickory Police Department, the North Carolina State Bureau of Investigation, and the North Carolina State Highway Patrol.The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Mason City Dental Office Manager Pleads Guilty to Stealing Nearly $500,000 from Two DentistsRead the Press Release
An office manager of a small dental practice in Mason City, Iowa who stole nearly $500,000 from her employer over the course of almost a decade pled guilty today in federal court in Cedar Rapids.
Pamela Harris f/k/a “Pamela Mahoney,” 58, from Mason City, Iowa, was convicted of Wire Fraud. In a plea agreement, Harris admitted she was a trusted employee of the dental practice for approximately 21 years, from about 1993 until 2014. During such time, she had sole responsibility for the practice’s day-to-day finances. She was fired in 2014 after her fraud was discovered.
The two dentists that formed the practice authorized the creation of rubber stamps bearing their signatures to pay for legitimate expenses. However, the dentists always required Harris to obtain authorization before using the rubber stamps on a check to pay a bill. At no time did the dentists authorize Harris to create checks and use their rubber signature stamps to pay for her personal expenses without their knowledge.
Beginning no later than July 2005, and continuing through about May 2014, Harris devised and executed a scheme to defraud the dentists and their practice. She used the dentists’ rubber signature stamps without their authorization to create forged checks drawn on the practice’s bank account. By means of these forged checks, Harris caused the practice’s bank to make electronic funds transfers by wire directly into her bank account or into the accounts of third parties, including credit card companies, to pay for personal expenses that she or her dependents had incurred. It was also part of Harris’s scheme to maintain and use various credit card accounts in the name of the dental practice to pay for personal expenses without the authorization of the dentists. From time to time, Harris attempted to disguise the illegitimate payments by causing checks to be drawn close in time and in amounts identical to the legitimate rent expenses of the LLC.
Harris admitted that, in May 2012, she forged a check bearing the signatures of the dentists to pay for a $4,000 white plastic fence at her home. In total, Harris admitted to stealing at least $474,915.54 from the dentists and their practice. Her actions caused the dentists such substantial financial hardship that they needed to take out multiple lines of credit at local financial institutions to keep their dental practice in business. Harris has agreed to make full restitution to her victims, as well as forfeit and abandon the proceeds of her crime.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Harris remains free on certain conditions of release pending sentencing. Harris faces a possible maximum sentence of 20 years’ imprisonment without the possibility of parole, a maximum fine of twice gross gain or gross loss resulting from the offense, or $250,000, whichever is greater, a $100 in special assessment, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-3029-LRR.
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Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
Defendant Admitted to Shooting and Killing an Individual Believed to Be a Rival Gang Member
A Hyattsville, Maryland, man pleaded guilty today, just before trial, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Luis Guzman-Ventura, aka Casper, 22, pleaded guilty before Senior U.S. District Judge Roger W. Titus of the District of Maryland to conspiracy to participate in a racketeering enterprise. He is scheduled to be sentenced on Jan. 4, 2017.
MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Prince George’s County, Montgomery County and Frederick County, Maryland. In pleading guilty, Guzman-Ventura admitted that he was a member of MS-13 and and associate of the MS-13 Weedons Clique.
According to his plea agreement, from at least 2010 through 2013, Guzman-Ventura conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation.
Specifically, Guzman-Ventura admitted that on Dec. 5, 2012, he was the front-seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez, and Guzman-Ventura shot at three individuals believed to be rival gang members, killing one and wounding another. After the shooting, Rodriguez-Nunez and Guzman-Ventura fled the scene to avoid being identified, according to their plea agreements.
Rodriguez-Nunez, aka Killer, 27, also of Hyattsville, previously pleaded guilty to being the driver in this drive-by shooting and is scheduled to be sentenced on Jan. 9, 2017. Guzman-Ventura and Rodriguez-Nunez remain detained pending sentencing.
In total, 10 defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting this case.
Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –Luis Guzman-Ventura, a/k/a “Casper,” age 22, of Hyattsville, Maryland, pleaded today, just before the first day of trial, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement and court documents, from at least 2010 through 2013, Guzman-Ventura conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. During that time, Guzman-Ventura was a member and associate of MS-13 and of the Weedons Clique of MS-13.
Specifically, Guzman-Ventura admitted that on December 5, 2012, he was the front seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez. They were driving in the Lewisdale area of Prince George’s County, looking for rival gang members. Guzman-Ventura admitted that he had a hand gun and shot at three individuals believed to be rival gang members, killing one and wounding another. After the shooting, Rodriguez-Nunez drove away from the scene. When police stopped the vehicle a short time later, Guzman-Ventura got out of the vehicle and ran away.
