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6 September 2016
St. Louis County Man Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Raja Chellappa, of St. Louis County, pled guilty to two counts of wire fraud in connection with his solicitation and acceptance of a fictitious “buyer’s premium” as part of a 2015 commercial real estate transaction.
According to his plea agreement, Chellappa falsely told a buyer of a St. Charles County motel property that the seller had demanded a $50,000 “buyer’s premium” when no such demand had been made. The buyer agreed to pay the extra $50,000, which Chellappa directed the buyer to wire into his personal bank account. The $50,000 was not disclosed to the seller or to Chellappa’s real estate company during the escrow and closing process.
Chellappa pled guilty before Judge Catherine D. Perry, who set sentencing for December 14, 2016.
Each count of wire fraud carries a maximum penalty of 20 years imprisonment and/or a fine of $250,000. Restitution is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the St. Louis Division of the FBI and the United States Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
St. Croix Man Sentenced to 24 Months’ Imprisonment for Wire FraudRead the Press Release
St. Croix, USVI – On September 2, 2016, District Court Chief Judge Wilma A. Lewis sentenced Miguel Esperanza-Vasquez, 60, to 24 months’ imprisonment and three years of supervised release for wire fraud, United States Attorney Ronald W. Sharpe announced. Chief Judge Lewis ordered Esperanza-Vasquez to pay restitution in the amount of $27,120 and a $100 special assessment fee.
On February 11, 2016, Esperanza-Vasquez pleaded guilty to one count of wire fraud. As set forth in the plea agreement filed with the Court, Esperanza-Vasquez had no connection with any law enforcement or administrative agency concerned with immigration matters, yet he held himself out to be in a position to materially influence whether an undocumented immigrant could remain in the United States. As part of a scheme to defraud, Esperanza-Vazquez used his purported position to obtain money from the undocumented immigrant that he was not entitled to receive. Specifically, on May 12, 2013, as part of this scheme, Esperanza-Vazquez caused a Western Union money order to be sent by wire in interstate commerce from Houston, Texas, to St. Croix, United States Virgin Islands.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, and was prosecuted by Assistant United States Attorney Meredith J. Edwards.
Schenectady Man Pleads Guilty to Unlawfully Possessing a Loaded HandgunRead the Press Release
ALBANY, NEW YORK – Darryl Flannagan, age 26, of Schenectady, New York, pled guilty today to unlawfully possessing a firearm and ammunition while subject to an order of protection.
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).
Flannagan faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on January 4, 2017 by Senior U.S. District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his plea, Flannagan admitted that on May 19, 2016, a Schenectady Police Officer stopped and questioned him as he was on his way to deliver a loaded handgun to a friend. Flannagan was acting nervously and wearing a heavy, leather coat on a warm day. When the Officer ordered Flannagan to put the coat on the ground, Flannagan dropped the coat and attempted to flee, but was quickly arrested. In the coat, Officers found a 9 millimeter handgun loaded with 6 rounds of ammunition.
On the day he possessed the gun, Flannagan was the subject of a Colonie Town Court order of protection, which prohibited him from having almost any contact with his child’s mother. Because Flannagan was subject to this order, he was prohibited under federal law from possessing a firearm or ammunition.
This case was investigated by the FBI, the Schenectady Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
San Fernando Valley Man Pleads Guilty in 2013 Shooting Spree at LAX and Admits First-Degree Murder of TSA OfficerRead the Press Release
LOS ANGELES – A Sun Valley man pleaded guilty this afternoon to 11 federal charges related to a 2013 shooting at Los Angeles International Airport in which he murdered Transportation Security Administration Officer Gerardo Hernandez.
Paul Anthony Ciancia, 26, pleaded guilty to first-degree murder in the fatal shooting of TSA Officer Hernandez on November 1, 2013.
As a result of the guilty pleas, Ciancia is expected to receive a sentence of at least life in federal prison, plus 60 years. The defendant could be sentenced to multiple life terms and additional years in prison. There is no parole in the federal system.
The guilty pleas were announced by Attorney General Loretta E. Lynch; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; United States Attorney Eileen M. Decker; and Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
“The 2013 murder of TSA Officer Gerardo Hernandez was a tragic and reprehensible act of violence,” said Attorney General Lynch. “With this guilty plea, the Department of Justice is making clear that wrongdoers who target our nation’s brave law enforcement officers will be held accountable for their crimes. I want to thank the many federal, state, and local law enforcement officers who contributed to this critical investigation – including my colleagues in the ATF and the U.S. Marshals Service – and I want to once again express the Justice Department’s unwavering support for the brave men and women who wear the badge.”
“The guilty pleas entered in court today will hopefully bring some justice to the victims of this horrific attack that senselessly ended the life of a federal officer and injured several others,” said United States Attorney Decker. “Mr. Ciancia now faces a life-without-parole sentence in federal prison, ensuring he will be punished for his crimes and never again have the ability to harm other innocent people. Today’s guilty plea is also a reminder of the tremendous acts of bravery and heroism demonstrated by law enforcement at LAX on the day of the shooting. I commend the hundreds of law enforcement personnel from the Los Angeles Airport Police, the Los Angeles Police Department, the TSA, the FBI and many other agencies who responded to this incident, conducted a thorough and professional investigation, and played a key role in reaching today’s resolution.”
According to a plea agreement file last week, in early 2013, Ciancia purchased a semiautomatic rifle, 500 rounds of ammunition and 10 magazines for the rifle. On the morning of November 1, 2013, Ciancia modified two pieces of luggage and zip-tied them together to conceal his loaded rifle.
Later that morning, Ciancia entered Terminal Three at LAX, removed the loaded rifle from his modified luggage and fired at and killed Officer Hernandez, who was checking passengers’ travel documents as part of his duties as a TSA Officer. Ciancia admitted that he then went upstairs to a TSA checkpoint, by which time many TSA officers and passengers had fled the airport. He fired his weapon at TSA Officers Tony Leroy Grigsby and James Maurice Speer, as well at a civilian, Brian Ludmer, all of whom sustained serious injuries and required surgery but survived the attack.
“Mr. Ciancia’s guilty plea is a welcome development toward reaching justice for the victims of this violent attack, one of whom was murdered as he carried out his duties as a TSA officer, and several others who were wounded when Mr. Ciancia brutally targeted them with his weapon,” said FBI Assistant Director Fike. “I’m proud of the JTTF members and prosecutors for their diligence over the past few years in getting to this point.”
According to the plea agreement, as Ciancia passed passengers hiding in or fleeing the terminal during the attack, he asked if they were TSA and when they said no, he passed without shooting at them.
“Our Transportation Security Officers put their lives on the line each and every day to keep the flying public safe,” said Secretary of Homeland Security Jeh Johnson. “We still remember the awful day that Officer Gerardo Hernandez became known as the first slain-on-duty officer. Today’s threat environment demands that we all remain vigilant, and this guilty plea should remind everyone that if you harm one of our officers, you will be brought to justice.”
“The Transportation Security Administration appreciates the hard work of the Justice Department in addressing a tragedy that significantly impacted the men and women of our agency, and brought unspeakable pain to the family of one of our most devoted officers,” said Keith Jeffries, Transportation Security Administration Federal Security Director. “Officer Gerardo Hernandez was known as a hard-working, brave, dedicated officer and devoted family man who was a proud member of the TSA family. He is missed each day. Our thoughts and prayers remain with his family.”
Appearing today before United States District Judge Philip S. Gutierrez, Ciancia pleaded guilty to one count of murder of a federal officer; two counts of attempted murder of a federal officer; four counts of violence at an international airport; one count of discharging of a firearm during a crime of violence causing death; and three counts of discharging a firearm during a crime of violence,
The first degree murder charge carries a mandatory sentence of life in federal prison. The two additional charges based on the killing of Officer Hernandez – violence at an international airport that resulted in death and using a firearm to murder and cause death – each carry potential sentences of life in federal prison.
The two attempted-murder charges and each of the three charges based on violence against the surviving victims all carry a statutory maximum penalty of 20 years in federal prison.
The first count of using a firearm carries a mandatory minimum sentence of 10 years, and the other two use-of-a-firearm charges each carry mandatory sentences of 25 years. The cumulative 60-year sentences for these charges would be served consecutively to any other sentences that are imposed.
Judge Gutierrez is scheduled to sentence Ciancia on November 7.
This case is the product of an investigation by members of the Los Angeles Joint Terrorism Task Force (JTTF), which is led by the Federal Bureau of Investigation and includes agents and officers from 45 other local, state and federal agencies.
The following agencies provided considerable assistance during the investigation: the Los Angeles Airport Police; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; the Transportation Security Administration; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the United States Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the United States Marshals Service; the United States Postal Inspection Service; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case is being prosecuted by First Assistant United States Attorney Patrick R. Fitzgerald, Assistant United States Attorneys Melissa Mills of the Terrorism and Export Crimes Section, Joanna M. Curtis of the Violent and Organized Crime Section, and DOJ Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Crimes Section.
Rochester Man Sentenced on Drug and Gun ChargesRead 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 Willie Harris, 46, of Rochester, NY, who was convicted of possession of cocaine with intent to distribute and being a felon in possession of ammunition and a firearm, was sentenced to 115 months in prison and six years of supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on June 10, 2014, Harris was arrested at 49 Troup Street in Rochester after agents from the Federal Bureau of Investigation and officers of the Rochester Police Department executed a search warrant in one of the apartments at that address.
Prior to executing the search warrant, Harris spoke with officers and told them he had a short-barreled “rifle” and cocaine inside his apartment. Once inside of the location, officers found four bags of cocaine, as well a digital scale commonly used to measure drugs for distribution, small ziplock bags and approximately $180.00 in United States currency. Officers also located a Mossberg 500 C slide action shotgun, the barrel of which had been sawed-off to a length of 16 and 1/8 inches. Ammunition was also found with the shotgun.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Portuguese National Pleads Not Guilty to Reentering United StatesRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector Office of the United States Border Patrol announce that Paulo Abelha, 49, a citizen of Portugal, pleaded not guilty today in United States District Court in Burlington to an indictment which charges him with reentering the United States after having been twice deported. U.S. Magistrate Judge John M. Conroy ordered that Abelha be held without bail pending trial, which has not been scheduled. Abelha has been detained since his arrest on August 20.
