Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 12 July 2016
Former school teacher sentenced for receipt of child pornographyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced WILLIAM EDWARDSON, JR., 56, of Jacksonville, North Carolina to 72 months imprisonment, followed by 5 years of supervised release. The Court also ordered EDWARDSON to register as a sex offender.
EDWARDSON was named in an Indictment filed on September 2, 2015. On January 11, 2016, EDWARDSON pled guilty to one count of Receipt of Child Pornography (CP).
At the time of his indictment, EDWARDSON was a teacher and soccer coach at Trexler Middle School in Richlands, North Carolina.
In January 2015, the North Carolina State Bureau of Investigation identified an IP address downloading and sharing child pornography via a peer-to-peer network using the Shareaza law enforcement software program. As the investigation progressed, the address and user were identified as EDWARDSON. On February 6, 2015, a search warrant was executed at EDWARDSON’s residence in Jacksonville and a laptop computer and two thumb drives were seized. Forensic examination of the defendant’s computer revealed 424 images and 51 videos containing CP. EDWARDSON was interviewed and admitted to downloading visual depictions of minor children engaging in sexually explicit conduct.
Investigation of this case was conducted by the NC State Bureau of Investigation. Assistant United States Attorney Ethan Ontjes represented the government. This case was accepted for federal prosecution as part of Project Safe Childhood.
# # #
News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Former Fair Bluff Police Officer Sentenced to 15 Years for the Manufacturing of Child PornographyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today DONALD BRIAN BEAUCHAINE, 40, of Lake Waccamaw, North Carolina, was sentenced to 180 months imprisonment followed by 15 years of supervised release by Chief United States District Judge James C. Dever, III, for one count of manufacturing child pornography.
BEAUCHAINE was previously employed as a police officer with the Fair Bluff, North Carolina Police Department. On June 4, 2014 he was caught secretly videotaping his girlfriend’s minor daughter in the bathroom. He admitted to videotaping the girl beginning in April 2014 until he was caught. A forensics examination of BEAUCHAINE’S cellphone and laptop contained 12,000 images of child pornography.
The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Lake Waccamaw Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
# # #
News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Former Employees of Dental Practice in Valencia County Charged with Trafficking in Prescription PainkillersRead the Press Release
ALBUQUERQUE – Pamela Suniga, 52, of Veguita, N.M., and Barbara Hussey, 40, of Belen, N.M., made their initial appearances today in federal court in Albuquerque, N.M., on an indictment charging them with violating the federal narcotics laws. Suniga and Hussey remain in custody pending arraignment and detention hearings, which are scheduled for July 13, 2016.
Suniga and Hussey were arrested yesterday based on an 11-count indictment charging the two women with conspiracy to distribute Hydrocodone, a prescription opioid painkiller, between May 2015 and Oct. 2015. The indictment also charges Suniga with distributing Hydrocodone on five occasions between May 2012 and Dec. 2014, and Suniga and Hussey with unlawfully acquiring Hydrocodone by forging prescriptions in the name of a dentist and presenting the prescriptions at a pharmacy in Belen in Aug. 2015.
The indictment charges Suniga alone with making a materially false statement in Oct. 2015, by forging the name of a dentist on a prescription for Hydrocodone and presenting the forged prescription at a pharmacy in Belen, and with aggravated identity theft. Finally, Suniga is charged with embezzling $17,219.55 in health care benefits between Dec. 2014 and Oct. 2015. The indictment also includes forfeiture provisions, which seek forfeiture of the monies Suniga allegedly embezzled.
According to the indictment, Suniga and Hussey committed the 11 offenses charged in the indictment in Valencia County, N.M. At the time they allegedly committed the crimes charged in the indictment, Suniga and Hussey were employed by a dental practice in Valencia County.
If convicted on the conspiracy charge, Suniga and Hussey each face a statutory maximum penalty of 20 years in prison. If convicted on the distribution of Hydrocodone charges, Suniga faces a statutory maximum penalty of 20 years in prison. If convicted of acquiring Hydrocodone using forged prescriptions, Suniga and Hussey each face a statutory maximum penalty of four years in prison. In addition, Suniga faces a statutory penalty of five years in prison on the false statements charge and ten years on the embezzlement charge. Suniga also faces a statutory mandatory two-year prison sentence on the aggregated identify theft charge that must be served consecutive to any sentence imposed on the other charges.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the New Mexico Board of Pharmacy. Assistant U.S. Attorney Kristopher N. Houghton is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Suniga Hussey Indictment
Former CEO of Real Estate Investment Company Charged with Embezzling More Than $1 Million and Engaging in Tax EvasionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and Shantelle P. Kitchen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of ROCKWELL GAJWANI on charges of wire fraud, money laundering, and tax evasion. GAJWANI was arrested this morning by USPIS and IRS agents in Connecticut, and was presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Frank Maas.
U.S. Attorney Preet Bharara said: “As the chief executive officer of a Manhattan real estate company, Rockwell Gajwani was supposed to put the best interests of his company first. Instead, as alleged, he abused his position of authority to embezzle over a million dollars of company money. I thank the U.S. Postal Inspection Service and the IRS-CI for their work in this investigation.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Gajwani exploited the trust of his employer and preyed on unsuspecting employees to allegedly steal company funds for his own personal benefit, while evading payment of income tax on those funds. Postal Inspectors and their law enforcement partners will never tolerate this egregious behavior and will vigorously pursue and bring to justice anyone who participates in this criminal activity.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Everyone is responsible for paying their fair share of taxes, whether their income is legal or illegal. IRS-Criminal Investigation is responsible for investigating allegations concerning individuals who are willfully not reporting their income and are evading the taxes they owe, and we take our roles as protectors of the tax system very seriously.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
From October 2011 through March 2013, GAJWANI was the chief executive officer and president of a real estate investment company based in Manhattan (the “Manhattan Real Estate Company”). During this period, GAJWANI took over $1 million in company funds to which he was not entitled by, among other means, making wire transfers from the company’s bank account to his personal bank account, writing company checks to himself, and making cash withdrawals from the company’s bank account.
To accomplish this scheme, among other means, GAJWANI took steps to conceal his true salary and to conceal from the Manhattan Real Estate Company’s parent company (the “Parent Company”) the amount of money he had taken from the Manhattan Real Estate Company’s bank account.
In or about February 2012, GAJWANI asked an employee of the Manhattan Real Estate Company (“Employee-1”) to reduce GAJWANI’s salary to zero in the company’s payroll system, which Employee-1 did not do. Soon thereafter, GAJWANI asked Employee-1 to reduce his salary to $2,000 biweekly and did not provide an explanation to Employee-1 for this request. Ultimately, Employee-1 complied with this request and caused GAJWANI’s salary to be reduced in the payroll system from $26,923.07 on a biweekly basis – which reflects approximately GAJWANI’s agreed salary of $700,000 – to $2,000 on a biweekly basis.
Beginning in late 2012, the director of accounting for the Manhattan Real Estate Company (the “Director of Accounting”) asked GAJWANI for details regarding GAJWANI’s compensation on more than one occasion, and GAJWANI repeatedly said he would get such details to her, but failed to do so. On another occasion, in connection with a request from the Parent Company for financial information, GAJWANI told the Director of Accounting not to provide that information to the Parent Company. To further conceal the funds he had taken from the Manhattan Real Estate Company, GAJWANI directed employees of the Manhattan Real Estate Company to lump the compensation of all employees together in accounting materials provided to the Parent Company, so that GAJWANI’s compensation would not be listed separately from the aggregate figure. GAJWANI also directed certain employees of the Manhattan Real Estate Company not to communicate with employees of the Parent Company.
Over the course of his employment, GAJWANI wrote himself over $940,000 in checks from the Manhattan Real Estate Company’s bank account, and wired over $1,700,000 to his personal bank account. Although some of these funds were purportedly for expenses, by the end of his employment GAJWANI had taken over $1,300,000 more from the Manhattan Real Estate Company’s bank account than he was entitled to under his employment agreement.
GAJWANI also concealed his fraud on the Manhattan Real Estate Company by laundering the proceeds of his fraud. Specifically, on two occasions in May 2012, GAJWANI wrote checks to an employee of the Manhattan Real Estate Company (“Employee-2”) from the company’s bank account. GAJWANI wrote “expenses” in the memo line of each check, although neither check was meant to pay company expenses, and instructed Employee-2 to write a check in return directly to GAJWANI himself. Employee-2 did so on both occasions. In this manner, GAJWANI was able to secure over $30,000 in payments that GAJWANI appeared to receive from Employee-2 but in reality were funds GAJWANI had taken from the Manhattan Real Estate Company.
In addition to defrauding the Manhattan Real Estate Company and engaging in money laundering, GAJWANI did not file tax returns or pay taxes for his legitimate salary or for the money he had secured through fraud. Ultimately, in or about July 2015, after he learned of a criminal investigation, GAJWANI filed tax returns for calendar years 2011, 2012, and 2013. Each of those returns included false representations. For tax year 2011, the Federal Income Tax Return that GAJWANI filed understated GAJWANI’s actual income by more than $480,000, and included over $85,000 in false impermissible tax deductions. For tax year 2012, the Federal Income Tax Return that GAJWANI filed included over $260,000 in false impermissible tax deductions. For tax year 2013, the Federal Income Tax Return that GAJWANI filed underreported GAJWANI’s actual income by $270,000.
* * *
GAJWANI, 52, of Darien, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and three counts of tax evasion, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Bharara praised the outstanding investigative efforts of law enforcement personnel at USPIS and IRS-CI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jonathan Cohen and Andrew D. Beaty are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Bank President and CEO of Farmers Exchange Bank Indicted in Federal Court for Bank Fraud, Embezzlement, and ObstructionRead the Press Release
United States Attorney Gregory A. Haanstad of the Eastern District of Wisconsin announced today that the grand jury has returned an indictment against Geffrey Sawtelle (age: 62) of Neshkoro, Wisconsin, charging him with executing a scheme to defraud Farmers Exchange Bank, a federally insured financial institution operating at various Wisconsin locations, and related criminal charges.
From 2000 until 2014, Mr. Sawtelle was the President and CEO of Farmers Exchange Bank. The indictment alleges that, from 2003 to 2014, Mr. Sawtelle engaged in a scheme to obtain money and assets owned by the Bank, in violation of Title 18, United States Code, Section 1344. Mr. Sawtelle executed the scheme in several different ways. Counts One through Five of the indictment allege that Mr. Sawtelle caused the Bank to purchase car racing-related items for Mr. Sawtelle’s personal use, including a Classic Trailer, a Kibbi trailer, a Renegade motorhome, a Corvette, and services performed by Corvette Sports Inc., and that Mr. Sawtelle manipulated the Bank’s ledgers to conceal those purchases. Counts Six through Fourteen allege that Mr. Sawtelle repeatedly awarded himself fraudulent bonuses that were not approved by the Bank’s Board of Directors. Counts Fifteen through Nineteen allege that Mr. Sawtelle originated a series of straw loans in the names of other people, for his own benefit. Finally, Counts Twenty and Twenty-One charge that Mr. Sawtelle caused the Bank to purchase two sports utility vehicles for his personal use. As to each of these counts, if convicted, Mr. Sawtelle would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed five years.
