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Monday 11 July 2016
Mexican national pleads guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Mexican national heavily involved in a California-to-West Virginia drug conspiracy pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Daniel Ortiz-Rivera, 24, entered his guilty plea to conspiracy to distribute more than 50 grams of methamphetamine.
Ortiz-Rivera admitted that from January 2015 to June 2015, 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 and supplied drugs to individuals in West Virginia. Ortiz-Rivera additionally admitted that he had methamphetamine delivered to him in West Virginia and traveled himself to California to pick up methamphetamine. From January 2015 through May 2015, he delivered at least eight pounds of methamphetamine to an individual in West Virginia. He also admitted that on June 5, 2015, he was driving from California to transport methamphetamine to Charleston and was stopped by law enforcement in Kansas. During a search of the vehicle, law enforcement discovered approximately four pounds of methamphetamine.
Ortiz-Rivera faces at least five and up to 40 years in federal prison when he is sentenced on October 11, 2016.
This prosecution is the result of a multi-agency investigation which led to an eight-count indictment implicating 14 defendants, including Ortiz-Rivera. Ortiz-Rivera’s codefendants are presumed innocent unless and until proven guilty in a court of law. As part of this conspiracy, two women used as mules to transport methamphetamine, Danielle Dessaray Estrada, 21, of Los Angeles, and Kelly Newcomb, 56, of Nevada, have pleaded guilty 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.
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Mechanics Falls Woman Pleads Guilty to Tax ChargeRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Amanda Ouellette, 38, of Mechanics Falls, Maine, pleaded guilty today in U.S. District Court to failing to account for and pay over federal employment taxes.
According to court records, from 2008 to 2013, Ouellette operated Daddy O’s, a restaurant in Oxford, Maine, and paid wages on a regular basis to several employees. She withheld federal income and FICA taxes from her employees’ gross pay, but from 2009 through 2013, she failed to file quarterly federal income tax returns and pay over the taxes she withheld to the Internal Revenue Service (“IRS”), as required.
Ouellette faces up to five years in prison and a $250,000 fine. As part of her plea agreement, she agreed to pay $114,487 in restitution to the IRS.
Koch Industries Executive to Keynote U.S. Attorney’s Fair Chance Hiring ConferenceRead the Press Release
BIRMINGHAM – Mark V. Holden, senior vice president and general counsel of Koch Industries, will be the keynote speaker next week at a conference sponsored by the U.S. Attorney’s Office for the Northern District of Alabama focused on reentry and fair chance employment issues for people returning to society from prison.
Koch Industries is nationally recognized for its leadership and advocacy to remove barriers to employment for people who have had a criminal conviction or arrest. Koch Industries reports that it directly employs 60,000 people nationally, about 2,600 of them in Alabama.
The Alabama Fair Chance Employment Summit will be Wednesday, July 20, from 9 a.m. to 11a.m. in the Steiner Auditorium at the Birmingham Museum of Art, 2000 Reverend Abraham Woods Jr. Boulevard. Holden is considered a national leader in reentry reform and fair chance employment practices.
“In Alabama and across the country, leaders from the public and private sector are collaborating to break the cycle of crime by promoting employment and community support for those who have committed crimes, served their sentences and paid their debts to society,” Vance said. “Often, collateral consequences that result from an arrest or conviction affect an individual’s ability to find employment long after the completion of any court-imposed sentence. We can prevent crime and make our community safer by making it possible for people to find jobs,” she said. “Mr. Holden’s experience with gainfully employing ex-offenders should provide great insight for our community.”
For more information on the event, contact Jeremy Sherer at (205) 244-2001 or [email protected]
Jury Convicts Champaign Man for Felon in Possession of a FirearmRead the Press Release
Urbana, Ill. – A jury deliberated for nearly two hours before returning its guilty verdict late Friday, July 8, 2016, against Kevin Pettis, aka KP, 37, of the 400 block of South State St., Champaign, Ill., for possession of a firearm by a felon, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois.
During the trial, which began on July 6, the government presented evidence to establish that on July 7, 2013, around 3:18 a.m., Pettis fired a Taurus, .40 caliber semi-automatic pistol from a Chevrolet Tahoe in the parking lot of the Oakwood Trace Apartments in north Champaign. When a woman reported the shooting, Pettis drove to his apartment in the 400 block of South State Street and tried to hide the pistol in his jacket in his apartment. Officers of the Champaign Police Department arrested Pettis minutes later as he was walking away from the apartment. They located and recovered the stolen, loaded gun after obtaining a search warrant for his apartment. At the time, Pettis had six prior felony convictions: three aggravated battery, reckless discharge of a firearm, possession of a weapon by a felon, and possession with intent to distribute a controlled substance.
Pettis remains in the custody of the U.S. Marshals Service, where he has been since his arrest on Dec. 7, 2015. Sentencing for Pettis is scheduled for Nov. 7, 2016, before U.S. District Judge Colin S. Bruce in Urbana, Ill.
The maximum statutory penalty for unlawful possession of a firearm by a felon is 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Eugene L. Miller and A. Remy Taborga. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Champaign Police Department investigated the case.
Judge Sentences Federal Inmate for Prison EscapeRead the Press Release
Erie, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, pleaded guilty and was sentenced in federal court to 1 month in jail on his conviction of escape after conviction, United States Attorney David J. Hickton announced today.
United States District Court Judge David S. Cercone imposed the sentence on Jonathan Rodriguez Melendez, 26. The sentence was imposed to run consecutively to the sentence Melendez is currently serving.
According to the information presented to the court, on or about October 10, 2015, Melendez escaped from the Federal Prison Camp at the McKean Federal Correctional Institution while he was serving a term of imprisonment imposed by the Western District of New York upon his conviction for conspiracy to possess with intent to distribute and to distribute heroin.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Melendez.
Jose Gonzalez-Martinez Sentenced on Methamphetamine ChargeRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Charlottesville man who was convicted as part of a law enforcement initiative targeting individuals trafficking methamphetamine into the greater Charlottesville area, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville, United States Attorney John P. Fishwick Jr. announced today.
Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, Va., was arrested on a federal criminal complaint in late March and pled guilty in April to one count of conspiring to distribute methamphetamine. Today in the District Court, Gonzalez-Martinez was sentenced to 36 months’ imprisonment, to be followed by deportation.
Two other men, Alfonso Lopez-Rios and John Mark Fisher were previously convicted and sentenced to federal prison as part of the conspiracy. Lopez-Rios was sentenced to 58 months in federal prison and Fisher was sentenced 132 months.
“Methamphetamine is often a drug that leads to other criminal behavior, acts such a domestic abuse, property crime, violence, things that destroy families and communities,” United States Attorney John P. Fishwick Jr. said today. “It is paramount that we continue to work with our partners in law enforcement in manners such as this to slow the spread of this deadly and addictive substance.”
According to evidence presented at previous hearings by Assistant United States Attorney Christopher Kavanaugh, Gonzalez-Martinez sold distribution-sized quantities in the Charlottesville area.
Gonzalez-Martinez, Lopez-Rios and Fisher were prosecuted as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operations’ goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.
The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Hudson County, New Jersey, Man Admits Selling Fake Driver’s Licenses OnlineRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man today admitted using social media to promote a sophisticated website that sold fake driver’s licenses, some of which were later used to commit financial crimes, U.S. Attorney Paul J. Fishman announced.
Abraham Corcino, 34, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to commit fraud in connection with authentication features.
According to documents filed in this case and statements made in court:
From October 2012 through August 2014, Ricardo Rosario, 33, of Jersey City, with the assistance of Corcino and Alexis Scott Carthens, 38, of Newark, New Jersey, sold fake driver’s licenses over the Internet. In connection with their illegal operation, the defendants ran a website that was available at “fakeidstore.co” and “fakedlstore.com.”
A number of the fake driver’s licenses sold by Corcino and other conspirators were used by criminal actors in connection with “cash out” schemes where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and used to steal cash from victims’ accounts.
Rosario created and ran the website. Corcino and Carthens assisted Rosario by creating and mailing the fake driver’s licenses purchased through the website. Corcino also maintained an Instagram account to promote the website.
The website sold fake New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin driver’s licenses, and the website boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more.
The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received approximately one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
At the plea hearing, Corcino admitted promoting the website on social media and mailing the fake driver’s licenses to the website’s customers.
The conspiracy to commit fraud in connection with authentication features charge carries a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 19, 2016.
Carthens pleaded guilty to his role in the scheme on April 25, 2016 and awaits sentencing. The charges against Rosario are pending. The charges and allegations against him are merely accusations, and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Assistant Inspector in Charge Cynthia Shoffner, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Chistopher Adams, Esq.
Four convicted, sentenced for illegal reentryRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three individuals from Guatemala and one from Honduras pled guilty to illegal reentry today in federal court in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.Selvin Garcia-Xitumul, 21, originally from Guatemala; Wilson Ariel Garcia-Guzman, 21, originally from Guatemala; Javier Vargas-Zaldivar, 32, originally from Honduras; and Marco May-Cucil, 27, originally from Guatemala, were discovered in May 2016 in Monongalia County after having been deported from the United States.
All four individuals pled guilty to one count of “Reentry of a Removed Alien” and were sentenced to time served. The United States Marshals Service will transfer each defendant into the custody of the United States Department of Homeland Security so that the deportation process may begin.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Department of Homeland Security Immigrations and Customs Enforcement investigated.
U.S. District Judge Irene M. Keeley presided.
Former Retailer Employee Pleads Guilty in $3.5 Million SchemeRead the Press Release
CINCINNATI – Rudy Rampertab, 46, of Ocoee, Fla., pleaded guilty in U.S. District Court to one count each of mail fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, Rampertab was an employee of Macy’s from 1988 until 2010. Beginning in 1998, Rampertab managed Macy’s distribution center in Carson, Calif. and supervised the transport of merchandise to centers throughout the country.
