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Tuesday 5 July 2016
Limestone Man Arrested for Production of Child PornographyRead 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 Kevin James Fox, 60, of Limestone, NY, was arrested and charged by criminal complaint with production and receipt of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 50 years, and a fine of $250,000.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that according to the complaint, beginning in April of 2016, the defendant created multiple online personas. Fox also obtained phone numbers using publically available apps that allow a user with an internet connected tablet or smart phone to obtain a user selected, non-assigned phone number.
Using these phone numbers, the defendant then began communicating, via text messages, with an ex-girlfriend. In these text messages that the ex-girlfriend believed were coming from unknown individuals, Fox convinced the ex-girlfriend that she was in physical danger from organized crime. The defendant manipulated the ex-girlfriend into believing that the only way she could get out of danger was to have explicit sexual contact with her 17-year-old son, and to take photographs of the sexual activity.
On June 10 and June 21, 2016, the ex-girlfriend engaged in explicit sexual contact with her 17-year-old son, produced images and videos of this contact, and sent the images and videos via text messages to phone numbers controlled by the defendant.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being detained pending a detention hearing on July 6, 2016, at 2:00 p.m.
The criminal complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge along with the Cattaraugus County Sheriff’s Office, under the direction of Timothy Whitcomb.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Investment Advisor to Plead Guilty to Orchestrating $21M Dollar Ponzi SchemeRead the Press Release
PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence today, Patrick E. Churchville, 47, of Barrington, R.I., owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington, has agreed to plead guilty to criminal charges related to his orchestration of a $21 million dollar Ponzi scheme, his theft and use of $2.5 million dollars of investors’ funds to purchase his home, and his failure to pay more than $820,000 in personal federal income taxes.
According to court documents, Patrick Churchville will plead guilty as charged in an Information to five counts of wire fraud and one count of tax fraud, announced United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
According to court documents, an investigation by the FBI, IRS Criminal Investigation and the United States Attorney’s Office determined that in the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. In June 2010, Churchville became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. Churchville failed to notify his client investors that he had lost millions of dollars of invested funds.
According to court documents, in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, Churchville misappropriated approximately $21 million dollars of investment money. To obtain the $21 million dollars, Churchville misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. To induce new investments to carry out the schemes, Churchville lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
United States Attorney Peter F. Neronha commented, “Mr. Churchville, motivated by greed and a desire to live an outlandishly expensive lifestyle, used sleight of hand to swindle dozens of investors out of funds they had properly earned, giving false assurances all along the way. Rather than act in the interest of his clients, he acted only in his own. His lies, piled on one after another, have led to today’s substantial and serious charges. His conduct is a reminder to those who invest that integrity is not found behind every door.”
“Mr. Churchville betrayed his investors’ trust, stealing their savings and leaving them with uncertain financial futures for his own personal greed,” said Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI. “This behavior destroyed the financial security of hard-working individuals all over the country and the FBI hopes this case will serve as a reminder to executives everywhere that honesty and integrity are more important than the bottom line.”
“Investment schemes that seem too good to be true should be a sign for investors to stay clear,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “We remain committed to ferreting out such schemes, which defraud investors of millions in savings and also taxes due to the IRS.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
United States Attorney Peter F. Neronha acknowledges and thanks the United States Postal Inspection Service - Boston Division and the U.S. Securities and Exchange Commission for their assistance in the investigation of this matter.
Patrick Churchville is also a defendant in a U.S. Securities and Exchange Commission civil matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Huntington man is final defendant sentenced in Detroit-to-Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who participated in a heroin distribution conspiracy in 2012 and 2013 was sentenced today to three and a half years in federal prison, announced Acting United States Attorney Carol Casto. Edwin G. Simpson, 45, previously pleaded guilty to maintaining a residence for the purpose of distributing and using heroin.
Between November 2012 and March 2013, Simpson was the tenant of an apartment at 1231 10th Avenue in Huntington. During that period, Simpson allowed others to store heroin at his apartment after it was transported from Detroit. Simpson also allowed others to distribute heroin from his apartment to various customers.
On March 8, 2013, agents with the Huntington FBI Drug Task Force executed a search warrant at Simpson’s apartment. During the search, agents seized heroin, a .32 caliber revolver, ammunition, and other items associated with the sale of heroin.