The indictment also alleges that Mr. Sawtelle violated Title 18, United States Code, Section 656, by embezzling and misapplying Bank funds while employed as one of the Bank’s officers. Count Twenty-Two alleges that Mr. Sawtelle embezzled the proceeds of the sale of a 2002 Corvette, which Mr. Sawtelle had previously purchased and expensed to the Bank. Count Twenty-Three charges that Mr. Sawtelle transferred $20,000 from the Bank’s general ledger to his own checking account. As to each of those counts, if convicted, Mr. Sawtelle would face imprisonment for not more than 30 years, a fine of not more than $1 million, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed five years.
Finally, Counts Twenty-Four and Twenty-Five allege that Mr. Sawtelle obstructed the examinations of Farmers Exchange Bank by the FDIC, in violation of Title 18, United States Code, Section 1517, and made false statements to an FDIC representative, in violation of Title 18, United States Code, Section 1001. As to each of those counts, if convicted, Mr. Sawtelle would face imprisonment for not more than 5 years, a fine of not more than $250,000, or both, plus the mandatory $100 special assessment and a term of supervised release not to exceed one year.
This case is being investigated by the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Office of the Inspector General for the Board of Governors of the Federal Reserve System, and the Federal Bureau of Investigation. The case will be prosecuted by Assistant United States Attorneys Carol Kraft and Rebecca Taibleson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # # # #
Florence Man Sentenced to Five Months in Prison for Federal Domestic Violence ViolationRead the Press Release
HUNTSVILLE – A federal judge today sentenced a Florence man to five months in prison for assaulting a former girlfriend living on Redstone Arsenal, announced U.S. Attorney Joyce White Vance.
A federal jury in April convicted RONNIE CHRISTOPHER RICKS, 46, on one count of interstate domestic violence for coming into the U.S. government’s special territorial jurisdiction of Redstone Arsenal and striking his former girlfriend with his fists on Aug. 5, 2015. U.S. District Judge Madeline H. Haikala sentenced him to the five months in prison, followed by two years of supervised release. Ricks already is in custody.
According to government documents, the assault occurred as follows:
Ricks’ former girlfriend was a U.S. Army non-commissioned officer living on Redstone Arsenal last year. On Aug. 5, Ricks showed up at her residence as an Army officer arrived to pick up his daughter, who Ricks’ victim was babysitting. Ricks began cursing and swung a fist at the officer. When Ricks former girlfriend stepped between the two men, Ricks threw her to the ground, struck her in the face with his fists and dragged her along the ground.
The Redstone Arsenal Police investigated the case, which Assistant U.S. Attorney David Estes is prosecuting.
###
Five Current and Former Employees of Leading Proxy Solicitation Firm Charged with Conspiring to Obtain Confidential Shareholder Voting InformationRead the Press Release
BOSTON – Five current and former employees of one of the nation’s leading proxy solicitation firms were charged today with conspiring to bribe an employee of a prominent proxy advisory firm to obtain confidential information about how the advisory firm’s clients had voted on numerous shareholder proposals.
Donna M. Ackerly, 58, of Hopewell, N.J.; Charles W. Garske, 51, of Wayne, N.J.; Richard J. Gottcent, 59, of Islip Terrance, N.Y.; Keith Haynes, 53, of New York, N.Y.; and Michael Sedlak, 49, of Allentown, Pa., were charged in a criminal complaint with one count of conspiracy to commit wire fraud and honest services wire fraud. Ackerly, Gottcent, Haynes and Sedlak were arrested this morning and will have their initial court appearances today in New Jersey, New York and Pennsylvania. Garske is expected to have his initial court appearance later this week. The defendants are scheduled to appear in U.S. District Court in Boston before Magistrate Judge Marianne B. Bowler on Aug. 4, 2016.
It is alleged that from September 2007 to March 2012, the defendants conspired to provide tickets to concerts and sporting events to Brian M. Bennett, formerly known as Brian Zentmyer, an employee of one of the country’s leading proxy advisory firms, in order to obtain information about whether and how the proxy advisory firm’s clients had voted on particular shareholder proposals. The defendants are also charged with conspiring to defraud clients of their own employer by billing them for at least a portion of the cost of the bribes provided to Bennett, while falsely describing those charges as legitimate expenses.
Bennett, currently of Mount Pleasant, S.C., pleaded guilty in July 2015 to one count of conspiracy to commit wire fraud and honest services wire fraud.
"These defendants are charged with conspiring to use bribes to obtain confidential information to gain an unfair business edge over their law-abiding competitors," said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. "This investigation is another example of the FBI’s commitment to ensuring that nonpublic business information is properly safeguarded, and not misused by individuals and third parties for their own improper advantage."
Proxy advisory firms provide institutional investors with research, analysis and recommendations concerning proposals subject to vote by shareholders in publicly traded companies. The firms may also engage in ancillary businesses, such as helping clients cast their votes, also known as proxy ballots or proxies. Proxy solicitation firms, in turn, assist publicly traded companies in matters requiring shareholder approval by attempting to gather information about institutional investors’ holdings and the direction of their proxy votes. This information can help proxy solicitors and their clients determine whether particular shareholder proposals are likely to pass or fail and can thus help to shape their strategies for affecting the outcome of shareholder votes.
In the course of his work for the proxy advisory firm, Bennett had access to non-public information concerning the firm’s clients, including information about how many shares the clients held in particular publicly traded companies, whether the clients had voted on particular shareholder proposals, and if so, how they had voted. Such information is typically confidential, and the proxy advisory firm’s contracts with its clients required that the firm not disclose this type of confidential information to third parties. In addition, Bennett was subject to the proxy advisory firm’s code of conduct, which prohibited employees from accessing confidential information about the firm’s clients unless necessary to perform their jobs, providing confidential client information to third parties, and accepting gifts “designed to induce an employee to act in a manner inconsistent with the best interests” of the firm.
According to the complaint affidavit, between September 2007 and March 2012, Sedlak requested that Bennett provide him with non-public information about how the proxy advisory firm’s clients had voted on numerous shareholder proposals. In response to Sedlak’s requests, Bennett allegedly accessed the proxy advisory firm’s computer systems, often after-hours, to obtain the confidential, client-specific information Sedlak sought. Bennett then provided that information to Sedlak. Sedlak forwarded the confidential information to other employees of the proxy solicitation firm, including Ackerly, Garske, Gottcent and Haynes. Ackerly, Garske and Haynes then allegedly provided it to the proxy solicitation firm’s clients.
In exchange for the confidential information Bennett provided, it is alleged that Sedlak gave Bennett tickets to concerts and sporting events in Massachusetts and elsewhere, accounting for the tickets in expense reports he then submitted to Gottcent and others, who allegedly approved them. In several instances, Sedlak allegedly sought and received permission from Ackerly, Garske and Haynes to bill at least a portion of the cost of the tickets to clients of the proxy solicitation firm. In those instances, Ackerly, Garske and Haynes are alleged to have provided Sedlak with the names of clients to bill, and to have instructed the firm’s billing department to falsely describe those charges in client invoices as “courier services” or other legitimate-sounding expenses.
The charging document alleges specific examples of confidential information Sedlak obtained from Bennett, and the gifts Sedlak allegedly provided in exchange.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the accouncement today. The United States Attorney’s Office has also received valuable assistance from the Securities & Exchange Commission. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank, Chief and Deputy Chief, respectively, of Ortiz’s Economic Crimes Unit.
Federal Jury Finds Armed Career Criminal from Albuquerque Guilty of Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late yesterday afternoon finding Samuel Silva, 40, guilty of unlawfully possessing a firearm and ammunition after a one-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Silva was charged on Dec. 3, 2014, with being a felon in possession of a firearm and ammunition on July 1, 2014, in Bernalillo County, N.M. According to the indictment, Silva was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses. His prior felony convictions included auto burglary, unlawful taking of a vehicle, aggravated battery on a peace officer, attempted murder with a firearms enhancement, shooting at a motor vehicle, unlawful possession of a firearm, kidnapping with a firearms enhancement, and aggravated assault with a deadly weapon.
Silva was arrested on Dec. 18, 2014, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges subsequently were dismissed in favor of federal prosecution.
Silva’s trial on the felon in possession charge began yesterday morning and concluded late yesterday afternoon when the jury returned a guilty verdict. The evidence at trial established that APD officers arrested Silva on an outstanding warrant on July 1, 2014. After arresting Silva, the officers obtained a search warrant for the vehicle Silva was driving at the time of his arrest. When the officers executed the search warrant, they found a semi-automatic pistol loaded with nine rounds of .40 caliber ammunition in the vehicle.
At sentencing, Silva faces an enhanced sentence of a statutory mandatory minimum of 15 years and a maximum of life in prison for unlawfully possessing a firearm and ammunition on July 1, 2014. Silva faces this enhanced sentence because of his status as an armed career criminal.
The case was investigated by ATF in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorneys Jacob A. Wishard and Edward Han are prosecuting the case as part of 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 and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates under this initiative.
Federal Inmate Sentenced to Additional 15 Months in Prison for Possessing WeaponRead the Press Release
Concord, N.H.—Emily Gray Rice, United States Attorney for the District of New Hampshire, announced that Parrish Powell, 27, previously of Mount Vernon, New York, was sentenced for possessing a weapon at a federal correctional institution in July 2015. United States District Judge Landya B. McCafferty imposed a sentence of 15 months’ imprisonment and a mandatory $100 special assessment.
According to the indictment, statements made in court, and other public records in the case, in 2014 Powell was convicted in the United States District Court for the Southern District of New York for the illegal possession of a firearm by a convicted felon. He was sentenced to 37 months’ imprisonment and 2 years of supervised release on that charge. The Federal Bureau of Prisons assigned Powell to the federal correctional institute in Berlin, New Hampshire (“FCI Berlin”). On July 17, 2015, Powell was subject to a routine search by an FCI Berlin correctional officer. The officer discovered in Powell’s boot a knife or “shiv” fashioned out a yellow plastic eating utensil, sharpened to a point at one end, with black electrical tape wrapped around the other end, forming a makeshift handle. A federal indictment charging Powell with possessing a weapon while an inmate at a federal prison, in violation of Title 18, United States Code, Sections 1791(a)(2) and (d)(1)(B), was returned on December 16, 2015, and Powell pleaded guilty on February 29, 2016.