Guzman-Ventura and the government have agreed that if the Court accepts the plea agreement, Guzman-Ventura will be sentenced to between 312 and 360 months in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for January 4, 2017. Guzman-Ventura remains detained pending sentencing.
Jose Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, previously pleaded guilty to being the driver in this drive-by shooting and is expected to be sentenced to between 216 and 240 months in prison at his sentencing, scheduled on January 9, 2017, at 10:00 a.m. Rodriguez-Nunez also remains detained.
In addition, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Man from Mexico arrested in St. Mary Parish pleads guilty to reentering the U.S. illegallyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Mexican citizen pleaded guilty last week to a charge that he reentered the United States illegally four times.
Miguel Rosales-Sanchez, 45, of Mexico, pleaded guilty Wednesday before U.S. Magistrate Judge Patrick Hanna to one count of illegal reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Rosales-Sanchez was arrested in St. Mary Parish on February 7, 2016. He was previously removed from the United States in 1999, 2004, 2006 and 2010.
Rosales-Sanchez faces two years in prison, one year of supervised release and a $250,000 fine. A sentencing date of December 8, 2016 was set.
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Liverpool Man Sentenced to 235 Years on Child Exploitation ConvictionsRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp, age 40, of Liverpool, New York, was sentenced today to serve 235 years in prison in connection with his convictions for 22 felony offenses, including the sexual exploitation of an infant and a toddler, distributing images of child exploitation, and the possession of hundreds of images and videos of child pornography obtained from the Internet.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
U.S. Attorney Richard S. Hartunian stated: “For over a decade, Kopp sexually exploited young children, including an infant and a toddler. His conduct was so depraved that it is literally off the sentencing chart – higher than the offense level that sets the guideline imprisonment term at life. The 235-year sentence imposed today will ensure that this dangerous predator with an insatiable appetite for sexual abuse will never exploit another child. We owe that to the victims in this case and to all of the most vulnerable and defenseless among us.”
FBI Special Agent in Charge Andrew W. Vale stated: “The severity of today’s sentencing should illustrate the utterly horrific nature of Mr. Kopp’s crimes. The damage and pain he inflicted is immeasurable. Thanks to the joint efforts of law enforcement, our community is safe from a truly dangerous predator.”
The 235-year sentence imposed today by Chief United States District Judge Glenn T. Suddaby reflects a 30-year sentence on the conspiracy count, 15-year consecutive sentences on each of the 10 production counts, 5-year consecutive sentences on each of the 9 distribution counts, and 5-year sentences on each of the 2 possession counts. If ever released, Kopp will be on supervised release for life, and will be required to register as a sex offender.
Emily Oberst was indicted along with Kopp, and her trial is scheduled for November 7, 2016. The charges against her are merely accusations and she is presumed innocent.
As part of his guilty plea on May 20, 2016, Kopp admitted that he and another person conspired to sexually exploit an infant to produce visual depictions of the abuse. In addition to the sexual exploitation of the infant, Kopp admitted that he sexually exploited a male toddler. Kopp admitted that he sexually exploited the two children 10 separate times so that he could produce images and videos of that sexual exploitation. He also pled guilty to 9 counts related to his distribution of the images that he had produced and 2 counts related to his possession of child pornography that he downloaded from the Internet.
While Kopp’s convictions stemmed from his crimes against 2 specific children, the investigation uncovered his exploitation of 8 children over the past 16 years.
This case was investigated by the Albany Division of the FBI (Syracuse Resident Agency), the New York State Police, and the Metropolitan Police Department-Federal Bureau of Investigation Child Exploitation Task Force (FBI Washington Field Office), and was prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Lewiston Men Convicted of Robbery and Firearms ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Kourtney Williams, 26, and Victor Lara Jr, 33, both of Lewiston, Maine were convicted yesterday following a jury trial in U.S. District Court of robbery conspiracy and using a firearm during a crime of violence. Williams was also convicted of being a felon in possession of a firearm. Both were found not guilty of conspiracy to possess with intent to distribute oxycodone.
Court records and trial evidence revealed that on August 2, 2014, at about 11:00 p.m., the defendants and Ismael Douglas broke into a residence on the Garfield Road in Minot, Maine intending to steal drugs and money from its occupants. Williams was armed with a handgun and Lara was armed with a crowbar.