According to court records, Abelha is a citizen of Portugal who moved to the United States in 1971 with his parents. In 1994, after he was convicted of violent felonies and served a prison sentence in Massachusetts, Abelha was deported to Portugal. In July 2016, federal officials learned that Abelha had at some point come back to the United States illegally and was living in Fall River. He was taken into custody and again deported to Portugal on August 16.
Three days later, on the evening of August 19, Canadian law enforcement officers notified Border Patrol agents in Vermont that a man had been dropped off at a place just north of the border and had then walked into the United States near Alburgh. Border Patrol agents went to the area and soon found Abelha, who was carrying a backpack. Documents in Abelha's possession showed that he had flown into Montreal from Portugal earlier that day. Abelha did not enter the United States through a port-of-entry and is ineligible to return to the United States.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Abelha faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Abelha is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Pennsylvania Man Pleads Guilty to Federal Charge in Confrontation with Law Enforcement Near the White HouseRead the Press Release
Defendant Was Shot After He Refused Repeated Commands to Drop Handgun
Jesse A. Olivieri, 31, of Ashland, Pennsylvania, pleaded guilty today to a federal charge stemming from a confrontation with law enforcement in which he brandished a gun near the White House, announced U.S. Attorney Channing D. Phillips for the District of Columbia and Chief Robert D. MacLean of the U.S. Park Police.
Olivieri pleaded guilty before the U.S. District Judge Royce C. Lamberth for the District of Columbia to resisting or impeding certain officers or employees with a dangerous weapon. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of eight to 14 months in prison and a potential fine of up to $40,000. No sentencing date was set.
According to a statement of offense, signed by the defendant as well as the government, on May 20, Olivieri was seen in a car that was parked on the north side of the 1600 block of Constitution Avenue NW. Moments later, witnesses heard a gunshot and observed Olivieri holding a silver handgun and standing outside his vehicle. He was then seen walking quickly north through the grass toward the south lawn of the White House.
A short time later, U.S. Secret Service Uniform Division Officers observed Olivieri pass through the security gate near the southwest grounds of the White House, in the 1600 block of E Street NW. He was proceeding quickly towards the security gate near E Street and South Place NW, still openly holding a silver handgun in his right hand, pointed toward the ground. Secret Service officers repeatedly ordered him to stop, but he ignored their commands and continued to walk toward the White House. At that point, a Secret Service agent confronted him, again ordering him to halt and drop the weapon. When Olivieri refused, the agent shot him once.
A silver .22-caliber semi-automatic handgun was recovered from Olivieri. It contained one round of ammunition in the chamber and eight rounds in the magazine. In addition, Olivieri’s car was located, and an empty holster, 15 rounds of .22-caliber ammunition and a canister of pepper spray were found by law enforcement inside the vehicle. A spent .22-caliber shell casing was found nearby, in the westbound travel lanes of Constitution Avenue NW.
Today’s plea hearing took place at a hospital in Washington, D.C., where Olivieri continues to receive treatment related to the injuries that he sustained in the incident.
In announcing the plea, U.S. Attorney Phillips and Chief MacLean commended the work of those who handled the case from the U.S. Park Police. They also expressed appreciation for the assistance provided during the investigation by the Secret Service, the FBI’s Washington Field Office and the Metropolitan Police Department. Finally, they acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Crabb Jr., who investigated and prosecuted the matter.
Pennsylvania Man Pleads Guilty to Federal Charge in Confrontation with Law Enforcement Near the White HouseRead the Press Release
WASHINGTON – Jesse A. Olivieri, 31, of Ashland, Pa., pled guilty today to a federal charge stemming from a confrontation with law enforcement in which he brandished a gun near the White House, announced U.S. Attorney Channing D. Phillips and Robert D. MacLean, Chief of the United States Park Police.
Olivieri pled guilty before the Honorable Senior Judge Royce C. Lamberth of the U.S. District Court for the District of Columbia to resisting or impeding certain officers or employees with a dangerous weapon. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of eight to 14 months in prison and a potential fine of up to $40,000. No sentencing date was set.
According to a statement of offense, signed by the defendant as well as the government, on May 20, 2016, at about 3:05 p.m., Olivieri was seen in a car that was parked on the north side of the 1600 block of Constitution Avenue NW. Moments later, witnesses heard a gunshot and observed Olivieri holding a silver handgun and standing outside his vehicle. He was then seen walking quickly north through the grass toward the south lawn of the White House.
A short time later, U.S. Secret Service Uniform Division Officers observed Olivieri pass through the security gate near the southwest grounds of the White House, in the 1600 block of E Street NW. He was proceeding quickly towards the security gate near E Street and South Place NW, still openly holding a silver handgun in his right hand, pointed toward the ground. Secret Service officers repeatedly ordered him to stop, but he ignored their commands and continued to walk toward the White House. At that point, a Secret Service agent confronted him, again ordering him to halt and drop the weapon. When Olivieri refused, the agent shot him once.
A silver .22-caliber semi-automatic handgun was recovered from Olivieri. It contained one round of ammunition in the chamber and eight rounds in the magazine. In addition, Olivieri’s car was located, and an empty holster, 15 rounds of .22-caliber ammunition, and a canister of pepper spray were found by law enforcement inside the vehicle. A spent .22-caliber shell casing was found nearby, in the westbound travel lanes of Constitution Avenue NW.
Today’s plea hearing took place at a hospital in Washington, D.C., where Olivieri continues to receive treatment related to the injuries that he sustained in the incident.
In announcing the plea, U.S. Attorney Phillips and Chief MacLean commended the work of those who handled the case from the U.S. Park Police. They also expressed appreciation for the assistance provided during the investigation by the Secret Service, the FBI’s Washington Field Office, and the Metropolitan Police Department. Finally, they acknowledged the work of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney John Crabb Jr., who investigated and prosecuted the matter.
Pennsylvania Man Charged with Attempting to Entice a Minor into Sexual ActsRead the Press Release
ALBANY, NEW YORK – Eric S. Mann, age 32, of Howard, Pennsylvania, was ordered detained on Friday after being arrested on August 25 for attempting to coerce and entice a minor into sex.
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).
The criminal complaint alleges that from May 10, 2016 through August 25, 2016, Mann used various forms of Internet-based communication to entice someone he thought was a 14-year-old boy to meet at a truck stop in Milesburg, Pennsylvania, for a sexual encounter. A Colonie Police Department investigator was posing as the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
Mann was arrested on August 25 in Milesburg and was ordered detained by a Middle District of Pennsylvania Magistrate Judge pending his appearance in Albany. Mann appeared on Friday at a detention hearing in Albany before U.S. Magistrate Judge Christian F. Hummel, who ordered Mann detained pending further proceedings.
If convicted, Mann faces at least 10 years and up to life in prison, as well as a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
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/.
Parma man convicted of child sex traffickingRead the Press Release
A Parma man was convicted of sexually exploiting a 14-year-old girl, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Richard Purnell, 54, was convicted by a jury of sex trafficking of children. He is scheduled to be sentenced on Dec 13.
“Those who prey on our children, whether selling them or buying them, will be prosecuted to the fullest extent the law allows,” Rendon said. “We are gratified Judge Adams ordered the defendant into custody so he can continue serving what we expect will be an appropriately lengthy prison sentence.”
“Purnell chose to repeatedly victimize a 14-year-old girl for his own sexual gratification without any regard for what is legally or morally acceptable," said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. "His actions are reprehensible and unacceptable. The FBI will continue to work with our law enforcement partners to aggressively pursue and bring to justice those who engage in human trafficking.”
Purnell repeatedly engaged in commercial sex acts with the 14-year-old, whose images were posted on the website backpage.com by Ronnie Pratt, according to court documents and trial testimony.
Pratt has pleaded guilty to sex trafficking charges and is awaiting sentencing.
Purnell continued to engage in commercial sex acts with the girl even after she told him she was only 14 years old, according to trial testimony.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Linda Barr following an investigation by the FBI’s Child Exploitation Task Force. The Child Exploitation Task Force is comprised of the FBI, Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to the successful investigation.
Omaha Woman Sentenced in Health Care Fraud CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that on September 2, 2016, United States District Judge John M. Gerrard sentenced Zenia Miller to one year and one day imprisonment, three years of supervised release and ordered her to pay $294,263.00 in restitution following her conviction for health care fraud.
Zenia Miller owned and operated Home Care Services, Inc. which provided Personal Assistance Services to Nebraska Medicaid recipients. Home Care Services, Inc. also had an agreement with the Nebraska Department of Health and Human Services to provide Chore Services to low income recipients.
Between at least February 2012 and September 2014, Miller routinely inflated or caused the inflation of monthly claims submitted to Nebraska Medicaid and DHHS for reimbursement. Hours were added so that each recipient appeared to have received the maximum number of hours of service authorized for them.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of Inspector General and the Nebraska Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s office.
Oldham County Man Sentenced to 30 Years in Prison for Aiding and Abetting the Sex Trafficking of A ChildRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the 30-year sentence, of an Oldham County, Kentucky, man by Chief District Judge Joseph H. McKinley Jr., in United States District Court, for aiding and abetting the sex trafficking of a minor. There is no parole in the federal prison system.
“Howard Chambers subjected this young girl to repeated sexual abuse,” stated U.S. Attorney John Kuhn. “Acting with unfathomable selfishness, he chose to traumatize a child in favor of his own self-gratification. The goal of my office was to obtain the maximum sentence of incarceration that insured Chambers would never touch another child. I do want to thank the law enforcement officers and our prosecutor who worked tirelessly together in the investigation of these crimes. I want the public to know we are doing everything in our power to protect the most vulnerable members of our community.”
Howard Key Chambers, 65, and co-defendant Christopher Kosicki helped each other to carry out the sex trafficking of a child. Chambers, a former youth choir leader at an Oldham County church, admitted to travelling to Kosicki’s home in Louisville, to engage in sexual activity with a 10-year-old turned 11-year-old child, between six and eight times, from 2013 until August 2014. The two helped each other entice, harbor, provide, obtain, and maintain a person that had not attained the age of 14 years who was caused to engage in commercial sex acts. Commercial sex acts include any sex act, on account of which anything of value is given to or received by any person. On several occasions, Chambers gave Kosicki money after engaging in sexual activity with the child (age 10 and then 11). On at least one occasion, Chambers admitted to giving money directly to the child after engaging in sexual activity with her. Additionally, on one occasion, Kosicki photographed Chambers engaging in sexual activity with the child.