By statute, Powell’s new sentence of 15 months must run consecutive to his existing sentence on the 2014 charges in New York. He will be subject to a period of 2 years supervised release upon release from prison as a result of the sentence imposed in 2014.
The case was investigated by the Federal Bureau of Prisons with assistance from the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
###
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Laurens Resident Indicted on Embezzling VA Funds
Alison Moore, age 55, of Laurens, South Carolina, was charged in a 1-count indictment. Alison Moore was charged with Embezzlement, a violation of Title 18, United States Code, Section 641. The maximum penalty Moore could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Spartanburg Resident Indicted on Embezzling VA Funds
Pearline Sims, a/k/a “Pauline Sims”, age 62, of Spartanburg, South Carolina, was charged in a 1-count indictment. Pearline Sims was charged with Embezzlement, a violation of Title 18, United States Code, Section 641. The maximum penalty Sims could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Husband and Wife Indicted on Conspiring to Steal Mail
Cary L. Wright, age 37, and Tanya A. Wright, age 28, both of Greenville, South Carolina, were charged in a 1-count indictment. Both defendants were charged with Conspiracy, a violation of Title 18, United States Code, Section 371. The maximum penalty both defendants could receive is 5 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney Williams J. Watkins, Jr., of the Greenville office for prosecution.Welch Group Environmental and its Owner Indicted on Storing Hazardous Waste and Releasing Hazardous Air Pollutants
Glenn Welch, age 52, of Belton, South Carolina, and Welch Group Environmental, of Belton, South Carolina, were charged in a 5-count indictment. Both defendants were charged with Storage and Disposal of Hazardous Waste without a permit, a violation of Title 42, United States Code, Section 6928(d)(2)(A) which carries a maximum penalty of 5 years imprisonment and a maximum fine of $50,000, and Release of Hazardous Air Pollutants, a violation of Title 42, United States Code, Section 7413(c)(5)(A), which carries a maximum penalty of 15 years imprisonment and a maximum fine of $250,000 for Glenn Welch and a maximum fine of $500,000 for Welch Group Environmental. The case was investigated by agents of the Environmental Protection Agency and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Four Men Indicted for Drug Violations
Jose Huber Bustamante, age 34, Jaime Roman Bustamante, age 33, Jorge Texco-Dorantes, age 32, and Samuel Olivares, age 22, were charged in a two count indictment. The indictment alleges that these four men, beginning at least in 2016, conspired to possess with the intent to distribute and to distribute 5 kilograms or more of cocaine in South Carolina and elsewhere. It also alleges that they possessed with the intent to distribute 5 kilograms or more of cocaine on June 15, 2016, in South Carolina and did aid and abet each other in the commission of the offense. If convicted on the charges in the indictment, each defendant faces a mandatory minimum of 10 years imprisonment and a maximum of life imprisonment. This case was investigated by agents of the Department of Homeland Security, Homeland Security Investigations, and is assigned to Assistant United States Attorney Andy Moorman of the Greenville office for prosecution.The Acting United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
####
Erie Oral Surgeon Indicted over Billing PracticesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of health care fraud and false statements relating to health care matters, United States Attorney David J. Hickton announced today.
The twenty-seven-count indictment named David Edward Palo, 49, as the sole defendant.
According to the indictment presented to the court, from January 2008 to June 2014, Palo falsely billed numerous tooth extractions as surgical extractions, causing fraudulent bills totaling in excess of approximately $232,674 to be submitted to various health insurance companies.
The law provides for a maximum total sentence of 140 years in prison, a fine of $6,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Oral Surgeon Charged with Healthcare FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of health care fraud and false statements relating to health care matters, United States Attorney David J. Hickton announced today.
The twenty-one-count indictment named John Frederick Lehrian, 69, as the sole defendant.
According to the indictment presented to the court, from January 2008 to June 2014, Lehrian falsely billed numerous tooth extractions as surgical extractions, causing fraudulent bills totaling in excess of approximately $90,734 to be submitted to various health insurance companies.
The law provides for a maximum total sentence of 110 years in prison, a fine of $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Felon Admits Violating Federal Gun LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Otemeo Dupree Williams, 32 pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on July 1, 2015, Erie Police officers responded to Marty’s Tavern and caught Williams unlawfully in possession of a loaded Browning Hi-Power .9mm pistol. The serial number and manufacturers stamping on the firearm had been obliterated and the firearm had been reported stolen from a residence in September 2014. Williams’ prior criminal record prohibited him for possession of firearms.
Judge Cercone scheduled sentencing for November 21, 2016 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Williams.
Ecuadorian National Formerly Residing in Waterbury Pleads Guilty to Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced MANUEL ANTONIO GUAMAN, 33, formerly of Waterbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of use of a passport secured by false statement and one count of making a false statement in a passport application.
According to court documents and statements made in court, GUAMAN is a native and citizen of Ecuador. On or about August 2, 2006, he submitted in person an application for a United States passport, in the name of another individual, at a U.S. Post Office in Waterbury. Claiming to be this individual, GUAMAN presented to the passport acceptance agent a Puerto Rican birth certificate and a Connecticut identity card. Neither the birth certificate nor the identity card reflected GUAMAN’s true identity. GUAMAN signed the passport application under oath claiming to be this other individual. The passport was issued and used by GUAMAN to travel between the U.S. and Ecuador in 2012.
On October 23, 2014, GUAMAN submitted a passport renewal application, and provided the previous passport as proof of his identity and U.S. citizenship. On December 31, 2015, after conducting an investigation, law enforcement interviewed GUAMAN while he was incarcerated in a state Department of Correction facility. He admitted that he had submitted and signed the above-referenced passport renewal application, that it was his photo on the passport application, and that he was not the person whom he had claimed to be in the passport application.
GUAMAN is scheduled to be sentenced by Judge Shea on October 4, 2016. He faces a maximum term of imprisonment of 10 years on each count. He is currently serving a state sentence for assault in the first degree.
The case was investigated by the U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Dog Fighting Investigation Leads to Federal Dogfighting, Marijuana Grow & Firearms Charges PleaRead the Press Release
ELIZABETH CITY – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, ZHAQWAUN JEVONTAE GARY, 22, pled guilty to Possession of an animal for the purpose of participation in a fighting venture and aiding and abetting. On April 5, 2016 his father, ELTON GARY, 47, pled guilty to exhibiting and sponsoring an animal for the purpose of participation in a fighting venture and aiding and abetting in the same; attending an animal fighting venture and aiding and abetting in the same; possession of an animal for the purpose of participation in a fighting venture and aiding and abetting in the same; possession of firearm and ammunition by a felon; possession with intent to distribute more than 50 but less than 100 marijuana plants and aiding and abetting; and maintaining drug-involved premises and aiding and abetting. On April 21, 2016 his mother, ERICA POWELL GARY, 44, pled guilty to possession of an animal for the purpose of participation in a fighting venture and aiding and abetting, and possession of firearm by a felon.
On April 7, 2013 the Halifax County Sheriff’s Office received a complaint that ERICA GARY was conducting dog fighting operations at her residence in Halifax County. When deputies arrived at the home, no dog fighting in progress was observed on the property, but blood samples were obtained from an area that appeared to have had recent dog fighting and multiple animals were seized. In the shed, deputies located a steel bucket with bloody water, and what appeared to be a ring for dog fighting. A carpet with blood was found and there were splatters on the walls. The dogs were in a wooden fenced in area and there was blood at the bottom of the fence.
Several pit bulls were chained up within the fence. A Halifax Animal Control, was called out and gave his opinion that this was a dog fighting ring based on his review of the shed set up and appearance. Deputies located approximately 17 dogs (pit bulls) and they all had wounds and scars consistent with dog fighting. While looking for evidence of dog fighting, deputies located marijuana plants growing in a shed on the property. Deputies obtained a search warrant based on the discovery. There were approximately 68 plants, a grow light, seeds, timers, heaters, etc. in support of the growing operation. A search warrant was also executed at the home of Erica Gary and two firearms were located in the closet of the bedroom shared by Erica and Elton Gary.
At sentencing ELTON and ERICA GARY face in excess of 10 years imprisonment. ZHAQWAUN JEVONTAE GARY faces up to 5 years imprisonment. A sentencing date for these three defendants has not been set by the court.
The criminal investigation of this case was conducted by Halifax County Sheriff’s Office, Halifax County Animal Control, the North Carolina State Bureau of Investigation, and the U.S. Department of Agriculture – Office of Inspector General. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
DeCavalcante Crime Family Associate Sentenced to Five Years in Prison for Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 60 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
James Heeney, 36, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of conspiring to distribute more than 500 grams of cocaine. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Heeney was arrested and charged by complaint in March 2015, along with eight members of the DeCavalcante crime family. At his plea hearing, he admitted that between August 2012 and March 2013, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $30,000.
In addition to the prison term, Judge Walls sentenced Heeney to four years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; detectives of the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, for the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: Paulette Pitt Esq. Woodbridge, New Jersey.
Commercial Supply Company Owner Gets Four Years in Prison for Defrauding Public and Private Customers Out of More Than $700,000Read the Press Release
TRENTON, N.J. – A part owner of Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, was sentenced today to 48 months in prison for his role in a scheme to defraud customers out of $708,386, U.S. Attorney Paul J. Fishman announced.
Robert R. Dattilo, 61, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to commit mail and wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2007 to November 2015, Dattilo conspired with others to defraud certain customers by engaging in fraudulent business practices, including overbilling, charging for more expensive items or larger quantities of items, and providing free items to employees of customers, then recouping the cost of the items (and additional profits) by overbilling and fraudulent billing.
At Dattilo’s direction, Bayway Lumber inflated the prices on items sold or intentionally failed to provide the prices called for in contractual agreements between Bayway Lumber and customers, including the University of Medicine and Dentistry of New Jersey (UMDNJ) and its successor entities – Rutgers University and University Hospital; the City of Elizabeth; and the New York Transit Authority. These methods included:
-
Concealing the true cost of items to Bayway Lumber, sometimes by manually altering vendor invoices, in order to enable Bayway Lumber to bill UMDNJ higher mark-ups.
-
Charging Elizabeth prices that did not apply the discounts called for by contracts.
-
Consistently billing the Transit Authority for the most expensive items, such as doors, frames and door hardware, permitted by the contract, although Bayway Lumber was providing less-expensive items than what was ordered.