The defendants face up to 20 years in prison on the robbery charge, an additional term of seven years to life on the use of a firearm charge and a $250,000 fine on each count. In addition, Williams faces an enhanced sentence as an armed career criminal of 15 years to life on the firearm possession charge, and a $250,000 fine. They will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. On August 11, 2016, Douglas pled guilty to robbery conspiracy and using a firearm during a crime of violence and awaits sentencing.
The investigation was conducted by the Maine State Police, the Lewiston and Auburn Police Departments, the U.S. Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Leader of Ring that Stole Dozens of Firearms during Burglaries of Southern California Gun Shops Pleads Guilty to Federal ChargesRead the Press Release
SANTA ANA, California – A Los Angeles man has pleaded guilty to federal charges related to a series of burglaries in which well over 100 firearms were stolen from businesses operated by federal firearms licensees.
Eddie Lee Harris Jr., 27, who lives in the Harvard Park district of Los Angeles, pleaded guilty yesterday to one count of conspiracy and one count of theft of firearms from a federally licensed firearms dealer. When he is sentenced by United States District Judge Cormac J. Carney on January 30, Harris faces a statutory maximum sentence of 15 years in federal prison.
Over a 2½-month period in late 2015, Harris conspired with several others to steal firearms from gun-related businesses in a series of burglaries and attempted burglaries in Orange, Riverside and Los Angeles counties, according to a plea agreement filed in United States District Court.
Also yesterday, another Los Angeles man who participated in the burglaries was sentenced to 18 months in federal prison. Faizon Azante Donnie, 20, who also resides in the Harvard Park district of Los Angeles, pleaded on June 6 to one count of theft of firearms from a federal firearms licensee (FFL) and admitted that he participated in two of the burglaries.
“Participants in this ring that targeted firearms dealers directly contributed to an increase in the number of illegal firearms available on the black market and, therefore, indirectly contributed to an increase in violent crime in our community,” said United States Attorney Eileen M. Decker. “This case is the latest example of our commitment to reducing violent crime by working with our federal and local law enforcement partners to curtail the illegal weapons trade and firearms theft.”
This case stems from a series of burglaries in which the thieves broke into gun stores in the early morning hours by breaking glass windows or doors to the businesses. Once inside, the burglars quickly stole handguns, rifles, shotguns and silencers, among other items. The burglaries often lasted less than three minutes. Following the thefts, those involved gathered at South Los Angeles residence, where the guns were divided up. During Donnie’s sentencing hearing, Judge Carney described the conduct as “mayhem.”
Donnie became the fourth person sentenced in relation to the spree that led to the theft of 128 firearms. Members of the conspiracy targeted seven firearms-related businesses between August 29 and November 7 last year, including Orange County Firearms and Rifle Gear Company in Fountain Valley, SureFire Institute in Yorba Linda, FMK Firearms in Placentia, Warrior One and American Pacific Rifleworks in Riverside, and ExaTactical Firearms in La Puente.
The three defendants previously sentenced by Judge Carney last month are:
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Kenneth Terell Mullen, 21, of the Mid-City section Los Angeles, who was sentenced to 57 months in federal prison;
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Davell Dejon Mena, 19, of Watts, who was sentenced to 30 months in federal prison; and
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Keon Mena, (Davell Mena’s cousin), 19, of the Florence district of Los Angeles, who was sentenced to 18 months in federal prison.
A sixth defendant in the case – Brittani Nicole Collins – pleaded guilty in January and is pending sentencing.
Another defendant, Derrick Smith, 27, of the Vermont-Slauson section of Los Angeles, is expected to plead guilty later this week.
The final defendant in the case, Teophelus Lee Usher, is currently at large and is wanted by law enforcement. The 20-year-old Usher is a fugitive after fleeing earlier this year from his Exposition Park residence. Usher had been under house arrest after being granted bond following his arrest in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“This burglary ring caused significant damage to local small businesses and caused a substantial threat to the public and law enforcement as stolen firearms all too often wind up in the hands of violent offenders in the commission of crimes,” said ATF Special Agent in Charge Eric D. Harden. “Members of the public should contact their local police department or ATF if they have any information on fugitive Teophelus Usher.”
Anyone with information about Usher is urged to contact the ATF at 1-800-ATF-GUNS.
The case is being prosecuted by Assistant United States Attorney Scott D. Tenley of the Santa Ana Branch Office.