Starting in July 2010, Rampertab began diverting the shipment of goods to a co-conspirator who established several shipping companies. Ramptertab obtained approval for those companies to become third party vendors for Macy’s; however, Rampertab did not disclose his personal connection to the companies, which he helped operate. Rampertab also did not disclose to Macy’s that he personally profited from the operations of these vendors.
Between July and December 2010, the companies received more than $3.5 million in Macy’s shipping and packaging jobs. After paying expenses, they generated more than $900,000 in net profits from the diverted business.
Rampertab and his co-conspirator used the proceeds to purchase real estate and vehicles, including a 2010 Aston Martin costing $199,000.
Mail fraud is a crime punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, as well as Assistant United States Attorney Tim Mangan, who is representing the United States in this case.
Former General Counsel, Former Board Chairman at BVU Each Sentenced for ConspiracyRead the Press Release
ABINGDON, VIRGINIA – In separate hearings this afternoon in federal court, the former general counsel for the Bristol Virginia Utilities Authority and the former chairman of the board of directors for BVU were sentenced as part of a wide-spread corruption investigation that has led to the conviction of several high-ranking officials at the service authority.
United States Attorney John P. Fishwick Jr. announced today that during separate hearings in the United States District Court for the Western District of Virginia in Abingdon, G. Walter Bressler, 74, of Bristol, Va., was sentenced to six months in federal prison and six months home confinement. He was also ordered to pay $10,000 forfeiture. Bruce J. Clifton, 64, also of Bristol, Va., was sentenced to five months in prison to be followed by five months of home confinement. He was also ordered to pay $5,000 in forfeiture. Both men previously pled guilty to one count each of conspiracy to commit program fraud and having knowledge of the actual commission of a felony and concealing such a felony from the United States.
“The level of corruption that has been uncovered during the course of this investigation is staggering,” United States Attorney Fishwick said today. “Public corruption on any level will not be tolerated and we are thankful to our partners with the IRS and FBI for uncovering this illegal behavior and doing the hard work that was necessary to build solid cases against these defendants.”
According to information presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Bressler was General Counsel for BVU from January 1, 2009 to March 1, 2015 and Clifton was a citizen member of the BVU Board of Directors from January 2, 2010 through March 27, 2016 and served as Chairman of the Board from July 2015 under March 27, 2016.
During an Executive Session of a BVU Board of Directors meeting in September 2013, Bressler, Clifton, and others, had specific discussions about violations of federal and state law, the types of violations that had occurred, and the consequences of those violations. Specifically, they had conversations about a trip members of the BVU Board of Directors were provided by a potential contractor to Dallas, Texas in November 2011. During that trip, the contractor provided board members in attendance with hotel expenses, limousine services, meals and tickets to a Dallas Cowboys football game, which included seats in a luxury box. The BVU Board of Directors entered into a contract with the contractor for the amount of $4,496,096. Additionally, at this same meeting, the members of the Board of Directors discussed the criminal wrongdoing of the former Chief Executive Officer and other executives at BVU related to receiving things of value from contractors wanting to do business with BVU. As a result of these discussions, Clifton, Bressler and other board members agreed not to disclose these matters to law enforcement and to specifically avoid notifying the United States Attorney’s Office of the allegations of wrongdoing by the CEO and other employees at BVU.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee and Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Former Erie Resident Sentenced to Time Served for Failing to Register as a Sex OffenderRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to time served on his conviction of failure to register under SORNA, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Warren Emery Gannoe, 57.
According to information presented to the court, Gannoe knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act and used a Social Security number belonging to another person on an employment application.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Gannoe.
Former Contractor of Newark Watershed Conservation and Development Corporation Admits Role in Conspiracy to Fraudulently Bill the AgencyRead the Press Release
NEWARK, N.J. – A West Orange, New Jersey, man who was the sole proprietor of two companies that purportedly provided printing and digital marketing services to the Newark Watershed Conservation and Development Corporation (NWCDC) today admitted his role in a conspiracy to fraudulently bill the NWCDC for more than $110,000 for work that was never performed, U.S. Attorney Paul J. Fishman announced.
Kevin Gleaton, 52, pleaded guilty before U.S. District Judge Jose Linares in Newark federal court to an information charging him with one count of conspiring to commit wire fraud with Donald Bernard, Sr., Linda Watkins Brashear, and others, to defraud the NWCDC of money and property and one count of misuse of Social Security numbers in connection with personal bankruptcy proceedings.
According to documents filed in this case and statements made in court:
From May 2011 to September 2012, Gleaton conspired with Bernard, who was then employed as manager of Special Projects for the NWCDC, Brashear who was then the NWCDC executive director, and others, to defraud the NWCDC of more than $110,000 for work that was never performed by Gleaton or his companies. Gleaton was the owner of the Synergy Group, a company that received more than $58,000 in 2011 from the NWCDC, purportedly for printing services, as well as Mindshare Media, which received more than $52,000 from the NWCDC in 2012, purportedly for digital marketing services.
Gleaton deposited the payments issued to his companies by the NWCDC on the basis of fraudulent invoices, and then provided a substantial portion of the money received – more than $97,000 – to Bernard, who, in turn, shared a portion with Brashear, among others. Gleaton provided the money to Bernard either directly, or indirectly through the “consultant intermediary,” an individual who operated a firm that provided consulting services to the NWCDC. The conspiracy was facilitated by interstate wire transmissions, including emails sent by Bernard to Brashear and the consultant intermediary. Brashear pleaded guilty in December 2015 to scheming to defraud the NWCDC of her honest services in the affairs of the NWCDC by taking kickbacks (from various vendors including Gleaton), and of the NWCDC’s money and property, as well as to subscribing to a false federal personal income tax return. In January 2016, Bernard pleaded guilty to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charged him with making and subscribing a false personal tax return.
Gleaton also admitted to using multiple Social Security numbers, other than the number lawfully issued to him by the Commission of Social Security, in connection with his bankruptcy filings in 2011 and 2012.
The counts of wire fraud conspiracy and misuse of Social Security numbers each carry a maximum potential penalty of five years in prison and a fine of the greatest of $250,000 per count or twice the gain or loss resulting from the offenses. Sentencing is scheduled for October 19, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea. U.S. Attorney Fishman also thanked the New Jersey Comptroller’s Office, under the direction of Philip J. Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Ray Hamlin Esq., Newark
Federal Inmate Gets 10 Month Sentence for Possessing a Weapon in PrisonRead the Press Release
Erie, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, pleaded guilty and was sentenced in federal court to 10 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Court Judge David S. Cercone imposed the sentence on Dontrace Marcus Blaine, 29. The sentence was imposed to run consecutively to the sentence Blaine is currently serving.
According to the information presented to the court, on or about July 1, 2015, Blaine was in possession of contraband, namely a weapon.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Blaine.
Drug and Money Laundering Conspirator SentencedRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Lilian Suyapa Garcia-Soto, 33, of Dallas, Texas, was sentenced today in federal court for her role in a drug trafficking and money laundering conspiracy. Court documents reflect that the organization operated between Austin, Texas, and Mobile, and that methamphetamine ice and marijuana were distributed here as a result. Court documents also establish that the drug proceeds were deposited in bank accounts in Mobile, and immediately withdrawn in Texas to pay for the drugs sold here, and to obtain additional drugs for distribution. Garcia-Soto opened one of the bank accounts used to facilitate the drug distribution and to accomplish the laundering of the drug money. She also acted as a courier who drove shipments of the drugs from Texas to Mobile. Garcia-Soto pled guilty to conspiracy to launder drug money and conspiracy to possess with intent to distribute methamphetamine ice in October of 2015.
United States District Court Judge Kristi K. Dubose imposed a sentence 18 months concurrent on both counts. She ordered that Garcia-Soto will serve a three-year term of supervised release when she is discharged from incarceration. Judge Dubose also ordered that Garcia-Soto pay $200 in special mandatory assessments, but did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Detroit Police Lieutenant, Officer Convicted of Conspiracy to Obtain Property by ExtortionRead the Press Release
A Detroit Police Lieutenant and crew chief from the now-disbanded Narcotics Unit of the Detroit Police Department were convicted today by a federal jury in Detroit on charges of robbing drug dealers and stealing drugs and money obtained in police searches, U.S. Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department, Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service – Criminal Investigation and Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.
The five-week trial was conducted before U.S. District Judge Stephen J. Murphy.
Defendants Lt. David Hansberry, 35, and Officer Bryan Watson, 47, were each convicted on charges of conspiracy to interfere with commerce by extortion and robbery. They were acquitted on the remaining counts of the indictment. A third defendant, Kevlin Omar Brown, 46, was acquitted on one count of interference with commerce by robbery and extortion.
The conspiracy conviction carries a potential sentence of up to twenty years imprisonment and a $250,000 fine.
According to the evidence presented at trial, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them. The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims. Hansberry and Watson used their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms. Hansberry and Watson also identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money and personal property.
In addition, the evidence showed that Hansberry, who was a sergeant at the time, and Watson failed to log into evidence money and drugs seized during searches of homes. Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales. In one instance in July 2010, Hansberry and Watson participated in a drug seizure that netted more than $3 million, the largest cash seizure by the Detroit Police Department at that time. Only $2.2 million, however, was placed in the evidence room.
“These defendants tarnished the badge that is worn with honor by their fellow officers, using their power as police officers to steal money and drugs from criminals who have no recourse,” McQuade said. “In addition to betraying their trust to uphold the law, these officers also put back out onto the streets the drugs that they had seized so that they could split the proceeds. Their greed caused them to poison our neighborhoods with drugs and to diminish public trust in police.”