Dattilo also conspired to provide certain customers, such as the Philadelphia Housing Authority, Con Edison, the New York Department of Corrections and the City of Newark, with lower-quality lumber than the customers ordered and paid for. The lower-quality lumber, including “reject” lumber, did not meet certain industry specifications and was not of construction-grade quality, as required by contract.
To conceal this product substitution scheme, Dattilo directed Bayway Lumber employees to spray paint or rearrange the lower-quality lumber sent to the customer entities in order to hide any markings on the lumber that would indicate that it was the lower-quality lumber. At Dattilo’s direction, Bayway Lumber also issued invoices to customers that falsely described the lower-quality lumber as the higher-quality lumber that the customers ordered.
Employees of some of Bayway Lumber’s customers, including Amtrak, the Plainfield Board of Education and a Bergen County company identified in the information as “Company 1,” were given a variety of items, including electronics, tickets to sporting events, merchandise and gift cards. Bayway Lumber then overbilled and fraudulently billed those customers to recoup the cost of the gifts, plus additional profits. Dattilo kept a running tally of how much Bayway Lumber overbilled and fraudulently billed those customers, which Dattilo referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items.
In addition to the prison term, Judge Sheridan sentenced Dattilo to three years of supervised release and ordered him to pay restitution of $708,386 and a $2,000 fine.
U.S. Attorney Fishman credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; special agents of the FBI, under the direction of Acting Special Agent in Charge Timothy Gallagher; and the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Robert Koons, as well as investigators of the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Barbara R. Llanes and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
-
Chicago Man Sentenced to Life for Conspiring to Distribute Heroin and Fentanyl That Caused Multiple Deaths and OverdosesRead the Press Release
A man who conspired to distribute heroin, fentanyl, and crack cocaine that led to several overdoses and deaths in Cedar Rapids in 2015 was sentenced yesterday to life in federal prison.
Max Julian Wright, age 36, from Chicago, Illinois, received the prison term after a March 2, 2016 jury verdict finding him guilty of two counts of distribution of fentanyl and one count of conspiring to distribute heroin, crack cocaine, and fentanyl that resulted in six serious bodily injuries and two deaths.
The evidence at trial showed that, between about 2013 and June 2015, Wright brought large quantities of heroin, fentanyl, and crack cocaine from Chicago to Cedar Rapids. Wright and other individuals, including DeShaun Anderson and Marcus Wallace, sold the drugs to various users in Cedar Rapids. Fentanyl is a synthetic opiate similar to heroin, but many times more potent than heroin. Witness testimony showed that by at least late 2014, the potency of the heroin being sold by Wright and Anderson increased, which led to at least six individuals immediately overdosing on the drugs. Testimony showed the users who overdosed lost consciousness nearly immediately after using the drugs, and had severely reduced breathing function due to the effects of the opiate drugs. One of the injured victims died two days later from the injuries sustained from using the drugs. Another victim died in early April of a mixed-drug overdose that included a toxic level of fentanyl in the victim’s blood. All of the deaths and overdose injuries found by the jury occurred between late February and mid-May of 2015.
Wright was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Wright was sentenced to life imprisonment on the conspiracy count and 30 years’ imprisonment on the distribution counts, all of which were ordered to run concurrently. A special assessment of $300 was imposed and he was ordered to make $12,371 in restitution to the family of one of the victims. If he is ever released from prison, he must serve an 8-year term of supervised release. There is no parole in the federal system.
Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated 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 Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and the Linn County Medical Examiner’s Office, and prosecuted by Assistant United States Attorneys Dan Chatham and Patrick Reinert.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00046-LRR.
Follow us on Twitter @USAO_NDIA.
Charleston man sentenced to Federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught dealing drugs while on federal supervised release was sentenced to prison today, announced Acting United States Attorney Carol Casto. Alan Alexander Clark, 33, previously pleaded guilty to distributing heroin. In today’s hearing, he was sentenced to two years in federal prison for that offense. He was also sentenced to an additional two years in prison for violating his federal supervised release. The sentences will be served consecutively.
Clark admitted that on July 29, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at the Rite Aid at 406 Washington Street, West, in Charleston. Clark further admitted that he sold heroin and methamphetamine to a confidential informant on three additional occasions.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Clint Carte handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is being 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 illegal drugs, including methamphetamine 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 pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Carlsbad Woman Pleads Guilty to Possessing an Unregistered FirearmRead the Press Release
ALBUQUERQUE – Janice Sarabia, 47, of Carlsbad, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws by unlawfully possessing an unregistered firearm.
Sarabi was arrested in Feb. 2016, on a criminal complaint charging her with possession of an unregistered firearm on Feb. 27, 2014, in Eddy County, N.M. According to the complaint, the Pecos Valley Drug Task Force (PVDTF) executed a state search warrant on Sarabia’s residence on Feb. 27, 2014, and seized a short-barrel shotgun. A search of the National Firearms Registration and Transfer Record (NFRTR) determined that Sarabia did not have any weapons registered to her, and the shotgun also was unregistered with the NFRTR.
During today’s plea hearing, Sarabia pled guilty to a felony information charging her with possession of an unregistered firearm. At sentencing, Sarabia faces a statutory maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Randy M. Castellano is prosecuting the case.
Bristol Woman Sentenced for Lying to Federal Grand JuryRead the Press Release
ABINGDON, VIRGINIA – A Bristol, Virginia woman, who lied to a federal grand jury in connection to the investigation of a burglary of a federal firearms licensee, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Tanya Michelle Conley, 24, of Bristol, Virginia, previously pled guilty to one count of lying under oath to a grand jury. Today in District Court, Conley was sentenced to six months in federal prison to be followed by six months of home confinement.
“The integrity of the grand jury and the responsibility of those under oath to tell the truth are at the heart of our justice system,” United States Attorney Fishwick said today. “When individuals subvert that process by lying under oath they will be held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, Conley had information concerning the burglary of a federal firearms licensee located in Bristol, Virginia. When questioned by law enforcement and quested under oath before the federal grand jury, Conley lied about her knowledge of the thefts and who had committed them.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bristol, Virginia Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Brian Delach Was Sentenced to 168 MonthsRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Brian Delach, 30, of Portage, Indiana was sentenced in Hammond Federal Court before Chief Judge Philip Simon for receipt of child pornography
Delach was sentenced to 168 months’ imprisonment followed by 8 years of supervised release.
According to documents filed in this case, between February and October 2015, Delach downloaded and viewed numerous images of child pornography on the Internet.
This case was investigated by the Federal Bureau of Investigation. This case was handled by Assistant United States Attorney Abizer Zanzi.
# # #
Boise Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE - Raymond Joseph Pruneau, 52, of Boise, Idaho, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Pruneau was indicted by a federal grand jury on March 8, 2016.
According to evidence presented at the entry of plea, Pruneau conspired with others to distribute methamphetamine in the state of Idaho between October 2015 and February 22, 2016. The defendant and his co-conspirators arranged for delivers of methamphetamine in the Ada and Canyon County, Idaho area. Investigating officers discovered the conspiracy and were able to intervene. A search of the defendant’s home resulted in officers locating 824 grams of methamphetamine and 415 grams of cocaine.
The charge of conspiracy to distribute methamphetamine is punishable by a term of imprisonment of not less than ten years or more than life, a term of supervised release of at least five years, and a maximum fine of $10,000,000.
Sentencing is set for October 9, 2016, before Senior U.S. District Judge Edward J. Lodge.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, and City County Narcotics Unit of Canyon County.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Behr Iron & Steel Inc. Sentenced on OSHA Violation Causing Death of EmployeeRead the Press Release
ROCKFORD — A Rockford-based company was sentenced today by U.S. Magistrate Judge Iain D. Johnston for willfully violating Occupational Safety and Health Administration regulations, resulting in the death of an employee at the company’s facility in South Beloit, Ill.
BEHR IRON & STEEL INC., a high volume ferrous and nonferrous scrap processor, was sentenced to 5 years’ probation and ordered to pay restitution of $350,000 to the victim’s estate. Behr was also previously ordered to pay a fine of $520,000 in a related administrative OSHA case.
The company pleaded guilty to the charge on March 8, 2016, and admitted in a plea agreement that on March 10, 2014, the company failed to provide lockout/tagout protection and confined space protection as required under OSHA regulations for the company’s employees who were cleaning a shredder discharge pit. The company admitted that those violations caused the death of an employee who got caught in a moving, unguarded conveyor belt.
Behr’s South Beloit facility recycles metals contained in such things as automobiles and refrigerators. According to the plea agreement, OSHA regulations require employers to adopt safety procedures to ensure that dangerous machines are properly shut off and unable to start up again prior to the completion of maintenance or servicing work. The safety procedures include placing a lock on the power source of the machine and a tag on the lock warning that the machine cannot be operated until the warning is removed, and identifying the employee who has the key to the lock. OSHA also promulgated regulations that address the need to protect employees from entering a confined space without safety precautions.
Metals shredded through a shredding machine in Behr’s South Beloit facility fall onto a conveyor belt located about ten feet underground in a shredder discharge pit, which was approximately six feet long and six feet wide. The shredded materials were then moved by a conveyor belt out of the discharge pit and through a sorting process. Some of the shredded metals fall onto the ground of the discharge pit near the conveyor belt. One or two Behr employees working on the shredding machine were required to clean the discharge pit on a daily basis. The employees shoveled shredded materials from the floor of the discharge pit onto the running conveyor belt.
On March 10, 2014, a Behr employee was cleaning the discharge pit when the employee’s arm was caught by the unguarded conveyor belt. The employee was pulled into the machinery and killed.
Behr admitted that there was no lock or operable emergency shut off switch in the discharge pit for the conveyor belt, and the conveyor belt did not have guards designed to protect employees. Behr also admitted that employees in the discharge pit were not adequately trained to use the shredder or the conveyor belt, and that the company had not developed and implemented confined space protection for employees entering the discharge pit.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Ken Nishiyama Atha, Regional Administrator of OSHA in Chicago.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Beckley man pleads guilty to role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Beckley man substantially involved in a California-to-West Virginia drug conspiracy pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Velarian Sylvester Carter, 37, entered his guilty plea to conspiracy to distribute more than 50 grams of methamphetamine.
Carter admitted that from January 2015 to March 2016, he was involved in a drug conspiracy with multiple individuals that included the transportation and distribution of methamphetamine. He admitted that in January 2015, he conspired to have methamphetamine delivered from California to West Virginia. Carter also admitted to receiving methamphetamine from Daniel Ortiz-Rivera, a codefendant, until Ortiz-Rivera was arrested in Kansas in June 2015. Ortiz-Rivera’s arrest prompted Carter to begin purchasing drugs directly from Ortiz-Rivera’s supplier.