In 2013, Chambers met co-defendant Kosicki via Craigslist.com. The two communicated online and, eventually, Chambers travelled from Oldham County to Louisville to meet Kosicki at Kosicki’s residence. The criminal activity took place at Kosicki’s Louisville home.
Kosicki was sentenced to serve 50 years in prison, followed by a life term of Supervised Release, by Chief District Judge Joseph H. McKinley Jr., on February 1, 2016. Kosicki pleaded guilty to multiple child sexual exploitation charges, including sex trafficking of a child and the production of child pornography involving 10 children, on July 23, 2015, in U.S. District Court in Owensboro, Kentucky. Kosicki, 27, pleaded guilty in total to 15 charges, in a Superseding Indictment, including sex trafficking a child under age 14, and aiding and abetting another person to cross a state line with intent to engage in sexual acts with a person who had not attained the age of 12 years.
Law enforcement officials first became aware of Kosicki’s criminal conduct after arresting Raymond Shadburn in Seymour, Indiana, on September 24, 2014, on child exploitation charges. During a post-arrest interview, Shadburn provided information that led law enforcement to Kosicki’s residence in Louisville. Shadburn is being prosecuted in the Southern District of Indiana.
In addition to the 30-year sentence, Chambers will be required to serve a ten year period of supervised release and register as a sex offender.
Assistant United States Attorneys Jo E. Lawless and Spencer McKiness prosecuted the case. The Indianapolis Police Department, District of Columbia Metro Police, Louisville Metro Police, and the Federal Bureau of Investigation (FBI) conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
North Carolina Man Indicted for Attempting to Interfere with IRS Employees and Filing False Income Tax ReturnsRead the Press Release
A federal grand jury sitting in Charlotte, North Carolina, returned an indictment on Aug. 16, which was unsealed today, against a Monroe, North Carolina, resident charging him with one count of attempting to interfere with the due administration of the internal revenue laws and five counts of filing a false income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the indictment, between approximately October 2007 through at least September 2011, Billy D. Floyd attempted to obstruct and impede the due administration of the internal revenue laws by filing numerous false Internal Revenue Service (IRS) Forms 1040X, Amended Individual Income Tax Returns, in an attempt to reduce his tax liability to zero. The indictment further alleges that Floyd submitted fictitious “Surety Bonds” to the IRS that falsely purported to satisfy his outstanding tax liabilities. Floyd also attempted to disrupt the public sale of property that the IRS previously seized by attempting to intimidate IRS employees conducting the sale as well as potential buyers. Following the termination of the public sale due to his actions, Floyd also filed a lien against the property in an effort to encumber it and prevent any sale by the IRS.
If convicted, Floyd faces a statutory maximum sentence of three years in prison for each count in the indictment. He also faces a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorney Gregory Bailey of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Minnesota Man Admits to the Murder of Jacob WetterlingRead the Press Release
Danny James Heinrich, 53, of Annandale, Minnesota, pleaded guilty today to federal child pornography charges. As part of his allocution, Heinrich admitted in court that on Oct. 22, 1989, he abducted, sexually assaulted and murdered 11-year-old Jacob Wetterling. Heinrich also admitted that, in January 1989, he abducted and sexually assaulted a 12-year-old.
Investigators recovered Wetterling’s remains on Sept. 2; nearly 27 years after his disappearance from St. Joseph Township, Minnesota.
The announcement was made today by U.S. Attorney Andrew M. Luger for the District of Minnesota, Special Agent in Charge Richard T. Thornton for the FBI’s Minneapolis Division, Stearns County Sheriff John Sanner, Sterns County Attorney Janelle P. Kendall and Superintendent Drew Evans for the Minnesota Bureau of Criminal Apprehension (BCA).
“Danny Heinrich is no longer a person of interest,” said U.S. Attorney Luger. “He is the confessed murderer of Jacob Wetterling and nearly 27 years after he committed this heinous crime, he has been brought to justice. And Jacob is finally home.”
“This outcome is proof of what we can accomplish when law enforcement and prosecutors work together at the federal, state and local level,” said Special Agent in Charge Thornton. “When the FBI proposed a cold case review with the assistance of an expert from the FBI’s Child Abduction Rapid Deployment team two years ago, our partners agreed to this and embraced the opportunity to have a new set of eyes help take a fresh look at the voluminous and complex case file. I am extraordinarily proud of the FBI and of all the law enforcement personnel, past and present who poured their hearts and souls into this investigation, seeking justice for Jacob and answers for everyone.”
“Jacob Wetterling’s abduction in 1989 ended an age of innocence for Central Minnesota and beyond and had a dramatic impact on how parents raised their children,” said Sterns County Sheriff Sanner. “As the investigation wore on and years turned to decades the hope of resolving the case and bringing Jacob home never once faltered. A combination of steadfast determination, science and a unique collaborative effort involving local, state and federal agencies highlighted the value and importance of these relationships. Even though the ending is not what we had hoped and prayed for, Jacob is finally home.”
“From the night he went missing, the BCA never gave up on finding Jacob,” said Superintendent Evans. “For 27 years, BCA agents and our many partner agencies from all over the country doggedly followed every lead and pursued every tip. The BCA team of agents, scientists, and crime scene examiners have been collecting and analyzing evidence throughout the investigation. Last fall, our scientists connected Heinrich through DNA to another assault, which led to his arrest on the charges he faces today and eventually, led our agents and crime scene team to Jacob. While this is not the result we hoped for, Jacob can now finally come home.”
“This event in the history of Minnesota, especially the history of Stearns County, could not have been accomplished without every member of this local, state and national team,” said Stearns County Attorney Kendall. “Despite the complication of this path, this case demonstrates that no case is too hard to solve, no tip too insignificant to consider and no legal obstacle insurmountable in finding answers and accountability for Jacob Wetterling and for everyone near and far who knows his name. We never stopped looking for Jacob; none of us will ever forget the moment we found him. Our condolences and deepest sympathies remain with the Wetterling family.”
According to Heinrich’s guilty plea, on Oct. 22, 1989, he abducted, sexually assaulted and murdered Wetterling.
According to Heinrich’s guilty plea, on Jan. 13, 1989, he abducted and sexually assaulted a 12-year-old boy.
According to Heinrich’s guilty plea, he possessed between 10 and 150 child pornography images, including images of prepubescent minors under the age of 12. The pornographic material portrays sadistic or masochistic conduct and images of morphed child pornography.
The parties have jointly recommended a federal prison sentence of 20 years.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit. Substantial assistance was provided by the Stearns County Attorney’s Office. The Department of Justice Child Exploitation and Obscenity Section also provided assistance.
Mexican National Sentenced to 108 Months in Prison for Trafficking Methamphetamine in Eddy CountyRead the Press Release
ALBUQUERQUE – Israel Mireles-Rivera, 35, a Mexican national unlawfully in the United States and residing in Hagerman, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 108 months in federal prison for his methamphetamine trafficking conviction. Mireles-Rivera will be deported after completing his prison sentence.
Mireles-Rivera and co-defendant Ediberto Guzman, 63, of Carlsbad, N.M., were arrested in Jan. 2014, on a three-count indictment charging them with methamphetamine trafficking and firearms offenses. Count 1 of the indictment charged the two men with conspiracy to distribute methamphetamine from Feb. 2013 through Oct. 2013 in Eddy and Chaves Counties, N.M. Counts 2 and 3 charged Mireles-Rivera with possession of methamphetamine with intent to distribute and being an alien illegally in possession of a firearm.
According to the indictment, between Feb. 2013 and Oct. 2013, Mireles-Rivera provided methamphetamine to Guzman on multiple occasions, and Guzman sold the methamphetamine to others, including a person who was working with law enforcement officers. It also alleged that on Oct. 17, 2013, Mireles-Rivera had more than 180 grams of methamphetamine hidden in a vehicle outside his residence and a smaller amount of methamphetamine inside his residence.
On Jan. 16, 2015, Mireles-Rivera pled guilty to a two-count felony information charging him with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. In entering his guilty plea, Mireles-Rivera admitted that between Feb. 2013 and Oct. 2013, he was involved in a methamphetamine distribution conspiracy. During this period, Mireles-Rivera supplied methamphetamine to an individual who sold the drugs to others. Mireles-Rivera also admitted that subsequent to his arrest, law enforcement officers seized approximately eight ounces of methamphetamine when they searched his house and vehicle.
Co-defendant Guzman pled guilty to the conspiracy count of the indictment on April 25, 2014. He was sentenced on June 26, 2014, to 48 months in federal prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA, the HIDTA Region VI Pecos Valley Drug Task Force and the Carlsbad Police Department. This case was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Melrose Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Jeremy Lillie, age 32, of Melrose, New York, pled guilty today to distribution, receipt and possession of child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Lillie faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on January 4, 2017 by Senior U.S. District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Lillie will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
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/.
Maryland Woman Pleads Guilty to Federal Charge in Embezzlement Scheme Against Her EmployerRead the Press Release
WASHINGTON – Stacey Walters, 38, a former accountant at Howard University, pled guilty today to a federal charge of wire fraud stemming from a scheme in which she embezzled over $105,000 from her employer, U.S. Attorney Channing D. Phillips announced.
Walters, of Indian Head, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled sentencing for Nov. 15, 2016.
According to the government’s evidence, Walters was hired at Howard University in July 2010. Her responsibilities included preparing financial reports and performing general accounting and budget functions. She was terminated from the job in October 2011.
From December 2010 through May of 2011, according to the government’s evidence, Walters submitted a total of 13 forms authorizing payment from her employer to various vendors. However, she fraudulently listed the banking information for her own account on one of the forms, causing $9,388 to be transferred to her own account. In addition, Walters listed banking information for another individual, Shantel Brown, on 12 other forms, causing $96,398 to be transferred to Brown’s account. At the direction of Walters, Brown transferred half of the funds she had fraudulently received from Howard University to Walters.