"Today's guilty verdict demonstrates the resolve of the FBI-led Public Corruption Task Force, in partnership with the Detroit Police Department, to aggressively investigate law enforcement officers who abuse their positions of public trust," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Despite this isolated betrayal of trust, today's convictions should not tarnish the outstanding work conducted every day by the Detroit Police Department to combat crime in this great city,”
“The vast majority of the men and women of the Detroit Police Department are honest and hard-working, but these defendants betrayed their oath and their fellow officers,” said Chief Craig. “We are committed to the highest standards of integrity, and we will remove any officers who do not live up to those high standards.”
The case was investigated by the by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Sheldon Light and J. Michael Buckley.
Clarksville, Tennessee, Man Sentenced to Ten Years for Sex Trafficking of A Louisville, Kentucky MinorRead the Press Release
LOUISVILLE, Ky. – A Clarksville, Tennessee man was sentenced today in United States District Court by District Judge David J. Hale, to ten years in prison for sex trafficking a 15-year-old female, announced United States Attorney John E. Kuhn, Jr.
“Pursing those who sex traffic vulnerable children is a priority of my office and the Department of Justice,” stated U.S. Attorney Kuhn. “We have an unwavering commitment to ensuring that no child will become the victim of sexual trauma and exploitation.”
Ralph W. Goodwin, age 66, pleaded guilty to a three count superseding indictment on April 4, 2016. The charges included sex trafficking of a child older than 14 but younger than 18; soliciting a minor to engage in commercial sex acts; and transporting a minor with the intent that the minor engage in prostitution. Co-defendant Crystal Bradshaw, a/k/a Crystal Thurman, age 42, was charged with recruiting, harboring, transporting and soliciting a minor to engage in a commercial sex act. Bradshaw remains in federal custody and is scheduled for sentencing by District Judge Hale on July 21, 2016, in Louisville.
According to the affidavit attached to the criminal complaint, on August 7, 2015, a 15-year-old female was approached by Crystal Bradshaw, in a Louisville park. Bradshaw took the minor female to a Marriott Hotel in Louisville to engage in sexual contact with Ralph Goodwin, in exchange for a monetary payment. According to the affidavit, Bradshaw received $700 from Goodwin, but the minor was not paid. Further, after two days, Goodwin drove the minor to his home in Clarksville, Tennessee. Eventually, the minor contacted a friend on Goodwin’s computer. The friend contacted the minor’s mother, which resulted in the Montgomery County, TN Sheriff’s Office discovering the minor at Goodwin’s Clarksville home.
Goodwin was initially charged in a separate, sealed criminal complaint on August 23, 2015. The case was unsealed during the initial appearance and detention hearing before U.S. Magistrate Judge Dave Whalin on Monday, August 31, 2015.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Chevy Dealer GM Sentenced to Prison for Embezzling MoneyRead the Press Release
ERIE, Pa. - A resident of Edinboro, Pennsylvania, has been sentenced in federal court to 2 years in jail and ordered to pay $485,800 in restitution on his conviction of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Douglas A. Grooms, 45.
According to information presented to the court, from June 2008 to September 2013, while employed as the general manager of Community Chevrolet in Meadville, Pennsylvania, Grooms embezzled money from the dealership by writing dealership checks to a fictitious marketing company which he set up solely for the purpose of receiving the checks, resulting in a loss of $485,800 to Community Chevrolet.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Grooms.
Cedar Rapids Heroin Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who distributed heroin in the Cedar Rapids area was sentenced to more than four years in federal prison.
Isaac Edwards, age 27, from Cedar Rapids, Iowa, received the prison term after a February 29, 2016, guilty plea to one count of distribution of heroin.
In a plea agreement, Edwards admitted that he sold heroin from 2012 until the date of his arrest in 2015. He also admitted to leading police on a vehicle chase on September 22, 2015 and throwing heroin out of the vehicle during the pursuit.
Edwards was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Edwards was sentenced to 57 months’ imprisonment concurrent with an Illinois drug sentence. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Edwards is being held in the United States Marshal’s custody and will be returned to the Illinois Department of corrections to complete his Illinois drug sentence.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and 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 Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-04-LRR.
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Camden County, New Jersey, Man Arraigned on Child Pornography, Sexual Exploitation ChargesRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was arraigned today on an indictment returned last week by a federal grand jury in Camden for allegedly possessing and distributing images of child sex abuse and also for conspiring to sexually exploit two minor children, U.S. Attorney Paul J. Fishman announced.
Alexander Capasso, 42, of Collingswood, New Jersey, appeared before U.S. Magistrate Judge Karen M. Williams and was detained without bail.
According to documents filed in this case and statements made in court:
Capasso was originally charged by complaint in July 2015 by the Washington, D.C., U.S. Attorney’s Office with receiving and distributing images of child pornography after having sent several images of child pornography to an undercover law enforcement officer. The case was transferred to the District of New Jersey by the filing of a complaint in November 2015. The indictment returned last week charges one count of conspiracy to sexually exploit two minor children, five counts of distribution of images of child pornography and one count of possession of additional images of child pornography. Capasso has been held in federal custody since his July 20, 2015 arrest.
In July 2015, Capasso answered an ad placed by an undercover officer and began a series of communications by which Capasso sought sexually explicit images of children from the officer and sent images containing child pornographic images to the officer. As a result of the communications, federal agents obtained a search warrant for Capasso’s home and seized various electronic media containing numerous additional images and videos of child sexual abuse. Included among those images were photographs and videos of two minor children manufactured by Capasso and his ex-girlfriend in southern New Jersey.
The count of conspiracy to sexually exploit children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The distribution of child pornography counts each carry a mandatory minimum penalty of five years in prison, a maximum possible penalty of 20 years in prison and fine of $250,000 per count. The count of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000.
U.S. Attorney Fishman credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge William Sweeney, and the Washington, D.C., Field Office, under the direction of Assistant Director in Charge Paul M. Abbate, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Gilbert J. Scutti Esq., Voorhees, New Jersey
Bangor Woman Sentenced to 4½ Years for Drug Trafficking ConspiracyRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Tiffany Sutherland, 30, of Bangor was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 4½ years in prison and five years of supervised release for conspiracy to distribute and to possess with intent to distribute heroin, cocaine, and cocaine base, commonly known as “crack.” Sutherland pleaded guilty to the charge on January 25, 2016.
According to court records, from April to October, 2014, Sutherland conspired with Terrence Douglas and others to obtain drugs from out-of-state suppliers and to distribute them in the Bangor area. Sutherland sold heroin and crack cocaine and gave proceeds from those sales to Douglas.
In imposing the sentence, Judge Woodcock told Sutherland that her home town of Bangor “has changed for the worse because of people like you.” On November 18, 2015, Douglas was sentenced to 10 years on conspiracy and gun charges.
The investigation was conducted by the Maine Drug Enforcement Agency; the Bangor Police Department; and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Bangor Man Sentenced to 50 Years for Creating and Distributing Child PornographyRead the Press Release
Contact: F. Todd Lowell
Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Timothy S. Klimas, 27, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 50 years in prison to be followed by a lifetime of supervised release for creating and distributing child pornography. He pleaded guilty to the charges on September 22, 2015.
Court records reveal that between 2012 and 2014, the defendant sexually abused three minor children and used a digital camera and his cell phone’s camera to record sexually explicit images of them. He posted many of those images on a website. He was arrested in August 2014.
In imposing sentence, Judge Woodcock said: “These images are a crime against innocence … against childhood … against a basic human moral code” and that the defendant’s conduct was “beyond evil.”
The investigation was conducted jointly by the Federal Bureau of Investigation and the Bangor and Newport Police Departments.
Baltimore Fraudster Sentenced to over 4 Years in Federal Prison for Conspiracy to Fraudulently Obtain over $200,000 in Vehicle LoansRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Derrick Kwan Byas, age 28, of Baltimore, Maryland, today to 54 months in federal prison, followed by three years of supervised release, for a bank fraud conspiracy and aggravated identity theft in which Byas and his the conspirators obtained fraudulent vehicle and personal loans, using false information, including a social security number. Judge Chasanow also ordered Byas to forfeit and pay a money judgment of $96,515.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement and other court documents, from January 2009 to April 29, 2015, Byas and others applied for vehicle loans with financial institutions and lenders using false information as to employment history at shell entities created by the conspirators, addresses, dates of birth and social security numbers. In addition to vehicle loans, Byas applied for personal loans and credit cards using false information, including a social security number belonging to another individual, and false employment information. Byas and others created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report. The defendants often applied for vehicle loans on the same vehicle with different lenders. They sold the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers. They deposited the loan funds into bank accounts and cashed loan checks at liquor stores. Byas and his co-conspirators failed to make payments on the credit card accounts, personal loans and vehicle loans, which often resulted in the vehicles being repossessed by the lenders. Byas knew that he had no intention of purchasing a vehicle and that the loan proceeds would be split between himself and his co-conspirators.
The total intended loss resulting from Byas’ conduct in the scheme was at least $220,603.
Robert Anthony Fitzgerald Lathan, age 48, of Accokeek, Maryland, pleaded guilty to his role in the scheme and was sentenced to 42 months in prison. Three other co-defendants have pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
Albuquerque Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Randy Martinez, Jr., 21, of Albuquerque, N.M., pled guilty this morning in federal court to federal child pornography offenses. Under the terms of his plea agreement, Martinez will be sentenced to 12 years in prison followed by a lifetime of supervised release. Martinez will be required to register as a sex offender when he completes his prison sentence.
Martinez was arrested on Dec. 7, 2015, on a five-count indictment charging him with advertisement, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Martinez advertised his willingness to receive, distribute and exchange child pornography from Aug. 9, 2015 through Aug. 17, 2015, and received child pornography from Aug. 9, 2015 to Aug. 17, 2015. The indictment also charged Martinez with possessing child pornography from Nov. 5, 2014 through Aug. 17, 2015. The indictment charged Martinez with committing the five offenses in Bernalillo County, N.M.
