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6 September 2016
Convicted Felon Sentenced to 6 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Brandon Dale Hayes, 31, of Central Falls, was sentenced today to 72 months in federal prison for being a felon in possession of a firearm. Hayes was arrested by Rhode Island State Police on July 12, 2015, after troopers discovered a loaded semi-automatic firearm Hayes had stashed under the front seat of a vehicle during a routine traffic stop.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Hayes to serve 3 years supervised release upon completion of his prison term. Hayes pleaded guilty on June 6, 2016, to being a felon in possession of a firearm, as charged in a federal indictment returned on October 14, 2015. No plea agreement was filed in this matter.
Hayes’ sentence is announced by United States Attorney Peter F. Neronha and Rhode Island State Police Superintendent Colonel Steven G. O’Donnell.
According to information presented to the court, on July 12, 2015, a State Police trooper stopped a vehicle in which Hayes was a rear-seat passenger. The vehicle, which carried five individuals, was stopped along Route 95 in Warwick after the trooper observed several motor vehicle violations. After approaching the vehicle, the State Police trooper detected an odor of marijuana. Upon questioning, Hayes admitted to the trooper that he was in possession of a small amount of marijuana.
After removing Hayes and the rest of the individuals from the vehicle, the trooper discovered a loaded 9mm semi-automatic handgun under the passenger front seat and several items in the trunk of the vehilce used in the distribution of marijuana. Hayes later admitted to State Police that the firearm and the items located in the trunk of the vehicle belonged to him. The investigation determined that Hayes had removed the loaded 9mm semi-automatic handgun from his waistband during the traffic stop and stowed it under the front passenger seat.
Hayes has been detained since his arrest. According to court records, Hayes was previously convicted on felony assault, drug and firearm charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Columbus man sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Columbus man who was caught in a stolen car with heroin was sentenced today to a year and nine months in federal prison, announced United States Attorney Carol Casto. Jharel Daivon Kirkland, 27, previously pleaded guilty to possession with intent to distribute heroin.
On January 27, 2016, officers with the Huntington Police Department’s Special Emphasis Unit were conducting surveillance at a known drug residence in Huntington when they observed Kirkland enter the residence. Officers learned that the vehicle Kirkland was driving had been stolen in Columbus, and law enforcement conducted a traffic stop when Kirkland left the residence. Kirkland was arrested for possession of a stolen vehicle. During a search of Kirkland after his arrest, an officer located approximately 30 grams of heroin Kirkland had concealed in his underwear. Kirkland admitted that he intended to distribute the heroin.
The Huntington Police Department 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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Columbus Man Sentenced for Role in “Craigslist” RobberiesRead the Press Release
COLUMBUS, Ohio – Raphael D. Person Jr., 31, of Columbus, was sentenced in U.S. District Court today to a total of 506 months in prison and ordered to pay a total of $23,900 in restitution for his role in a conspiracy to rob two people who had posted vehicles for sale on Craigslist. Person helped plan the robberies and fired a gun during each one.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Middletown Police Chief Rodney Muterspaw, and Columbus Police Chief Kim Jacobs announced the sentence handed down by Senior U.S. District Judge James L. Graham.
A jury convicted Person on October 30, 2015 following a four-day trial of one count of conspiracy, two counts of armed robbery and two counts of discharging a firearm in connection with the robberies. One robbery occurred in Columbus in December 2011. The second one happened in Middletown, Ohio in February 2012.
The government presented evidence and witnesses testified that Person and three others arranged to meet people who had posted cars for sale, bought the cars, then robbed the victims of the money after the purchases were finished. Witnesses testified that Person suggested that the conspirators rob the victims following the sales and that Person was the one who discharged a gun in both robberies.
“During the trial, victims testified that they were afraid for their lives during the robberies,” Acting U.S. Attorney Glassman said. “A lengthy prison term helps bring justice to the victims, and that’s the outcome we received in this case.”
A grand jury indicted Person and co-defendant Mickey L. Velazquez, 31 of Columbus on September 26, 2013 on the five crimes. Velazquez pleaded guilty on January 6, 2015 and was sentenced on June 12, 2015 to 360 months in prison. Two other Columbus men, Ricardo Valazquez-Flores, 25 and Jonathan Flores Oquendo, 24, pleaded guilty to the same crimes prior to the indictment. Valazquez-Flores was sentenced on May 24, 2013 to 204 months in prison, and Oquendo was sentenced on January 3, 2104 to 336 months in prison.
Person must serve more than 42 years in prison in this case consecutive to another prison sentence of 41 years to life imposed in Franklin County, Ohio, where he was convicted of committing murder during a May 2012 home invasion.
Person was arrested by Dooly County Sheriff’s deputies near Vienna, Georgia on September 21, 2013. He has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys David J. Bosley and Timothy D. Prichard, who represented the United States in this case.
Cleveland dentist sentenced to year in prison, ordered to pay $344,000 for healthcare fraudRead the Press Release
A Cleveland dentist was sentenced to a year in prison and ordered to pay nearly $344,000 in restitution for fraudulently billing Medicaid for more work that not authorized or never done, said Carole S. Rendon, law enforcement officials said.
Robert Rouzaud, 60, was previously found guilty of healthcare fraud.
He operated Five Points Dental Centre on East 152nd Street. Rouzaud submitted claims on behalf of Medicaid recipients for services that were not pre-authorized, as required, and/or not provided. This took place between 2009 and 2015, according to court documents.
For example, Rouzaud billed for an excessive number of fillings on the same teeth, when he had not done fillings, filed claims for fillings on teeth that had been previously extracted, and submitted claims for fillings on patients who had dentures, according to court documents.
Rouzaud submitted false claims totaling $407,982 for services he did not provide between 2009 and 2015. He was paid nearly $344,000 for these services, according to court documents.
“This dentist’s fraudulent actions were egregious, and he deserves to go to prison for stealing from taxpayers,” U.S. Attorney Carole S. Rendon said.
“Robert Rouzaud stole money from a federal health care program intended to assist the most vulnerable in our society, the disabled and the poor, and today he paid the price for those actions,” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Region. “HHS/OIG and our law enforcement partners will work tirelessly root out those providers who steal from the Medicaid program.”
This case was prosecuted by Assistant U.S. Attorney Michael Collyer following an investigation by the FBI, the Department of Health and Human Services -- Office of Inspector General and the Ohio Attorney General's Office.
Cedar Rapids Woman Pleads Guilty to Identity Theft, Stealing from the Government, and Lying to Receive Housing AssistanceRead the Press Release
A woman who unlawfully used another person’s identity to file a fraudulent tax return and steal money from the government pled guilty last week in federal court in Cedar Rapids. She also pled guilty to lying to a government agency in order to receive housing assistance benefits.
Kaeisha Robinson, 39, from Cedar Rapids, Iowa, was convicted of one count of aggravated identity theft, one count of theft of government property, and one count of making false statements to a government agency.
In a plea agreement, Robinson admitted that from May 2011 to February 2013, she filed numerous false and fraudulent tax returns. She further admitted that she filed these returns in both her own name and the names of others, some of whom were unaware that she was using their identities to file fraudulent returns. Robinson also admitted that as a result of these fraudulent returns, she received refunds from the Internal Revenue Service and stole money from the government. Finally, Robinson admitted that from October 2011 through July 2013, she lied on forms she completed in order to receive Section 8 housing assistance by failing to report all of her income. This resulted in Robinson’s receipt of assistance to which she would not have been entitled had she been truthful.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Special Agent in Charge Karl Stiften. “Stealing identities and filing false tax returns is a crime that hurts innocent taxpayers. We are serious about holding those accountable who attempt to defraud the government.”
“This office will continue to work with the IRS to vigorously prosecute those who steal innocent people’s identities in order to file a false tax return and steal money,” said United States Attorney Kevin W. Techau. “These crimes cause harm to the person whose identity is stolen and harm to the U.S. taxpayer. Those who commit such crimes need to be held accountable.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Robinson remains in custody of the United States Marshal. Robinson faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of seventeen years’ imprisonment, a $750,000 fine, $300 in special assessments, and seven years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service-Criminal Investigation, United States Postal Service-Criminal Investigation, and the Department of Housing and Urban Development Office of the Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-0071.
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California Resident Sentenced to 52 Months in Federal Prison for Defrauding Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHDI MOAREFIAN, also known as “Michael Miller,” 37, of Irvine, California, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for participating in an extensive mortgage loan modification scheme. MOAREFIAN also was ordered to pay restitution in the amount of $2,390,496.59.
According to court documents and statements made in court, Aria Maleki, MOAREFIAN and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Maleki presided over the entire structure of this scheme, and MOAREFIAN was a senior member of the sales team. Acting as representatives of the above-named entities, MOAREFIAN and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
The investigation revealed that the top tier of salesmen, including MOAREFIAN, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, MOAREFIAN and five other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On February 17, 2016, MOAREFIAN pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Maleki pleaded guilty to the same charge and, on July 18, 2016, was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
This matter has been investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
California Man Pleads Guilty in 2013 Shooting Spree at Los Angeles International Airport and Admits to First-Degree Murder of Transportation Security Administration OfficerRead the Press Release
A Sun Valley, California, man pleaded guilty today to charges related to a 2013 shooting at Los Angeles International Airport (LAX) in which he murdered a Transportation Security Administration (TSA) officer.
Attorney General Loretta E. Lynch, Secretary Jeh Johnson of the Department of Homeland Security, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.
Paul Anthony Ciancia, 26, 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, before U.S. District Judge Philip S. Gutierrez of the Central District of California.
“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.”
“Our Transportation Security Officers put their lives on the line each and every day to keep the flying public safe,” said Secretary 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 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 U.S. 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.”
“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 Assistant Director in Charge 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, in early 2013, Ciancia purchased a semiautomatic rifle, 500 rounds of ammunition and 10 magazines for the rifle. On the morning of Nov. 1, 2013, Ciancia modified two pieces of luggage and zip-tied them together to conceal his loaded rifle inside.