Multiple defendants have been convicted of drug offenses as a result of this investigation. Those sentenced to federal prison include Kenneth E. Baxter, who was sentenced to seven years and three months; Coty S. Richardson, who was sentenced to five years and ten months; Sean L. Gist, who was sentenced to five years and three months; Ramone L. Wells, who was sentenced to four years; Pricilla Lee Dylan, who was sentenced to two years and nine months; and Dustin S. Barton, who was sentenced to a year and a day. Paul A. Roberts, Jr., was sentenced to five years of probation for assisting the group in securing a residence to conduct drug deals. Warren G. Howard was also sentenced to five years of probation for distributing heroin.
The Huntington FBI Drug Task Force and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Please note that the original press release inadvertently omitted the United States Postal Inspection Service in the list of investigating agencies responsible for this case.
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Hancock County, WV man sentenced for child pornography offensesRead the Press Release
WHEELING, WEST VIRGINIA – Steve G. Singo, 35, of Weirton, West Virginia, was sentenced today to 97 months in prison for receiving, possessing, and distributing images of child pornography, United States Attorney William J. Ihlenfeld, II, announced.Evidence presented at a two day trial in March 2016 indicated that Singo utilized internet-based peer-to-peer file sharing technology to download and share files depicting minors engaged in sexually explicit conduct. Authorities discovered Singo in possession of various images of child pornography at his residence in Hancock County, West Virginia.
Following the trial, a jury found Singo guilty of one count of “Receipt and Distribution of Child Pornography,” and one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Gwynn Oak Man Sentenced to Almost 6 Years in Federal Prison for Conspiring to Commit Sex Trafficking of a 13 Year Old ChildRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, today to 71 months in prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking of a child. Judge Russell also ordered that upon his release from prison, Went must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to Went’s guilty plea and other court documents, on March 5, 2014, co-defendant Rayvon O. Archibald encountered a girl under the age of 14 in New York City and provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. Before they left New York, Archibald called Went to let him know that he would arrive in Baltimore later that day. That same day, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl which listed the number for a phone used by Went. Archibald also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices. After the ad was posted, customers responded to the ad on that phone through at least midnight and at least one of the customers engaged in a commercial sex act with the victim.
At approximately 10:30 p.m. on March 6, 2014, the girl used Went’s phone to secretly send a message to her mother advising that she was not able to leave. After receiving the message, the girl’s mother reported her daughter missing to the police. The next morning, the girl secretly left Went’s apartment and called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
Police went to the apartment and arrested Went, Archibald and a woman. A search warrant was executed and police seized electronic devices, including the phone the girl used to contact her mother and the device used to place the ad on the commercial sex website. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 26, of Boston, Massachusetts, pleaded guilty to sex trafficking of a child and was sentenced to 14 years in federal prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Guilty Plea in Inyo County Counterfeiting SchemeRead the Press Release
FRESNO, Calif. —Gabriel Michael Anderson, 30, of Corona, pleaded guilty today to possession of analog, digital, and electronic images of U.S. obligations and securities, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on October 11, 2014, after a routine traffic stop by the California Highway Patrol in Big Pine, Anderson was found to be in possession of counterfeit U.S. $100 bills. During a search of a storage shed where Anderson was storing his belongings, law enforcement officers found evidence related to the manufacturing of counterfeit bills, including cut and uncut counterfeit bills, copies of security devices including watermarks and security strips, and computers. Anderson admitted that he had manufactured approximately $50,000 in counterfeit bills over the past 10 years.
This case is the product of an investigation by the U.S. Secret Service and the California Highway Patrol. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Anderson is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Anderson faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
German Shipping Company Pleads Guilty to Covering up Illegal Dumping of Oily Waste Water into Great LakesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH (“MST”), a German company and operator of the M/V Cornelia, with violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record about the disposal of oil-contaminated waste. MST pleaded guilty today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
"Lake Superior is a vital part of Minnesota’s natural environment," said Assistant United States Attorney John Kokkinen. "The criminal fine and community service payment imposed by the Court provide a strong deterrent to future would-be polluters and significant funding to preserve and protect Lake Superior for future generations. This case was made possible by the excellent work of members of the United States Coast Guard who served as critical partners throughout this investigation."
"This case is an excellent example of the Coast Guard's and Department of Justice's commitment to holding shipping companies and crews accountable for non-compliance with International and U.S. environmental laws and regulations," said Rear Adm. June Ryan, commander of the Coast Guard 9th District. "Part of the terms of the plea agreement provide future protections for the pristine waters of the Great Lakes, a noteworthy outcome in the continued partnership between the U.S. Attorney's Office and the Coast Guard throughout the Great Lakes, in particular the U.S. Attorney's Office in Minnesota."