According to court filings, the investigation into this case was initiated after the National Center for Missing and Exploited Children (NCMEC) received a cryptic Cybertip on Aug. 17, 2015, in which the sender reported himself for offenses involving the online sexual exploitation of children. After the tip was forwarded to law enforcement authorities in New Mexico, the Bernalillo County Sheriff’s Office identified Martinez as the sender of the Cybertip. Thereafter, law enforcement authorities executed a search warrant on Martinez’s phone and found nearly 3,000 files containing child pornography on the phone. Further investigation revealed that Martinez also possessed two online cloud storage accounts containing over 5,000 child pornography videos and images.
The search of Martinez’s phone also revealed that he was an active participant in an online messaging application community devoted to trading child pornography. Martinez used this messaging application to receive and share child pornography with other members of the messaging community. The continuing investigation has led to the identification of approximately 70 unique users who allegedly engaged in trading images and videos depicting the sexual exploitation of children, both in the United States and abroad.
During today’s proceedings, Martinez pled guilty to four of the five counts of the indictment charging him with receipt and possession of child pornography. In entering the guilty plea, Martinez admitted using a messaging application on his cellular phone to receive child pornography between Aug. 9, 2015 and Aug. 17, 2015. Martinez also admitted possessing thousands of images and videos of child pornography between Nov. 2014 and Aug. 2015.
This case was investigated by the Bernalillo County Sheriff’s Office, Albuquerque office of the FBI and the New Mexico Office of the Attorney General with assistance from the New Mexico Regional Computer Forensics Laboratory, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
14 South Georgia Residents Indicted on Federal Drug Trafficking ChargesRead the Press Release
Statesboro, GA - A federal indictment has been returned charging 14 South Georgia residents with conspiring to traffick methamphetamine, heroin, oxycodone and other drugs. If convicted of the drug trafficking conspiracy charge, the Defendants face a maximum of 20 years in prison and a potential $1 million fine. The majority of Defendants appeared in federal court last week in Statesboro for their initial appearances.
The federal indictment, unsealed last week and returned by a federal Grand Jury sitting in Savannah in June, charged the following 14 Defendants:
Jeramie Thomas Leslie, 31, of Guyton,
John Christopher Paulson, 40, of Rincon,
William Preston Gibbs, 22, of Glennville,
Jeremiah Jones Richardson, 29, of Statesboro,
Jason Todd Smith, 43, of Fleming,
Jeremy Nicholas Taylor, 27, of Ellabell,
Samori Jodan Smokes, 35, of Eden,
Scott Lamont Pointer, 35, of Ellabell,
Timothy Wayne Davis, 49, of Ellabell.
Christopher Gage Floyd, 21, of Pembroke,
Kenneth Jordan Lane, 24, of Pembroke,
Jeffery James Taylor, 28, of Ellabell,
Casandra Rae Hendrix, 24, of Ellabell, and
Kayla Estell Rericha, 21, of Rincon.
The charges resulted from a joint federal-state investigation by the DEA, GBI, the Bryan County County Sheriff’s Office, the Effingham County Sheriff’s Office, the Chatham-Savannah Counter Narcotics Team, the Statesboro-Bulloch Crime Suppression Team, the Richmond Hill Police Department and the Pembroke Police Department. Assistance was also provided by the Rincon Police Department and the United States Marshal’s Service.
U.S. Attorney Edward Tarver emphasizes that indictments are only accusations and are not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Charlie Bourne 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.
Saturday 9 July 2016
St. Francis Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota man convicted of Assaulting, Opposing, Resisting, and Impeding a Federal Officer was sentenced on July 5, 2016, by U.S District Judge Roberto A. Lange.
Dustin Bear Heels, age 27, was sentenced to 33 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bear Heels was indicted for Assaulting, Opposing, Resisting, and Impeding a Federal Officer by a federal grand jury on February 17, 2016. He pled guilty on March 29, 2016.
On February 2, 2016, two Rosebud Sioux Tribe Law Enforcement Services Officers responded to a residence in St. Francis, upon a report that Bear Heels was drunk and disorderly. He also had an active tribal warrant.
The officers located Bear Heels and placed him under arrest for the warrant, as well as tribal trespass and disorderly conduct.
As the officers transported, they observed Bear Heels was observed trying to get his hands in front of him. The officer pulled to the side of the road and advised Bear Heels to leave his hands behind him. The officer got out of the car and opened the driver's side rear door, when Bear Heels started shouting obscenities and began to kick the door. The officer advised him to stop and then shut the door, but Bear Heels continued kicking the door and window. A second officer arrived and they attempted to restrain Bear Heels from kicking the window. While the officer was trying to secure the shackle to the cage, Bear Heels kicked him in the chest. Bear Heels then curled up both legs and kicked the officer in the face, causing him to fall backwards. The other officer then sprayed pepper spray in Bear Heels’ face and the officer was able to secure him.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
Bear Heels was immediately turned over to the custody of the U.S. Marshals Service.
Ridgeview Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ridgeview, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 5, 2016, by U.S. District Judge Roberto A. Lange.
Shilo Hill, a/k/a Shilo Roubideau, age 20, was sentenced to 24 months in custody, followed by 3 years of supervised release, $2,241.46 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Hill was indicted by a federal grand jury on January 21, 2016. He pled guilty to Assault with a Dangerous Weapon on April 11, 2016.
The conviction stems from an incident that took place on October 3, 2015, when Hill’s ex-girlfriend and a male friend, the victim in this case, returned to her home near Swiftbird, South Dakota. Two individuals were at the home and when they left, they took Hill’s ex-girlfriend’s vehicle and went to another residence in the Swiftbird Community. Hill was at that residence and when he asked them why they were driving his ex-girlfriend’s car, they said they had borrowed it. Hill also learned a man was with his ex-girlfriend. Hill and his brother drove to Hill’s ex-girlfriend’s residence, where Hill used a tire iron to break the glass out of a window in the front door. When Hill and his brother walked into the residence uninvited, he was holding the tire iron in his hand raised above his head. Hill and his brother went towards the victim in a threatening manner. The victim thought Hill was going to hit him with the tire iron, so he held up his hand and told Hill and his brother not to "do this" with the kids there. Hill's brother left and Hill followed him out, but as he was leaving, he said, "I'll see you on the street," and used the tire iron to break out some more windows and to put a hole in the wall by the front door.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service.
Mellette County Man Sentenced to 51 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mellette County, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 6, 2016, by U.S. District Judge Roberto A. Lange.
Henry Paul Gorisek, age 46, was sentenced to 51 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund. Gorisek was also ordered to forfeit over $800 in U.S. currency and two handguns seized by law enforcement in September 2015.
Gorisek was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury on January 21, 2016. He pled guilty to Conspiracy to Distribute a Controlled Substance on April 12, 2016.
From May 2014 through September 2015, Gorisek received and distributed methamphetamine in South Dakota. The individuals who provided Gorisek with large amounts of methamphetamine knew he intended to engage in further distribution. It was reasonably foreseeable to Gorisek that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Gorisek was immediately turned over to the custody of the U.S. Marshals Service.
Jury Finds Mosher Man Guilty of Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that Tyrone Steven Andrews, age 24, of Mosher, South Dakota, was found guilty of Abusive Sexual Contact and Abusive Sexual Contact of Minor following a two-day jury trial in Pierre, South Dakota. The verdict was returned on July 8, 2016.
The charges carry a maximum sentence of up to five years in custody, and/or a $250,000 fine, a minimum period of five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on October 14, 2015. The charges stem from an incident that occurred on February 25, 2013, wherein Andrews groped a fifteen-year-old girl who was at a sleepover at a home in Rosebud, South Dakota. Andrews entered the bedroom where the girl was sleeping and touched her breasts under her clothes while she was asleep. The girl awoke, realized what was happening, and tried to get the attention of her friend who was sleeping next to her in the bed. Andrews then began to rub the girl’s inner thigh and kissed her neck. At that point, the girl was able to awaken her friend and Andrews ran out of the room.
Andrews was acquitted of a separate charge of Aggravated Sexual Abuse. That charge stemmed from an incident involving an adult female that occurred at a home in Okreek, South Dakota, in late May or early June of 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for September 26, 2016.
Andrews was remanded to the custody of the U.S. Marshals Service pending sentencing.
Investigation Concludes in the Deaths of Three Pine Ridge MenRead the Press Release
United States Attorney Randolph J. Seiler, the Rapid City Office of the Federal Bureau of Investigation, the Pine Ridge office of the Bureau of Indian Affairs-Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety have announced their findings following an extensive investigation into the recent disappearance and deaths of three adult men, all citizens of the Oglala Sioux Tribe and residents of the Pine Ridge Indian Reservation.
Autopsy results and examination of the circumstances surrounding the disappearance, and later discovery of the men, firmly establishes their deaths resulted from an automobile accident. Investigators have concluded the vehicle in which the three men were riding left the North side of BIA Rd. #41, also known as the “Chadron Road”, a few miles from Oglala, South Dakota, and plunged down a ravine approximately 60 feet deep where the car came to rest near a creek bed.
All three men were found inside the vehicle amidst numerous open and closed containers of alcohol and other personal belongings. Their physical injuries, as well as the crushed condition of the vehicle, prevented any hope of them being able to exit the vehicle if any of them lived beyond the impact at the bottom of the ravine. It is very likely all three men died upon impact. All three men were examined by a forensic pathologist who concluded each of them suffered multiple critical injuries to their backs and heads resulting in their deaths. No signs of wounds consistent with bullets, knifes, or other weapons were detected. Likewise, no damage to the vehicle was detected which would suggest any other conclusion other than that the vehicle sped off the road through a grassy field to the cliff where it went over and down into the ravine.