Ciancia admitted that later that morning, he entered LAX Terminal Three, removed the loaded rifle from his modified luggage and fired at and killed TSA Officer Gerardo Hernandez while he was checking passengers’ travel documents. 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 as a civilian, Brian Ludmer, he admitted, all of whom sustained serious injuries and required surgery but survived the attack. 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.
The Los Angeles Joint Terrorism Task Force (JTTF) investigated the case. The JTTF is led by the FBI and includes agents and officers from 45 other local, state and federal agencies.
The Los Angeles Airport Police; the Los Angeles Police Department; the Los Angeles County Sheriff's Department; TSA; the Federal Air Marshal Service; the Los Angeles Port Police; the Long Beach, California, Police Department; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; the U.S. Secret Service; the Los Angeles Fire Department; Los Angeles International Airport Operations; the U.S. Marshals Service; the U.S. Postal Inspection Service; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided substantial assistance in the investigation.
First Assistant U.S. Attorney Patrick R. Fitzgerald of the Central District of California, Assistant U.S. Attorney Melissa Mills of the Central District of California’s Terrorism and Export Crimes Section, Assistant U.S. Attorney Joanna M. Curtis of the Central District of California’s Violent and Organized Crime Section and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Crimes Section prosecuted the case.
Brentwood Woman Convicted of Criminal Contempt for Violating Court-Ordered Asset FreezeRead the Press Release
Kennan Dozier, 58, of Brentwood, Tenn., pleaded guilty on September 2, 2016, to criminal contempt of court, for violating a Temporary Restraining Order issued by the U.S. District Court, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Judge Todd J. Campbell, Dozier admitted her role in violating a Temporary Restraining Order issued by the U.S. District Court for the Middle District of Tennessee in connection with a lawsuit brought by the Federal Trade Commission (“FTC”) and the State of Tennessee in 2010.
The FTC lawsuit included allegations that United Benefits of America, LLC, a company controlled by Dozier’s then-husband, Timothy Thomas, made material misrepresentations during telemarketing calls to consumers seeking health insurance. On August 4, 2010, the U.S. District Court issued a Temporary Restraining Order with Asset Freeze (“Asset Freeze”), which found that there was good cause to believe that the defendants of the lawsuit had engaged in acts that violated certain federal and state laws, and that immediate and irreparable harm could result if certain assets were disposed of. The Asset Freeze specifically prohibited Dozier and Thomas from transferring or disposing of certain funds.
Dozier admitted that, after being served with a copy of the Asset Freeze, she and Thomas approached a mutual friend regarding the fact that their assets had been frozen. This friend was asked to deposit certain checks into her own bank account, and to allow Thomas to use the funds from those checks. Subsequently, this friend deposited several checks into her bank account, including a check payable to Dozier for approximately $129,000, which was derived from United Benefits sales commissions. In addition, Dozier admitted cashing a check for approximately $7,800 after the Asset Freeze had been issued and served.
Dozier is scheduled to be sentenced by Judge Campbell on January 6, 2017.Timothy Thomas, 54 of Franklin, Tenn., was charged in the same indictment as Dozier, and faces charges of mail fraud, wire fraud, money laundering, and criminal contempt. He is scheduled for trial on November 22, 2016. An indictment is merely an accusation and is not evidence of guilt, and Thomas is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the U.S. Department of Labor, Employee Benefits Security Administration. The case is being prosecuted by Assistant U.S. Attorneys William F. Abely and Cecil W. VanDevender.
Benton City Man Sentenced to 30 Years in Federal Prison for Sex TraffickingRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced Roberto L. Llerenas, Jr., age 36, of Benton City, Washington, was sentenced today to 30 years in federal prison as a result of his convictions on four counts of trafficking two children under 18 for commercial sex.
On June 30, 2016, the defendant was found guilty by jury trial on two counts of Sex Trafficking of Children or Sex Trafficking by Force, Fraud or Coercion and two counts of Financially Benefiting from Sex Trafficking by Force, Fraud, or Coercion, all involving two victims.
Today, Senior United States District Judge Edward F. Shea, who presided over the trial, sentenced Llerenas to a total of 30 years in federal prison for each count of conviction, with the sentences to run concurrently. Judge Shea further ordered that Llerenas must spend the rest of his life on supervised release and must register as a sex offender.
Llerenas prostituted two fifteen-year-old girls between June 1, 2013 and July 13, 2013, in and around migrant worker camps, in the Pasco, Washington and Wenatchee, Washington areas. Llerenas had a pattern wherein he would bring the girls to a migrant worker camp, take cash from a migrant worker, hand the customer a condom, and whichever girl the customer chose would be made to have sex with the customer, typically on the concrete floor of a communal shower room.
Llerenas prostituted the girls against their will using force, threats, and coercion, all the while keeping the proceeds from the prostitution for himself. Both victims testified at trial about how Llerenas used manipulation, coercion, threats, and sometimes violence to cause them to engage in prostitution and to prevent them from reporting the offenses to authorities.
During the lengthy sentencing hearing that began on August 31, 2016 and concluded today, Senior Judge Shea recounted the basis for the jury’s four guilty verdicts against Llerenas and noted that the victims’ testimony, as well as the testimony of other witnesses, was thoroughly convincing. Judge Shea stated the Defendant “carried out a heartless plot to prostitute [the two victims] . . . so that he would benefit financially.” Judge Shea also found that Llerenas willfully obstructed justice when he offered “patently false” testimony on “all points of this case” and when Llerenas accused the victims of fabricating the charges against him. Judge Shea described Llerenas as “cunning” and stated that Llerenas’ testimony was flatly contradicted by the government’s witnesses and other evidence.
During the sentencing hearing, the two victims and members of the victims’ families were also able to address the Court and Llerenas, recounting the effect of Llerenas’ crimes and the need for a lengthy sentence. One victim noted the offense made her feel lost and like she had no control. She explained that she still is able to “remember it all so well.” The other victim explained she had to numb her feelings and set aside her emotions to get through the trafficking, but that she still holds in a lot of pain.
Michael C. Ormsby said “I commend the victims for their incredible courage in coming forward and testifying at great length in this case. The damage Llerenas caused the two victims for his own selfish benefit is immeasurable. The sentence handed down today reflects the seriousness of the defendant’s conduct. Federal, state, and local authorities will continue to investigate allegations of child exploitation and our office will continue to zealously prosecute those who sexually exploit minors and other vulnerable members of our society.”
The investigation of this case was conducted by the Federal Bureau of Investigation and the Benton County Sheriff’s Office. The case was prosecuted by Alison L. Gregoire and James A. Goeke, Assistant U.S. Attorneys for the Eastern District of Washington, as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Anderson man charged in tax fraud schemeRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today that an Anderson man has been charged with theft of public money. Dwayne S. Peak, 64, Anderson, Indiana, is alleged to be involved in a scheme where identity theft victims had tax returns prepared under their name and the refund was deposited into Peak’s account.
“Defrauding the IRS takes money from the United States Treasury and ultimately is stealing from the American public,” said Minkler. “Those who choose this illegal activity will be held accountable.”
Peak profited from the receipts of 21 fraudulent tax refunds from the years 2012, 2013 and 2014, totaling over $238,000. The government alleges Peak set up several bank accounts in order to receive the fraudulent refunds which are believed to have been prepared by unknown individuals. Three of the accounts had been opened just weeks prior to Peak receiving the illegal refunds. Peak is alleged to have received the refunds and kept a percentage for himself then forwarded the remaining balance of the money to others.
The victims in this case are the Internal Revenue Service and several individuals whose identities were illegally used to file false tax returns in order to steal funds. One identity theft victim told investigators that they were not involved in the filing of a federal return that resulted in a refund and signed an affidavit documenting the incident with the IRS.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation.
“Identity theft and refund fraud are top priorities for IRS Criminal Investigation,” said IRS Criminal Investigation Acting Special Agent in Charge John C. Pesnichak. “We are vigilant in our investigations of these schemes and will continue to work with the United States Attorney Office and our federal partners to protect the American people and the United States Treasury.”
Assistant United States Attorney James M. Warden who is prosecuting the case for the government, said Peak could receive 10 years in prison and a $250,000 fine if convicted.
An Information is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Albuquerque Man Pleads Guilty to Unlawful Possession of Firearm and Robberies of Albuquerque-Area Convenience StoresRead the Press Release
ALBUQUERQUE – Oscar Anchondo, 39, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of a firearm and violating the Hobbs Act by robbing two Albuquerque-area convenience stores at gunpoint.
Anchondo’s guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chief Tom Romero of the Bernalillo Police Department, Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), and Chief Michael Geier of the Rio Rancho Police Department.
Anchondo was arrested in Oct. 2015, on a criminal complaint alleging that Anchondo unlawfully possessed a firearm and ammunition on Oct. 6, 2015, in Sandoval County, N.M. According to the criminal complaint, on Oct. 6, 2015, a resident of the Town of Bernalillo called the Bernalillo Police Department to report a stolen vehicle. The victim reported that Anchondo stole the vehicle after threatening to kill her, and that Anchondo was armed when he made the threat. Officers responded to the call and located the vehicle parked in the driveway of another residence in Bernalillo. In response to an inquiry from the officers, an occupant of the residence said that Anchondo was in the residence.
Anchondo was subsequently indicted on the same charge on Dec. 17, 2015. According to court records, on Oct. 6, 2015, Anchondo was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in state court: armed robbery with a deadly weapon, attempted robbery with a deadly weapon, and being a felon in possession of a firearm.
During today’s proceedings, Anchondo entered a guilty plea to the indictment charging him with being a felon in possession of a firearm and to a felony information charging him with two counts of violating the Hobbs Act. In entering the guilty plea, Anchondo admitted the following criminal conduct:
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On Sept. 29, 2015, Anchondo entered the Giant convenience store located at 6100 San Mateo Blvd. NE in Albuquerque, threatened the store employees with a firearm, demanded money, and robbed the employee of cash.