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Kuna Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BOISE – James Brett John, 30, of Kuna, Idaho, pleaded guilty today to possession of methamphetamine with intent to distribute, U.S. Attorney Wendy J. Olson announced. John was indicted by a federal grand jury on May 10, 2016.
According to information presented in court, Boise police officers stopped a vehicle in Ada County, Idaho on May 4, 2016. John, who was a passenger in the vehicle, was arrested on a warrant for violating his parole. Police officers found a bag in John’s pants that contained over an ounce of methamphetamine, baggies, and a digital scale. Officers also located a glove in the vehicle that contained additional methamphetamine, prescription pain pills, and a synthetic drug known as “a-PVP” or “bath salts.” John admitted to police officers that he intended to sell the methamphetamine.
The crime of possession of methamphetamine with intent to distribute is punishable by a minimum of five years and up to forty years in prison, a maximum fine of $5,000,000 and at least four years of supervised release. Sentencing is set for November 23, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case is the result of a joint investigation by the Boise Police Department and the Organized Crime and Drug Enforcement Task Force (OCDETF), which includes 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.
Kankakee Area Felon Sentenced to Seven Years in Prison for Weapons ChargeRead the Press Release
Urbana, Ill. - Ladonta A. Tucker, 24, of the 200 block of North Greenwood Ave., Kankakee, Ill., has been ordered to serve 84 months in federal prison for illegal possession of a firearm by a felon, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Tucker was sentenced on Sept. 12. He has been in the custody of the U.S. Marshals Service since his arrest in December 2015. On April 28, 2016, Tucker entered a plea of guilty to the charge.
According to court documents, around 10:00 p.m. on Dec. 1, 2015, officers with the Bradley Police Department found Tucker and three other individuals in a car with its engine running on Blain Ave., in Bradley, Ill. After smelling the strong odor of marijuana coming from the car, officers searched the car and found in the trunk a fully loaded Taurus, Titanium, .45 caliber five-shot Colt revolver and a loaded Hi-Point, Model JCP, .40 caliber S&W semi-automatic pistol. The revolver had previously been reported stolen and its serial numbers had been obliterated. During a search of Tucker, officers found a baggie containing marijuana, cash, and a black digital scale. Tucker admitted the guns were his and he bought them off the street. At the time of the offense, Tucker had prior felony convictions for aggravated criminal sexual abuse and possession of a controlled substance, both in Kankakee County.
The case is the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department Announces over $13 Million in Grants to Improve Adult Drug Courts Across 41 JurisdictionsRead the Press Release
The Department of Justice today announced awards totaling more than $13 million to 41 state, local and tribal jurisdictions and courts to help improve drug court programs through evidence-based principles and practices.
The awards, funded under the 2016 Adult Drug Court Discretionary Grant Program, provide government court systems financial and technical assistance to develop and implement programs for substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services for substance abusers.
“Adult drug court” is a court program managed by a multidisciplinary team that responds to the offenses and treatment needs of participants who have a drug addiction.
“Drug court is an effective and cost-efficient alternative to incarceration that encourages accountability, promotes rehabilitation, and gives individuals with a history of substance abuse a meaningful second chance at life,” said Attorney General Loretta E. Lynch. “With these grants, the Department of Justice is deepening its investment in these vital programs, and we are reaffirming our vision of a criminal justice system that is not just an instrument of punishment, but also an agent of positive change.”
Adult Drug Courts enable a participant’s likelihood of successful rehabilitation through early, continuous, and intense judicially-supervised treatment; mandatory periodic drug testing; community supervision; appropriate sanctions and other services.
Additional information about the Drug Court Program is available at http://go.usa.gov/xZHrY.
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.
Justice Department Announces $17.5 Million in Grants to Support Correctional Reform, Enhance Public SafetyRead the Press Release
The Department of Justice today announced awards totaling more than $17.5 million to state justice agencies and technical assistance partners to improve public safety and more effectively manage correctional populations and costs.
This year’s awards include $5.85 million to four state agencies (Nebraska, Ohio, Oregon, and South Dakota) and two organizations that will assist these agencies: the Center for Effective Public Policy, Inc., and the University of Cincinnati. The remaining $11.6 million is being awarded to two non-government partner organizations—the Council of State Governments Justice Center and the Crime and Justice Institute—to provide technical assistance to the 20 states currently receiving support with their data analysis, policy development, and implementation efforts.