"The oceans and our inland waterways cannot be used as dumping grounds," said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Minnesota. "Today’s sentencing should send a clear message to would-be violators that the American people will not allow U.S. environmental laws to be violated, adversely affecting both public health and marine life."
According to the defendant’s guilty plea and documents filed in court, from February 2015 through October 2015, the M/V Cornelia, a German-owned commercial vessel, experienced significant leakages of oily waste-water. As a result, the M/V Cornelia was accumulating a substantial volume of machinery space bilge water.
On at least ten occasions, the M/V Cornelia’s Chief Engineer and/or Second Engineer instructed members of the engine room crew to transfer machinery space bilge water from the dirty bilge tank to the clean bilge tank, which is a separate tank that is supposed to contain only clean, oil-free water, and then discharge the oily waste-water overboard. At least one occasion when machinery space bilge water was transferred to the clean bilge tank and then discharged overboard occurred in approximately May 2015 while the ship was in the Great Lakes.
On each occasion in which oily waste-water was transferred internally and then discharged overboard, the Chief Engineer intentionally failed to record the transfers and subsequent discharges of oily waste-water in the M/V Cornelia’s Oil Record Book (ORB). This gave the false impression in the ORB that all of the oily waste-water had been properly handled and disposed.
On November 3, 2015, the M/V Cornelia called upon the Port of Duluth to load grain for transport to Africa. At that time, U.S. Coast Guard inspectors boarded the vessel to conduct a Port State Control examination and were presented with the M/V Cornelia’s ORB containing the omissions and false entries.
As a condition of the defendant’s guilty plea, MST will be required to pay an $800,000 criminal fine to the United States. In addition to the criminal fine, MST will be required to make a community service payment of $200,000 to support the protection and preservation of Lake Superior and the Lake Superior watershed.
As an additional condition of the defendant’s guilty plea, MST will serve three years of probation, during which time the organization must commit no further violations of the International Convention for the Prevention of Pollution from Ships (MARPOL), federal, state or local law. In addition, MST must fund and implement an Environmental Compliance Plan (ECP) for all vessels that it operates which call at ports or places in the United States.
This case is the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency.
This case was prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and John Kokkinen.
Defendant Information:MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH
Schnaittenbach, GermanyConvicted:
• Violation of the Act to Prevent Pollution from Ships, 1 countSentenced:
• $800,000 criminal penalty
• $200,000 community service payment
• 3 years of probationGeorgia Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – On July 5, 2016, Keenan Powell-Ryder, 20, pleaded guilty in District Court to possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the Court, on April 19, 2016, Powell-Ryder possessed with intent to distribute marijuana by smuggling the marijuana into the Cyril E. King Airport, St. Thomas, Virgin Islands. Powell-Ryder transported the marijuana from the mainland United States.
Powell-Ryder faces a maximum of five years in prison and a $250,000 fine.
The case is the result of investigative work by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney David White.
Former Postal Employee Makes Appearance in Federal Court After Agreeing to Plead Guilty to Stealing from the Mail and Selling at Least 6,240 Credit CardsRead the Press Release
SANTA ANA, California – A Garden Grove man who worked for the United States Postal Service for more than two decades appeared in federal court this morning after agreeing to plead guilty to stealing from the mail and selling at least 6,240 credit cards.
Chinh Vuong, 48, was summonsed into federal court this morning.
Vuong was charged last week with one count of conspiracy to commit bank fraud and one count of aggravated identity theft for stealing mail while on the job for a year and using the information in the mail for identity theft.
“Postal employees have a duty to conduct postal business in a professional manner, to ensure the proper delivery of the public's mail," said United States Attorney Eileen M. Decker. “This defendant, who was entrusted with providing this important public service, victimized thousands of postal customers to finance a life of luxury. Such conduct is contrary to the long-established tradition of the postal service and its employees, whose honest delivery of mail contributes every day to the economic vitality of our country.”
According to the documents filed in the case, Vuong had worked at the United States Postal Service Santa Ana Processing and Distribution Center (“Santa Ana P. & D.C.”) as a mail processing clerk since 1989. Between October 6, 2014, and October 6, 2015, while working at the Santa Ana P. & D.C., Vuong stole at least 6,240 credit cards from undelivered mail for the profit of him and others. Vuong made at least $6,000 per month selling stolen credit cards.
Vuong used the funds from the sale of stolen credit cards to pay for personal expenses, including designer handbags and boots, two BMWs, alcohol, and drugs. On October 6, 2015, federal authorities searched Vuong’s Garden Grove residence and seized approximately 199 stolen credit cards and luxury items bought using the proceeds from selling stolen credit cards, including two BMWs and over 20 handbags made by brands like Prada, Louis Vuitton, and Gucci.