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On Sept. 29, 2015, Anchondo entered the 7-Eleven convenience store located at 1801 San Pedro Dr. NE in Albuquerque, threatened the store employees with a firearm, demanded money, and robbed the employee of cash.
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On Oct. 6, 2015, Anchondo was in possession of a firearm during a standoff with police who were attempting to arrest him for the offense charged in the criminal complaint, and that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the ATF office in Albuquerque and the Bernalillo Police Department with assistance from the Albuquerque Police Department and the Rio Rancho Police Department. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
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Alamogordo Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Robert Alan Rutledge, 34, of Alamogordo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking crime charges. Under the terms of his plea agreement, Rutledge will be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Rutledge was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Rutledge was arrested on an indictment charging him and seven co-conspirators with conspiracy to distribute methamphetamine in Otero County, N.M., between April 9, 2015 and Oct. 16, 2015, and other drug trafficking offenses. During today’s proceedings, Rutledge entered a guilty plea to participating in a methamphetamine trafficking conspiracy and possessing methamphetamine with intent to distribute. In his plea agreement, Rutledge admitted that in Aug. and Sept. 2015, he obtained more than 50 grams but less than 200 grams of methamphetamine from a co-defendant, which he sold to other individuals. Rutledge further admitted that on Aug. 29, 2015, he sold 18 grams of methamphetamine to another individual. A sentencing hearing has yet to be scheduled.
Rutledge is the 13th of the 18 federal defendants to enter a guilty plea. The remaining five federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
$372,584 in Edward Byrne Memorial Justice Grant Funds AwardedRead the Press Release
United States Attorney G.F. Peterman, III announced eight agencies in the Middle District of Georgia received Department of Justice grant funds totaling $372,584.
The Edward Byrne Memorial Justice Assistance Grant Program (JAG) allows states and local governments to support a broad range of activities to prevent and control crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology programs; 7) crime victim and witness program (other than compensation).
The 2016 JAG award recipients in the Middle District of Georgia are as follows:
Baldwin County $17,567
Macon-Bibb County $87,417
City of Warner Robins $31,639
City of Valdosta$16,850
City of Albany $69,820
Columbus Consolidated Government $93,124
Athens-Clarke County Unified Government $37,046
City of Americus $19,121
Questions should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
5 September 2016
Governor Mapp’s Security Officer Detained Pending Trial for Possession of over 21 Kilos of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI -- Neal A. Chesterfield, 37, of St. Thomas, was arrested Saturday and charged with possession of approximately 21½ kilograms of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. At his initial appearance and detention hearing today in District Court, U.S. Magistrate Judge Ruth Miller remanded Chesterfield to the custody of the United States Marshals Service pending trial.
According to the complaint and affidavit filed with the court, on Saturday at the Cyril E. King Airport on St. Thomas, a U.S. Customs and Border Protection (CBP) K-9 alerted to the presence of narcotics in Chesterfield’s carry-on luggage while he was waiting in the Spirit Airlines gate area. Chesterfield, who is a security officer for Governor Kenneth Mapp, used his law enforcement credentials to bypass TSA screening, and was about to board Spirit flight 212 to
Fort Lauderdale. Upon inspection of Chesterfield’s luggage, CBP officers discovered 18 plasticwrapped packages, the contents of which tested positive for the presence of cocaine, weighing 21.44 kilograms. CBP officers also discovered $26,025.00 in U.S. Currency inside a small computer bag in Chesterfield’s possession.If convicted, Chesterfield faces a minimum sentence of not less than 10 years in prison, and a fine of up to $10 million.
This case is being investigated by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Delia Smith.
2 September 2016
United States District Court Affirms Piedmont Woman’s Conviction and Sentence for Collecting Signatures on United States Postal Service PropertyRead the Press Release
United States Attorney Randolph J. Seiler announces that the United States District Court has affirmed the federal conviction and sentence of Roberta Helmerick. Helmerick was convicted in federal district court in Rapid City of Collecting Signatures on United States Post Office Property, after being warned repeatedly by postal personnel and the Rapid City Police that her signature collecting violated federal regulations. The magistrate judge who heard the case imposed a $200 fine after convicting Helmerick.
During the trial, the magistrate judge heard that Helmerick was advised repeatedly that collecting signatures on a petition on post office property was a violation of federal regulations. Despite numerous requests from postal personnel and officers with the Rapid City Police Department to move her signature collection activities to sidewalks around the post office, Helmerick continued collecting signatures, even after other members of the group she belonged to had moved to the sidewalks.
In her appeal, Helmerick argued the Postal regulations were not posted sufficiently to provide notice of their requirements. In a published opinion, the district court affirmed the magistrate judge’s verdict in all respects, concluding Helmerick had received actual notice of the regulations.
Assistant U.S. Attorney Eric Kelderman prosecuted the case at trial and handled the appeal for the government. The investigation was conducted by the United States Postal Inspection Service and the Rapid City Police Department.
U.S. Attorney’s Office to Host Conference on Large-Scale Incidents Focusing on the San Bernardino Terror Attack and Victim-Centered ResponseRead the Press Release
LOS ANGELES – The United States Attorney’s Office is hosting a conference next week that will bring together first responders and experts who will provide their insights on last year’s terrorist attack in San Bernardino and important lessons learned that can be applied to other large-scale incidents.
Importantly, the conference on Tuesday, September 6, will feature discussions on better serving the victim population after a large-scale event. The San Bernardino terror attacks of December 2, 2015 will be the primary case study.
During the conference, experts will provide an overview of the initial response to the San Bernardino attacks, lessons learned from the coordinated response by first responders, the variety of issues that the victims will face, the need for victim-support teams, and how the victim-support teams can be most effective in their unique roles.
“While we hope to never again experience an event like the San Bernardino attack, there are important lessons we can learn and share about responding to such attacks. These lessons can be applied to a variety of incidents that we may face in this district and will help us be more prepared for large-scale events in the future,” said United States Attorney Eileen M. Decker. “The speakers at our conference will highlight the best practices for responding to large-scale incidents, with an important focus on providing services to victims. The victim-oriented presentations will focus on everything from providing the initial medical care to information about court proceedings. Our goal is to increase our ability to provide the maximum available assistance to the victims of such an incident, both during the incident and over the longer term. The victims of such incidents deserve nothing less.”
Speakers at the event will include United States Attorney Eileen M. Decker; San Bernardino Assistant Chief of Police Eric McBride; Dr. Michael Neeki, Chief of Emergency Services at Arrowhead Medical Center and members of the FBI’s Victim Services team who responded to the incident in San Bernardino. The event will be on Tuesday, September 6, at the California Endowment Center, 1000 North Alameda Street in downtown Los Angeles. The news media is invited to attend ONLY the opening session of the conference from 8:30 a.m. to 9:00 a.m.
Two Greek Shipping Companies and Engineers Convicted of Pollution Crimes and Obstruction of JusticeRead the Press Release
A federal jury in Greenville, North Carolina, has convicted Oceanic Illsabe Limited, Oceanfleet Shipping Limited and two of their employees of violating the Act to Prevent Pollution from Ships (APPS), obstruction of justice, false statements, witness tampering and conspiracy, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina. Oceanic Illsabe Limited is the owner of the M/V Ocean Hope, a large cargo vessel that was responsible for dumping tons of oily waste into the Pacific Ocean last year. Oceanfleet Shipping Limited was the managing operator of the vessel. Both companies operate out of Greece. Also convicted at trial were two senior engineering officers who worked aboard the vessel, Rustico Ignacio and Cassius Samson. The jury convicted on each of the nine counts in the indictment.
The operation of marine vessels, like the M/V Ocean Hope, generates large quantities of oil sludge and oil-contaminated waste water. International and U.S. law require that these vessels use pollution prevention equipment, known as an oil-water separator, to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. The evidence presented to the jury showed that in June 2015, the vessel discharged around ten metric tons of sludge into the ocean. The vessel was also regularly pumping contaminated water directly overboard. None of these discharges were disclosed as required.
“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case,” said U.S. Attorney Bruce. “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”
“While the vast majority of vessel owners, operators, and crews who do business in the United States follow our environmental laws, every year, a few unscrupulous commercial mariners obstruct justice in an attempt to hide from the Coast Guard the intentional discharge of large quantities of pollutants into the oceans,” said Rear Admiral Meredith Austin, commander of the Fifth Coast Guard District. “Coast Guard Marine Inspectors and the Coast Guard Investigative Service, in concert with the Department of Justice, will continue to aggressively investigate and prosecute those who do this.”
The evidence presented during the nine-day trial demonstrated that the companies were aware that the ship had not offloaded any oil sludge from the vessel since September 2014 and that the ship rarely used its oil-water separator. Instead, the vessel’s second engineer, Samson, ordered crewmembers to connect what is known in the industry as a “magic pipe” to bypass the vessel’s oil-water separator and pump oil sludge overboard. In addition, crewmembers were ordered to pump oily water from the vessel’s bilges directly into the ocean up to several times per week. The dumping occurred with the knowledge and approval of the ship’s chief engineer, Ignacio. Finally, the engineers used a tank designated for oily wastes to store diesel fuel for sale on the black market.
Upon arriving at the Port of Wilmington, Oceanic, Oceanfleet, Ignacio and Samson attempted to hide these discharges by presenting a false and fictitious oil record book to U.S. Coast Guard inspectors. When inspectors uncovered evidence of dumping, the defendants ordered lower-level crewmembers to lie to Coast Guard personnel. Samson also made several false statements to a Coast Guard inspector regarding the bypass of the oil-water separator.