This was a painstaking and difficult investigation for all involved. Thanks go not only to the responding agencies listed above, but also to the Oglala Sioux Tribe Office of Attorney General, Pennington County Sheriff’s Office, Pennington County Search and Rescue, South Dakota Highway Patrol, Civilian Air Patrol, and the countless tribal citizens organized by the Oglala Sioux Tribe who volunteered many hours of their own time to search the Pine Ridge Reservation for the men.
Everyone involved sends their heartfelt condolences to the families of the three men on their grievous loss.
Box Elder Man Indicted for Illegal Use of InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of a Minor, Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Christopher Michael Fox, age 42, was indicted on June 14, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on July 7, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment, a $250,000 fine, lifetime supervised release, and a $5,000 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Fox using a cell phone and a computer to engage in sexually explicit conduct with minor females. The charges are merely an accusation and Fox is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Fox was detained pending a detention hearing. A trial date has not been set.
Friday 8 July 2016
Woodbridge Woman Sentenced to Five Years in Prison for Drug CrimesRead the Press Release
ALEXANDRIA, Va. – Amanda Rubio Alfaro, 42, of Woodbridge, was sentenced today to 60 months in prison for conspiracy to distribute 500 grams or more of cocaine.
According to the statement of facts filed with the plea agreement, Alfaro’s boyfriend, Oscar Hernandez Deleon, was the leader of a crew that was importing cocaine from Puerto Rico for redistribution in Woodbridge. Alfaro admitted she was fully aware of the scope of her boyfriend’s drug trafficking activities, such as the fact that Deleon was receiving cocaine shipments from Puerto Rico; that he was storing cocaine and firearms inside their residence; and that he was selling cocaine to customers at various locations in Woodbridge. Alfaro assisted Deleon’s drug trafficking activities by serving as a translator when Deleon negotiated cocaine deals with English speaking customers, and helped Deleon wire drug payments to his source of supply in Puerto Rico.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Maria L. Kelokates, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Liam O'Grady. Assistant U.S. Attorneys Kimberly R. Pedersen and J. Tyler McGaughey prosecuted the case.
This case was initiated by the Prince William Police Department, and they worked jointly with the FBI’s Washington Field Office to investigate the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-45.
West Haven Man Charged with Federal Gun and Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROHAN A. JAMES-DENNIE, JR., 22, of West Haven was arrested today on a federal criminal complaint that charges him with firearm and drug offenses.
As alleged in the criminal complaint, on November 1, 2015, a Connecticut State Trooper stopped a vehicle that JAMES-DENNIE was operating erratically in Essex. A subsequent search of the vehicle revealed a .380 caliber handgun with a hollow point bullet in the magazine of the weapon, approximately one-half kilogram of marijuana and more than $3,400 in cash. The firearm had been reported stolen during a residential burglary in 2013.
The complaint further alleges that, on January 12, 2016, West Haven Police stopped a vehicle that JAMES-DENNIE was operating. A search of the vehicle and JAMES-DENNIE’s person revealed a .22 caliber handgun loaded with six rounds of ammunition, more than 200 grams of marijuana and nearly $5,000 in cash. The firearm’s serial number was partially obliterated.
JAMES-DENNIE was arrested on state charges in both of these instances and was released on bond. He was arrested today in East Haven and is detained pending his initial appearance in federal court on Monday.
The complaint charges JAMES-DENNIE with possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life, possession of a stolen firearm, which carries a maximum term of imprisonment of 10 years, possession of a firearm with an altered serial number, which carries a maximum term of imprisonment of 10 years, and possession with intent to distribute marijuana, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, Connecticut State Police, West Haven Police Department and East Haven Police Department. The FBI Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial District of Middlesex and the Judicial District of Ansonia/Milford.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Virginia Man Sentenced to 12 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
A Virginia man was sentenced today to 144 months in prison to be followed by a 20-year term of supervised release for sex trafficking of a minor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Colonel Edwin C. Roessler Jr. Chief of the Fairfax County, Virginia, Police Department made the announcement.
Derek Leon Mantilla, 21, formerly of Fairfax, Virginia, pleaded guilty on April 19, 2016, and was sentenced today by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia. Mantilla will be required to register as a sex offender.
In connection with his plea, Mantilla admitted that from at least November 2014 through February 2015, he, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to Mantilla. The defendants taught the girl how to prostitute, took photos of her to use in advertisements and created and posted internet advertisements for commercial sex. The co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. Over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in prostitution. During that period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point the co-conspirators directed her to leave.
Mendez and Smith have pleaded guilty. On March 18, 2016, Mendez was sentenced to 10 years in prison. Smith is scheduled to be sentenced on Dec. 16, 2016.
The FBI’s Washington Field Office and the Fairfax County Police Department investigated the case. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Dougherty Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Haris Qamar, 25, of Burke, Virginia, was arrested this morning on charges of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. His initial court appearance is at 2 p.m. in U.S. District Court in Alexandria, Virginia.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement after the charges were unsealed.
According to the affidavit in support of the criminal complaint, on May 26, Qamar and an FBI confidential witness (CW) discussed a video that ISIL was supposedly making to encourage lone wolf attacks in the Washington, D.C., area. Unbeknownst to Qamar, there was no actual video being created. Qamar and the CW discussed the need for photos of possible targets in and around Washington, D.C., for use in the purported ISIL video.
According to the complaint, Qamar offered the CW ideas of where to take photographs for use in the video, including the Pentagon and numerous landmarks in Arlington, Virginia, and Washington, D.C., which could be targeted for terrorist attacks. On June 3, a conversation was audio and video recorded when CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar allegedly said, “bye bye DC, stupid ass kufar, kill’em all.” Qamar and CW met again on June 10 and drove to a location in Arlington to take additional photos for the purported ISIL video.
According to the complaint, the investigation revealed that Qamar operated over 60 variations of the Twitter handle “newerajihadi,” which Qamar used to express his support for ISIL and to share videos and photos of extreme violence, including beheadings and mass shootings.According to the allegations, during numerous conversations with the CW, Qamar expressed his interest and excitement in the extreme violence that ISIL is known for and said that he loved the bodies, blood and beheadings. On several occasions, Qamar allegedly said that he could slaughter someone and described how he would do it.
On Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar allegedly told the CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. According to the affidavit, on Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
Additionally, the affidavit alleges that on Sept. 25, 2015, Qamar told the CW that he tried to join ISIL in 2014, but that his parents prevented him from going overseas by controlling his passport. Qamar allegedly said that his parents threatened to notify law enforcement authorities and said that he fought with his father and called his father a traitor to Islam. According to the allegations, on Nov. 18, 2015, Qamar told the CW that he would leave the United States and join ISIL if his father gave him back his passport.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Qamar faces a maximum penalty of 20 years in prison. 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.
The case is being prosecuted by Assistant U.S. Attorney Gordon D. Kromberg of the Eastern District of Virginia and Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
Virginia Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Haris Qamar, 25, of Burke, was arrested this morning on charges of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Qamar is scheduled to have his initial appearance today in front of Magistrate Judge John F. Anderson at 2 p.m. at the federal courthouse in Alexandria.
According to the affidavit in support of the criminal complaint, on May 26, Qamar and FBI confidential witness (CW) discussed ISIL’s need of photos of possible targets in and around Washington, D.C., for use in a video that ISIL was purportedly making to encourage lone wolf attacks in the Washington, D.C., area. Qamar allegedly offered CW ideas of where to take these photographs, including the Pentagon and numerous landmarks in Arlington and Washington, D.C., which could be targeted for terrorist attacks. On June 3, a conversation was audio and video recorded when CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar allegedly said “bye bye DC, stupid ass kufar, kill’em all”. Qamar and CW met again on June 10 and drove to a location in Arlington to take additional photos for the ISIL video.
The FBI first learned of Qamar as he operated over 60 variations of the Twitter handle “newerajihadi”, which Qamar used to express his support of ISIL and share videos and photos of extreme violence, including beheadings and mass shootings. For example, after terrorists murdered employees of the Charlie Hebdo magazine in Paris in January 2015, Qamar tweeted his prayer for another similar attack with even more casualties.
According to the allegations, during numerous conversations with CW, Qamar expressed his interest and excitement in the extreme violence ISIL is known for. Qamar said he loved the bodies, blood and beheadings, and he recalled watching a video of a Kurdish individual being slaughtered, and liked the cracking sound made when the individual’s spinal cord was torn. On several occasions Qamar allegedly said he could slaughter someone and described how he would do it. Qamar also stated that he admired lone wolf attackers because they love Islam so much that they are willing to die as martyrs for Islam and in the same conversation, Qamar and CW allegedly discussed suicide bombings. CW said that he did not believe in suicide bombings, but Qamar allegedly responded “I believe in it 100 percent.”
On Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar allegedly told CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. According to the affidavit, on Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
Additionally, the affidavit alleges that on Sept. 25, 2015, Qamar told CW that he tried to join the ISIL in 2014, but that his parents prevented him from going by controlling his passport. Qamar allegedly said that his parents threatened to notify law enforcement authorities and said that he fought with his father and called his father a traitor to Islam. According to the allegations, on Nov. 18, 2015, CW asked Qamar if his father gave him back his passport would he go and join ISIL, and in response, Qamar said if that happened, “I’m done, I leave.”
Qamar faces a maximum penalty of 20 years in prison if convicted. 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Division, made the announcement after the charges were unsealed. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case with assistance from the National Security Division’s Counterterrorism Section. The FBI’s Joint Terrorism Task Force is investigating the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-300.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
U.S. Attorney Lewis: Statement Regarding Recent Shootings, ViolenceRead the Press Release
Five police officers (Brent Thompson, Michael Krol, Patrick Zamarriga and two others), killed in Dallas. Alton Sterling, killed in Baton Rouge, Louisiana. Philando Castile, killed in St. Anthony, Minnesota. We are losing too many lives, too many people. We hurt. And we ask, “Have we lost our way?”