Carter further admitted that on March 21, 2016, a confidential informant working with law enforcement discussed the logistics of bringing drugs to Charleston with Carter, including cocaine, methamphetamine, marijuana, and heroin. That same day law enforcement stopped Carter and seized suspected drugs and approximately $28,000 in cash from the vehicle. Carter additionally admitted that on March 24, 2016, he arranged with confidential informants for the pickup of two pounds of methamphetamine in exchange for $12,000 in Charleston. On March 25, 2016, Carter arrived at the pre-arranged location and parked near the vehicle he was told contained methamphetamine. At that time law enforcement arrested Carter and seized $11,990 cash from Carter that he kept inside a Burger King bag.
Carter faces at least 10 years and up to life in federal prison when he is sentenced on October 13, 2016.
This prosecution is the result of a multi-agency investigation which led to an eight-count indictment implicating 14 defendants, including Carter. Carter’s codefendants are presumed innocent unless and until proven guilty in a court of law. As part of this conspiracy, Ortiz-Rivera, a Mexican national, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine and is scheduled to be sentenced on October 11, 2016. Additionally, two women used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, and Kelly Newcomb, of Nevada, have pleaded guilty to interstate travel in furtherance of a drug crime and are scheduled to be sentenced on October 6, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being 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 illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Athens-Area Real Estate Scam Artist Sentenced to Federal PrisonRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Jackie Williams, age 42, from Bishop, Georgia, was sentenced to serve 70 months in Federal prison for wire fraud today by the Honorable C. Ashley Royal, United States District Judge, in Athens. Ms. Williams was also ordered to pay restitution in the amount of $563,097.01.
Ms. Williams pled guilty to the charge on March 16, 2016. As part of her guilty plea, Ms. Williams admitted to orchestrating a real estate fraud scheme which victimized several people in the Athens, Georgia area. Ms. Williams admitted to defrauding investors from 2012-2014; specifically, she induced people to invest in a purported real estate business, claiming that she bought distressed homes and sold them for a substantial profit. However, in numerous cases Ms. Williams never purchased the home that she told her victims she had used their money to buy, and she created falsified documents, such as fake purchase contracts and mortgage preapproval letters, to perpetuate her fraud. In fact, Ms. Williams used her investors’ money for her own personal gain, and/or to pay off portions of the money she had borrowed from previous investors. As part of her guilty plea, Ms. Williams admitted that she owes $563,097.01 in restitution to eight victims.
Noting that the 70-month sentence imposed was greater than the usual range of 33 to 41 months for a fraud of this magnitude, United States Attorney G. F. “Pete” Peterman, III, stated that, “It is particularly disturbing that Ms. Williams’ fraud in this case was against many older or retired victims who invested substantial portions of their savings which, even with the restitution order entered today, they are unlikely to ever recover. If for no other reason, this office is particularly pleased that the Court chose to impose a harsher sentence than what the federal sentencing guidelines typically recommend.”
The case was investigated by the Federal Bureau of Investigation and the Sheriff’s Offices for Barrow, Madison and Oconee Counties. Assistant United States Attorney Peter Leary handled the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Albuquerque Man Sentenced to Federal Prison for Robbing Pharmacy at Gunpoint to Obtain Opioid PainkillersRead the Press Release
ALBUQUERQUE – Ernesto Gallegos, 31, of Albuquerque, N.M., was sentenced today in federal court for his conviction for robbing a retail pharmacy at gunpoint to obtain prescription opioid painkillers in May 2014. Gallegos was sentenced to 70 months in federal prison followed by three years of supervised release. The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division, and Chief Gorden E. Eden of the Albuquerque Police Department.
Gallegos was charged by felony information on March 16, 2016, with violating the Hobbs Act by robbing a business engaged in interstate commerce and robbery involving controlled substances. The charges against Gallegos arose out of the armed robbery of the Walgreens Pharmacy located at 5001 Montgomery Blvd. in Albuquerque on May 6, 2014.
Gallegos pled guilty on March 16, 2016, to the felony information. In his plea agreement, Gallegos admitted that late on the night of May 6, 2015, he entered the Walgreens Pharmacy on Montgomery Blvd. NE in Albuquerque, approached the pharmacy counter, gave a pharmacy employee a note demanding Oxycodone, and let the employee know that he was armed. After the pharmacy employee gave Gallegos bottles containing Oxycodone, Gallegos attempted to flee from police, but drove through a red light and crashed his vehicle into a police vehicle.
The plea agreement states that officers recovered 515 Oxycodone pills in 30-milligram and 15-milligram dosages and 26 pills of a generic brand of oxycodone in 15-milligram dosages from Gallegos and his vehicle. They also seized the handgun Gallegos used during the robbery from Gallegos’ vehicle.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Shaheen P. Torgoley and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
"Real-Time" Defendant, Melvin Boswell, Jr., Subject to Mandatory 25 Year Sentence After Pleading Guilty to Federal Drug Conspiracy and Firearms ChargesRead the Press Release
Contact Person: Andy Moorman (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake announced today that Melvin Boswell, Jr., age 48, of Greenville, South Carolina, pled guilty to conspiring to possess with the intent to distribute and to distribute five kilograms or more of cocaine and possessing firearms in furtherance of a drug trafficking crime. Boswell’s sentencing hearing has not yet been scheduled, but his guilty plea subjects him to a statutory minimum sentence of 25 years imprisonment.
On August 20, 2015, Greenville Police Department Officers arrested Boswell at a business in Greenville County after Boswell had cut his ankle monitor while on bond for other charges. While searching Boswell’s person and a rental car Boswell had driven to the business, police found: (1) 10 firearms (one of which was stolen); (2) numerous pieces of ammunition; (3) in excess of $70,000 worth of cocaine, crack cocaine, and heroin; (4) digital scales; and (5) in excess of $7000 in U.S. Currency. At the time Boswell possessed these items, he was a convicted felon.
Boswell was arrested during the initiation of “Operation Real-Time,” a partnership between the U.S. Attorney’s Office and the Greenville Police Department to transfer career criminals who possess firearms to federal court for immediate prosecution.
The case was investigated by agents of the Drug Enforcement Administration working in conjunction with the Greenville Police Department and the Greenville County Sheriff’s Office. Assistant United States Attorneys Andy Moorman and Lance Crick of the Greenville office handled the case.#####
Monday 11 July 2016
Wichita Man Sentenced for Sexually Exploiting Mississippi GirlRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Monday to five years in federal prison for using the Internet to sexually exploit a Mississippi girl, Acting U.S. Attorney Tom Beall said.
James K. Arnel, 23, Wichita, Kan., pleaded guilty to one count of receiving child pornography. In his plea he admitted communicating over the Internet with a 12-year-old girl and exchanging sexual images with her.
Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Wapato Man Sentenced to 15 Years in Federal Prison for Attempted Sexual Abuse of a MinorRead the Press Release
Yakima – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Vincent Piel III., age 44, of the Yakama Nation Indian Reservation, was sentenced today after having previously plead guilty to attempted sexual abuse of a minor. United States District Judge Stanley Bastian sentenced Piel to a 15 year term of imprisonment. Upon release from federal prison, Piel will be under court supervision for the remainder of his life.
On December 4, 2015, Yakama Nation Tribal Police officers received a report of a sexual assault of a minor. Tribal Police officers, together with Special Agents with the FBI, conducted a joint investigation into the allegations. On February 9, 2016, Piel was charged by Indictment with Attempted Sexual Abuse of a Minor and Attempted Aggravated Sexual Abuse of a Minor. Piel subsequently pled guilty to Attempted Sexual Abuse of a Minor charge.
Michael C. Ormsby said, “The United States Attorney’s Office and its law enforcement partners are committed to protecting children who live in the Eastern District of Washington, including those children who live within the boundaries of the Yakama Nation Reservation. I commend the Yakama Nation Tribal Police and the FBI for their efforts in investigating this case. My office will continue to prosecute aggressively and seek appropriate prison sentences to remove from our communities offenders who commit crimes against children.”
This investigation was conducted by the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Texas Man Indicted for Savannah Bank RobberiesRead the Press Release
Savannah, GA: David Wayne Stanley, 51, of Houston, Texas, was indicted last week by a federal grand jury sitting in Savannah on charges related to two bank robberies in the Savannah area. The indictment alleges that on April 28, 2016, Stanley robbed the BB&T bank located at 326 Mall Boulevard, Savannah, Georgia, and the Georgia Heritage Federal Credit Union located at 1085 West Lathrop Avenue, Savannah, Georgia.
No initial appearance in court has been scheduled. If convicted on all counts, Stanley faces prison sentence of up to 40 years. United States Attorney Edward Tarver emphasizes that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by the Savannah-Chatham Metropolitan Police Department and the FBI’s Violent Crimes Task Force, with substantial assistance from the Chatham County Sheriff’s Office. Assistant United States Attorney Jennifer G. Solari is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Spartanburg Men Sentenced in Sex Trafficking CaseRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ----- Acting United States Attorney Beth Drake stated today that Brandon L. Littlejohn, age 27, John A. Gossett, III, age 23, Dylan L. Patterson, age 20, D’Shawn C. Pitts, age 20, and Michael Riddle, age 20, all of Spartanburg, were sentenced today in federal court in Greenville, for involvement in a conspiracy to traffic in minor females for the purposes of prostitution in violation of Title 18, United States Code, Section 1594(c). United States District Judge Bruce Howe Hendricks, of Greenville, sentenced Littlejohn to 121 months, Gossett to 87 months, Patterson to 77 months, and Pitts and Riddle to 60 months.
Evidence presented at the change of plea hearing established that the defendants recruited minor victims (ages 16-17) and young women to work for them. They then instructed and supervised the minor victims and young women on how to solicit and charge for commercial sex acts. One some occasions the women were hit or threatened with violence to persuade them to continue to work for the conspiracy.
The conspiracy operated in Spartanburg, South Carolina, Charlotte, North Carolina, Virginia, and other cities in the Southeastern states. In these locations, the Defendants obtained hotel rooms for the women to work from. Defendants placed advertisements, or assisted in the placing of advertisements, on the internet using backpage.com to advertise the young women for commercial sex acts.
Once a John answered the ad and arranged to meet the minor females or young women at the hotel, Defendants would wait in an adjoining hotel room until the John arrived, paid the money, and completed the sex act with the minor female or young girl. Once the John left the room, Defendants would enter and retrieve the money.
“Human traffickers strip victims of their humanity; treating them as little more than pieces of meat to generate cash,” said Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Atlanta. “The depravity of the subjects in this particular case reaches its lowest form by forcing underage girls into this dark underworld of abuse and victimization; the public should breathe a sigh of relief that these dangerous criminals are now safely behind bars.”