At the conclusion of trial, defendants Oceanic and Oceanfleet were convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and four counts of witness tampering. Ignacio was convicted of one count of conspiracy, one count of violating APPS, one count of obstruction of justice and two counts of witness tampering. Samson was convicted of one count of conspiracy, one count of violating APPS, two counts of obstruction of justice, one count of false statements and three counts of witness tampering. The companies could be fined up to $500,000 per count, in addition to other possible penalties. Ignacio and Samson face a maximum penalty of 20 years in prison for the obstruction of justice charges.
This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five. Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson of the U.S. Attorney’s Office for the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case. The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.
Two Cedar Rapids Men Sentenced for Heroin DistributionRead the Press Release
Two Cedar Rapids men who worked together to sell heroin and crack cocaine were sentenced yesterday to serve terms of imprisonment in federal prison.
Chanord Hawkins, age 23, from Cedar Rapids, Iowa, (formerly Chicago, Illinois), received a prison term of 30 months’ imprisonment after a May 17, 2016, guilty plea to one count of distribution of heroin and crack cocaine. Donnell Cole, age 29, from Cedar Rapids, Iowa, (formerly Chicago, Illinois) received a 16-month prison term after a May 27, 2016, guilty plea to one count of distribution of heroin and crack cocaine.
At the guilty plea, both admitted working together to sell cocaine base, commonly called crack cocaine and heroin in the Cedar Rapids area during late 2015.
Both defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Both defendants must also serve a 3-year term of supervised release after the prison term and pay a special assessment of $100. There is no parole in the federal system. Both defendants are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tony Morfitt and investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-008. Follow us on Twitter @USAO_NDIA.
Three Plead Guilty to Tampering with Witness by Physical ForceRead the Press Release
Three Flint residents pleaded guilty to tampering with a witness by physical force to prevent the witness from testifying in a federal criminal case, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Federal Bureau of Investigation.
Pleading guilty were Christopher Blackwell, 27, Lawrence Christopher Davis, 22, and Lezlye Taylor, 22. The defendants entered their pleas before U.S. District Judge Terrence G. Berg in Flint.
According to court documents, in July 2014, Blackwell received a telephone call from an incarcerated man facing trial who stated that witnesses were cooperating against him. During their telephone conversation, Blackwell promised to prevent one of the witnesses from cooperating. On July 26, 2014, Taylor met up with the witness and informed Blackwell of the witness’s location as the two were leaving a building together. When the victim left the building, Blackwell and Davis shot him in both legs. Sixteen days after the shooting, law enforcement officers recovered one of the firearms used to shoot at the victim when Davis discarded it from his vehicle.
“Intimidation and harm to witnesses contribute to the ‘no snitch’ philosophy, which prevents people from reporting crimes,” McQuade said. “We will do all we can to protect witnesses in criminal cases, including prosecuting anyone who attempts to harm a witness.”
“Attempting to obstruct justice through threats or actual violence, especially when a witness to a crime is involved, is a very serious offense” said David P. Gelios, Special Agent in Charge, FBI Detroit Division, “The FBI places a premium on ensuring the personal safety and protection of all witnesses of crimes.”
Sentencing for Davis is scheduled for December 1. Sentencing for Taylor is set for December 15 and sentencing for Blackwell is scheduled for January 19, 2017. Each face a statutory maximum penalty of 30 years in prison.
The case was investigated by special agents of the FBI. The case is being prosecuted by an Assistant United States Attorney from the Flint Branch of the United States Attorney’s Office.
Three Milwaukee Men Charged with Elm Grove Bank RobberyRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that three Milwaukee men were charged with armed bank robbery and brandishing a firearm during and in relation to a crime of violence. The men are identified as: Elijah McGee, (age: 20), London Johnson, (age: 20), and Robert R. Crumble, Jr., (age: 20).
The indictment alleges that on February 2, 2016, the TCF bank located in Elm Grove, WI, was robbed by at least three subjects. If convicted, the three defendants face a maximum of 25 years’ imprisonment for the armed bank robbery charge, and a minimum mandatory of seven years’ imprisonment with a maximum of life imprisonment on the firearms charge.
The case was investigated by the Elm Grove Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lisa A. Wesley.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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Tennessee Man Arrested on Gun ChargeRead 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 David E. Rhoades, 36, of Goodlettsville, Tennessee, was arrested and charged by criminal complaint with possession of a firearm as an unlawful user of a controlled substance. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, on August 28, 2016, the defendant attempted to enter Canada at the Peace Bridge Port of Entry. Rhoades was refused entry for possessing a loaded gun. The defendant was escorted by the Canada Border Services Agency (BEST) back into the United States to U.S. Customs and Border Protection. The gun was a 9mm pistol for which Rhoades did not have a permit to carry. Drug paraphernalia, including a pill bottle with cocaine residue, a pipe, rolling papers with marijuana residue, and a scale, was also found in the car and seized by officers.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations, and by the Canada Border Services Agency.The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Statement by U.S. Attorney Damon P. Martinez on Fatal Shooting of Alamogordo Police Officer Clint CorvinusRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez issued the following statement upon learning of the fatal shooting of Officer Clint Corvinus, 33, of the Alamogordo Police Department:
“On behalf of the U.S. Attorney’s Office and the entire federal law enforcement community, I want to express our deepest condolences to the family of Officer Clint Corvinus and the men and women of the Alamogordo Police Department.
“Today Officer Clint Corvinus joined the list of law enforcement officer-heroes who sacrificed themselves while safeguarding their communities, and protecting their fellow citizens. Since March of 2015, New Mexico’s list of fallen officer-heroes has grown to include Officer Alex Yazzie of the Navajo Nation Division of Public Safety, Officer Gregg Benner of the Rio Rancho Police Department, Officer Daniel Webster of the Albuquerque Police Department and Officer Jose Chavez of the Hatch Police Department.
“When even a list of one is too long and at a time when the list of fallen officer-heroes is growing far too quickly, we, as a community, are grieving. Each of these losses is a tragedy. Each breaks our hearts. And each leaves a void that can never be filled. Beyond the profound losses suffered by loved ones they leave behind wound, our fallen officer-heroes leave behind comrades, deeply affected with unseen wounds, who carry forward with their work.
“Although words cannot relieve the pain or ease the sorrow Officer Corvinus’s family is experiencing today, I hope they can take comfort in knowing that their community and law enforcement officers throughout New Mexico and the country will always remember Officer Corvinus’s sacrifice.”
St. Francis Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Traelyn Lashae McCloskey, age 18, was indicted on August 16, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 7, 2016, McCloskey forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Rosebud Sioux Tribe, while said officer was performing his official duties.
The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Francis Man Charged with Repeated Harassing Communications and StalkingRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Obscene Telephone Call, Anonymous Telephone Call, Repeated Telephone Call, Repeated Harassing Communications, and Stalking.
Calvin Richard Spotted Tail, age 36, was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that between June 9, 2011, and July 16, 2014, Spotted Tail made numerous obscene telephone calls, anonymous telephone calls, and repeated telephone calls to several women and businesses.
The charges are merely accusations and Spotted Tail is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Rosebud Sioux Tribe Law Enforcement Services, Rapid City Police Department, and the Cherry County Police Department. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Spotted Tail was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rochester Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tremmell Brown, 31, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to 12 months in prison by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on July 11, 2015, at about 4:30 a.m., officers from the Rochester Police Department responded to 100 Green Knolls Drive in Rochester, for a report of a man in the parking lot of an apartment complex with a shotgun. As officers arrived, they could hear music coming from a car in the parking lot. As they approached, Brown got out of the car holding a shotgun, walked around the car, and got back in. This pattern of behavior, which also included Brown pumping the shotgun, went on for several minutes before the defendant finally sat in his car with the shotgun and drove away.
Shortly after, Brown, who had left the apartment complex, re-entered the parking area and parked at 143 Green Knolls Drive in a handicapped parking spot. Officers approached Brown as he got out of his car and took him into custody. In the car, officers could see the shotgun in the back seat. A further search of the car uncovered a small amount of loose marijuana, a shotgun case and ammunition.
Brown told officers that he had the shotgun because he was going hunting but denied sitting in the parking lot and racking the shotgun. In addition, the defendant said that he knew, given that he was a convicted felon, it was illegal to possess a handgun but thought he could possess a shotgun.The sentencing is the result of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Richmond Man Sentenced to Ten Years in Prison for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Robert Brunk, 25, of Richmond, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for possessing child pornography, announced United States Attorney Emily Gray Rice. United States District Judge Steven J. McAuliffe sentenced Brunk to 120 months’ incarceration followed by supervised release for life.
According to court documents and statements in court, on November 7, 2014, law enforcement officers executed a search warrant at the residence of Robert Brunk. Pursuant to the search warrant, officers seized computers and an external hard drive. Officers conducted a full forensic review of the external hard drive and located images and videos of children under the age of 18 engaged in sexual acts. The defendant, when interviewed, admitted that the external hard drive was his, and stated that he knew it contained images of children under the age of 18 engaged in sexual conduct. Some of those images were produced by the defendant and therefore also possessed by the defendant and those images depicted at least one minor under the age of 12.
The investigation in this case was led by the Police Departments of Richmond, Hinsdale, Manchester, and Concord, New Hampshire as well as the New Hampshire State Police, the New Hampshire Attorney General’s Office, the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Nick Abramson.
In February 2006, the Department of Justice introduced 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
President of O.C.-based Bulk Mail Company Pays $3 Million to Resolve Investigation into Scheme to Defraud U.S. Postal ServiceRead the Press Release
LOS ANGELES – The president of an Anaheim-based bulk mailing company this week paid the United States $3 million to resolve a federal investigation into allegations that the mailer systematically misclassified postage and defrauded the U.S. Postal Service (USPS) out of millions of dollars in postage fees.
The payment, which was made on Wednesday and announced today, resolves a civil investigation into Advantage Mailing, LLC, which handles bulk mailings and provides design, printing and mailing services for a broad range of customers. An investigation by Postal authorities determined that Advantage had submitted to the USPS false postage statements that misrepresented, among other things, the type and amount of postage affixed to millions of pieces of mail handled by the company. As a result, Advantage paid less to the USPS – millions of dollars less – than was actually due in postal fees.