The five police officers—and others--were protecting a public protest that arose because other lives were lost. Somehow, this makes it feel even worse. If we hurt from the loss of life, and we express our grief in public protest—peaceful, lawful public protest--and officers come out to protect that peaceful protest, how can we then have an attack on those officers? How can we have and express our pain, if we cannot find a safe place, for ourselves, our expression and our peace officers?
I have some doubt and despair, but I will not give in. We have too much to do, and cannot give in to doubt or despair.
First, we must mourn these lives, and all the lives that have been lost. Then, we must reflect—and act wisely.
Reflection begins with investigations. These investigations must be prompt, honest and open, and they will be. After investigation, then we can make judgments, wise judgments.
Our officers have to be safe, if we are to be safe. If we ask our officers to go toward trouble, at our request and on our behalf, then we must assure their safety. When officers approach us on the street, we must assure their safety. When officers come to protect us, we must assure their safety. We must teach and reteach the ways to do this, beginning with respect.
And officers are relearning respect for our people. There is more training, with more emphasis on “community policing,” working more closely with the community that is served.
I could write in detail about the use of force and community policing and how people should approach the police, but the present question is more basic: “Can we find a way forward?” The answer is yes, we have to find our way. We do want a safe place, for ourselves, for our officers, for our children, for our future, and we are willing to work together—peacefully—to go forward.
Two men plead guilty in federal court in CharlestonRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced today that two men pleaded guilty to charges in federal court in Charleston before United States District Judge Irene C. Berger. Austin Flint, 24, of Mount Hope, pleaded guilty to making a false statement in acquisition of a firearm, admitting that on September 28, 2015, he falsified a form at Shooter’s Roost in Beckley, indicating that he was the actual purchaser of three firearms when in fact he was purchasing them at the direction of another person. Flint faces up to five years in prison when he is sentenced on October 20, 2016. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
In a separate case, Elliott Tubbs Jr., 30, pleaded guilty to possession of a weapon by an inmate of a federal prison. Tubbs, an inmate at the Federal Correctional Institution at Beckley, admitted that on February 20, 2016, a staff member at the prison searched him and found a sharpened wooden object in his sock. The object, a handcrafted weapon, is commonly called a shank. Tubbs also will be sentenced on October 20, 2016, and faces up to five years in prison. The Tubbs case was investigated by the Federal Bureau of Prisons.
Assistant United States Attorney John File is handling both prosecutions.
Two Former Executives of Louis Berger International Sentenced in Foreign Bribery SchemeRead the Press Release
TRENTON, N.J. – Two former executives of Louis Berger International (LBI), a New Jersey-based construction management company, have been sentenced in connection with a long-running bribery scheme to secure government construction management contracts by bribing officials in India, Indonesia, Vietnam and Kuwait.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division made the announcement today.
Richard Hirsch, 62, of Makaati, Philippines, was sentenced by U.S. District Judge Mary L. Cooper to two years of probation and fined $10,000. Hirsch previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam. James McClung, 60, of Dubai, United Arab Emirates, was sentenced by Judge Cooper on July 7, 2016, to one year plus one day in jail. McClung previously served as the senior vice president responsible for the company’s operations in India and Vietnam. On July 17, 2015, McClung and Hirsch each pleaded guilty before Judge Cooper in Trenton federal court to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one substantive count of violating the FCPA.
According to documents filed in this case and statements made in court:
From 1998 through 2010, LBI and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts. To conceal the payments, the conspirators made payments under the guise of “commitment fees,” “counterpart per diems” and other payments to third-party vendors. In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts, the defendants admitted.
McClung cooperated with the government’s investigation by identifying other executives at LBI who had knowledge of bribery. Some of the information provided by McClung was also helpful to the government’s successful prosecution of LBI’s former CEO, Derrish Wolff, who pleaded guilty to accounting fraud in December 2014.
On July 17, 2015, LBI entered into a deferred prosecution agreement and admitted its own criminal conduct, including its participation in a conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, LBI agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
This case was investigated by the FBI’s Newark Division under the direction of Special Agent in Charge Gallagher. The government is represented by Assistant U.S. Attorney Thomas J. Eicher, chief of the Criminal Division for the U.S. Attorney’s Office, District of New Jersey, and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs also provided assistance.
Defense counsel:
Hirsch: William G. Sullivan Esq., Chicago, Illinois
McClung: Kelly B. Kramer Esq., Washington, D.C.
Two Charleston brothers sentenced for heroin distributionRead the Press Release
CHARLESTON, W.Va. – Dennis and Joshua Walls, 25 and 22, of Charleston, were sentenced today to federal prison for heroin distribution, announced Acting United States Attorney Carol Casto. The two are brothers. Dennis Walls was sentenced to a year and a day in prison, and Joshua Walls was sentenced to six months.
Both Dennis Walls, who pleaded guilty in March, and Joshua Walls, who pleaded guilty April, previously admitted to their joint efforts in distributing heroin from a residence they shared on Fairview Drive in Charleston. The investigation of the brothers by the Charleston Police Department’s Special Enforcement Unit began after Joshua Walls sold heroin to a confidential informant working with that agency. The brothers were responsible for distributing between 10 and 20 grams of heroin locally.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of heroin and opiate painkillers in communities across the Southern District.
Two Arrested and Charged with A Series of NW Indiana Bank RobberiesRead the Press Release
HAMMOND- United States Attorney David A. Capp announced that a federal grand jury in Hammond returned an indictment charging two individuals with a series of bank robberies in Northwest Indiana.
The indictment charges Artez Brewer, 29, of Gary, Indiana with three counts of bank robbery and charges Robin Pawlak, 30, of Gary, Indiana with two counts of bank robbery.
The indictment alleges that on April 28, 2016, Brewer and Pawlak robbed Centier Bank in Griffith, Indiana; on May 6, 2016, Brewer robbed Main Source Bank in Crown Point, Indiana; and on May 27, 2016, Brewer and Pawlak robbed Horizon Bank located in Whiting, Indiana.
The defendants were arrested following the robbery of Banner Bank in Los Angeles, California on June 10, 2016. Brewer and Pawlak are scheduled for trial in the Central District of California on August 9, 2016. Upon conclusion of the trial both defendants will be transferred to the Northern District of Indiana to face charges here.
The case is being investigated by the Federal Bureau of Investigation with the assistance of the Crown Point, Griffith and Whiting, Indiana Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Chang.
The United States Attorney's Office emphasized that an Indictment 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.
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Towson Man Sentenced to over 6 Years in Federal Prison for Two Separate Bank Fraud and Identity Theft SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Jerry Anderson, age 31, of Towson, Maryland, today to 76 months in prison, followed by six years of supervised release for two separate bank fraud and aggravated identity theft schemes in which Anderson and others used counterfeit credit cards to make fraudulent purchases. Anderson executed the second scheme while he was awaiting sentencing on the previous fraud conviction. Judge Russell also ordered Anderson to pay restitution of $419,807.14, in the first scheme and restitution of $1,289.23 in the second scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreements, on April 7, 2015, Anderson pleaded guilty to conspiring with co-defendants, Zachary O’Brien, Steven Harris, Marquis Johnson, and Steven Tejeda, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere. The total actual loss resulting from the conspiracy, which operated from at least February to October 2014, was $419,807.14, and the potential loss was over $1.8 million. The conspiracy involved over 250 victims.
After his guilty plea, Anderson was released under the supervision of U.S. Pretrial Services. One of the conditions of his release was that he not commit any new crimes. Anderson admitted that on June 25, 2015, he purchased four $100 American Express gift cards at a store in Cockeysville, Maryland, using a Visa credit card. Store surveillance depicts Anderson making these purchases. The Visa credit card used in the transaction belongs to “G.B.” After being contacted by law enforcement, the victim advised that that a fraud alert had been placed on the account and that the charges on June 25, 2015 were fraudulent. The victim further advised that he did not give permission to any individual to possess or use his credit card.
On July 3, 2015, Anderson was seen by Apple Loss Prevention at an Apple Store in Bethesda, Maryland, purchasing two iPhones totaling $1,375.88 using a combination of gift cards. Specifically, Anderson used the American Express gift cards he fraudulently purchased on June 25, 2015, along with other gift cards, to purchase the phones. The total actual loss as a result of Anderson’s conduct was $1,389.23. On July 8, 2015, Anderson was ordered to be detained pending sentencing.
Co-defendants Steven Tejeda, age 22, of Richmond, Virginia, Zachary O’Brien, age 32, and Steven Harris, age 25, both of Bronx, New York, previously pleaded guilty and were each sentenced to four years in prison. Marquis Johnson, age 22, of Severna Park, Maryland, and Ronnie Mejia, age 26, of Bronx, New York, also pleaded guilty to their roles in the scheme and are scheduled to be sentenced on August 8, 2016 and August 19, 2016, respectively.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. 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 the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Subway Franchisee and Shell Gas Station Owner Sentenced for Multi-Million Dollar Conspiracy to Defraud the IRSRead the Press Release
ALEXANDRIA, Va. – Obayedul Hoque, 49, of Alexandria, was sentenced today to 30 months in prison for aiding and assisting in the filing of false tax returns. Hoque was also sentenced to two years of supervised release and oreder to pay $2,022,106 in restitution to the Internal Revenue Service (IRS).