If you have information on human trafficking, please contact the National Human Trafficking Resource Center (NHTRC) at 1-888-3737-888. The NHTRC is a national, toll-free hotline.
The case was investigated by agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Spartanburg County Sheriff’s Office. The case was assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
#####
Southern California Man Pleads Guilty for His Role as Sales Manager in Fraudulent Mortgage Modification SchemeRead the Press Release
More than 1,500 Victims of Fraud
The Department of Justice announced that an Orange County, California, man pleaded guilty in U.S. District Court in Santa Ana, California, for his role as the sales manager of a multi-million dollar fraudulent mortgage modification scheme.
Charles Wayne Farris, 55, of Aliso Viejo, California, pleaded guilty before U.S. District Court Judge David O. Carter for the Central District of California to one count of conspiracy to commit mail and wire fraud.
“This defendant supervised dozens of telemarketers who used lies and false promises to take money from struggling homeowners for a worthless service,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to prosecute all kinds of mass-marketing and telemarketing fraud schemes, especially those that prey on vulnerable victims.”
“This defendant managed an entire team of people whose sole job was to lure struggling home owners into the fraud scheme,” said U.S. Attorney Eileen Decker of the Central District of California. “It is because of Mr. Farris that so many people were victimized for so much money.”
Farris admitted that, between October 2008 and June 2009, he participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group (RLG) and a successor entity, America’s Law Group (ALG). RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, Ronald Rodis was the only attorney at RLG.
Farris supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he created, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
“The defendants in this case preyed upon vulnerable homeowners facing the loss of their home and callously took advantage of what hope they had left,” said Assistant Director in Charge Deirdre L. Fike of the FBI’s Los Angeles Field Office. “Paid advertisements can lend a veneer of credibility to any scam, and I would encourage anyone considering paying fees up front for services to be skeptical before handing over hard earned money.”
In a plea agreement filed in federal court, Farris admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims. His sentencing is on April 17, 2017.
Farris was charged along with two co-defendants, Bryan D’Antonio and Ronald Rodis. Rodis pleaded guilty to one count of conspiracy to commit mail and wire fraud on June 27. D’Antonio is charged with 23 felony counts. He is charged with nine counts of wire fraud and one count of conspiracy to commit wire fraud. Each of these counts carries a statutory maximum penalty of 20 years in prison. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating a 2001 federal court order, which permanently banned D’Antonio from participating in future telemarketing operations. Criminal contempt of court has no statutory maximum penalty. D’Antonio is scheduled for trial beginning Sept. 20.
This case was investigated by the FBI and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Southern California Man Pleads Guilty for His Role as Sales Manager in Fraudulent Mortgage Modification SchemeRead the Press Release
WASHINGTON – The Department of Justice announced that an Orange County, California, man pleaded guilty in U.S. District Court in Santa Ana, California, for his role as the sales manager of a multi-million dollar fraudulent mortgage modification scheme.
Charles Wayne Farris, 55, of Aliso Viejo, California, pleaded guilty before U.S. District Court Judge David O. Carter for the Central District of California to one count of conspiracy to commit mail and wire fraud.
“This defendant managed an entire team of people whose sole job was to lure struggling home owners into the fraud scheme,” said U.S. Attorney Eileen Decker of the Central District of California. “It is because of Mr. Farris that so many people were victimized for so much money.”
“This defendant supervised dozens of telemarketers who used lies and false promises to take money from struggling homeowners for a worthless service,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to prosecute all kinds of mass-marketing and telemarketing fraud schemes, especially those that prey on vulnerable victims.”
Farris admitted that, between October 2008 and June 2009, he participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group (RLG) and a successor entity, America’s Law Group (ALG). RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, Ronald Rodis was the only attorney at RLG.
Farris supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he created, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
“The defendants in this case preyed upon vulnerable homeowners facing the loss of their home and callously took advantage of what hope they had left,” said Assistant Director in Charge Deirdre L. Fike of the FBI’s Los Angeles Field Office. “Paid advertisements can lend a veneer of credibility to any scam, and I would encourage anyone considering paying fees up front for services to be skeptical before handing over hard earned money.”
In a plea agreement filed in federal court, Farris admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims. His sentencing is on April 17, 2017.
Farris was charged along with two co-defendants, Bryan D’Antonio and Ronald Rodis. Rodis pleaded guilty to one count of conspiracy to commit mail and wire fraud on June 27. D’Antonio is charged with 23 felony counts. He is charged with nine counts of wire fraud and one count of conspiracy to commit wire fraud. Each of these counts carries a statutory maximum penalty of 20 years in prison. In addition, D’Antonio is charged with 13 counts of criminal contempt for violating a 2001 federal court order, which permanently banned D’Antonio from participating in future telemarketing operations. Criminal contempt of court has no statutory maximum penalty. D’Antonio is scheduled for trial beginning Sept. 20.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Joseph T. McNally of the Central District of California and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
South Carolina Man Sentenced for Sexual Exploitation of Kansas GirlRead the Press Release
WICHITA, KAN. - A South Carolina man was sentenced Monday to 25 years in federal prison for sexually exploiting a Kansas girl, Acting U.S. Attorney Tom Beall said today.
Robert Pitya Dickson, 49, Fort Mill, S.C., pleaded guilty to two counts of producing child pornography. In his plea, he admitted he communicated over the Internet with a 13-year-old Kansas girl. Dickson persuaded the girl to send him send him sexual images of herself. In March 2014 he traveled to meet the girl and engaged in sex acts with her that he recorded and transported back to South Carolina.
Co-defendant Tricia Rodarmel is set for sentencing July 25.
Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
South Bend Man Arrested for Threats of Violence on Social MediaRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Isaiah Beavers, age 26, of South Bend, Indiana was arrested and charged by criminal complaint for threats posted using the Internet. Beavers was arrested over the weekend by the FBI and the South Bend Police Department and appeared this afternoon before a United States Magistrate Judge for an initial appearance. The United States Attorney’s Office is seeking pre-trial detention and the detention hearing is set for Wednesday, July 13, 2016 at 2:00PM.
The complaint alleges that Beavers made a series of postings on social media referencing the rally scheduled in South Bend for this past Saturday evening. The exact language of his posts are contained in the affidavit that supported the criminal complaint; both the criminal complaint and affidavit have been unsealed following Mr. Beavers’ initial appearance today.
Beavers was arrested Saturday afternoon, well before the rally referenced in his postings commenced. The rally was held that evening and was peaceful as planned.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the South Bend Police Department; the St. Joseph County Police Department; and the St. Joseph County Prosecutor’s Office High Tech Crimes Unit. This case is being handled by Assistant United States Attorney Kenneth M. Hays.
The United States Attorney’s Office emphasizes that a Criminal complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Serial Bank Robber Indicted by Federal Grand JuryRead the Press Release
Floyd Calvin Clanton, Jr., 58, of Nashville, Tenn., was indicted last week by a federal grand jury on six counts of bank robbery and one count of attempted bank robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the indictment, on April 22, 2016, Clanton robbed the SunTrust Bank, located at 1715 West End Avenue in Nashville. The indictment also alleges that Clanton robbed the Regions Bank at 1140 Nashville Pike in Gallatin, Tennessee on April 25, 2016; the U. S. Bank at 4670 Lebanon Pike, Hermitage, Tennessee, on May 19, 2016; the Wells Fargo Bank at 4740 Lebanon Pike, Hermitage, Tennessee, on May 24, 2016; the Old Hickory Federal Credit Union, 1401 West Main Street, Lebanon, Tennessee, on June 3, 2016, and again on June 10, 2016.
The indictment also alleges that on June 10, 2016, Clanton attempted to rob the SunTrust Bank, 240 West Main Street, Lebanon, Tennessee, minutes before again robbing the Old Hickory Federal Credit Union at 1401 West Main Street in Lebanon, Tennessee.
Shortly after the attempted robbery and robbery on June 10th, Clanton was located at a motel in Lebanon, Tennessee. He was subsequently arrested by FBI agents and Lebanon police officers pursuant to a warrant that had been issued on June 1, 2016, charging him with the robbery of the Regions bank in Gallatin, Tennessee, on April 25th. At the time of this robbery, Clanton was on federal supervised release, after serving a 70-month sentence for committing a bank robbery in Gallatin, Tennessee, in 2009.
If convicted, Clanton faces a maximum of 20 years in prison on each count.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI, the Lebanon Police Department and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant U.S. Attorney William L. Deneke.
Second Member of Conspiracy Sentenced in Employment Tax SchemeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a second man involved in a conspiracy that defrauded the United States out of a half million dollars of employment taxes over a five year time period.
Today in District Court, Markera Galustyants, of Miami, Florida, who previously pled guilty to one count of conspiring to defraud the United States, was sentenced to 14 months in federal prison and ordered to pay a fine of $5,000. A second man, Vladimir Maglnik, 52, of Williamsburg, Va., was previously was previously sentenced to 20 months in federal prison and ordered to pay a fine of $7,500.
“These men lined their pockets off the hard work of others and by stealing from the American taxpayer,” United States Attorney Fishwick said today. “We will continue to work with our partners in law enforcement to ensure the validity of our tax system and those who pay into it.”
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom, from at least 2002 continuing through 2007, Galustyants and Maglnik owned North American Management (NAM), a company that contracted labor service contracts with hotels, primarily in Florida, Virginia and Louisiana. NAM agreed to provide temporary employees to perform housekeeping services, would be responsible for hiring and paying all temporary workers as well as complying with all federal regulations, including the deduction and payment of employment taxes from the temporary workers’ wages. The hotels were also assured that the temporary workers held legitimate work permits and were eligible to work in the United States.
However, according to evidence presented in court, NAM routinely violated the terms of the contract and failed to pay employment taxes to the United States Treasury on any of the temporary works employed by NAM. All told, the conspirators pocketed $3,082,097 in unpaid employment taxes.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Internal Revenue Service, Criminal Investigations, the Department of Labor and the Federal Bureau of Investigation. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.
School Financial Aid Worker Admits to Stealing Student Financial Aid RefundsRead the Press Release
Baltimore, Maryland – Janelle A. Rose, age 21, of Baltimore, and Tuscon, Arizona, pleaded guilty today to unauthorized access to a protected computer in furtherance of fraud arising from a scheme to steal student loan refund payments.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to her plea agreement, on June 8, 2015, Rose began work as a student financial services representative at a school in Baltimore that provided postsecondary education. From June 15 to 19, Rose secretly wrote down the names of students, their account passwords and other information in a notepad that she then took back to her home. From June 19 to 23, Rose used the stolen information and her computer to access the electronic accounts of at least 40 students, and alter the student bank account information so that each of the student’s loan refund payments would be made to Rose’s Green Dot Bank account. Refunds to 20 of the students were processed and $73,996 was fraudulently deposited to her Green Dot Bank account.