“By misclassifying postage and submitting false statements to the Postal Service, this company avoided paying millions of dollars,” said United States Attorney Eileen M. Decker. “The settlement and the resulting multi-million dollar payment to the government puts others on notice that postal violations will not be tolerated and every entity that attempts to defraud the United States will be held accountable.”
Under USPS regulations, mailers must complete and submit a postage statement to the Postal Service that identifies the particulars of each mailing, such as type of postage used, the amount of pre-paid postage and number of pieces mailed. The USPS relies upon these postage statements to determine the amount of postage fees due, so mailers such as Advantage are required to truthfully and accurately complete the statements.
“A theft from the Postal Service is a theft from the American public,” said Postal Inspector in Charge Robert Wemyss. “Postal Inspectors will vigorously pursue and bring to justice anyone who cheats the Postal Service out of revenue. The Postal Inspection Service appreciates the strong stance the United States Attorney’s Office has taken against those who seek to take advantage of the Postal Service by underpaying postage.”
Advantage agreed to the civil settlement without admitting any wrongdoing. Advantage’s president, Thomas C. Ling, paid the settlement on August 31.
The government’s investigation was conducted by the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General.
The settlement was handled by Assistant United States Attorney Deborah Yim of the Civil Division’s Civil Fraud Section.
New York Man Pleads Guilty to Transporting Women for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE: Neptali De La Cruz Hernandez, 32, of New York, New York, appeared in United States District Court in Concord, New Hampshire on Friday and pled guilty to transporting two women in interstate commerce for prostitution, announced United States Attorney Emily Gray Rice.
According to court records and statements in court, on April 6, 2016, detectives with the Salem, New Hampshire Police Department responded to a tip regarding possible prostitution activity at a Salem hotel. Upon arriving at the hotel, the detectives conducted an undercover operation, during which they identified two women engaging in prostitution from adjacent hotel rooms. While interviewing the suspects, the detectives observed the defendant, De La Cruz Hernandez, driving erratically in the parking lot before he attempted to flee. They stopped the defendant’s vehicle, and during a subsequent interview, the defendant admitted that he had driven the two women from New York to New Hampshire for the purpose of engaging in prostitution.
De La Cruz Hernandez faces a sentence of up to ten years in prison, and a maximum fine of $250,000. He is scheduled for sentencing on December 19, 2016.
The case was investigated by the Salem, New Hampshire Police Department, in conjunction with Homeland Security Investigations in Manchester.
The case is being prosecuted by Assistant United States Attorneys Nick Abramson and Georgiana Konesky.
Multi-Jurisdictional Investigation into Drug Trafficking Culminates in Coordinated Law Enforcement Action in Four States and U.S. Virgin IslandRead the Press Release
PITTSBURGH – Following a multi-jurisdictional investigation into drug trafficking in Pittsburgh, Penn., 14 individuals have been indicted in the Western District of Pennsylvania for violating federal narcotics laws. The multi-agency Organized Crime Drug Enforcement Task Force investigation revealed a cocaine trafficking distribution network operating from the Virgin Islands to Detroit, Michigan, and a heroin trafficking scheme originating in Detroit and distributing to Pittsburgh. Coordinated law enforcement action occurred Thursday in multiple locations, with arrest warrants and search warrants being executed in Georgia, Michigan, Ohio, Pennsylvania and the U.S. Virgin Islands.
“This investigation, which utilized Title III wiretap intercepts, controlled drug purchases and other investigative techniques, established the existence of several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan, Northern District of Georgia and the District of the Virgin Islands.” stated U.S. Attorney David J. Hickton. “While our focus began in early 2015 on the Clinton Robinson drug trafficking organization operating on Pittsburgh’s North Side, we have since been able to track the drug suppliers beyond the borders of our own district and across the Caribbean Sea.”
“The arrests demonstrate, once again, the continued successful partnership of federal, state and local law enforcement in Western Pennsylvania,” said Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Field Office. “We are committed to stopping the flow of illegal drugs into our community from wherever they originate and grateful to our law enforcement partners on the FBI Greater Pittsburgh Safe Streets Task Force who worked tirelessly with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
THE INDICTMENTS
The Western District of Pennsylvania charges are contained in four separate, but related, indictments returned on Aug. 23, 2016, and unsealed yesterday.
- Clinton Robinson, 31, of Pittsburgh, PA;
- Ronelle Lane, 35, of Pittsburgh, PA;
- Vanier Murraine, 33, of Ferndale, MI;
- Victor Burnett, Jr., 36, of Oak Park, MI;
- Christopher Butler, 29, of Twinsburg, OH;
- Frank Williams, 27, of Detroit, MI; and
- Drue Williams, III, 35, of Cleveland, OH.
The two-count indictment alleges that from in and around January 2016 and continuing until around September 2016 Clinton Robinson, Ronelle Lane, Vanier Murraine, Victor Burnett, Jr., Christopher Butler, Frank Williams and Drue Williams, III, conspired to distribute and possession with intent to distribute one kilogram or more of heroin. In addition, the indictment alleges that on or about August 22, 2016, Robinson, Lane and Murraine attempted to distribute and possessed with intent to distribute 100 grams or more of heroin.- Derrein Robinson, 33, of Pittsburgh, PA;
- Dion Robinson, 27, of Pittsburgh, PA; and
- Todd Kenney, 27, of Pittsburgh, PA.
The one-count indictment alleges that from in and around April 2016 and continuing to in and around June 2016 Derrein Robinson, his brother Dion Robinson and Todd Kenney conspired to distribute and possess with intent to distribute a quantity of heroin.- Raheem Buchanan, 32, of Pittsburgh, PA; and
- Lamont Butler, 45, of Munhall, PA.
The one-count indictment alleges that from in and around February 2016 to in and around July 2016 Raheem Buchanan and Lamont Butler conspired to distribute and possess with intent to distribute a quantity of heroin.- Kelvin Ferguson, 29, formerly of Pittsburgh, PA; and
- Regina Brown, 28, of Pittsburgh, PA.
The two-count indictment alleges that in and around May 2015, Kelvin Ferguson and Regina Brown conspired to distribute and possess with intent to distribute a quantity of heroin. The indictment further alleges that on May 14, 2015, Ferguson and Brown possessed with intent to distribute a quantity of heroin.Clinton Robinson, Ronelle Lane, Derrien Robinson, Dion Robinson, Raheem Buchanan, Lamont Butler and Regina Brown were arrested yesterday morning and made their initial appearances in U.S. District Court in Pittsburgh. Vanier Murraine, Victor Burnett, Jr., and Frank Williams were arrested yesterday morning and made their initial appearances in U.S. District Court in the Eastern District of Michigan. Christopher Butler and Drue Williams, III, were arrested yesterday in Ohio and will make their initial appearances in U.S. District Court in Pittsburgh today. Kelvin Ferguson is presently detained on state charges at SCI Somerset.
Todd Kenney is a fugitive. Anyone with information is asked to call the FBI at 412-432-4000.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston of the Western District of Pennsylvania is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The Western Pennsylvania OCDETF is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Streets Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mission Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender and Assaulting, Opposing, Resisting, and Impeding a Federal Officer.
Charles Black Spotted Horse, age 24, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that on April 29, 2016, Black Spotted Horse unlawfully assaulted his spouse when, at the time of the domestic assault, Black Spotted Horse had a final conviction on at least two prior occasions for offenses that have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. The Indictment also alleges that on or about April 29, 2016, Black Spotted Horse forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Rosebud Sioux Tribe, while that officer was engaged in the performance of his official duties.
The charges are merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Black Spotted Horse was released on bond pending trial. A trial date has not been set.
Mellette County Man Sentenced to 33 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mellette County, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 4, 2016, by U.S. District Judge Roberto A. Lange.
Ty Wesley Clifford, age 23, was sentenced to 33 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. Clifford was also ordered to forfeit U.S. currency and two handguns seized by law enforcement in September 2015.
Clifford was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury on January 21, 2016. He pled guilty to Conspiracy to Distribute a Controlled Substance on June 1, 2016.
From May 2014 through September 2015, Clifford received and distributed methamphetamine in South Dakota. The individuals who provided Clifford with large amounts of methamphetamine knew he intended to engage in further distribution. It was reasonably foreseeable to Clifford that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Clifford was immediately turned over to the custody of the U.S. Marshals Service.
Massachusetts Man Sentenced on Federal Gun ChargesRead the Press Release
CONCORD, N.H. – John Wachaga, 22, of Lowell, Massachusetts, was sentenced on Friday in United States District Court in Concord, New Hampshire, for aiding and abetting the straw purchase of a firearm, and possessing a firearm as a convicted felon. According to United States Attorney Emily Gray Rice, Wachaga was sentenced to 18 months’ imprisonment, to be served consecutively to a sentence Wachaga is currently serving on state charges in Massachusetts. The defendant faces possible deportation proceedings following the completion of his sentence.
According to court records and statements in court, on May 4, 2014, officers from the Lowell, Massachusetts Police Department stopped a vehicle being driven by Wachaga, and seized a handgun secreted underneath Wachaga’s seat. Upon further investigation, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Wachaga had persuaded another individual to purchase the firearm for him in New Hampshire, because a prior felony conviction precluded him from purchasing the firearm himself.
This prosecution arose from an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms (Boston and New Hampshire), in conjunction with the Lowell, Massachusetts Police Department.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI – Estanislao De Jesus, 47, of the Dominican Republic, pleaded guilty Thursday in District Court on St. Thomas to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for January 5, 2017.