Brown, 34, of Waldorf, Md., pled guilty on Feb. 22, 2016 to one count of conspiracy to commit wire fraud and one count of wire fraud. She is to be sentenced on Nov. 1, 2016, also by Judge Boasberg. In her guilty plea, Brown admitted taking part in the fraud against Howard University. She also admitted to carrying out a separate scheme from November 2011 through March 2013 in which she stole $79,874 from her employer, Defenders of Wildlife; Brown worked for the non-profit organization as a payroll/compliance specialist at the time.
As part of their pleas, both defendants must pay restitution.
In announcing the pleas, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD), as well as Criminal Investigator Stephen Cohen of the U.S. Attorney’s Office. He also expressed appreciation for the assistance provided by Assistant U.S. Attorney Thomas Swanton, Criminal Investigator Juan Juarez, and Paralegal Specialists Jessica Mundi and Christopher Toms, all of the U.S. Attorney’s Office. Finally, he acknowledged the work of Assistant U.S. Attorney Teresa A. Howie, who is prosecuting both cases.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Sentenced to 15 Years in PrisonRead the Press Release
FARGO – Matthew Gust, 26, was sentenced today to 15 years in prison for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
Gust admitted in his guilty plea that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40-ounce beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused more than $250,000 in damages.
Gust pleaded guilty on May 19 to an arson charge and a hate-crime charge. He was charged with those two counts by information on March 20. He had earlier been indicted by a grand jury for using a destructive device in the commission of a crime; that charge was dismissed as part of his plea agreement.
“This sentence sends a clear message to those who attempt to divide our community by sowing violence and fear,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to vigorously prosecute perpetrators of hate violence.”
“This case exemplifies the strong partnership between local, state and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate,” said U.S. Attorney Myers. “The sentence handed down by the court today sends a strong message to all members of our community that such conduct will not be tolerated and that our collective response will be swift and certain.”
“The FBI remains steadfast in its commitment to investigating and apprehending those who commit crimes of violence aimed at others because of nationality, ethnicity or religious beliefs,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. “The FBI will continue working with its law enforcement partners to enforce these types of violations wherever they occur.”
“There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated,” said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. “ATF will continue to diligently investigate these crimes to ensure that all of our residents feel safe and welcomed.”
This case was investigated by Grand Forks Police Department, the FBI and the ATF. The case was prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Sentenced to 15 Years in PrisonRead the Press Release
Matthew Gust, 26, was sentenced today to 15 years in prison for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
Gust admitted in his guilty plea that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40-ounce beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused more than $250,000 in damages.
Gust pleaded guilty on May 19 to an arson charge and a hate-crime charge. He was charged with those two counts by information on March 20. He had earlier been indicted by a grand jury for using a destructive device in the commission of a crime; that charge was dismissed as part of his plea agreement.
“This sentence sends a clear message to those who attempt to divide our community by sowing violence and fear,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to vigorously prosecute perpetrators of hate violence.”
“This case exemplifies the strong partnership between local, state and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate,” said U.S. Attorney Myers. “The sentence handed down by the court today sends a strong message to all members of our community that such conduct will not be tolerated and that our collective response will be swift and certain.”
“The FBI remains steadfast in its commitment to investigating and apprehending those who commit crimes of violence aimed at others because of nationality, ethnicity or religious beliefs,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. “The FBI will continue working with its law enforcement partners to enforce these types of violations wherever they occur.”
“There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated,” said Special Agent in Charge James Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. “ATF will continue to diligently investigate these crimes to ensure that all of our residents feel safe and welcomed.”
This case was investigated by Grand Forks Police Department, the FBI and the ATF. The case was prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Man Sentenced in Manhattan Federal Court to 46 Months in Prison in Connection with $1.5 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that WILLIAM J. WELLS was sentenced today in Manhattan federal court to 46 months in prison for securities and wire fraud charges stemming from his scheme to defraud more than 30 investors, including friends, colleagues, and family, of more than $1.5 million through a Ponzi-like scheme, over the course of nearly six years until his arrest in October 2015. WELLS was arrested on October 1, 2015, and pled guilty on March 18, 2016, before United States Magistrate Judge Henry B. Pitman. Today’s sentencing was presided over by United States District Judge Kimba M. Wood.
U.S. Attorney Preet Bharara said: “William Wells repeatedly lied to his investors, falsely claiming positive returns when his trading was in fact calamitous. Buttressing his lies with fake account statements, he used investor money to pay personal expenses and to pay back other investors. For depriving his clients of their money – and sometimes their life savings – Wells has been sentenced to a substantial term in prison.”
Among other false and misleading statements, WELLS lied to prospective and existing investors by representing, including in fictitious account statements prepared by WELLS, that he had achieved consistently positive trading returns. In fact, WELLS’s trading was remarkably unsuccessful and he realized trading losses every year from 2009 until his arrest in October 2015. Of the money WELLS did not lose in securities trading, WELLS routinely converted investor funds to his own use to pay personal expenses and used new investor funds to pay back other investors in a Ponzi-like fashion.
Many of WELLS’s victims, several of whom submitted letters to the Court or spoke today at WELLS’s sentencing, lost their life savings to WELLS’s scheme, including money saved for retirement, medical bills, tuition, or wedding costs, or to purchase a family home.
According to the Complaint, the Indictment, and statements made in open court, including at the sentencing proceeding today:
From September 2009 through the present, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a fraudulent scheme to obtain investments by falsely representing that he had achieved consistently positive trading returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’s trading was remarkably unsuccessful. Between 2009 and the present, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’s trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. Of the money he did not lose in securities trading, WELLS routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’s automobile, and for private school tuition. In addition, to hide his trading losses and continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors in a Ponzi-like fashion. In total, WELLS distributed less than approximately $500,000 back to investors.
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In addition to the 46-month prison sentence, WELLS, 43, formerly of Manhattan and New Jersey, now living in Valley Cottage, New York, was sentenced to three years of supervised release. The Court further ordered WELLS to forfeit the proceeds of the scheme and to pay restitution in an amount to be determined.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for their assistance with the investigation.
The charges were brought 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 is 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Louisville Attorney Sentenced to 48 Months in Federal Prison for Money Laundering Scheme and Defrauding Estates of More Than $1.6 MillionRead the Press Release
Ordered to pay $1,602,327.14 to multiple victims including $268,459.06 to St. Mary’s Church and $245,993.67 to WHAS Crusade for Children
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced today that David Cary Ford, 54, of Louisville, Kentucky, was sentenced to 48 months in federal prison following his conviction on criminal counts of wire fraud and money laundering, stemming from Ford’s actions while he was a practicing attorney and the executor of seven estates in Louisville.
“Attorneys are professionally and ethically bound to serve their clients’ best interests,” stated U.S. Attorney John Kuhn. “We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships.”
Ford previously pled guilty to charges alleging that from November 6, 2008, through February 11, 2015, Ford, while serving as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz, defrauded those estates of approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity.
Ford also pled guilty to laundering proceeds of his fraud by using funds belonging to one estate to conceal the depletion of funds from another estate. In pleading guilty, Ford admitted using his escrow account for this purpose with the intent to promote the carrying on of his fraud and to conceal or disguise the nature of the proceeds of his fraud.
As part of his sentence, Ford was ordered to pay over $1.6 million in restitution to 21 different victims who would have received that amount, according to bequests in the wills written by the individuals whose estates were defrauded, if not for Ford’s fraud. Those victims and the restitution they are owed include $245,993.67 that would have gone to the WHAS Crusade For Children and $5,598.59 for the Little Sisters of the Poor.
The restitution order also includes several Catholic religious organizations. Local victims included St. Mary’s Church ($268,459.06), St. Francis of Assisi Church ($44,743.18), Holy Family Catholic Church ($2,799.30), Our Mother of Sorrows Catholic Church ($2,799.30) and the Archdiocese of Louisville ($89,486.35).
Other victims included the Passionist Community ($245,993.67), the Passionist Nuns ($245,993.67), the National Shrine of St. Elizabeth Ann Seton ($134,229.53), the Franciscan Sisters of Allegany, Inc. ($134,229.53), the Catholic Foreign Mission Society of America, Inc. ($44,743.18), the Sisters of Charity of St. Joseph’s ($44,743.18), the Nazareth Literary and Benevolent Institution, Inc. ($44,743.18).
In addition, restitution was ordered for seven individuals, named only by their initials in court documents, who would have received bequests from the wills at issue if not for Ford's fraud.
The case was prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Lewis County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - Michael Prisner, Ewing, Missouri, was sentenced to 42 months in prison on charges involving his possession of child pornography between April and June 2015.
Prisner pled guilty in June to two felony counts of possession of child pornography. He appeared today in St. Louis for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, the Kirksville ICAC (Internet Crimes Against Children), Kirksville Police Department and the Lewis County Sheriff's Office. Assistant United States Attorney Coleen Lang handled the case for the U.S. Attorney's Office.
Lee County Postal Employee Charged with Delay or Destruction of MailRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Angelica M. Morman (28, Fort Myers) with delay or destruction of mail. If convicted, she faces a maximum penalty of five years in federal prison.
According to the indictment, on August 13, 2016, Morman, an employee of the United States Postal Service, knowingly destroyed, detained, and delayed approximately 418 pieces of standard and first class mail.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Service, Office of Inspector General. It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
Lawrence Man Sentenced for Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. - A Lawrence man was sentenced Tuesday to 70 months in federal prison for distributing child pornography, Acting U.S. Attorney Tom Beall said.
Tyler Padden, 35, Lawrence, Kan., pleaded guilty to one count of distributing child pornography. At sentencing, prosecutors said Padden had four computers containing 2,000 images and 800 videos of child pornography. He installed seven file sharing programs on his computer, allowing him to search for child porn and allowing other users to download images from his collection of child pornography.
The investigation began when a detective with the Overland Park Police Department used the Internet to download child pornography from Padden’s computer.
Beall commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Kentucky Man Sentenced for Role in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – A member of a conspiracy that distributed methamphetamine in and around Virginia and Kentucky, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Curtis Howerton, a.k.a “Bo,” 28, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and to distribute methamphetamine. Today in District Court, Howerton was sentenced to 57 months in federal prison.