Special Agent in Charge Brian Washington added, “The USPS OIG conducts internal investigations to include mail theft and misconduct by postal employees. The overwhelming majority of postal employees are honest, hardworking and trustworthy individuals who would never consider engaging in any form of criminal behavior. However, when a postal employee betrays that trust, our special agents vigorously investigate those matters as has been done in this case.”
Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division, stated “The overwhelming majority of Postal Service employees work conscientiously to move the nation’s mail to its proper destination. When that trust is compromised the United States Postal Inspection Service takes proper investigative steps to have them and their co-conspirators prosecuted.”
“Citizens need to rely on the security of the U.S. mail and the integrity of the postal carriers with whom their correspondence and their privacy is entrusted," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "By lining his pockets through identity theft, Mr. Vuong breached the trust placed in him by citizens who paid his salary and the companies which sustained a financial loss.”
Vuong entered not guilty pleas this morning and his matter was assigned to United States District Judge Cormac J. Carney. Although a trial date of August 30 was set, it is expected that Judge Carney will set a change of plea hearing in the near future where Vuong will plead guilty to both counts.
The charge of aggravated identity theft carries a mandatory minimum sentence of two years in federal prison—which must run consecutively with the sentence imposed for the bank fraud conspiracy charge. The bank fraud charge conspiracy carries a statutory maximum sentence of 30 years.
The investigation into Vuong was conducted by United States Postal Inspection Service, United States Postal Service Office of the Inspector General, and the Federal Bureau of Investigation. Westminster Police Department also provided assistance in the investigation.
Former Operator of Two Macon Co. Companies Sentenced to More Than 11 Years in Prison on Securities Fraud and Money Laundering ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today the former operator of two companies located in Franklin, N.C. to 135 months in prison on federal securities fraud and money laundering charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Barry Carlton Taylor, 64, of Franklin, was also ordered to serve three years of supervised release and to pay nearly $2.2 million as restitution to his victim investors.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, in making today’s announcement.
“Taylor was a con artist who used lies and deception to convince his victims to hand over their hard-earned money. Contrary to his lofty promises of huge profits, Taylor’s investors – some of whom were elderly – sustained grave financial losses and may never be able to recover financially after falling prey to this scammer’s investment scheme,” said U.S. Attorney Rose.
According to filed court documents and today’s sentencing hearing, Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA). Beginning in August 2011, Taylor induced 18 victims to invest approximately $2.5 million by falsely telling them he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX. Court records show that Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month.
According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator. Court records also show that Taylor deposited the funds he solicited from the individual victim investors into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions. According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts controlled by Taylor.
Taylor concealed the losses by sending the victims false monthly statements, which represented that the investors’ principal was intact and that they were realizing profits as promised. Court records indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns. Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments, court documents show.
In furtherance of the fraudulent scheme, filed documents indicate that Taylor used a number of lies to further induce investors and to conceal the fraud. For example, in January 2015, Taylor sent his victims fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank. In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses.
Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used the money to cover personal expenses, such as restaurants, entertainment and shopping, among others. Taylor pleaded guilty in January 2016 to fraud by commodities pool operator and concealment of money laundering charges.
In announcing today’s sentence, Judge Reidinger said that the losses to the individual victims were great, many of whom were deprived of the security of their retirements.
Taylor will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation. Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville was in charge of the prosecution.
Former Member of Westminster Planning Commission to Face Federal Charge of Soliciting Bribe to Help Obtain a Liquor LicenseRead the Press Release
SANTA ANA, California – A former member of the Planning Commission for the City of Westminster is scheduled to be arraigned today on charges of soliciting and receiving a $15,000 bribe to help a person obtain a liquor license.
Dave Phuong Dinh Vo, 42, of Westminster, is expected to surrender and be arraigned this morning on one count of bribery in a program receiving federal funds.
Vo has agreed to plead guilty to the federal bribery charge.
“Public officials like Mr. Vo must serve the interests of the public at all times, and not succumb to the temptation of accepting bribes from those seeking to influence the process," said United States Attorney Eileen M. Decker. “The people of Westminster deserve to have confidence that their government is granting permits based on merit rather than those willing to pay bribes.”
Vo served as a Planning Commissioner in the Orange County city from early 2009 through August 25, 2011. As a Planning Commissioner, Vo had influence over the issuance of conditional use permits.