According to the plea agreement filed with the court, on May 7, 2016, agents from the U.S. Drug Enforcement Administration arrested De Jesus and Tomas Liriano-Castillo after Liriano-Castillo traveled by boat from Tortola to Hull Bay, St. Thomas, with six kilograms of cocaine. De Jesus admitted that he knew Liriano-Castillo went to Tortola to bring back cocaine to sell in St. Thomas.
De Jesus faces a minimum sentence of not less than five years, and a maximum sentence of 40 years in prison. He also faces a $5 million fine.
The case was investigated by the DEA and the U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Louisiana Man Sentenced to 20 Years in Prison for Engaging in Child Exploitation Enterprise and Production of Child PornographyRead the Press Release
A Greenwell Springs, Louisiana, man was sentenced today to serve 240 months in prison for engaging in a child exploitation enterprise and production of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Dakota K. Martin, 21, was sentenced by U.S. District Judge Colin S. Bruce of the Central District of Illinois, who also ordered him to serve a 25-year term of supervised release and to forfeit all of his computer equipment. Martin pleaded guilty on Aug. 5, 2015. He has remained in the custody of the U.S. Marshals since his arrest on Nov. 19, 2014.
Martin admitted upon entering his guilty plea to engaging in a child exploitation enterprise and to producing child pornography. According to the second superseding indictment, the enterprise involved an Internet-based, members-only bulletin board the purpose of which was, among other things, the advertisement and distribution of child pornography. Also according to the second superseding indictment, the rules of the website required prospective members to register an account and post child pornography to the satisfaction of board members in order to become a member, and to continue to post images of child pornography to remain in good standing and avoid removal from the site. The website’s rules also required members to upload encrypted child pornography images or videos to an approved website, along with necessary passwords needed to download such images or videos, according to the second superseding indictment. According to a criminal information, in February 2014, Martin also produced child pornography involving a minor victim.
On July 15, 2016, Martin’s co-conspirator Jason Gmoser, 36, of Hamilton, Ohio, was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes Against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Local Teacher Charged after Attempting to Engage in Sexual Conduct with a MinorRead the Press Release
HOUSTON – A 30-year-old teacher has been arrested on multiple charges surrounding his travel across state lines to engage in sexaul activity with a minor male, announced U.S. Attorney Kenneth Magidson. Drew Dillon Watson is a Physics teacher at a local school serving approximately 1,000 students in grades 6-12.
Watson, of Houston, was taken into custody yesterday upon the filing of a criminal complaint. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith at 2:00 p.m., at which time the government intends to request his detention pending further criminal proceedings.
The criminal complaint alleges Watson had been communicating with a 15-year-old male via text messaging, telephone calls, Skype and social media such as Kik and Snapchat beginning on or about April 16, 2016. During those conversations, Watson allegedly engaged in extremely explicit sexual conversations which eventually led to plans for Watson to travel to Illinois to meet with the boy. According to the criminal complaint, the minor male believed Watson’s intentions to be sexual in nature and that they had discussed engaging in various sex acts once they were alone.
The complaint further indicates that Watson was aware the male was under the age of 18. During those online communications, which allegedly occurred every day, Watson had stated he was approximately 30 years old and had formerly been employed as a physics teacher at a Texas area high school. The male informed Watson that he was a 16-year old high school student. As the communications progressed, Watson also allegedly sent the minor full body nude images of himself.
The criminal complaint charges that on May 13, 2016, Watson flew from Houston to Chicago with plans to meet with the boy for the purpose of engaging in illicit conduct. The victim’s mother had dropped her son off at a friend’s residence, thinking he was spending the weekend there. According to the charges, she was about to leave, when she felt something amiss and circled back around to the home. There, she witnessed her son entering a vehicle driven by an approximately 30-year-old male, according to the complaint. She confronted him, at which time her son exited the vehicle and they alerted authorities.
Watson is charged with coercion and enticement as well as transportation with intent to engage in criminal sexual activity. Both counts carry a minimum of 10 years and up to life in federal prison. He is also charged with travel with intent to engage in illicit sexual conduct which carries another 30-year-maximum term.
The FBI Violent Crime Task Force investigated the case with assistance from FBI in Chicago and the Lansing, Illinois, Police Department.
This case, being prosecuted by Assistant U.S. Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Local Tax Preparer Charged with Using Aliases to Continue False Tax Return Preparation after Pleading GuiltyRead the Press Release
HOUSTON – A local tax return preparer has been arrested on new charges of illegally preparing 39 false tax returns, announced U.S. Attorney Kenneth Magidson along with D. Richard Goss, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
Cedric Keith Oliphant was sentenced to 33 months after pleading guilty in 2013 to filing a false tax return. He was released from prison Aug. 26, 2016, and arrested on the new charges today.
The 40-count indictment was returned under seal Aug. 29, 2016, and unsealed upon his arrest this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen W. Smith at 2:00 p.m. today.
Oliphant had been previously charged and later convicted of preparing dozens of false 2006-08 client tax returns as part of his business - Oliphant Tax Services. He had been permitted to remain on bond during that time under a condition that he have no involvement in the preparation of tax returns other than his own. However, according to the new indictment, Oliphant continued to claim the same false deductions for unsuspecting clients while awaiting sentencing on the previous case.
As part of the scheme, the indictment alleges he changed the name of business to “Tax Services” to allegedly make it appear he had stopped preparing client tax returns and that someone else was the owner of his tax preparation business. Oliphant allegedly attributed the fees to the nominal owner of his tax office but manipulated those tax returns to make it appear the tax office had produced almost no taxable income.
The indictment also alleges Oliphant established a series of bank accounts in the names of others - including minors with custodians other than himself - so the fees could first be deposited to accounts in the names of the nominal owner of his tax office and others. He then allegedly transferred those fees through these intermediate accounts to accounts in his own name. This scheme enabled Oliphant to conceal his personal use of the fees generated by the business during the course of the prosecution on the first case, according to the charges.
The business allegedly generated $2 million in fees and a total loss to the IRS of another $400,000 or more as charged in the new indictment. As part of the his plea agreement in the earlier case, the losses from those false tax returns exceeded $325,000.
If convicted, he faces another three years in federal prison and a possible $250,000 fine on each count of conviction.
IRS-CI conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Lexington Man Sentenced to More Than 30 Years for Distributing Fentanyl and Heroin Resulting in DeathRead the Press Release
LEXINGTON — A Lexington man has been sentenced to 365 months in federal prison, for distributing heroin and fentanyl that resulted in the death of a 29 year-old woman, who had given birth just two weeks before her death.
On Thursday, U.S. District Judge Danny Reeves sentenced 44 year-old Christopher Allen for distributing a controlled substance resulting in death. Under federal law, Allen must serve at least 85 percent of his prison sentence.
In May of this year, a jury convicted Allen of distributing heroin and fentanyl resulting in death, conspiracy to distribute heroin and fentanyl, and possession with intent to distribute heroin and fentanyl.
“It’s hard to imagine a greater issue facing our commonwealth than this opiate crisis that continues to take lives and devastate families,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The people responsible for these tragedies, like Mr. Allen, have a heavy price to pay for their decision to pedal these poisons. This is a crisis that requires us to use every available tool to fight back. One such tool is our federal law that imposes a prison sentence of 20 years to life, with no parole, on those professional drug dealers and suppliers that sell heroin, fentanyl or other opiates, which result in death or serious bodily injury. We are working closely with our law enforcement partners to find those dealers we consider to be the worst the worst, and apply this law when necessary.”
According to trial testimony, in September of 2015, Allen distributed heroin and fentanyl to Nicole Alvarez, who had given birth to a baby two weeks before her overdose. Alvarez was found by her boyfriend in her home.
Authorities were able to verify that Allen supplied the drugs to Alvarez. A toxicologist testified that Alvarez died as a result of the toxic effects of the heroin and fentanyl and that the level of fentanyl in her system was three times the therapeutic range.
U.S. Attorney Harvey; Timothy J. Plancon, Special Agent in Charge of the Detroit Field Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement.
The investigation was conducted by the Lexington Police and DEA. Assistant U.S. Attorneys Todd Bradbury and Cindy Rieker prosecuted this case on behalf of the federal government.
La Joya Man Convicted of Pointing Laser at CBP HelicopterRead the Press Release
McALLEN, Texas – A 57-year old La Joya man has entered a guilty plea to pointing a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Kenneth Magidson.
Juan Peralez was arrested June 20, 2016. On that date, CBP agents in a helicopter were assisting Border Patrol (BP) agents in an area south of La Joya when they noticed the light of a green laser in the cabin. The pilot took evasive action and turned away in order to avoid being blinded by the laser.
Another member of the flight crew then guided agents on the ground to the source of the laser where a BP agent encountered Peralez, aiming the laser at the helicopter.
According to agents with CBP Air and Marine, lasers are particularly hazardous when directed at aircraft. At a minimum, they create distractions for crews who routinely operate in the vicinity of power lines and towers. Lasers can also create temporary or permanent blindness. Further, since lasers can also be attached to weaponry, pilots will often take immediate evasive action which can also put them in harm’s way.
U.S. District Judge Randy Crane accepted the plea today and has set sentencing for Nov. 17, 2016. Peralez was permitted to remain on bond pending that hearing, at which time he faces up to five years imprisonment and a possible $250,000 maximum fine.
The arrest is the result of a joint investigation between Homeland Security Investigations and the FBI with the assistance of Texas Department of Public Safety and Border Patrol. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Justice Department Requires Divestitures in Order for Nexstar to Proceed with Media General AcquisitionRead the Press Release
Nexstar Must Divest Seven Broadcast Television Stations in Six Markets to Upfront Buyers Approved by the Department
The Department of Justice announced today that it will require Nexstar Broadcasting Group to divest seven broadcast television stations in order to proceed with its $4.6 billion acquisition of Media General Corporation. The department said that without the required divestitures, the prices for broadcast television spot advertising and the fees charged to multichannel video programming distributors (MVPDs) – such as cable and satellite providers – for the retransmission of broadcast television programming to MVPD subscribers would likely increase in six designated market areas (DMAs) located across the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court of the District of Columbia to block the proposed transaction and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“As originally structured, this transaction would have given Nexstar the power to impose higher prices on local and national advertisers and to demand higher retransmission fees from cable and satellite companies in six markets,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Today’s settlement will protect advertisers, MVPDs and consumers – who ultimately would have borne many of these increased costs – by ensuring that Nexstar does not obtain undue bargaining leverage when negotiating broadcast television spot advertising prices and retransmission fees.”