“Methamphetamine is an addictive and deadly substance,” United States Attorney Fishwick said today. “We are proud to work with our partners on the local, state and federal levels to continue to fight to the scourge of methamphetamine trafficking throughout the region.”
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesboro, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Kentucky Man Pleads Guilty to Defrauding Federal and State Housing ProgramsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Erick Bradshaw, Sr., age 41, of Kentucky, pled guilty Thursday, September 1, 2016, in federal court in Greenville, to conspiracy to defraud federal and state housing programs, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Fresh Start Community Development Corporation (FSCDC) was created by Bradshaw as a non-profit organization that worked on repairing homes through grants from the South Carolina State Housing Finance Development Authority (“SC Housing”) and the Federal Home Loan Bank of Atlanta (“FHLBank Atlanta”). Bradshaw was the executive director of FSCDC.
Bradshaw sought grant monies from FHLBank Atlanta and SC Housing for the rehabilitation of low-income homes. He forged the signature of contractors on FHLBank Atlanta Funding Certifications and SC Housing Certifications of Payment. He also submitted certifications to FHLBank Atlanta and Draw Request for Payments to SC Housing that had inflated costs compared to the invoices of the contractors who actually performed the work. Often some work described as completed on the certifications such as handicap ramps on front porches were never completed though it was represented in documentation that the work was complete.
Agents interviewed Bradshaw and he admitted that FSCDC did not do what it was supposed to do. Contrary to program rules, Bradshaw negotiated with the contractors who were working on the houses for lower prices than were reported to the agencies. For example if SC Housing funded a roof repair for $5,000 based on documents submitted by FSCDC, and Bradshaw was able to negotiate with the contractor for $3,000, then FSCDC would keep the $2,000 difference. Bradshaw did this for some of the FHLBank funded properties, too.
The loss suffered by the programs is approximately $282,000.
According to Special Agent in Charge Tim Mowery of the Federal Housing Finance Agency, Office of the Inspector General, “The Affordable Housing Program funded by the Federal Home Loan Banks is meant to help the most vulnerable in society with their housing needs. When someone takes advantage of the program to profit for their own benefit, we will make sure they are brought to justice.”
Ms. Drake stated the maximum penalty Bradshaw can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Internal Revenue Service, United States Postal Inspection Service, and the Inspector General’s Office of the Federal Housing Finance Agency. Assistant United States Attorney Bill Watkins handled the case.
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Kanawha County felon caught by homeowner during break-in pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man who violated his federal supervised release by breaking into a house and stealing a pistol pleaded guilty today to a gun charge, announced United States Attorney Carol Casto. Travis Lee Hudnall, 31, entered his guilty plea to being a felon in possession of a firearm.
Hudnall admitted that on June 7, 2016, he broke into a residence in Hansford and stole a computer tablet and a loaded .40 caliber Smith & Wesson Model SW40C pistol. Hudnall additionally admitted that he stole a chainsaw from the surrounding property. As Hudnall was leaving the residence, the homeowner arrived and confronted Hudnall. Following a struggle, the homeowner detained Hudnall on the ground until law enforcement arrived. Hudnall was prohibited under federal law from possessing any firearm because of two previous felony convictions, one in Kanawha County Circuit Court for daytime entering without breaking and another in the United States District Court for the Southern District of West Virginia for being a felon in possession of a firearm.
Hudnall faces up to 10 years in federal prison on the gun charge, as well as up to an additional two years for violating his federal supervised release, when he is sentenced on November 21, 2016.
The investigation was conducted by the Kanawha County Sheriff’s Office, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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KC Tax Preparer Pleads Guilty to Fraudulent ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., tax preparer pleaded guilty in federal court today to aiding in the preparation of 51 fraudulent income tax returns.
Harry George, Jr., 36, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to assisting in the preparation and filing of false and fraudulent tax returns.
George was the owner of Xpress Tax KC, LLC, an income tax preparation business located at 905 Prospect Ave., Kansas City, Mo.
By pleading guilty today, George admitted that he prepared 51 false federal income tax returns seeking fraudulent refunds by including false filing status, false education credits, false American opportunity credits, false Schedule A’s, false earned income credits, false additional child tax credits, false retirement savings contributions credits, and/or false dependents. These fraudulent returns resulted in a tax loss of $116,946.
Under federal statutes, George is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Justice Department Statement on the Decision to Close Investigation of ABI’s Acquisition of Devils Backbone in Light of Distribution Relief Obtained in ABI/SABMiller SettlementRead the Press Release
Department Will Continue to Carefully Monitor ABI’s Compliance with Distribution Obligations and Competitive Effects of ABI’s Craft Acquisitions
Deputy Assistant Attorney General Juan Arteaga of the Justice Department’s Antitrust Division released the following statement today on the division’s decision to close its investigation into Anheuser-Busch InBev’s (ABI) acquisition of Virginia-based craft brewer, Devils Backbone.
“Over the past 30 years, the American beer industry has experienced a renaissance that has resulted in the most diverse, innovative and dynamic brewing culture in the world. This revival of the U.S. beer industry – an industry in which millions of Americans spend over $100 billion per year – is largely due to the hard work and growth of craft and other high-end brewers, which have provided consumers with a large number of new and high quality beer options.
“In addition to enhancing the diversity and quality of beer sold in the U.S., high-end brewers have served as an important constraint on the ability of large brewers – such as ABI and MillerCoors – to raise the prices on their premium beers. High-end beers such as craft beers constrain the ability of ABI and MillerCoors to continue to raise the prices on their beers because consumers are increasingly willing to trade-up from premium to high-end beers if the prices for premium brands come too close to the prices of high-end brands.
“In recent years, the division has successfully fought to preserve the competitive role that high-end brewers play in the U.S. beer industry. In 2013, for example, the division sued to challenge ABI’s acquisition of Mexican brewer Grupo Modelo, which resulted in the companies’ agreeing to divest Grupo Modelo’s entire U.S. business – including the rights to sell popular beer brands such as Corona and Pacifico in the U.S. – to an independent competitor. Since this divesture, these popular beer brands have continued to grow and vigorously compete for the hard earned dollars of consumers.
“Earlier this year, the division approved ABI’s acquisition of SABMiller only after ABI agreed to divest SABMiller’s entire U.S. business – including SABMiller’s ownership interest in MillerCoors – and to cease business practices and programs that restrict the ability and incentive of independent beer distributors to sell and promote the beers of ABI’s rivals. The division insisted on ABI’s agreement to distribution-related relief because craft and other brewers cannot grow in scale and effectively compete in the U.S. beer industry without meaningful access to efficient beer distribution networks, such as the network that distributes ABI beer.
“After careful consideration, the division has determined that, in light of the distribution relief secured in the ABI/SABMiller settlement, the competitive implications of ABI’s acquisition of Devils Backbone are too uncertain at this time to warrant further investigation. However, the division will be carefully monitoring ABI’s compliance with its distribution obligations under this settlement. The division will also carefully scrutinize any future craft acquisitions by ABI. The ABI/SABMiller settlement provides the division the opportunity to review certain of ABI’s future craft acquisitions – including acquisitions that may fall below the Hart-Scott-Rodino Act’s reporting thresholds.
“In reviewing any such future acquisitions, the division will consider whether these transactions, either singularly or collectively, are likely to harm competition by, among other things, giving ABI the ability to prevent its craft rivals from effectively getting their products to the market or the ability to increase high-end beer prices which, in turn, would enhance ABI’s ability to raise prices in the premium and sub-premium beer segments. If the division sees evidence that ABI may be circumventing its distribution obligations or has used multiple craft acquisitions to impair competition, it will consider all its enforcement options – including re-opening its investigation of ABI’s acquisition of Devils Backbone – and all appropriate relief.”
INTERPOL Washington Joins TwitterRead the Press Release
On Tuesday, September 6th, INTERPOL Washington officially joined the world of social media. The launch of the official USNCB Twitter account at https://twitter.com/INTERPOL_USA marks a new phase in expanding our communications tools. We encourage you to "follow us" to stay up to date with the latest INTERPOL Washington news.
Huntington man sentenced to nearly seven years in prison for federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with heroin was sentenced today to six years and eight months in federal prison, announced United States Attorney Carol Casto. James Lennon Pace, 27, previously pleaded guilty to possession with intent to distribute heroin.
On June 26, 2015, an officer with the Huntington Police Department observed Pace walking along the 1400 block of 10th Avenue in Huntington. Officers had been looking for Pace because he was a suspect in an unrelated crime. When approached by law enforcement, Pace gave the officer a false name and repeatedly placed his hands in his pockets. Officers detained Pace and discovered approximately 39 grams of heroin in Pace’s pocket. Pace admitted that he intended to distribute the heroin.
On September 22, 2015, agents with the Huntington FBI Drug Task Force executed a search warrant at 1201 Charleston Avenue in Huntington after observing Pace leave the residence. During the search, agents seized over 360 grams of heroin, some of which was mixed with fentanyl – an opiate painkiller roughly 40 to 50 times more powerful than pure heroin. Agents also seized firearms, over $4,000 in cash, a press used to prepare heroin, and other drug paraphernalia.
The Huntington Police Department and Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Houston Man Sentenced for Crosby Bank RobberyRead the Press Release
HOUSTON – A 32-year-old Houston man has been ordered to federal prison following his convictions for aggravated bank robbery and brandishing a firearm during a crime of violence, announced U.S. Attorney Kenneth Magidson. Dominic Renard Lindsey pleaded guilty March 23, 2016.
Today, U.S. District Court Judge David Hittner sentenced Lindsey to 51 months for the aggravated bank robbery which will be served consecutively to another seven years for the firearms charge. The total 135-month-term will be immediately followed by five years of supervised release.
Lindsey robbed the BBVA Compass Bank at 6011 FM 2100 Road in Crosby on May 18, 2016. He was armed and demanded money from the teller. He also pointed the weapon at customers and employees, forcing them to the ground. As he fled the bank, a witness followed him and saw him place two black duffle bags inside the jeep he was driving. After confronting him, the witness then saw him remove the bags and go into a foliage-laden area nearby.