In June 2011, Vo solicited a $15,000 bribe from a confidential informant working with the FBI, he admitted in a plea agreement. During August 2011, over the course of four meetings, Vo received payments that totaled $15,000 in exchange for pushing the liquor license through the city’s approval process.
"Corrupt activity such as the defendant's in this case leads to an erosion of trust in government by citizens whose livelihoods depend on decisions made by elected officials," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Mr. Vo's admission of guilt is a welcome step in restoring that trust."
The charging document, called an information, and the plea agreement were filed June 2 in United States District Court.
The bribery charge carries a statutory maximum penalty of 10 years in federal prison.
The case against Vo was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Daniel Ahn of the Santa Ana Branch Office.
Former Georgia Tech Employees Charged with FraudRead the Press Release
ATLANTA - James G. Maloney has been charged with committing and conspiring to commit mail and wire fraud against the United States and Georgia Tech. James J. Acree and James D. Fraley, III were also charged with participating in the conspiracy.
“The defendants in this case were successful members of the scientific and research communities who allegedly allowed their judgment to be clouded by greed,” said U. S. Attorney John Horn.
“The allegations contained in the charging federal indictment are disheartening in that these three defendants offered so much to a technical program that very much needed their skills and intellect. The allegations, however, assert that they chose instead to engage in fraud driven by financial greed,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This case was enabled by the outstanding teamwork with the Federal Bureau of Investigations, Air Force Office of Special Investigations, and US Attorney's office,” OSI Special Agent Natalie Spaur said. “In addition, it demonstrates the focus of law enforcement agencies to protect the public's critical resources.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants were employed by Georgia Tech and were members of the research faculty at the Georgia Tech Research Institute (GTRI), where they were assigned to the Advanced Concepts Laboratory. The defendants are experts in electromagnetic analysis and measurements and worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry. The defendants are charged with conspiring to defraud the United States and Georgia Tech by engaging in Georgia Tech Procurement Card (“PCard”) fraud and by engaging in fraudulent consulting activity.
PCard Fraud
As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech PCard. Fraley was supposed to use his PCard to purchase materials and supplies for official Georgia Tech business purposes. Neither he nor anyone else was allowed to charge personal purchases on a PCard. Nevertheless, Maloney, Acree, and Fraley allegedly charged more than $250,000 worth of personal expenses on Fraley’s PCard, including two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform defendants’ private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine.
According to documents filed in court, Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties they owned together in the name of a Georgia corporation called J’s Services. Some of the payments for the benefit of J’s Services were charged to the United States on one of the contracts that Maloney controlled at GTRI. In addition, Fraley used his PCard to make PayPal payments to friends and relatives who “kicked back” some of the money to him. To make their personal PCard charges look like legitimate Georgia Tech business expenses, the defendants provided and caused others to provide false information and fraudulent documents to Georgia Tech and the United States.
After the defendants learned that they were being investigated by Georgia Tech’s Internal Auditing Department, they met to discuss their PCard fraud, get their stories straight, and plan a cover-up. Fraley recorded these conversations on his phone and later turned the recordings over to the FBI.
Fraudulent Consulting Activity
While employed full-time by Georgia Tech, Maloney, Acree, and Fraley allegedly moonlighted as consultants on various projects for which they were paid a total of more than $600,000. In competing for and performing this outside consulting work, the defendants allegedly diverted customers and revenue away from GTRI for their own personal gain and benefit. In addition, Maloney and Fraley allegedly caused and directed some of the Georgia Tech employees and students they supervised at GTRI to help perform this consulting work. And Maloney and Fraley allegedly caused those Georgia Tech employees and students to bill their time for such work to the United States on one of the government contracts that Maloney controlled at GTRI.
James G. Maloney, 50, of Marietta, Georgia, was arraigned before United States Magistrate Judge Janet F. King. Maloney was indicted by a federal grand jury on June 28, 2016. James D. Fraley, III, 38, of Acworth, Georgia, and James J. Acree, 50, of Atlanta, Georgia, also appeared before Judge King, waived indictment, and indicated that they intend to plead guilty to a criminal information charging them with participating in the conspiracy.
This case is being investigated by the Federal Bureau of Investigation and the Air Force Office of Special Investigations.