According to court documents, Obayedul Hoque owned and operated Skyhill Shell, a gas station in Alexandria, and multiple Subway restaurant franchises in Washington, D.C., and Arlington, and Alexandria. Hoque admitted that between 2008 and 2014, he and his co-conspirators, who were managers of some of the Subway franchises and the gas station, conspired to defraud the United States for the purpose of obstructing the IRS in the ascertainment and collection of individual and corporate income taxes. Hoque and his co-conspirators did not deposit all of the gross receipts of the gas station or the Subway franchises into the corporate or partnership bank accounts. Instead, Hoque and the managers retained a portion of the gross receipts for their personal benefit and failed to report those funds to the IRS. For the Subway franchises that had no co-conspirator managers, Hoque retained all of the unreported gross receipts for himself.
For the period of 2008 through 2013, point of sales records for the Subway franchises reflected total sales of $20,805,667. However, Hoque and his co-conspirators provided false monthly sales figures to the accounting firm to prepare the Subway entities’ tax returns. As a result, Hoque and his co-conspirators caused false corporate and partnership tax returns to be filed for the Subway franchises which reported sales of only $14,377,696. Hoque and his co-conspirators also caused false corporate tax returns to be filed on behalf of Skyhill Shell. For some years, some of the entities did not file tax returns with the IRS. Additionally, Hoque filed false individual income tax returns with the IRS. Hoque admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye, Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-9.
Subway Franchisee and Gas Station Owner Sentenced to Prison in Multi-Million Dollar Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
Defendant Failed to Report More Than $6 Million in Gross Receipts
A Subway franchisee and resident of Alexandria, Virginia, was sentenced to more than two years in prison today for conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
Obayedul Hoque, was sentenced to 30 months in prison followed by two years of supervised release by U.S. District Judge Liam O’Grady. Judge O’Grady ordered Hoque to pay a $20,000 fine and $2,022,106 in restitution to the Internal Revenue Service (IRS) for tax liabilities for the years 2008 through 2013.
According to court documents, Hoque owned and operated Skyhill Shell, a gas station in Alexandria and multiple Subway restaurant franchises in Washington, D.C., Arlington, Virginia, and Alexandria. Hoque admitted that between 2008 and 2014, he and his co-conspirators, who were managers of some of the Subway franchises and the gas station, conspired to defraud the United States for the purpose of obstructing the IRS in the ascertainment and collection of individual and corporate income taxes. Hoque and his co-conspirators did not deposit all of the gross receipts of the gas station or the Subway franchises into the corporate or partnership bank accounts. Instead, Hoque and the managers retained a portion of the gross receipts for their personal benefit and failed to report those funds to the IRS. For the Subway franchises that had no co-conspirator managers, Hoque retained all of the unreported gross receipts for himself.
For the period of 2008 through 2013, point of sales records for the Subway franchises reflected total sales of $20,805,667. However, Hoque and his co-conspirators provided false monthly sales figures to the accounting firm to prepare the Subway entities’ tax returns. As a result, Hoque and his co-conspirators caused false corporate and partnership tax returns to be filed for the Subway franchises which reported sales of only $14,377,696. Hoque and his co-conspirators also caused false corporate tax returns to be filed on behalf of Skyhill Shell. For some years, some of the entities did not file tax returns with the IRS. Additionally, Hoque filed false individual income tax returns with the IRS. Hoque admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Uzo Asonye and Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Springville Man Sentenced for Firearm PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Daniel J. Bakowski, 35, of Springville, NY, who was convicted of possession of a firearm in interstate commerce after a felony conviction, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on January 10, 2014, police officers executed a search warrant at the defendant’s then-residence, 1418 Eagle Street in Freedom, NY, Officers discovered a Smith and Wesson, 12- gauge shotgun and a digital scale with cocaine residue on it in Bakowski’s bedroom. Officers also found evidence of a marijuana grow operation in the basement, which the defendant admitted to operating.
The sentencing is the culmination of an investigation on the part of the New York State Police, under the direction of Major Steven A. Nigrelli, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
President and CEO of Long Beach Substance Abuse Treatment Provider and Three Others Indicted for $50 Million Student Substance Abuse Counseling FraudRead the Press Release
LOS ANGELES – Four people have been charged in a superseding indictment unsealed today for allegedly participating in a scheme that submitted more than $50 million in fraudulent claims to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students that, in many instances, were not provided at all or were provided to students who did not actually have substance abuse problems.
Two of the defendants who worked at the Long Beach-based Atlantic Health Services (formerly known as Atlantic Recovery Services, or ARS), including President and Chief Executive Officer, Richard Mark Ciampa, were arrested this morning by federal authorities.
The superseding indictment, which charges the defendants with health care fraud and aggravated identity theft and charges Ciampa with money laundering, alleges that ARS was paid more than $46 million after it submitted false and fraudulent claims for group and individual substance abuse counseling services.
“These defendants stole tens of millions of dollars earmarked for helping children with substance abuse problems,” said United States Attorney Eileen M. Decker. “This fraud not only harmed taxpayers, but also placed some of the most vulnerable in our society at greater risk.”
The defendants named in the indictment are:
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Richard Mark Ciampa, 62, of Long Beach, the President and CEO of ARS who ultimately was responsible for the claims billed to Medi-Cal and received the bulk of ARS’ earnings;
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Gregory Hearns, 60, of Long Beach, the Billing Supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal;
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LaLonnie Egans, 58, of Bellflower, who managed counselors at three schools;
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Tina Lynn St. Julian, 52, of Compton, who worked as a counselor at two schools.
Egans and St. Julian were named as defendants in the original indictment and are expected to be arraigned on the superseding indictment in the coming weeks. Ciampa and Hearns were arraigned on the superseding indictment this afternoon in United States District Court.
“Medical professionals who seek to enrich themselves through Medi-Cal fraud undermine this taxpayer-funded program and drive up health care costs for everyone,” said Acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation. “Today’s arrests should send a clear message to all health care providers that health care fraud is a federal crime that carries serious consequences and will not be tolerated.”
ARS received contracts to provide substance abuse treatment services through the Drug Medi-Cal program to students in schools in Los Angeles County. The schools included various sites operated by Soledad Enrichment Action, and public schools in Montebello, Bell Gardens, Lakewood, and the Antelope Valley.
The superseding indictment alleges that, during a 10-year period through April 2013, when ARS was shut down following a suspension of payments, ARS submitted bogus claims for payment to the Drug Medi-Cal program. Ciampa and Hearns are alleged to have caused the submission of these false claims and created an environment for rampant fraud by constantly warning ARS managers and counselors that they would lose their jobs if they did not increase the billing. Ciampa also directed managers and counselors to bill for two crisis intervention sessions per student per month, even though crisis interventions were to be billed only if the student had relapsed or faced an imminent threat of relapse, neither of which could be planned in advance. The claims are also alleged to have been false and fraudulent for a number of other reasons, including:
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ARS billed for services provided to students who did not have substance abuse disorders and therefore did not qualify to receive Drug Medi-Cal services;
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ARS billed for counseling sessions that were not conducted at all;
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ARS billed for counseling services that were not conducted in accordance with Drug Medi-Cal regulations regarding length, number of students, content, and setting;
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ARS personnel falsified documents, including treatment plans, group counseling sign-in sheets, progress notes, and update logs (which listed the dates and times of counseling sessions); and
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ARS personnel forged student signatures on documents.
Ciampa also is alleged to have conducted or caused others to conduct six monetary transactions involving monies ARS received as reimbursement from Medi-Cal for ARS’ fraudulent claims. These transactions include intra-bank transfers and wire transfers among ARS bank accounts that Ciampa controlled; a transfer to Ciampa’s personal account; a transfer to another individual associated with ARS; and purchase of a cashier’s check for Ciampa’s down payment on two Long Beach properties. The superseding indictment also includes forfeiture allegations pertaining to these Long Beach properties and other property connected to health care fraud funds and money laundering.
“It is outrageous for health care executives and counselors to risk stigmatizing students as substance abusers, as alleged in this case, just to enrich themselves at taxpayer expense,” said Special Agent in Charge Christian Schrank for the Office of the Inspector General of the U.S. Department of Health and Human Services. "Our agency will work closely with our State and other Federal law enforcement partners to guard these precious Medi-Cal dollars against fraud."
Previously, at least 17 other defendants have pleaded guilty to health care fraud charges or signed plea agreements stemming from the ARS scheme. Those are the former ARS Program Manager, Lori Renee Miller, 54, of Lakewood; former ARS managers Angela Frances Micklo, 57, of Palmdale; Maribel Navarro, 49, of Pico Rivera; Carrenda Jeffery, 65, of the Mid-City District of Los Angeles; Cathy Fernandez, 54, of Downey; Erin Hoover, 38, of Long Beach; Elizabeth Black, 51, of Long Beach; Helsa Casillas, 45, of El Sereno; and Sandra Lopez, 42, of Huntington Park; and former ARS counselors Shyrie Womack, 33, of Bellflower; Tamara Diaz, 46, of East Los Angeles; Margarita Lopez, 41, of Paramount; Irma Talavera, 27, of Paramount; Laura Vasquez, 53, of Pico Rivera; Cindy Leticia Ortiz, 30, of Norwalk; and Arthur Dominguez, 64, of Glendale.
Another defendant – Dr. Leland Whitson, 76, of Redondo Beach, the former Medical/Clinical Director of ARS – previously pleaded guilty to making a false statement affecting a health care program.
The defendants who have already pleaded guilty are scheduled to be sentenced by United States District Judge Philip S. Gutierrez.
If convicted, Ciampa faces a statutory maximum sentence of 194 years in federal prison; Hearns faces a statutory maximum sentence of 134 years in federal prison; Egans faces a statutory maximum sentence of 32 years in federal prison; and St. Julian faces a statutory maximum sentence of 42 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The cases against these defendants are the result of an investigation by the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS-Criminal Investigation.
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Pennsylvania man charged with heroin, firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jewel D. Woods, 19, of McKees Rocks, Pennsylvania with a heroin and a firearm charge, United States Attorney William J. Ihlenfeld, II, announced.