The department’s complaint alleges that the proposed transaction would lessen competition in the sale of broadcast television spot advertising and the licensing of broadcast television programming to MVPDs for retransmission to MVPD subscribers in the following DMAs: Roanoke-Lynchburg, Virginia; Terre Haute, Indiana; Fort Wayne, Indiana; Green Bay-Appleton, Wisconsin; Lafayette, Louisiana; and Davenport, Iowa/Rock Island-Moline, Illinois (“Quad Cities”). As a result of the acquisition, Nexstar would control between 41 and 100 percent of the broadcast television station gross advertising revenues in these six DMAs and at least two broadcast television stations affiliated with the four major national television networks.
Under the terms of the proposed settlement, Nexstar must divest the following television stations to the following acquirers or other acquirers approved by the United States: WBAY-TV, in Green Bay, to Gray Television Inc.; WSLS-TV, in Roanoke-Lynchburg, to Graham Holdings Company; KADN-TV and KLAF-LD, in Lafayette, to Bayou City Broadcasting Lafayette Inc.; WTHI-TV, in Terre Haute, to USA Television MidAmerica Holdings Inc.; WFFT-TV, in Fort Wayne, to USA Television; and KWQC-TV, in Quad Cities, to Gray Television.
Nexstar is a Delaware corporation with its headquarters in Irving, Texas. Nexstar owns, operates or services broadcast television stations in 62 metropolitan areas. Nexstar reported net operating revenues of over $890 million in 2015.
Media General is a Virginia corporation with its headquarters in Richmond, Virginia. Media General owns, operates or services broadcast television stations in 48 metropolitan areas. Media General reported net operating revenues of $1.3 billion in 2015.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Assistant Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Nexstar-Media General CIS
Nexstar-Media General Complaint
Nexstar-Media General Explanation
Nexstar-Media General Hold Separate
Nexstar-Media General PFJ
Jury Convicts Merced County Man of Possessing Child PornographyRead the Press Release
FRESNO, Calif. — After an eight-day trial in Fresno, a federal jury found Roger Cha, 30, of Atwater, guilty today of one count of possession of child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on April 18, 2012, federal agents served a search warrant at Cha’s residence in Atwater to search for evidence of child pornography. Cha admitted to agents during the search that any child pornography found on the computer belonged to him, describing details of what they would find. A later forensics examination of the computer confirmed his admissions. The child pornography found on the computer included videos of children as young as four years old.
This case is the product of an investigation by the U.S. Secret Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.
Cha is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 12, 2016. Cha faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Jury Convicts Kern County Man of Illegally Possessing Firearms, Explosives and AmmunitionRead the Press Release
FRESNO, Calif. — Today, after a three-day trial, a federal jury found Kenneth William Kirkland, 48, of California City, guilty of being a felon in possession of firearms, being a felon in possession of a destructive device, being a felon in possession of explosives, and possession of a destructive device not registered in the National Firearms Registry, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence produced at trial, on October 11, 2015, officers from the California City Police Department executed a search warrant at Kirkland’s house and found a 5.56-caliber assault rifle that was loaded with a high-capacity magazine and one round in the chamber and a 7.62 x 54R-caliber rifle. When officers discovered detonators in a yellow metal container, they requested the assistance of the Kern County Sheriff’s bomb squad.
In addition to the detonators, several sticks of dynamite were found and a partially constructed improvised explosive device (IED) was found in a shoebox under Kirkland’s bed. Electrical components in a separate shoebox were also found. It was later determined that with either the insertion of batteries into a battery pack or the connecting of its wires directly to a battery, the partially constructed improvised explosive device could be readily assembled into a fully functional IED.
According to the indictment, on June 17, 1993, Kirkland was convicted in Kern County of burglary and was prohibited from possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California City Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Angela L. Scott and Christopher Baker are prosecuting the case.
Kirkland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on December 5, 2016. Kirkland faces a maximum statutory sentence of 10 years in prison and a $250,000 fine for being a felon in possession of firearms or a destructive device, and a maximum of 10 years in prison and a $10,000 fine for possession of a firearm not registered in the National Firearms Registry. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
International Fugitive Extradited to United States to Face Charges Regarding Alleged Cedar Funding Investment Fraud SchemeRead the Press Release
SAN JOSE - A former Monterey-area man, Manoel Antonio Errico, was extradited to the United States from Argentina on August 23, 2016, to face fraud charges brought against him in September 2009, announced United States Attorney Brian J. Stretch, Monterey County District Attorney Dean D. Flippo, United States Postal Inspection Service Inspector in Charge Rafael Nuñez, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
In a federal indictment returned on September 8, 2009, Errico, 62, is accused of defrauding investors in Cedar Funding, a Monterey-based “hard money” lender. Errico allegedly induced victims to invest in loans purportedly secured by deeds of trust and in a fund that invested in those same loans. According to the thirty-one count indictment, Cedar Funding had more than 1,000 investors while in existence.
The indictment describes various ways in which Errico allegedly defrauded investors by inducing them to purchase fractional interests in loans secured by deeds of trusts, and shares of Cedar Funding Mortgage Fund, LLC. According to the indictment, Errico engaged in a scheme, plan and artifice to defraud his targets, failed to disclose material facts, and made materially false statements. Specifically, the indictment alleges that, among other things, by using documents provided to investors, advertisements, interest payments and verbal communications, Errico participated in creating the false and misleading appearance that the investors’ funds were invested in sound, secured real estate loans, which offered high returns and safety of principal. In truth, by in or about 2004 and increasingly thereafter, most of the loans were not performing, and the investors’ funds were not secure. Moreover, as borrowers increasingly failed to pay off loans, Errico, without the investors’ prior knowledge or consent, allegedly participated in extending the loan maturity dates and advanced more investor funds, which caused the loan balances to balloon beyond the initial loan amounts, diluted the investors’ fractional interests in the loans and increased the likelihood that they would lose some or all of their principal.
The indictment also alleges that, unknown to investors, the source of a substantial part of the interest that Errico caused Cedar Funding to pay to existing investors came from new investors’ funds rather than from performing borrowers.
Errico was arrested in April 2016 when he traveled from his home country of Brazil to Argentina. He was arrested by Argentine authorities based on an Interpol “Red Notice” that had been submitted by the United States. The United States thereafter made a formal extradition request to Argentina, and on August 1, 2016, the Argentine authorities ordered Errico extradited to the United States.
After being extradited, Errico made his initial appearance in federal court in San Jose on September 1, 2016, before U.S. Magistrate Judge Howard R. Lloyd. On that date, Judge Lloyd conducted a bail hearing and ordered that Errico be detained pending trial. The defendant’s next scheduled appearance is September 19, 2016, before U.S. District Judge Edward J. Davila.
Errico is named in each of the thirty-one counts alleged in the indictment. The charges and maximum statutory penalties for each count in the indictment are as follows:
- Count 1, conspiracy, in violation of 18 U.S.C. § 1349: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 2 through 12, mail fraud, in violation of 18 U.S.C. § 1341: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 13 through 20, wire fraud, in violation of 18 U.S.C. § 1343: twenty years’ imprisonment, a fine of $250,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
- Counts 21 through 31, securities fraud and aiding and abetting, in violation of 15 U.S.C. §§ 78j(b) and 78ff; 17 C.F.R. §§ 240.10b-5 and 240.10b5-2; and 18 U.S.C. § 2: twenty years’ imprisonment, a fine of $5,000,000 or twice the amount of gain or loss, whichever is greater, three years supervised release.
The court may also order that the defendant pay restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Errico must be presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of paralegal Beth Margen and legal assistant Stephanie Mitchell. The prosecution is the result of a sixteen-month joint investigation by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Monterey County District Attorney’s Office. The U.S. Attorney’s Office recognizes the substantial assistance provided by the Monterey County District Attorney’s Office in this case.
Houston Woman Found Guilty on Charges of Sex Trafficking of MinorsRead the Press Release
HOUSTON – A jury sitting in Houston has returned guilty verdicts against a Houston woman for conspiracy to commit sex trafficking of minors and sex trafficking of minors, announced U.S. Attorney Kenneth Magidson. The jury convicted Jazsmine Arielle Joseph, 27 , this morning following a week-long trial and approximately six hours of deliberation.
Co-defendant Xavier Cooper, 31, previously pleaded guilty.
The jury found Joseph engaged in a conspiracy with Cooper between October 2014 through March 2015, in which they engaged in conspiracy to entice, transport and harbor a minor female to engage in commercial sex. Joseph paid for and directed the posting of prostitution ads online. Joseph also rented hotel rooms where the minor engaged in commercial sex acts.
The jury heard that the the minor engaged in numerous commercial sex acts over the course of the conspiracy culminating with her recovery during a highly publicized sting operation on March 31, 2015. At trial, Joseph claimed she was “just helping a friend” in regard to her renting the hotel room and assisting with the posting of the prostitution ads. The jury also heard about and viewed text messages between Joseph and Cooper discussing the minor victim. The texts discussed making sure the victim was ready to receive customers and when customers were on their way.
Joseph attempted to convey her innocence by testifying she was trying to help the victim and protect her from Cooper. The jury was not convinced and found her guilty on both counts.
U.S. District Judge David Hittner presided over the trial and set sentencing for Nov. 28, 2016. At that time, Joseph faces up to life in prison. Previously released on bond, she was ordered into custody following the return of the verdicts today.