Assistant United States Attorneys J. Russell Phillips and Stephen H. McClain are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Fort Worth High School Teacher in Federal Custody on Federal Felony Child Pornography ChargeRead the Press Release
FORT WORTH, Texas — Matthew Anthony Keller, 24, of Watauga, Texas, who, according to police reports, taught at Southwest High School in Fort Worth, Texas, remains in federal custody following his arrest Friday on a federal complaint charging receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Keller made his initial appearance in federal court today in Fort Worth, before U.S. Magistrate Judge Jeffrey L. Cureton, who ordered that he remain in custody pending a detention hearing set for tomorrow, July 6, 2016.
According to the just-unsealed complaint, the investigation began last month when the parents of a 15-year-old male (MV1) notified a police department in Macomb County, Michigan, that they had discovered a relationship between their son and Keller. The parent advised that Keller was a 24-year-old high school teacher and youth pastor who exchanged nude photos and videos with MV1 for approximately 18 months. The parent was further concerned because it was discovered that Keller planned to fly from Texas to Michigan and possibly meet with MV1 for a sexual encounter.
As the investigation progressed, the Macomb County Sheriff’s Office learned that Keller met the minor victim, who first advised him he was 18-years-old and then later admitted he was 13-years-old, on a website approximately two years ago. When a search warrant was conducted at Keller’s residence in Watauga, law enforcement seized a computer from his bedroom. A forensic analysis of that computer revealed a nude, sexually explicit video of the minor victim.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five years or up to 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
Anyone who may have been victimized in this case is asked to contact U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at its toll-free number: 1-866-347-2423.
ICE HSI, the Tarrant County District Attorney’s Office, the Macomb County Sheriff’s Office, and the Eastpointe, Michigan Police Department are investigating.
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Former Bookkeeper Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Linda Joyce Posey Best, 46, of Mobile, was sentenced to 6 months imprisonment for stealing $278,733.56 from Somerby of Mobile, where she was employed as the assistant executive director in the business office. Best pled guilty to two counts of bank fraud in March of 2016.
United States District Court Judge Kristi K. Dubose imposed the sentence. The judge ordered that Best was to pay restitution in the amount of $278,733.56 during her five-year term of supervised release, which will commence at the conclusion of the six-month prison sentence. Judge Dubose also ordered that Tubbs pay $200 in special mandatory assessments. No fine was imposed.
The case was investigated by the Mobile Police Department and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Army National Guard Member Arrested for Attempting to Provide Material Support to ISILRead the Press Release
Mohamed Bailor Jalloh, a former member of the Army National Guard, was arrested on July 3 for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). According to the complaint, Jalloh is alleged to have attempted to provide services by assisting in the procurement of weapons to be used in what he believed was going to be an attack on U.S. soil committed in the name of ISIL. In addition, the complaint alleges that Jalloh attempted to provide material support to ISIL by providing money to assist in the facilitation of individuals seeking to join ISIL.
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. Jalloh will make his initial appearance today at 2 p.m. EDT before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
According to court documents and court proceedings, in March 2016, a now-deceased member of ISIL brokered an introduction between Jalloh, 26, of Sterling, Virginia, and an individual in the United States who actually was an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the United States and believed the attack would be carried out with the assistance of Jalloh and the CHS.
According to court documents, Jalloh met with the CHS on two occasions in April and May 2016. During the April meeting, Jalloh told the CHS that he was a former member of the Army National Guard, but that he had decided to quit after listening to online lectures by Anwar al-Aulaqi, a deceased leader of Al-Qaeda in the Arabian Peninsula. Jalloh stated that he recently had taken a six-month trip to Africa, where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS.
During their meeting, Jalloh also told the CHS that he often thought about conducting an attack and that he knew how to shoot guns. Jalloh praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015, and stated that he had been thinking about conducting an attack similar to the November 2009 attack at Ft. Hood, Texas.
During the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an operation for the month of Ramadan. Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
In June 2016, Jalloh travelled to North Carolina and made multiple unsuccessful attempts to obtain firearms. On July 2, Jalloh went to a gun dealership in northern Virginia, where he purchased and test-fired a Stag Arms assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
The criminal complaint charges Jalloh with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. If convicted, Jalloh 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 was investigated by the FBI’s Washington Field Office Joint Terrorism Task Force. Assistant U.S. Attorney John T. Gibbs of the Eastern District of Virginia is prosecuting the case with the assistance of Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Former Army National Guard Member Arrested for Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Mohamed Bailor Jalloh, 26, of Sterling, a former member of the Army National Guard, was arrested on July 3 for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). Jalloh will make his initial appearance here today at 2 p.m. before U.S. Magistrate Judge John F. Anderson.