“Correctional reform is a vital part of our efforts to make our criminal justice system more efficient, more effective, and more fair,” said Attorney General Loretta E. Lynch. “These awards advance that goal by reducing states’ prison populations and encouraging them to use proven strategies in their approach to criminal justice – changes that will not only ease public finances, but also improve public safety.”
The Justice Reinvestment Initiative provides participating states with a means for all three state government branches and other stakeholders to work together and implement results-oriented, data-driven justice systems reform. This funding also enable state leaders, with the input of stakeholders, to examine their states’ unique sentencing and corrections systems, investments and outcomes and make better-informed decisions about treatment, programs and prison/jail resources. Savings from these reforms are reinvested in high-performing public safety strategies. To date, 30 states have used the Justice Reinvestment Initiative to take a comprehensive look at their criminal justice systems.
The site-based awards, funded under the JRI: Maximizing State Reforms Program, supports states that have already adopted justice reinvestment policies to implement one or more strategies to further the goals of a state’s justice reinvestment reform efforts, including the commitment to data-driven decision making and investment in evidence-based practices and programs.
For more information about the Justice Reinvestment Initiative visit http://go.usa.gov/xZsqe.
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.
Johnstown Woman Charged in Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. was indicted today by a federal grand jury in Johnstown on charges of access device fraud, United States Attorney David J. Hickton announced today.
The indictment named Deanna Brandon, 39, of Johnstown, Pa., as the sole defendant.
According to the indictment presented to the court, from on or about Feb. 3, 2015, to on or about Feb. 9, 2015, Brandon knowingly, with intent to defraud, used an unauthorized device, namely a credit card, to obtain various household and electronic items, aggregating more than $1,000.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Charged with Violating Federal Drug LawsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The four-count indictment named Charles A. Meyer, 35, of Johnstown, Pa.
According to the indictment presented to the court, on Oct. 20, 2015, within 1,000 feet of a playground, and on Dec. 22, 2015, and Jan. 22, 2016, Meyer distributed less than 100 grams of heroin on each of those dates. Also on Jan. 22, 2016, Meyer possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum sentence of 100 years in prison and a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Meyer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment: Accounting Technician Embezzled Kickapoo Tribal FundsRead the Press Release
WICHITA, KAN. – A former accounting technician for the Kickapoo Tribe of Kansas was indicted Tuesday on a federal charge of embezzling tribal funds, Acting U.S. Attorney Tom Beall said today.
Heath A. Hopkins, 45, Horton, Kan., is charged with one count of theft from an Indian tribal organization. The indictment alleges that while working for the Kickapoo Tribe Housing Authority Hopkins wrote unauthorized checks to himself on the tribe’s checking account.
If convicted, he faces up to five years in federal prison. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Mykell A. Mannie, 20, Wichita, Kan., and Tessa M. Smith, 21, Wichita, Kan., are charged with distribution of heroin (count one), possession of heroin with intent to distribute (count five), and unlawful possession of a firearm in furtherance of a drug trafficking crime (count six). In addition, Mannie is charged with distribution of heroin (counts two and three), and carrying a firearm in relation to drug trafficking (count four). The crimes are alleged to have occurred in May 2016 in Wichita, Kan.
Upon convictions, the crimes carry the following penalties:
Counts 1, 2, 3, 5: Not less than 10 years and a dine up to $10 million.
Counts 4 and 6: Not less than five years and a fine up to $250,000.
The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Richard A. Lara, 47, Wichita, Kan., is charged with five counts of bank fraud and 12 counts of misapplication of bank funds. The crimes are alleged to have occurred from 2009 to 2014 in Sumner County, Kan., while Lara was an employee of Security State Bank of Wellington.
The indictment alleges Lara received unemployment benefits to which he was not entitled.
If convicted, he faces up to 30 years and a fine up to $1 million on each of the counts. The FBI investigated. Assistant U./S. Attorney Welch is prosecuting.
Kortea Gullick, 33, Wichita, Kan., is charged with one count of unlawful possession of ammunition following a felony conviction, and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred Aug. 19, 2016, in Sedgwick County, Kan.
If convicted he faces up to 10 years and a fine up to $250,000 on the firearm charge, and up to five years and a fine up to $250,000 on the other count. The FBI Safe Streets Task Force investigated. Assistant U.S. Attorney Lanny Welch is investigating.
Shawn Eugene Dodson, 28, Grand Island, Neb., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred Aug. 12, 2016, in Wichita, Kan.,
If convicted, he faces up to 20 years a fine up to $1 million. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Sabino Hernandez, Jr., 26. Paramount, Calif., is charged with possession with intent to distribute cocaine. The crime is alleged to have occurred Sept. 12, 2016, in Ellis County, Kan.