The Texas Department of Public Safety investigated with the assistance of the FBI. Assistant U.S. Attorneys Kimberly A. Leo and Sherri L. Zack prosecuted the case.
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."
Greenville Couple Pleads Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Cary L. Wright, age 38, and Tanya A. Wright, age 29, both of Greenville, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, 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 the defendants stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine. On June 10, 2016, a search warrant was executed at the home of the Wrights in Greenville. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting.
Ms. Drake stated the maximum penalty defendants 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 Greenville City Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Founders of Not for Profit Organization Convicted of Stealing United Nations Grant FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that following a five week trial, a federal jury has convicted Steve S. Jabar, of Tonawanda, NY, and Deborah Bowers, of Clarence, NY, of conspiracy to commit wire fraud, wire fraud and making false statements. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine."As established by today's verdicts, these defendants stole UN Funds intended to promote good works in a part of the world that desperately needed assistance, said U.S. Attorney Hochul. "The facts that the defendants took such money to pay personal bills makes these convictions particularly noteworthy."
IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen said: “At the very least, as citizens living in a charitable society, we expect that money intended for humanitarian causes actually helps the people it was intended to help and not those who divert it for their own purposes. A jury has now found that Mr. Jabar and Ms. Bowers took money that was supposed to promote women’s rights in Iraq, used it for their personal benefit, and lied to law enforcement in order to keep their crimes hidden. They are now held accountable.”
Assistant U.S. Attorneys Marie P. Grisanti and MaryEllen Kresse, who prosecuted the case, stated that the defendants founded a not for profit organization OKI, Opportunities for Kids International, Inc. In June 2004, Jabar and Bowers, through OKI, applied for and received a $500,000 grant from United Nations to create, maintain and operate a radio station in Iraq. The mission of the radio station was to further women’s rights issues in Iraq.
Within 24 hours of receiving a portion of the grant money, the defendants began to divert some of the funding for their own personal use. Jabar and Bowers diverted more than $65,000 for their own personal use. Jabar used some of the funding to pay off personal debts, including the payment of property taxes owed on his residence and business, as well as mortgage, utility, credit card payments and personal loan payments. Bowers also utilized some of the funding to pay personal credit card debt and make mortgage payments.
During the investigation, the defendants made false statement to investigator with the Internal Revenue Service in order to conceal with criminal behavior.
The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Jabar and Bowers will be sentenced on December 12, 2016 at 10:00 a.m. before U.S. District Judge Lawrence J. Vilardo who presided over the trial.
Fort Worth Man Sentenced to 16 Months in Federal Prison for Making a False Statement in a Bankruptcy CaseRead the Press Release
DALLAS — A Fort Worth man, Alton Alexis, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 16 months in federal prison, following his guilty plea in May 2016 to an Information charging one count of making a false statement under penalty of perjury, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexis, 58, must surrender to the Bureau of Prisons on October 18, 2016.
According to documents filed in the case, in January 2010, Alexis, on behalf of borrower NSAA Investment Group, signed a promissory note with One World Bank for a loan of approximately $3,744,050 to finance the construction of a movie theatre restaurant. From early 2010 through early 2011, Alexis caused more than $2 million in loan proceeds to be disbursed from One World Bank to accounts in the name of BBA Construction Company and/or NSAA Investment Group. Alexis later submitted three fictitious invoices to One World Bank which caused at least $245,000 of those loan proceeds to be fraudulently diverted to bank accounts he controlled. Alexis then used these diverted loan proceeds to pay his personal debts.
In May 2011, Alexis made a material false statement in a bankruptcy case, In re Alton Alexis and Althea Lynette Alexis, filed in the Northern District of Texas, when he filed an Amended Statement of Financial Affairs that falsely represented he had truthfully disclosed all income received in the two years immediately preceding the commencement of the case. Instead of truthfully disclosing all income, Alexis fraudulently concealed the $245,000 of income, in the form of fraudulently diverted loan proceeds, he received in 2010.
According to testimony presented at today’s hearing, Alexis was involved in additional relevant conduct, to include: he concealed a prior felony conviction when he applied for the One World Bank loan; he fraudulently diverted a total of $480,423 of One World Bank loan proceeds and used these loan proceeds for his mortgage payments, college and private school tuition, property taxes, and trips to England and Mexico, among other things; and he submitted two false IRS forms to One World Bank to conceal his receipt of these loan proceeds for his personal use and benefit.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
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Fort Smith, Arkansas Woman Found Guilty of Embezzlement and Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that NICKOLLE DENISE DIXON, age 24, of Fort Smith Arkansas, was found guilty, by a federal jury, for EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATIONS, in violation of Title 18, United States Code, Section 1163. The jury trial began with testimony on Tuesday, August 30, 2016 and concluded the same day with the guilty verdict.
Evidence at trial proved that from in or about January 2013 to on or about January 5, 2014, in the Eastern District of Oklahoma, the defendant, NIKOLLE DENISE DIXON, did steal, embezzle and knowingly and willfully convert to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
The investigation revealed that DIXON, an employee of the Choctaw Travel Plaza, was voiding out sales from customers who had paid for and left with their purchases and would then take the money for her own use.
The verdict obtained was the result of an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is no more than 5 years imprisonment, up to $250,000.00 or both.
Assistant United States Attorney Edward Snow represented the United States.
Former Thornton Woman Sentenced for Defrauding Health Care ClientsRead the Press Release
DENVER – Kimberly S. Cileno, age 47, formerly of Thornton, Colorado, was sentenced on August 29, 2016 by U.S. District Court Judge Raymond P. Moore to serve 24 months in federal prison for health care fraud, Acting United States Attorney Bob Troyer, James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration and Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General announced. Following her prison sentence, Cileno was ordered to serve 3 years on supervised release. Cileno was also ordered by Judge Moore to pay $230,831.14 in restitution to the victims.
According to the facts contained in the indictment and plea agreement, Cileno was the owner and operator of EZ Flex, Inc. EZ Flex was a third-party administrator of cafeteria plans, also known as flexible spending plans.
Approximately 36 employers hired the defendant to administer the cafeteria plans they offered to a total of over 500 employees. The employers forwarded the designated deductions to the defendant, and the participants submitted claims for reimbursement of eligible expenses directly to the defendant. The defendant paid these claims by check, made direct deposits into the respective participant’s bank account, or provided reimbursement of claims through debit cards.
Amcheck, a payroll and human resources administrator located in Denver, recommended the services of EZ Flex to its clients looking to establish flexible spending plans for their employees. Amcheck itself contracted with EZ Flex for administration of its own flexible spending plan.
On September 28, 2012, Amcheck contacted the Department of Labor’s Employee Benefits Security Administration (EBSA), to report erratic claims administration by EZ Flex, Inc. Examples of this erratic behavior included reimbursements that were either paid in incorrect amounts or not paid at all, and a lack of responsiveness to clients via telephone or email.
Investigation revealed that between January 12, 2011, and December 10, 2012, the defendant spent over $230,000 in EZ Flex client’s funds on personal purchases, such as home renovations, a vacation, payments to Nutrisystem, and to a knife manufacturer. The defendant also withdrew cash from the flexible spending account, wrote checks from that account for home improvements, and transferred money from that account to a relative’s bank account.
“The people of Colorado should be heartened to hear that our elite prosecutors and Department of Labor investigators keep a close eye on these practices and ensure we punish this kind of rank theft,” said Acting U.S. Attorney Bob Troyer.
“This criminal action demonstrates the Labor Department’s resolve to vigorously enforce the laws to ensure that those who scheme, misappropriate, misrepresent and deceive employee benefit plans for their own financial gain are brought to justice,” said James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration.
“Kimberly Cileno embezzled over $200,000 from participants’ health care funds. Cileno’s conduct deprived plan participants of money they set aside to pay for their health and dependent care expenses. We will continue to work with the Employee Benefits Security Administration and our other law enforcement partners to safeguard health care benefit programs for America’s workforce,” said Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General.
This case was investigated by agents with the Department of Labor, Employee Benefits Security Administration and Department of Labor, Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Martha Paluch.
Former LCN Members Indicted in Murder of Club OwnerRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness. On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint. Weadick was arrested this morning by the FBI and Massachusetts State Police and will appear in before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.
The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others. Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation. Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.” Weadick was a close associate of Salemme, Jr.
Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; and Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Chief Michael Kent of the Burlington Police Department made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Former LCN Members Indicted in Connection with Murder of South Boston Club OwnerRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), and former NELCN associate Paul Weadick, were charged in an indictment unsealed today in connection with the 1993 murder of Steven A. DiSarro.
Francis P. Salemme, 83, and Paul Weadick, 61, of Burlington, were indicted on one count of murder of a federal witness. On Aug. 10, 2016, Salemme was arrested pursuant to a criminal complaint. Weadick was arrested this morning and will appear before U.S. District Court Magistrate Judge Donald. L. Cabell in Boston at 12:45 p.m.
The indictment alleges that, on or about May 10, 1993, Salemme and Weadick murdered DiSarro to prevent DiSarro from communicating with federal law enforcement officials about violations of federal laws by Salemme and others. Shortly after the murder, Salemme transported DiSarro’s body to Providence, R.I., where his associates arranged to have it buried in the vicinity of 715 Branch Avenue. In March 2016, DiSarro’s remains were recovered by federal authorities behind a mill in Providence, R.I.
DiSarro was murdered after his relationship with Salemme and Salemme’s son, Francis P. Salemme, Jr., became the subject of federal investigation. Part of that investigation revolved around the operation of a South Boston night club known as “The Channel.” Weadick was a close associate of Salemme, Jr.
Salemme was the boss of the New England La Cosa Nostra during the early 1990’s until his indictment for racketeering in 1995 and conviction in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Richard D. McKeon, Superintendent of the Massachusetts State Police; Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Chief Michael Kent of the Burlington Police Department, made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr. of Ortiz’s Office and William J. Ferland of Neronha’s Office.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.