According to the complaint, Jalloh is alleged to have attempted to provide services by assisting in the procurement of weapons to be used in what he believed was going to be an attack on U.S. soil committed in the name of ISIL. In addition, the complaint alleges that Jalloh attempted to provide material support to ISIL by providing money to assist in the facilitation of individuals seeking to join ISIL.
According to court documents and court proceedings, in March 2016, a now-deceased member of ISIL brokered an introduction between Jalloh, 26, of Sterling, Virginia, and an individual in the United States who actually was an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the United States and believed the attack would be carried out with the assistance of Jalloh and the CHS.
According to court documents, Jalloh met with the CHS on two occasions in April and May 2016. During the April meeting, Jalloh told the CHS that he was a former member of the Virginia Army National Guard, but that he had decided to quit after listening to online lectures by Anwar al-Aulaqi, a deceased leader of Al-Qaeda in the Arabian Peninsula. Jalloh stated that he recently had taken a six-month trip to Africa, where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS.
During their meeting, Jalloh also told the CHS that he often thought about conducting an attack and that he knew how to shoot guns. Jalloh praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015, and stated that he had been thinking about conducting an attack similar to the November 2009 attack at Ft. Hood, Texas.
During the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an operation for the month of Ramadan. Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
In June 2016, Jalloh travelled to North Carolina and made multiple unsuccessful attempts to obtain firearms. On July 2, Jalloh went to a gun dealership in northern Virginia, where he purchased and test-fired a Stag Arms assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
The criminal complaint charges Jalloh with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. If convicted, Jalloh 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security, Paul M. Abbate, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after Jalloh’s initial appearance. Assistant U.S. Attorney John T. Gibbs is prosecuting the case with the assistance of Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
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-296.
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.
Father, Son Indicted for Accepting Food Stamps for K2 at Independence BusinessesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the father-and-son operators of two Independence, Mo., stores have been indicted by a federal grand jury for distributing synthetic marijuana, also known as K2, and for accepting food stamps as payment for K2.
Haris Nawaz, 23, and his father, Haq Nawaz Choudhry, 51, both of Kansas City, Mo., were charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, June 30, 2016. That indictment was unsealed and made public following their arrests and initial court appearances on Friday, July 1, 2016. Both Nawaz and Choudhry remain in federal custody pending a detention hearing on Wednesday, July 6, 2016.
Choudhry is the president of H Habib Enterprises, Inc., which owns the Short Stop convenience store and Kerns Liquor, located next door to each other at 9013 E. U.S. 40 Highway in Independence and operated by Nawaz and Choudhry.
The federal indictment alleges that Nawaz and Choudhry participated in a conspiracy to defraud the U.S. Department of Agriculture by accepting EBT cards (used to redeem Supplemental Nutrition Assistance Program – SNAP – benefits, also known as food stamps) in exchange for synthetic marijuana. According to the indictment, Nawaz and Choudhry also allowed customers to use multiple EBT cards belonging to other individuals to buy synthetic marijuana using SNAP benefits.
Among the examples cited in the indictment, Nawaz allegedly sold packages of synthetic marijuana on two separate occasions to a customer who used three separate EBT cards each time. Those transactions were fraudulently processed as food sales, totaling $987 for the first transaction and $1,243 for the second transaction.
Nawaz and Choudhry are also charged with participating in a conspiracy to distribute synthetic marijuana and a money-laundering conspiracy.
In addition to the conspiracy counts, Nawaz is charged with four counts of aiding and abetting Choudhry to commit wire fraud related to the transfer of SNAP benefits. Choudhry is also charged with one count of aiding and abetting Nawaz to commit wire fraud.
The federal indictment also contains a forfeiture allegation, which would require Nawaz and Choudhry to forfeit to the government any property derived from the proceeds of the alleged offenses, including $52,460.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the U.S. Department of Agriculture, Office of Inspector General and the Independence, Mo., Police Department.
El Salvadoran Sentenced for Re-Entering U.S. after DeportationRead the Press Release
JOHNSTOWN, Pa. - A citizen of El Salvador pleaded guilty in federal court to a charge of re-entry of an illegal alien, and was sentenced thereon to four months in prison and was ordered to be placed in the custody of the Department of Homeland Security, Bureau of Immigration and Customs Enforcement, for deportation, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson accepted the guilty plea to the indictment and imposed the sentence on Walter F. Melgar, 41, of Blair County, Pa.
According to information presented to the court, on Dec. 29, 2015, Melgar, an alien who had been deported from the United States on Dec. 9, 1996, was found in Blair County, Pa. He had unlawfully re-entered this Country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Melgar.