Lindsey was driving a CenterPoint Energy (CPE) vehicle and told authorities he had a work order and was in the area checking a gas line. He was confirmed as a contractor for CPE, but the supervisor stated he did not have a work order for that area and that there was no gas line there nor any reason Lindsey should be there.
The clothing worn during the robbery and stolen money was found not far from Lindsey’s vehicle in the foliage where Lindsay was seen.
Authorities also discovered an unloaded .357 revolver, similar in color and style to the gun used during the bank robbery.
Lindsey has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI Bank Robbery Task Force, which is comprised of personnel from the FBI, Houston Police Department and Harris County Sheriff's Office. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
Harrisburg Man Sentenced to 43 Months for Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, age 34, of Harrisburg, was sentenced to 43 months in federal prison for possession with intent to distribute heroin by Senior U.S. District Court Judge William W. Caldwell in Harrisburg.
According to United States Attorney Peter Smith, the sentence follows a two- day jury trial in January 2016. The charges were the result of an initial investigation by Harrisburg Bureau of Police in December 2014 in which Powell was found in possession of a loaded firearm and nine bundles of heroin in Harrisburg. The jury acquitted Powell of a related firearms charge. The nine bundles contained 90 bags or 90 individual doses of heroin.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. The case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Sebastian Castro-Mejia, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Castro-Mejia was identified after being arrested in Conway, New Hampshire for Driving Under the Influence of Alcohol on June 7, 2016. A Deportation Officer later determined that he was a citizen of Guatemala who previously had been deported from the United States. Castro-Mejia, who was arrested on June 7, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Silverio Lopez-Gutierrez, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Lopez-Gutierrez was identified during a traffic stop in Rochester, New Hampshire on May 22, 2016. A Deportation Officer later determined that he was a citizen of Guatemala who previously had been deported from the United States. Lopez-Gutierrez, who was arrested on May 22, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Guatemalan Man Sentenced for Illegal Re-EntryRead 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 Fredy Otoniel Lopez Martinez, 30, of Guatemala, who was convicted of illegal reentry into the United States, was sentenced to time-served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on July 7, 2016, U.S. Customs & Border Protection agents encountered the defendant at the Lewiston Bridge Port of Entry. Martinez was a passenger in a vehicle traveling to Michigan for an art show. The vehicle’s GPS directed the driver of the vehicle from Western New York through Canada. After Canadian officials did not allow the vehicle to enter Canada, border agents conducted immigration electronic systems record queries, which revealed that the defendant had a criminal record in the United States and that he had been previously deported on May 21, 2009, pursuant to an order by a U.S. Immigration Judge. Martinez admitted to an agent that he illegally entered the United States in December 2010 along the U.S.-Mexican border.The sentencing is the result of an investigation by U.S. Customs & Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
Former Trucking Company Owner Sentenced for Federal Tax EvasionRead the Press Release
TOPEKA, KAN. – The former owner of a trucking company in Kansas City, Kan., was sentenced Tuesday to 33 months in federal prison for evading federal income taxes, Acting U.S. Attorney Tom Beall said. He was ordered to pay $939,408 in restitution.
Clifford C. Copp, 47, Overland Park, Kan., who owned Copp Trucking Co. in Kansas City, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he filed reports to the Internal Revenue Service in 2001 indicating the company owed approximately $939,408 in employment taxes for that year. However, the company did not pay the employment taxes due.
In February 2004 Copp was assessed trust fund recovery penalties of $669,037. When the IRS began collection efforts he concealed income. He filed a false statement to the IRS concealing his ownership interest in assets including livestock, life insurance and farm equipment. He also formed Wildcat Limo, LLC, and concealed his ownership interest in the company.
Beall commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Police Officer Pleads Guilty to Federal Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former 17 year veteran police officer with the Fairview Township Police Department pled guilty today to federal charges stemming from the theft of seized money that was evidence in two separate drug cases.
According to United States Attorney Peter Smith, Tyson Baker, age 42, Etters, York County, pled guilty to two counts of theft of federal funds before U.S. District Court Judge Sylvia H. Rambo in Harrisburg. No date has been set for sentencing.
As the government stated as part of the record at the guilty plea hearing, the Federal Bureau of Investigation in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. At the time another officer with the Fairview Township Police Department cooperating with the FBI recorded conversations with Baker regarding the theft in which Baker discussed how the officer should steal drug proceeds from drug traffickers during traffic stops.
On December 16, 2015 the FBI, with the full cooperation of the Fairview Township Police Department, arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015 Baker was arrested by the FBI and confessed to both incidents.
United States Attorney Smith pointed out that Fairview Township Police initiated the complaint concerning Baker’s actions and that the Police Department cooperated fully with the FBI and state law enforcement in the investigation. “Law enforcement professionals recognize that a corrupt police officer is a danger to the community as well as fellow officers and that corruption only aids other law breakers. We appreciate and thank the Fairview Township Police who exposed and helped removed Baker from his position of authority.”
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The combined maximum penalty under federal law is 20 years. There is also a term of supervised release following imprisonment, and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department.
The case is being prosecuted by Assistant United States Attorneys William A. Behe and Michael Consiglio.
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Former Orange County Detective Guilty in HUD Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 47-year-old former Orange County Sheriff’s Detective has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chad Wayne Hogan, of Orange, Texas, pleaded guilty to an Information charging him with money laundering today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, from March 2009 to August 2015, Hogan deposited approximately 4,302 checks written on bank accounts held by Beverly Place Apartments, Cedarwood Apartments, and Villa Main Apartments, all in the Port Arthur/Groves, Texas area. Hogan deposited the checks in an account he had sole control over after receiving them from Shalana Murphy, the property manager at Beverly Place apartments. After depositing the checks, Hogan would give Murphy a portion of the checks in cash and keep a portion for himself. The checks were actually payable to tenants of the three apartment complexes and were written under the Housing and Urban Development’s (HUD) utility assistance program. The utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at the three apartment complexes were not aware they were receiving these benefits. On-site managers at the complexes, including Shalana Murphy, engaged in a scheme to sign tenants up for HUD utility assistance benefits, and then take the checks for themselves. While Hogan was not involved directly with the scheme to defraud HUD, he deposited the fraudulently obtained checks an account he controlled and provided Murphy with cash, keeping a portion of the proceeds for himself. Hogan was aware the checks he was depositing represented the proceeds of unlawful activity. The United States is also seeking a monetary judgment of $187,706, from Hogan as this was his portion of the scheme.
Under federal statutes, Hogan faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Buffalo State Graduate Student Pleads Guilty to Transmitting Threatening CommunicationsRead 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 Benjamin Bolton, 32, of Glendale, Colorado, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to transmitting interstate communications containing threats to injure the person of another. The charge carries a maximum of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant was admitted into Buffalo State College as a graduate student for the Fall 2013 semester. In April 2014, Bolton was suspended as a result of incidents at the school, including disputes with faculty members. Between June 2015 and August 5, 2015, the defendant made numerous telephone calls to faculty and staff personnel employed at Buffalo State, and to officers of the Buffalo State University Police Department. During many of these telephone calls, Bolton threatened to assault police officers, faculty, and staff members whom he identified by name.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Buffalo State University Police Department, under the direction of Chief Peter Carey.
Sentencing is scheduled for December 19, 2016 before Judge Vilardo.
Former Assistant Superintendent and Vendor Sentenced on Bribery ChargesRead the Press Release
A former Detroit Public Schools (DPS) vendor and former Assistant Superintendent of Specialized Student Services were sentenced today for their roles in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Norman Shy, 74, of Franklin received a sentence of 60 months and Clara Flowers, 61, of Detroit received a sentence of 36 months. Both were sentenced before U.S. District Judge Victoria Roberts. Both pleaded guilty in May to charges of conspiracy to defraud the United States and tax evasion.
According to court records, Shy, the owner of Allstate Sales, a DPS vendor of school supplies, conspired with 13 school officials to submit fraudulent invoices, causing DPS to pay Shy for goods that were never delivered. Invoiced supplies included auditorium chairs, supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks to the school officials, using a portion of the payments he received from DPS from the fraudulent invoices. The scheme began in 2002 and continued until January 2014.
DPS principals had the primary authority for selecting vendors from a list approved by DPS and for certifying that invoiced goods were received.
In return for selecting Shy as a vendor and approving fraudulent invoices, Flowers accepted bribes and kickbacks in various forms, including prepaid gift cards and checks payable directly to her travel agency business and contractors who performed work on her home. In total, Shy paid Flower’s approximately $324,785.
The total amount of bribes and kickbacks that Shy paid to the 13 school officials was approximately $908,518. In exchange, Shy received approximately $2.7 million from DPS based on payments for fraudulent invoices.
“We hope that these sentences will deter anyone who thinks that they can take advantage of a large public institution like the Detroit Public Schools,” McQuade said. “We will hold accountable anyone who steals funds intended for our school children. If there is a message here, it is that someone is watching, you will get caught and you will go to prison.”
“Today’s sentencing should serve as a impactful reminder that the FBI will not stand by idly when those in the field of education violate the public’s trust for their own personal gain. The misapplication of already scarce public funds is not only illegal, but an insult to those dedicated educators working every day to make a better future for our children” said David P. Gelios, Special Agent in Charge, FBI Detroit Division
Final Defendant Sentenced to 5 Years in Prison for Vallejo-Based Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Marcus Cooper, 33, of Vallejo, was sentenced today by United States District Judge John A. Mendez to five years and five months in prison for submission of false claims to the Internal Revenue Service, aggravated identity theft, and possession of stolen mail, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Cooper and his co-defendants, Leticia Roque and Tiana Naples, conspired to submit a total of at least 60 false tax returns to the Internal Revenue Service in early 2012, requesting more than $200,000 in fraudulent tax refunds in other peoples’ names. The defendants obtained more than $102,000 in tax refund checks that were mailed to their address in Vallejo. When law enforcement agents searched the residence, a substantial volume of stolen United States mail was found in the house.
On February 9, 2016, Roque was sentenced by Judge Mendez to serve two years and six months in prison for her role in the conspiracy to submit false claims and aggravated identity theft.
On July 19, 2016, Naples was sentenced by Judge Mendez to serve 10 months of home detention for her role in the conspiracy to submit false claims.