Each time an adjustment is made to a student’s financial information, account number, address or bank information, the school’s computer system generates an email to the student providing notice of the change. Rose accessed the students’ email accounts and deleted the account change notification emails from the students’ inboxes.
The school and its vendors discovered Rose’s fraud. Green Dot returned the $73,996 in stolen student loan refund proceeds before Rose was able to withdraw the funds. This money was returned to the student victims.
Rose was fired on June 27 and she moved to Tuscon to attend college.
On September 20, 2015, Rose opened a new Green Dot account in the name of her roommate. That day, from her Tuscon residence, she used information she stole from the school where her employment had been terminated to access two students’ accounts on the school network. Rose changed these two students’ bank account information so that any student loan refunds would be paid to the Green Dot account that Rose created in her roommate’s name. As a result, the students’ loan refunds totaling $11,979.50 were paid to the Green Dot account in the roommate’s name. These transactions were rejected by Green Dot and the money was returned to the victim students.
Rose faces a maximum sentence of five years in prison. U.S. District Judge J. Frederick Motz scheduled her sentencing for September 20, 2016, at 11:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI and Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachery A. Myers, who is prosecuting the case.
Salesman Pleads Guilty to Defrauding Consumers Through Debt Relief FirmsRead the Press Release
A Newport Beach, California, man pleaded guilty today for his role as a salesman at fraudulent debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
John Vartanian, 57, pleaded guilty to one count of an indictment alleging conspiracy to commit mail fraud and wire fraud in connection with companies known as Nelson Gamble & Associates (Nelson Gamble) and Jackson Hunter Morris & Knight LLP (Jackson Hunter). According to the indictment, the conspirators portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
“These scams take advantage of vulnerable consumers trying to climb out of debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute fraudulent debt relief schemes.”
“We are gratified with today’s plea, not only on behalf of our postal inspectors who exposed these conspirators for the scammers they were, but for the many unsuspecting victims who were seeking to climb out from their debts but instead were thrown into even deeper financial holes,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “People who rely on the U.S. mail expect what they receive will be truthful, honest communication – free from false statements and from attempts to further victimize them. I appreciate the work of the Consumer Protection Branch in bringing the last of these fraudulent credit repair conspirators to justice.”
“This defendant preyed upon victims that were already burdened by significant debt,” said U.S. Attorney Eileen M. Decker for the Central District of California. “He gave them false hope while stealing the money that could have been used to reduce their obligations.”
The scheme ran from February 2010 to September 2012. Vartanian admitted that he did not tell customers during sales calls that the companies charged significant up-front fees. Additionally, he admitted that he falsely told customers that the companies were backed by a law group and that money would be refunded if customers were not satisfied. When his co-conspirators changed the name of the company from Nelson Gamble to Jackson Hunter in 2011 because of customer complaints, Vartanian continued to make the same pitch without disclosing that the new company was essentially the same as the old company. In speaking with unhappy customers, the conspirators at Jackson Hunter blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble.
Vartanian faces a statutory maximum sentence of 20 years in prison. The court set a sentencing date of Oct. 17 before U.S. District Judge Dale S. Fischer in Los Angeles. Four other defendants previously pleaded guilty in connection with the same scheme: Jeremy Nelson of Laguna Nigel, California, Elias Ponce of Santa Ana, California, Christopher Harati of Anaheim, California, and Athena Maldonado of Lake Forest, California. The defendants have not yet been sentenced.
In September 2012, the Federal Trade Commission brought a civil case against Nelson and the companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Salesman Pleads Guilty to Defrauding Consumers Through Debt Relief FirmsRead the Press Release
WASHINGTON – A Newport Beach, California, man pleaded guilty today for his role as a salesman at fraudulent debt relief firms that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees, the Justice Department and U.S. Postal Inspection Service announced.
John Vartanian, 57, pleaded guilty to one count of an indictment alleging conspiracy to commit mail fraud and wire fraud in connection with companies known as Nelson Gamble & Associates (Nelson Gamble) and Jackson Hunter Morris & Knight LLP (Jackson Hunter). According to the indictment, the conspirators portrayed the debt relief companies as law firms and attorney-based companies that would negotiate favorable settlements with creditors. Clients made monthly payments expecting the money to go toward settlements. The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees.
“This defendant preyed upon victims that were already burdened by significant debt,” said U.S. Attorney Eileen M. Decker for the Central District of California. “He gave them false hope while stealing the money that could have been used to reduce their obligations.”
“These scams take advantage of vulnerable consumers trying to climb out of debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute fraudulent debt relief schemes.”
“We are gratified with today’s plea, not only on behalf of our postal inspectors who exposed these conspirators for the scammers they were, but for the many unsuspecting victims who were seeking to climb out from their debts but instead were thrown into even deeper financial holes,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “People who rely on the U.S. mail expect what they receive will be truthful, honest communication – free from false statements and from attempts to further victimize them. I appreciate the work of the Consumer Protection Branch in bringing the last of these fraudulent credit repair conspirators to justice.”
The scheme ran from February 2010 to September 2012. Vartanian admitted that he did not tell customers during sales calls that the companies charged significant up-front fees. Additionally, he admitted that he falsely told customers that the companies were backed by a law group and that money would be refunded if customers were not satisfied. When his co-conspirators changed the name of the company from Nelson Gamble to Jackson Hunter in 2011 because of customer complaints, Vartanian continued to make the same pitch without disclosing that the new company was essentially the same as the old company. In speaking with unhappy customers, the conspirators at Jackson Hunter blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble.
Vartanian faces a statutory maximum sentence of 20 years in prison. The court set a sentencing date of Oct. 17 before U.S. District Judge Dale S. Fischer in Los Angeles. Four other defendants previously pleaded guilty in connection with the same scheme: Jeremy Nelson of Laguna Nigel, California, Elias Ponce of Santa Ana, California, Christopher Harati of Anaheim, California, and Athena Maldonado of Lake Forest, California. The defendants have not yet been sentenced.
In September 2012, the Federal Trade Commission brought a civil case against Nelson and the companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.
Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts and thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Rochester Man Guilty of Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Gregory Stonoha, 24, of Rochester, N.Y., pleaded guilty to possessing child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Stonoha was found to possess large quantities of child pornography involving prepubescent minors. Stonoha used an application known as Kik to trade child pornography with other users, and to engage in sexually explicit “chats” with other users. After a search warrant and arrest of another individual in Arizona it was determined that Stonoha was communicating with this individual and sharing child pornography.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, acting under the direction of Adam S. Cohen.
Sentencing is scheduled for October 13, 2016, at 10:00, before Judge Siragusa.
Robber Who Threatened to ‘Shoot up the Place’ Sentenced to 8+ Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. - A bank robber who threated to “shoot up the place,” was sentenced Monday to 100 months in federal prison, Acting U.S. Attorney Tom Beall said.
Robert Robinson, 42, Kansas City, Mo., pleaded guilty to three counts of bank robbery. In his plea, Robinson admitted that on May 30, 2014, he robbed the Commerce Bank at 9501 Antioch Road in Overland Park, Kan. At the counter he pulled out a blue file folder and opened it, revealing a note that read: “Put on top of this note all 20s, 50s 100s or I will start shooting up the place.”
He also admitted to two other bank robberies: One on May 22, 2014, at the Bank of America at 15811 Metcalf Avenue in Overland Park; and the other on May 30, 2014, at Commerce Bank at 3606 Frederick Avenue in St. Joseph, Mo.
Beall commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Ringleader of Counterfeiting Conspiracy Pleads GuiltyRead the Press Release
RICHMOND, Va. – Reginald Jake Farrow, 31, of Richmond, pleaded guilty today to conspiracy to make, forge, counterfeit and pass federal reserve notes.
According to the statement of facts filed with the plea agreement, from May 2015, continuing through February 2016, Farrow conspired with 11 other individuals to make and pass counterfeit $50 and $100 Federal Reserve Notes. The counterfeiting operation took place primarily at a residence in Henrico and the defendants would pass the counterfeit bills at local merchants obtaining merchandise and genuine currency as change.
In addition, during the course of the conspiracy, Farrow sold a total of 16.57 grams of heroin to a Confidential Informant on five times between July 2, 2015 and August 20, 2015. The heroin dealing will be considered by the judge at sentencing.
Farrow faces a maximum penalty of five years in prison when sentenced on October 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. Case No. 3:16-CR-56.
Reinbeck Man Sentenced to over 10 Years for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced July 8, 2016 to over 10 years in federal prison.
Robert Turner, age 35, from Reinbeck, Iowa, formerly from Cedar Falls, received the sentence after a January 5, 2016 guilty plea to one count of receipt of child pornography. At the plea hearing, Turner admitted that, between 2001 and 2013, he knowingly used the Internet to receive child pornography.
Turner was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Turner was sentenced to 121 months’ imprisonment. A special assessment of $100 was imposed, Turner was ordered to pay $2,000 in restitution, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Falls Police Department and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2049.
Follow us on Twitter @USAO_NDIA.
Project Safe Childhood - Plainfield Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: John Martin Favor, 49, of Plainfield, New Hampshire, was sentenced on Monday to 66 months in prison by the United States District Court for the District of New Hampshire, announced United States Attorney Emily Gray Rice.
In May 2015, authorities determined that an individual was uploading images of child pornography to an online bulletin board from the defendant’s Plainfield, New Hampshire residence. When a federal search warrant for that residence was subsequently executed, a large collection of child pornography – more than 500 videos and 300 still images – was located on the defendant’s personal electronic devices, and the defendant confessed to law enforcement that he had been viewing child pornography for close to fifteen years.
“Protecting children from sexual exploitation is a top priority of the United States Attorney’s Office for the District of New Hampshire,” said U.S. Attorney Emily Gray Rice, “and prosecuting those who possess child pornography is crucial to destabilizing this black market and undermining the normalization of child sexual abuse.”
The investigation was a collaborative effort between federal, state, and local authorities, which included Homeland Security Investigations Manchester, the New Hampshire Internet Crimes Against Children Task Force, the Police Departments of Hinsdale, Hampton, Plainfield, Rochester, and Portsmouth, New Hampshire, as well as the New Hampshire State Police.
The case was prosecuted by Assistant United States Attorney 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, in each district, by the United States Attorney’s Office, 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 https://www.justice.gov/psc.