In January 2016, Woods allegedly possessed heroin with the intent to distribute the drug in Harrison County, WV. He also allegedly possessed a Glock pistol in furtherance of the drug trafficking crime. Woods is charged with one count of “Possession with Intent to Deliver Heroin,” and one count of “Possession of Firearm in Furtherance of Drug Trafficking Crime.”
He faces up to twenty years in prison and a fine up to $1,000,000 for the possession with intent to deliver heroin charge and five years to life in prison and a fine up to $250,000 for the firearm 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 Traci M. Cook is handling the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force and the Clarksburg Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Oxnard Tax Return Preparer Convicted in $53 Million Tax Fraud SchemeRead the Press Release
LOS ANGELES – An Oxnard-based tax return preparer was convicted yesterday afternoon of conspiracy to file false tax refund claims and for having signed tax returns claiming more than $53 million in fraudulent tax refunds. Before the IRS was able to identify and stop the scheme, it had already paid out more than $23 million of refunds to the defendant and his co-conspirators.
Rodrigo Pablo “Paul” Lozano, also known as “El Profe,” 61, was convicted Thursday after a two-week jury trial.
According to the evidence presented in the trial, Lozano’s scheme was based on his applying for Individual Tax Identification Numbers (“ITINs”), which are issued in lieu of a social security number to undocumented workers in the United States to allow them to file tax returns. The evidence demonstrated that co-conspirators provided Lozano with fake identification documents, such as Matricula cards supposedly issued by the Mexican government and birth certificates, which Lozano used to obtain ITINs in the names shown on the fake identification documents. Lozano would then use the ITINs to file three years’ of income tax returns based on wage and withholding information contained in fake W-2s, and listed 3 or 4 fictitious dependents in whose names Lozano also applied for ITINs. All of the scheme’s tax returns requested refunds, with most in the $3,000 to $4,000 range, which they requested by claiming the Additional Child Tax Credit (“ACTC”). The number of dependents and wage amounts on the tax returns were falsified to maximize the amount of the ACTC.
“As a tax preparer by trade, this defendant had a greater duty to ensure that the tax returns he filed were accurate,” said United States Attorney Eileen M. Decker. “Instead, by filing for fraudulent returns, Mr. Lozano cheated the IRS and indirectly stole from every law-abiding taxpayer.”
Lozano submitted more than 12,000 false tax returns in an 18-month period in 2011 and 2012. During that time, his employees told him at least five times that the identity and W-2 documents looked suspicious, and the IRS sent hundreds of warning notices to Lozano stating that the tax returns and W-2s were invalid. Despite the repeated warnings, Lozano continued to direct his employees to file the fraudulent tax returns.
Lozano would divide up the tax refunds with his co-conspirators, including having employees count out tens of thousands of dollars in cash in a bathroom located next to his office space. Lozano operated his tax-return business, which he called Ayuda (“help” in Spanish), by renting space from businesses that catered to Hispanic clients, such as a meat market on Hueneme Road in Oxnard. He went by the name “El Profe,” as he was a teacher before he began preparing tax returns.
“Yesterday’s guilty verdict is an important victory for America’s return preparers who play by the rules and have no tolerance for those who make up their own rules,” stated Acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation. “This conviction is a powerful reminder that there is no such thing as free money and there are no rewards or incentives for creativity when it comes to filing fraudulent tax returns.”
The investigation of Lozano was conducted by IRS Criminal Investigation in Camarillo.
Owner of MRI Machine Used at Opelika “Pill Mill” Pleads Guilty to Money Laundering ChargesRead the Press Release
Montgomery, Ala. – Ruben Hernandez, 39, of southern Florida, pleaded guilty on Thursday, July 7, 2016 in federal court to charges stemming from his role in the operation of a “pill mill” that existed in Opelika, Alabama between 2012 and 2013, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. A “pill mill” is a medical clinic created to sell prescription drugs unlawfully, illegally, and for no medical reason.
According to court documents, Hernandez was involved with the EMED Medical Management Corporation pill mill. Hernandez participated in the operation of the pill mill by leasing a mobile magnetic resonance imaging (MRI) machine to the pill mill’s owner—Erik Raul Torres. With Hernandez’s machine, Torres and others generated MRIs that were then used to support the prescribing of pain medication that was not actually necessary. In return for allowing Torres to use his machine, Hernandez received a portion of the pill mill’s ill-gotten gain. Due to those payments, Hernandez was charged with conspiring to launder money.
Previously, Torres pled guilty to drug distribution and money laundering charges. In addition to Torres and Hernandez, several others have pleaded guilty and been sentenced for their involvement in the Opelika pill mill.
A sentencing date for Hernandez has not been set. At sentencing, Hernandez faces up to 20 years’ imprisonment and a fine of $500,000, or twice the value of the property involved in the transactions, whichever is greater.
The Drug Enforcement Administration and Internal Revenue Service’s Criminal Investigations Division investigated the case, with assistance from the Federal Bureau of Investigation, Opelika Police Department, Auburn Police Department, and the Alabama Board of Medical Examiners. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Ottumwa Man Sentenced to Twenty-Four Months in Prison and Ordered to Pay $395,968.20 in Restitution for Cattle Fraud SchemeRead the Press Release
DES MOINES, IA – On July 7, 2016, Jeffrey Lewis DeWitt, 28, of Ottumwa, Iowa, was sentenced by United States Senior District Court Judge Robert W. Pratt to 24 months in federal prison for wire fraud and conversion of mortgaged property, announced United States Attorney Kevin E. VanderSchel. DeWitt was ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $395,968.20 to eleven of his victims.
DeWitt pled guilty to the crimes on December 3, 2015. According to the plea agreement, DeWitt lied to induce a victim to obtain a bank loan, which DeWitt claimed would be used to purchase cattle that would be resold at a higher price, for a guaranteed profit. DeWitt sent the victim an email with details of the cattle he was purportedly purchasing, including the purchase price of the cattle, the resale price, the parties who would repurchase the cattle, and stated the cattle were guaranteed to be resold for a profit within three weeks. Unbeknownst to the victim, the details in the email were fictitious. DeWitt knew the victim needed the fabricated information to justify the loan to the bank, and the bank did lend the victim funds in reliance of DeWitt’s fabricated email. DeWitt used the funds to purchase cattle for himself, but only gave his victim a check that was returned for insufficient funds.
DeWitt also admitted in the plea agreement to selling livestock and hay he had mortgaged to the Farm Service Agency ("FSA") of the United States Department of Agriculture without authorization. He deposited the funds into accounts held by his parents to avoid detection by FSA. He admitted to selling over $200,000 of collateral without authorization.
The plea agreement also detailed a series of additional fraudulent transactions with as many as eleven individual victims. DeWitt admitted to using the proceeds of the unauthorized sales of collateral and the proceeds from the bank loan scheme to fund fraudulent cattle deals. He told other farmers he would purchase cattle, seed, and hay on their behalf, but did not do so, and at times produced false invoices and checks to support his claims.
This matter was investigated by the United States Department of Agriculture and the Federal Bureau of Investigation, with assistance from the Davis and Wapello County Sheriffs’ Offices. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Middle District of Louisiana Human-Trafficking Task Force Investigation Results in Indictment for Child Sex TraffickingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that an indictment was returned yesterday by a federal grand jury charging Udraka Roberts-Bey, age 25, of New Orleans, Louisiana, and Jennifer Gabrielle Anselmo, age 22, of Slaughter, Louisiana, of conspiracy to engage in sex trafficking of a minor.
According to the indictment, Roberts-Bey and Anselmo conspired to, among other things, recruit and induce a 15-year-old female to engage in prostitution and benefit financially from their pay-for-sex enterprise at locations in Baton Rouge and New Orleans. The indictment alleges that both Roberts-Bey and Anselmo promoted their prostitution business by using the website “backpage.com” to post classified advertisements in the Baton Rouge Female Escorts section for commercial sex acts.
A joint law-enforcement operation involving Middle District of Louisiana Human-Trafficking Task Force representatives, and spearheaded by the East Baton Rouge Sheriff’s Office, identified the prostitution business run by Robert-Bey and Anselmo, and resulted in their arrest along with the rescue of the 15-year-old victim from a Baton Rouge hotel that was one of several locations where she was trafficked.
U.S. Attorney Green stated: “Once again a joint-law enforcement task force comprised of federal, state, and local law enforcement successfully identified a horrific crime that allowed for the rescue of a minor victimized by adult sex traffickers. Roberts-Bey and Anselmo operated the prostitution business out of greed and with no regard to the fact that they were stealing a child’s innocence. My office will continue to work in concert with our fellow law enforcement agencies to combat human-trafficking in any form, to include commercial-sex and labor trafficking. I appreciate the high-level of dedication and work by agents and prosecutors in this ongoing fight against sex traffickers and ensuring that perpetrators receive the justice they deserve.”
FBI Special Agent-in-Charge Jeff Sallet stated: “Human trafficking is a serious crime that requires law enforcement collaboration and expertise to successfully combat. This indictment is the result of a joint investigation involving federal, state and local law enforcement working together to confront human trafficking and the threat it poses to our children as well as other vulnerable individuals.”
East Baton Rouge Parish Sid Gautreaux stated: “The Sheriff's Office is committed to dedicating our resources to this joint effort to combat human trafficking in our community. This case is a result of the unprecedented level of collaboration and cooperation among agencies. Human trafficking is a heinous crime that we simply will not tolerate in this parish or elsewhere.”
This case is being investigated by the Middle District of Louisiana Human-Trafficking Task Force, to include the FBI New Orleans Division, East Baton Rouge Sheriff’s Office, and Louisiana State Police, with assistance from the East Baton Rouge District Attorney’s Office and U.S. Department of Homeland Security – Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.