This case was the product of an investigation by the United States Postal Inspection Service and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Executive Director of Coachella Valley Surgery Center Named in New Indictment that Adds Charges in $50 Million Health Care Fraud SchemeRead the Press Release
SANTA ANA, California – A Rancho Mirage woman who was the executive director of a cosmetic surgery center has been named in a superseding indictment that adds new fraud and identity theft charges to a case in which she is accused of participating in a scheme that billed insurance companies $50 million for cosmetic surgeries that were falsely claimed to be “medically necessary.”
Linda Morrow, 64, was named in a 31-count superseding indictment that was returned on August 31 by a federal grand jury. Morrow and her husband, who pleaded guilty earlier this year, were initially charged a year ago with participating in a scheme to defraud health insurance companies by submitting bills for more than $50 million for procedures that were claimed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations, and vaginal rejuvenation.
The superseding indictment adds nine new charges against Morrow – three new mail fraud charges, three counts of identity theft and three counts of aggravated identity theft charges. The new indictment expands on forfeiture allegations in the original indictment that would require Morrow, if she is convicted, to forfeit all of the ill-gotten gains obtained from the scheme, a figure that may exceed $20 million.
The superseding indictment outlines a scheme in which patients were lured to The Morrow Institute (TMI) in Rancho Mirage, where Morrow was the executive director, with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. TMI allegedly submitted bills to insurance companies seeking as much as $100,000 for individual surgeries, and as much as $700,000 for multiple surgeries. The indictment further alleges that some patients who underwent multiple surgeries at TMI suffered severe medical complications from the procedures.
“As part of the scheme charged in this indictment, the defendant allegedly used the names and signatures of patients without their knowledge to obtain payments for procedures that were not covered by insurance,” said United States Attorney Eileen M. Decker. “Health care fraud schemes that defraud insurance companies in this manner victimize both the insurers and the insured who are forced to pay higher premiums. This case seeks both to punish the defendants and to deprive them of their illegal profits."
In March, Morrow’s husband – Dr. David M. Morrow, 71, of Rancho Mirage, a cosmetic surgeon and dermatologist who was the owner of TMI – pleaded guilty to conspiracy to commit mail fraud and filing a false tax return. Dr. Morrow agreed to pay more than $1 million in restitution to victims. When he pleaded guilty, Dr. Morrow admitted that he had altered a medical record by handwriting “hernias” over the original text in the document, which had correctly listed the cosmetic procedure of “abdominoplasty” (tummy tuck).
To obtain reimbursement for cosmetic procedures, the doctors at TMI completely fabricated diagnoses – such as a “hernia” – in the patients’ official medical records, according to the indictment. The doctors also allegedly fabricated test results and symptoms on medical records to cover up the actual medical procedures being performed. For example, “tummy tucks” were fraudulently billed as hernia repair or abdominal reconstruction surgeries, rhinoplasties (“nose jobs”) were fraudulently billed as deviated septum repair surgeries, and breast lifts and augmentations were fraudulently billed as “tuberous breast deformity.”
The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP) and Cigna.
“The FBI devotes many resources to hold health care fraud cheats responsible, as demonstrated in the charges against Linda Morrow, regardless of whether they are doctors, business partners or marketers,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Linda Morrow’s crimes not only victimized insurance companies, but the public entities that ultimately had to foot the bill to pay the outrageous billings, which include the California Highway Patrol and multiple public school districts.”
When insurance companies refused to pay for the cosmetic procedures for patients who happened to be employed by public entities such as school districts, TMI made formal claims against those public entities, demanding payments totaling more than $15 million from the California Highway Patrol, the Desert Sands Unified School District, the Palm Springs Unified School District and the City of Palm Springs.
The superseding indictment further alleges that after the FBI executed a federal search warrant at TMI in March 2011, Morrow went to the home of a TMI employee and asked whether the employee had been “the mole” who had reported TMI to the FBI.
“We are relentless in our pursuit to uncover, investigate, and prosecute those who rip-off of the healthcare system, leaving California consumers to foot the bill through higher premiums,” said Insurance Commissioner Dave Jones. “I congratulate Department of Insurance detectives who worked this case since it began and partnered with the FBI and insurers to uncover Doctor Morrow’s multi-million dollar crimes and his wife Linda’s alleged role.”
Morrow is scheduled to be arraigned on the superseding indictment in United States District Court in Santa Ana on September 12. United States District Judge Josephine L. Staton previously ordered Morrow to stand trial on January 24, 2017.
An indictment contains allegations that a defendant has committed a crime. A defendant is presumed to be innocent until and unless proven guilty in court.
The superseding indictment charges Morrow with 24 mail fraud counts, including conspiracy to commit mail fraud. Each of those 24 charges carries a statutory maximum penalty of 20 years in federal prison.
Morrow is additionally charged with three identity theft charges, each of which carry a statutory maximum penalty of 15 years in prison. She is also charges with three counts of aggravated identity theft, which carry a mandatory two-year prison term that must run consecutive to any other sentence imposed in the case.
Count 31 in the superseding indictment is another new count that charges Morrow with misprision of a felony for allegedly failing to report the health care fraud scheme to authorities. This charge carries a statutory maximum penalty of three years in prison.
Dr. Morrow is scheduled to be sentenced by Judge Staton on December 2, at which time he will face a statutory maximum sentence of 23 years in federal prison.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation and the California Department of Insurance.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office.
El Paso Man Facing Federal Charge for Using Interstate Communications to Threaten Las Cruces Police OfficersRead the Press Release
ALBUQUERQUE – Sean Stinson, 32, of El Paso, Texas, made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with using interstate communications to threaten the lives and safety of Las Cruces Police Department (LCPD) officers. Stinson remains in custody pending a preliminary hearing and a detention hearing, which have not yet been scheduled.
Stinson was arrested on Sept. 2, 2016, for allegedly making telephone calls from El Paso to individuals in Las Cruces during which he threatened the lives of LCPD officers. According to the criminal complaint, Stinson allegedly had several telephone calls, some of which were recorded, with LCPD officers during which Stinson allegedly threatened to shoot, kill and otherwise injure specific officers. It also alleges that, during one call, Stinson threatened to station himself at the LCPD with a sniper rifle and shoot officers as they left the police department. The complaint further alleges that Stinson also made telephone calls to the Governor’s Office during which he reiterated his threats to harm LCPD officers.
If convicted of the charges in the criminal complaint, Stinson faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the LCPD. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Ecuadorian Couple Sentenced to Federal Prison in Connection with an Alien Smuggling ConspiracyRead the Press Release
In El Paso today, a federal judge sentenced an Ecuadorian couple to federal prison for their roles in an undocumented alien smuggling conspiracy announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
United States District Judge Kathleen Cardone sentenced 40–year-old Paul Esteban Estrella Villota of Cuenca, Ecuador, and his 42-year-old wife Magaly Alemania Malagon Sandoya, to six years and five years in federal prison, respectively. Judge Cardone also ordered both defendants to pay a $5,000 special assessment and be placed on supervised release for a period of three years following the completion of their prison terms. Judge Cardone also ordered that Estrella pay a $2,500 fine. Earlier this year, both defendants pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain resulting in bodily injury. Estrella and Malagon have remained in federal custody since being arrested in Orlando, FL, on August 12, 2015.
The investigation into this smuggling organization began on November 4, 2013, after HSI El Paso special agents encountered two male juveniles in a suspected stash house. According to court documents, agents learned that Estrella and Malagon were the ring leaders of an alien smuggling organization that smuggled the juveniles into the United States.
The investigated revealed that on November 22, 2012, 25-year-old co-defendant Diana Marcial smuggled a two-year-old El Salvadoran child through the Bridge of the Americas (BOTA) Port of Entry (POE) as an identity imposter. Marcial used her own child's birth certificate to facilitate the smuggling. When that two-year-old’s mother, Wendy Heredia-Mejia, was herself arrested attempting to enter through the BOTA POE as an identity imposter, Heredia-Mejia identified Marcial as the individual who had crossed with her son. Marcial was contacted by HSI agents and returned the two-year-old child to law enforcement agents.
As a result of the above, Diana Marcial was convicted of making a false statement to authorities about the legal status of the child she brought into the United States. She was sentenced to one year probation and six months home confinement.
On November 6, 2013, 35-year-old Zandra Liduvina Llivichuzhca Murillo, the mother of one of the juveniles discovered by HSI El Paso agents two days prior, was arrested at Paso Del Norte (PDN) POE after she tried to enter the United States as a document imposter. The entry document she presented at the border was valid, but was in the name of another person. Arnulfo Delgado Salas, a 46-year-old co-defendant, was the driver of the vehicle carrying Llivichuzhca into the United States at the PDN POE. Salas, who was later arrested, was scheduled to plead guilty in May 2016 to one count of making a false statement, but absconded prior to his re-arraignment hearing. Salas is considered a fugitive.
Court records show that the man who arranged for Llivichuzhca and her child to be smuggled into the United States was a man she met in Ecuador. The man, whom she knew as “Paul,” charged her $15,000 each to smuggle her and her child. She paid him $6,000 up front. The woman positively identified Estrella as the man to whom she paid the smuggling fee. On March 28, 2014, Llivichuzhca was sentenced to timed served (just over 5 months incarceration) after pleading guilty to one count of false impersonation in an immigration matter.
On November 16, 2014, United States Customs and Border Protection’s (CBP) Office of Border Patrol (OBP) agents encountered another national of Ecuador near Mount Cristo Rey in Sunland Park, NM. During an interview with HSI special agents, that individual identified Estrella and Malagon as the smugglers with whom he entered into a smuggling agreement to bring his daughter into the United States. Court records show he agreed to pay them $14,000.
On March 16, 2014, Border Patrol agents arrested another national of Ecuador near Clint, TX, after she illegally entered into the United States. Court records allege she told HSI special agents that a woman by the name of “Magi” arranged her smuggling travels from Ecuador to the United States, even though an Ecuadorian smuggler named “Paul” originally was to bring her to the United States. Furthermore, the young girl’s father told HSI special agents on February 25, 2015, that he made arrangements to pay $14,500 to a smuggler he knew only as “Magi” to smuggle his daughter from Ecuador through Mexico into the United States. While in Ciudad Juarez, Mexico, the young lady was kept in stash house by Estrella and Malagon’s co-conspirators. At that stash house, these co-conspirators repeatedly raped her before dropping her off in Mexico immediately south of Clint, TX.