###
North Carolina Man Pleads Guilty to Methamphetamine, Gun ChargeRead the Press Release
ROANOKE, VIRGINIA – A North Carolina man, who traveled from North Carolina to Carroll County, Virginia to sell methamphetamine, pled guilty today to federal drug and firearms charges, United States Attorney John P. Fishwick Jr. announced.
Mack Daniel Barton, 37, of Laurel Hill, N.C., pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to one count of possession with the intent to distribute 50 grams or more of methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime.
“Methamphetamine continues to ravage communities all throughout Southwest Virginia and remains a top priority for law enforcement across the Commonwealth,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at today’s hearing by Assistant United States Attorney Ashely B. Neese, Barton traveled from N.C. to Carroll County to sell methamphetamine to what he thought was a customer but what was actually a confidential informant for law enforcement. During this transaction, Barton was arrested and found to be in possession of a firearm.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, the Carroll County Sheriff Office, the Grayson County Sheriff’s Office and the Galax Police Department. Assistant United States Attorney Ashely B. Neese prosecuted the case for the United States.
New York Man Sentenced to 24 Months in Prison for Internet Offenses, Including "Doxing," "Swatting," Making a False Bomb Threat, and Cyber-StalkingRead the Press Release
WASHINGTON – Mir Islam, 22, of New York, N.Y., was sentenced today to 24 months in prison on three federal charges stemming from a conspiracy to commit various crimes related to the “swatting” and “doxing” of dozens of victims, and from a false bomb threat made against a university in Arizona and a pattern of online harassment constituting cyber-stalking against a university student, all occurring between February and September 2013.
The sentencing was announced by U.S. Attorney Channing D. Phillips of the District of Columbia, U.S. Attorney John S. Leonardo of the District of Arizona, and Paul M. Abbate, Assistant Director of the FBI’s Washington Field Office.
Islam pleaded guilty on July 6, 2015, in the U.S. District Court for the District of Columbia, to a total of three charges. They included one count of conspiracy to commit a range of federal offenses, including identity theft; access device fraud; social security number misuse; computer fraud; wire fraud; assaulting federal officials; and interstate transmission of threats. The other charges included one count of threatening and conveying false information concerning the use of explosives and one count of cyber-stalking.
In his guilty plea, Islam admitted to “swatting” and “doxing” numerous individuals, to communicating a false shooting and bomb threat on a university campus in Arizona, and to committing a pattern of online harassment against a university student. “Swatting” is the act of placing emergency 9-1-1 type calls to police departments, usually through Internet-based telecommunication relay services, to make false claims of homicides or other assaultive or criminal conduct by, or against, other targeted individuals at the locations of those individuals. These false 9-1-1 communications are intended to result in, and usually did result in, a tactical police response, including SWAT teams, to the targeted, unsuspecting victims’ residences. “Doxing” is the act of gathering, by licit and illicit means, and posting on the Internet personal identifying information (“PII”) and other sensitive information about an individual, including, for example, addresses, dates of birth, social security numbers, telephone numbers, e-mail addresses, credit information, employers, and details regarding the individual’s children and other family members.
“The crimes committed by this defendant violated the privacy of dozens of people, fostered identity theft, and endangered the safety of many others,” said U.S. Attorney Phillips. “Mir Islam put people at risk on the Internet and in their own homes, placed responding police officers at risk, created a dangerous situation on a college campus, caused substantial emotional distress to numerous victims, and diverted law enforcement from work they could be doing to protect the public. Today’s sentence reflects the seriousness of his crimes and hopefully will deter others from similar actions.”
“This crime not only diverted first responders from actual life-threatening emergencies and wasted their valuable time and resources, but it also caused severe emotional distress to a large number of victims,” said U.S. Attorney Leonardo. “We hope this prosecution will deter others from engaging in similar dangerous and criminal behavior in the future.”
“Making false threats diverts critical law enforcement resources, and places first responders and the public at significant risk of physical injury and harm, which is unacceptable,” said Assistant Director in Charge Abbate. “The FBI takes ‘swatting’ and ‘doxing’ attacks very seriously because such illegal conduct jeopardizes public safety and places innocent people in harm’s way by exposing private and personal information. Working closely with our law enforcement partners, the FBI continues to refine technological capabilities and investigative techniques to prevent these types of crimes, and to track down criminals who commit them.”
According to court documents, Islam and his co-conspirators “swatted” and “doxed” numerous individuals from February through August 2013. Islam and his co-conspirators committed the doxing and swatting to entertain themselves, to exact revenge for official conduct they found objectionable, to express animus toward certain victims, and for their own notoriety. The investigation is continuing.
Swatting: “Swatting” in many instances is an assault with a deadly weapon in which the police are used as proxies to commit the assault. By definition, the crime entails an armed police response. When the responding officers are threatened in the fake 9-1-1 communications with physical harm or death if they respond, as some were by Islam and his co-conspirators, the officers invariably arrive at the premises in force, with guns drawn and trained on the premises and its occupants. The prospect for injuries or fatalities in such a police response is manifest. According to the government’s evidence, Islam and his co-conspirators swatted at least 20 celebrities and state and federal officials. For example, a former member of Congress from Michigan was swatted because of federal legislation he sponsored; a former State Representative, who is now a member of Congress, was swatted because of anti-swatting state legislation he sought to enact, and an Assistant United States Attorney was swatted in retaliation for a particular prosecution he participated in.
Doxing: According to the government’s evidence, Islam and his co-conspirators posted the PII of at least 50 celebrities and state and federal officials on different websites that all shared the domain name “Exposed,” which were accessible to anyone, anywhere. The natural, inevitable, and intended consequence of this publication of names, social security numbers, dates of birth, addresses, credit reports, and the like, was the use of that information by countless others to illicitly obtain credit cards and other finance-related accounts using the identities of the doxing victims, causing many victims to suffer continuing credit issues. The publication of the victims’ personal identifying information also revealed to any other would-be harassers or assailants how and where to contact the victims.
Additionally, according to the government’s evidence, on March 22, 2013, Islam separately falsely reported a shooting and explosives incident on the campus of a university located in Arizona. Using a 9-1-1 Internet relay system, Islam reported that a man on campus had a gun and a rifle and was shooting people on campus. Islam further stated that the man was shooting up the area and that he had explosives and was going to blow up buildings. In response to Islam’s false report, the local police, university police, and the FBI responded to the campus to investigate, including SWAT Teams and a Police Department Bomb Squad. The campus was placed in lockdown, with flash text messaging sent to the student population advising of a potential active shooter situation.
Islam made the false shooting and explosives report as part of Islam’s cyber-stalking of a student attending that university. Over the course of several months after the false bomb threat, according to the government’s evidence, Islam repeatedly called or sent text messages to this student and some of her friends, occasionally threatening them. Islam impersonated state and federal law enforcement officials to try to collect information about the student. Islam further acquired unauthorized access to the student’s e-mail and social media accounts, and then downloaded information from those accounts and changed the passwords to the accounts, thereby denying the student access. Islam created a social media account in which he assumed a false identity, including photographs of someone other than Islam, pretending to be a student attending the student’s university. Islam used this account and identity to attempt to befriend the student. Islam’s prolonged harassment of the student caused the student to suffer substantial emotional distress.
Islam, a naturalized U.S. citizen from Bangladesh, was arrested in September 2013 and has been in custody in this case since July 2015. In addition to the prison time, the Honorable Randolph D. Moss ordered Islam to be placed on three years of supervised release following the prison term; during that time, Islam must agree to computer monitoring and other conditions.
The investigation was conducted by the FBI’s Washington Field Office. Assistance was provided by the FBI’s Phoenix, New York and Los Angeles Field Offices; the United States Secret Service’s Boston Field Office, and the Los Angeles, Boston, and Fairfax County, Va., Police Departments. The Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS) also provided support.
The case is being prosecuted by Assistant U.S. Attorney Corbin A. Weiss of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorney Beverly Anderson of the U.S. Attorney’s Office for the District of Arizona.
Morgantown man pleads guilty to synthetic marijuana distribution, money laundering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Kocan, 59, of Morgantown, West Virginia, pled guilty to distribution of synthetic marijuana and money laundering, United States Attorney William J. Ihlenfeld, II, announced.Kocan was the owner of Mid Nite Adult in Morgantown, WV where he sold synthetic cannabinoids, commonly referred to as “spice”, “K2”, “incense”, or “fake weed” for nearly two years. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
He pled guilty today to one count of “Conspiracy to Distribute Synthetic Cannabinoids and Schedule I Controlled Substance Analogue,” and one count of “Engaging in a Monetary Transaction with Cash Derived from Specified Unlawful Activity.” He faces up to twenty years in prison and a fine of up to $1,000,000 for the conspiracy charge and up to ten years in prison and a fine of up to $250,000 for the monetary laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation, Mon Metro Drug and Violent Crime Task Force, and the Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Miami-Dade Resident Sentenced in Stolen Identity Tax Fraud Scheme Involving Approximately 1,288 Debit Cards Containing More Than $1 Million in Tax RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $973,379 for his participation in a stolen identity tax fraud scheme involving approximately 1,288 debit cards containing more than $1 million in tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), and John E. Brooks, Chief, Sunrise Police Department, made the announcement.
Yasmany Lopez, 28, previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).
According to court documents, in early 2012, individuals in Colombia negotiated with a confidential source (CS) to rent an airplane that would be used to transport controlled substances from Colombia to Honduras. As part of these negotiations, the individuals arranged delivery of $500,000 to the CS as payment to use the airplane. The CS received an initial payment of $170,000, and defendant Lopez contacted the CS to arrange delivery of the remaining $330,000. After Lopez met with the CS, officers stopped Lopez in his car. Lopez gave consent to search the vehicle, and the officers located two boxes containing $330,000 in cash, approximately 197 Turbo Tax debit cards and 1,035 Green Dot debit cards each bearing different individual’s names, mail addressed to several different individuals, and ATM receipts.
During a subsequent search of Lopez’s residence, law enforcement found an additional 48 Turbo Tax debit cards, 8 Green Dot debit cards, and numerous Turbo Tax mailing envelopes and cardholder agreements. The IRS determined that the 245 Turbo Tax cards found between Lopez’s car and residence had been loaded with approximately $1,071,188 in federal income tax refunds. The IRS identified the tax returns associated with fifteen of the seized debit cards. The individuals named on these tax returns are all residents of Puerto Rico, but the individuals did not authorize anyone to file these tax returns or to use their personal information.
Lopez admitted that he removed cash from the debit cards at ATMs in exchange for a 2% commission. He also recruited individuals who allowed Lopez to use their mailing addresses to receive the debit cards, in exchange for $100 per card. A portion of the $330,000 he was to deliver to the CS came from the debit cards in his possession.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.