If convicted, he faces not less than 10 years and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment filed on bank robberies in Youngstown and BoardmanRead the Press Release
A federal grand jury returned a two-count indictment charging Rickie Gonzalez, 51, of Campbell, and Michael Zarlingo, 55, of Struthers, with bank robbery.
Count 1 of the indictment alleges that on or about April 18, 2016, Rickie Gonzalez robbed a Huntington Bank in Boardman.
Count 2 of the indictment alleges that on or about April 28, 2016, Michael Zarlingo and Gonzalez robbed a PNC Bank in Youngstown.
If convicted, the defendant’s sentence will be determined by the court after review of 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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the FBI Violent Crimes Task Force, the Youngstown Police Department, the Boardman Police Department and the Hubbard Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Houston Man Convicted of Sex TraffickingRead the Press Release
HOUSTON – A 28-year-old Houston man has entered a plea of guilty to two counts of sex trafficking by the use of force, fraud and coercion, announced U.S. Attorney Kenneth Magidson.
Roger Maldonado came to the attention of law enforcement after law enforcement found a female at a hospital whom Maldonado had physically assaulted in August 2015. The victim had suffered a forehead laceration, upper and lower eyelid contusions, neck abrasions, a finger contusion and abdominal trauma. At that time, the female advised law enforcement that Maldonado was her boyfriend and that he had assaulted her.
In September 2015, law enforcement found a second female whom Maldonado had also assaulted. The investigation revealed that Maldonado had been trafficking these two victims on Backpage.com as well as at Pink Spa - a sexually-oriented business located in Houston known by law enforcement for prostitution activities.
Through their investigation, law enforcement discovered Maldonado had been taking photographs of these victims and posting advertisements in order to solicit business for these victims. Maldonado would set up the dates for the victims and transport the women in order for them to engage in commercial sex acts. The victims would then turn a portion of the money over to the defendant. Ultimately, Maldonado used force, threats of force, fraud and coercion to have these victims perform commercial sex acts from which he benefited financially.
Maldonado pleaded guilty today before U.S. District Judge Nancy F. Atlas who set sentencing for Nov. 29, 2016. At that time, Maldonado faces a minimum of 15 years and up to life in federal prison.
The FBI and Houston Police Department investigated.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack, 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."
Heroin and Opioid Awareness Week EventsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces events in observance of the National Heroin & Opioid Awareness Week, September 19-23, 2016.
On September 20, 2016, an Executive Session for Law Enforcement will take place to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, and Federal Law Enforcement Agency heads within the Eastern District of North Carolina are welcome to attend.
The Opiate crisis we face is not just a crime problem, it is a community public health problem. In recognition of the importance of citizen input, our office will host a Community Town Hall on September 22, 2016, at the Pullen Park Community Center in Raleigh. Please join us for this important event.
Hattiesburg Businessman Found Guilty of Fraud Relating to Government Housing ContractRead the Press Release
Hattiesburg, Miss – On Monday, September 12, 2016, a federal jury found Kenneth Fairley, 62, of Hattiesburg, guilty of carrying out a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis. The guilty verdict came after a six day trial in Hattiesburg before U.S. District Judge Keith Starrett.
Fairley was found guilty of one count of conspiracy to defraud the United States and two counts of theft of government money. He will be sentenced on November 21, 2016 and faces a maximum penalty of 25 years in prison and $750,000 fine.
Fairley and his co-conspirator, Artie Fletcher, devised a scheme to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of two residential properties located within the city limits. The project was supported by federal funding and was executed through sub-contracted work to be completed by Pinebelt Community Services, a local non-profit operated by Fairley. Fairley conspired with co-conspirator Fletcher to fraudulently perform the work for a lesser amount than represented on the HUD contract, with the difference in the bid and actual costs being transferred to Fairley, through Fletcher, for purposes not intended by the government contract.
Artie Fletcher previously pled guilty to a Criminal Information charging him with misprision of a felony. He will be sentenced on December 19, 2016, and faces a maximum penalty of three years in prison and a $250,000 fine.
This case was investigated by the U.S. Department of Housing and Urban Development, IRS – Criminal Investigation, Federal Bureau of Investigation, and the Mississippi State Auditor’s Office. It was prosecuted by Assistant U.S. Attorneys Jay Golden and Abe McGlothin.