Waldemar Rodriguez, special agent in charge of HSI El Paso, credited the team effort of other Department of Homeland Security (DHS) agencies locally and abroad that participated in the investigation. “HSI will not relent against human smugglers who treat people like a mere commodity,” said Rodriguez. “This case should resonate loud and clear: HSI special agents and our law enforcement partners will work tirelessly to identify, arrest and prosecute those responsible for the illegal movement of people into and through our country.”
Assistant United States Attorney Ian Hanna prosecuted this case on behalf of the Government.
Eagle Pass Brothers Sentenced to Federal Prison for Cocaine DistributionRead the Press Release
In Del Rio this afternoon, a federal judge sentenced two brothers, owners and operators of the Real Street Paint and Body Shop in Eagle Pass, to federal prison for distributing approximately six kilograms of cocaine in the Eagle Pass area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
United States District Judge Alia Moses handed down a 216-month-federal-prison sentence to 37–year-old Xavier Cardona. Judge Moses handed down the same prison sentence to his 33-year-old brother, Michael Cardona. In addition to the prison terms, Judge Moses ordered that the defendants pay a $372,320 money judgment and be placed on supervised release for a period of five years after completing their prison terms.
On October 23, 2015, jurors found the defendants of conspiracy to possess with intent to distribute over 500 grams of cocaine. They also found Michael Cardona guilty of possession with intent to distribute less than 500 grams of cocaine.
Evidence presented in trial revealed that from January 2009 until April 2014, the Cardonas used Real Street Paint and Body Shop and Michael’s residence to sell cocaine and launder drug proceeds. The Cardona brothers used the proceeds from their cocaine distribution to fuel their lifestyle of custom built modified cars that they showed at various car shows in Texas and to buy and remodel homes. During recorded phone calls played at trial, Michael Cardona stated that he provided cocaine to other dealers already packaged and cut so that it would move more quickly. Testimony and evidence showed that the Cardonas also employed firearms in their drug trafficking business. A search of the residences of both brothers resulted in the seizure of $162,795 in currency, approximately 160 packages of cocaine ready for distribution and five weapons.
Both defendants have remained in federal custody since their arrests on April 23, 2014.
The case resulted from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. Assistant United States Attorneys Ralph Paradiso, Lewis Thomas and Diana Cruz-Zapata prosecuted this case on behalf of the Government.
Delaware County Physician to Pay $100,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Prescribing Controlled SubstancesRead the Press Release
TULSA, Okla.—A Jay, Oklahoma, physician, Dr. Darrell R. Mease, entered into a settlement agreement to pay $100,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. The Comprehensive Drug Abuse Prevention Act of 1970, regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, from September 2010 to September 2015, Dr. Mease would pre-sign prescription pads and allowed his employees and his wife to prescribe phentermine and other controlled substances for patients without conducting a medical examination. Furthermore, Dr. Mease prescribed controlled substances for his wife who was not his patient.
If you are aware of any illegal prescription drug sales and distribution, contact the Drug Enforcement Administration at 1-877-792-2873.
This case was handled by Assistant United States Attorney Marianne Hardcastle. The claims asserted by the government are allegations only, and there has not been any determination of liability.
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Danny Heinrich Admits to Murder of Jacob WetterlingRead the Press Release
DANNY JAMES HEINRICH, 53, pleaded guilty today to federal child pornography charges. As part of his allocution, HEINRICH admitted in court that on October 22,1989, he abducted, sexually assaulted and murdered 11-year-old Jacob Wetterling. HEINRICH also admitted that, in January 1989, he abducted and sexually assaulted 12-year-old J.S.
Investigators recovered Jacob Wetterling’s remains on Friday, September 2, 2016; 26 years, 10 months, and 11 days after his disappearance from St. Joseph Township, Minn.
The announcement was made today by United States Attorney Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, Stearns County Sheriff John Sanner, Stearns County Attorney Janelle P. Kendall and Minnesota Bureau of Criminal Apprehension (BCA) Superintendent Drew Evans.
“Danny Heinrich is no longer a person of interest,” said U.S. Attorney Andrew Luger. “He is the confessed murderer of Jacob Wetterling, and nearly 27 years after he committed this heinous crime, he has been brought to justice. And Jacob is finally home.”
“This outcome is proof of what we can accomplish when law enforcement and prosecutors work together at the federal, state and local level,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “When the FBI proposed a cold case review with the assistance of an expert from the FBI’s Child Abduction Rapid Deployment team two years ago, our partners agreed to this and embraced the opportunity to have a new set of eyes help take a fresh look at the voluminous and complex case file. I am extraordinarily proud of the FBI and of all the law enforcement personnel, past and present who poured their hearts and souls into this investigation, seeking justice for Jacob and answers for everyone.”
“Jacob Wetterling's abduction in 1989 ended an age of innocence for Central Minnesota and beyond and had a dramatic impact on how parents raised their children,” said Stearns County Sheriff John Sanner. “As the investigation wore on and years turned to decades the hope of resolving the case and bringing Jacob home never once faltered. A combination of steadfast determination, science and a unique collaborative effort involving local, state and federal agencies highlighted the value and importance of these relationships. Even though the ending is not what we had hoped and prayed for, Jacob is finally home.”
“From the night he went missing, the BCA never gave up on finding Jacob,” said BCA Superintendent Drew Evans. “For 27 years, BCA agents and our many partner agencies from all over the country doggedly followed every lead and pursued every tip. The BCA team of agents, scientists, and crime scene examiners have been collecting and analyzing evidence throughout the investigation. Last fall, our scientists connected Heinrich through DNA to another assault, which led to his arrest on the charges he faces today, and eventually, led our agents and crime scene team to Jacob. While this is not the result we hoped for, Jacob can now finally come home.”
“This event in the history of Minnesota, especially the history of Stearns County, could not have been accomplished without every member of this local, state and national team,” said Stearns County Attorney Janelle Kendall. “Despite the complication of this path, this case demonstrates that no case is too hard to solve, no tip too insignificant to consider, and no legal obstacle insurmountable in finding answers and accountability for Jacob Wetterling and for everyone near and far who knows his name. We never stopped looking for Jacob; none of us will ever forget the moment we found him. Our condolences and deepest sympathies remain with the Wetterling family.”
According to HEINRICH’s guilty plea, on October 22, 1989, he abducted, sexually assaulted, and murdered Jacob Wetterling.
According to HEINRICH’s guilty plea, on January 13, 1989, he abducted and sexually assaulted J.S., a 12-year-old boy.
According to HEINRICH’s guilty plea, he possessed between 10 and 150 child pornography images, including images of prepubescent minors under the age of 12. The pornographic material portrays sadistic or masochistic conduct, and images of morphed child pornography.
The parties have jointly recommended a federal prison sentence of 20 years.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit. Substantial assistance was provided by the Stearns County Attorney’s Office. The Department of Justice Child Exploitation and Obscenity Section also provided assistance.
Defendant Information:
DANNY JAMES HEINRICH, 53
Annandale, Minn.
Convicted:
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Receipt of child pornography, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Dallas Tax Preparer Pleads GuiltyRead the Press Release
DALLAS — Curtis Demond Johnson, who operated an income tax preparation business in Dallas, appeared in federal court this morning before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of aiding and assisting in the preparation of a fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, from approximately 2010 to 2014, Johnson operated Inworks Tax Services, located in Galleria Tower Three on Noel Road in Dallas.
From at least 2011 through 2013, according to the factual resume, Johnson willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), tax returns that were materially false. Johnson routinely falsified or inflated or one more business deductions on Schedule C to create a business loss that offset legitimate wage income. This produced an inflated refund to the client and a corresponding tax loss to the U.S. His scheme also promoted additional clients and earned fees for Johnson. In fact, during this time, according to the factual resume, income tax returns prepared and filed by Johnson that contained false and fraudulent Schedule Cs resulted in an estimated tax loss to the U.S. of $480,859.
Sentencing is set for December 22, 2016, before U.S. District Judge Jane J. Boyle. Johnson faces a statutory maximum penalty of three years in federal prison and a $250,000 fine. He may also be ordered to pay restitution.
IRS Criminal Investigation is investigating the case. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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Counterfeiter Pleads GuiltyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man who lived in his travel trailer pleaded guilty in federal court today to a counterfeiting scheme that victimized businesses across the United States.
Stuart E. Thurber, 55, pleaded guilty before U.S. Magistrate Judge David P. Rush to possessing electronic images for the purpose of counterfeiting.
Thurber was arrested on April 5, 2016, by Mountain View, Mo., police officers for passing counterfeit $100 bills. When officers searched his truck and travel trailer in the Wal-Mart parking lot, they found three laptop computers, two hard drives and two printers. Thurber admitted that these items were used to print counterfeit $100 bills.
Thurber also acknowledged in today’s plea agreement that the government could establish by a preponderance of the evidence that he engaged in counterfeiting from January 2014 to June 2016. Thurber, who lived in his Dodge Dakota pick-up and travel trailer, engaged in a counterfeiting operation whereby he “washed” the ink off of genuine bills and used his computer and color printer to create counterfeit $100 bills, which he then passed to unsuspecting businesses throughout the United States.
Thurber manufactured and passed at least 93 counterfeit $100 bills in the Western District of Missouri. Among the victims of Thurber’s criminal activity was Dollar General and Wal-Mart in Mountain View, Southern Supply in Springfield, Mo., and Dollar General in West Plains, Mo. Under the terms of today’s plea agreement, Thurber must pay $800 in restitution to both Dollar General (in Mountain View) and Southern Supply; he must $400 in restitution to both Dollar General (in West Plains) and Wal-Mart.
At the time of his arrest, Thurber attempted to avoid detection and punishment by claiming to be a citizen of New Zealand and presenting a counterfeit New Zealand identification card in the name David Turnbull.
Under federal statutes, Thurber is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service, the Mountain View, Mo., Police Department, the Ozark, Mo., Police Department and the West Plains, Mo., Police Department.