Drayer Physical Therapy Institute, LLC Settle False Claims Act Case for $7,000,000Read the Press Release
Contact Person: Jenny Aldrich (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake announced today that the U.S. Attorney's Office for the District of South Carolina has settled claims of health care fraud with Drayer Physical Therapy Institute, LLC (“Drayer”). Drayer has locations in South Carolina and 14 other states from Pennsylvania to Oklahoma. The United States contended that Drayer submitted claims to Medicare, TRICARE, and Federal Employee Health Benefit Programs for services being provided to multiple patients simultaneously as though the services were being provided by a physical therapist or physical therapist assistant to one patient at a time.
The investigation began with the filing of a whistleblower lawsuit called a qui tams lawsuit under the False Claims Act. The suit was filed by former employees of Drayer. The False Claim Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement was reached based on Drayer’s ability to pay.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 24% of the funds of the settlement or $1,680,000 plus they are entitled to attorney fees. The relators performed significant work in the investigation of this case.
Ms. Drake said, “Whistle blower cases are important to the integrity of the health care system. These civil actions - targeted to routing out fraud and abuse - protect tax payers and patients by ensuring that health care decisions are made according to medical science and not based on dollar signs.”
"Health care companies must bill taxpayer-funded health programs honestly," said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. "Those engaging in deceptive billing practices can expect our aggressive investigation to recover inappropriately obtained funds."
The claims resolved by this settlement are allegations only and there has been no determination of liability.
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If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Dead Man Inc. Gang Member Indicted on Federal Charges for Murdering a Witness in a Baltimore City CaseRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Troy Allen Lucas a/k/a “Troy Madron,” age 47, of Baltimore, Maryland on charges arising from a murder-for-hire of Robert Long, who was a cooperating witness in a case pending in the Circuit Court for Baltimore City. The indictment was returned on June 7, 2016, and unsealed today upon the arrest of the defendant.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“This investigation has resulted in several convictions and the exoneration of an innocent man who was wrongly convicted and sentenced to life in state prison,” said U.S. Attorney Rod J. Rosenstein.
According to the three count indictment, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang. Robert Long worked for Jose Morales and was a co-defendant with Morales in criminal cases pending in Baltimore.
The indictment charges that Morales solicited Lucas and others to kill Robert Long in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales. Lucas accepted payment from Morales for agreeing to kill Long. Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and whereabouts, and to contact Long.
On March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore, Long was shot twice in the head and died. The indictment charges that from March 23 to 24, 2008, Lucas used, carried and discharged a .25 caliber handgun, causing Long’s murder.
Lucas faces a maximum sentence of life in prison for murder-for-hire conspiracy, use of interstate commerce facilities in the commission of murder-for-hire and use of a firearm during a crime of violence resulting in death. Lucas had his initial appearance today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Martin Clarke, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Cleveland man pleads guilty to heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – John Johnson, Jr., 39, of Cleveland, Ohio, pled guilty to heroin distribution in federal court in Wheeling today, United States Attorney William J. Ihlenfeld, II, announced.
Johnson pled guilty to one count of “Distribution of Heroin.” He admitted to selling heroin in Ohio County during October 2015. He faces up to twenty years in prison and a fine up to $1,000,000.
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 Danaë DeMasi-Lemon prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Bronx Tax Preparer Pleads Guilty to 13 Counts of Preparing and Filing False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced that CHRISTOPHER AHERN pled guilty today to a 13-count Information, charging him with preparing false and fraudulent income tax returns for his clients. According to the Information, AHERN filed tax returns that fraudulently claimed more than $4.7 million in credits and expenses. AHERN pled guilty today before United States District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara said: “By repeatedly filing fraudulent tax returns for his clients, Christopher Ahern committed federal crimes and deprived the government of close to $5 million in taxes. We remain committed to charging and convicting those who commit and facilitate tax fraud.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Unscrupulous income tax return preparers hurt not only their clients, who are ultimately responsible for what is reported on their tax returns, but all law-abiding taxpayers, who have to shoulder an additional burden. Accordingly, the investigation of unscrupulous preparers remains one of the top priorities for IRS-Criminal Investigation. Today, Mr. Ahern is held accountable for his egregious practices.”
According to the allegations in the Information to which AHERN pled guilty, and statements made during his plea proceedings:
AHERN owned and operated a tax preparation business called Get My Refund Fast, located in the Bronx, New York. From 2012 through 2013, AHERN’s business prepared, and submitted to the IRS, nearly 5,000 tax returns. These tax returns were false and fraudulent in that they claimed education credits to which the clients were not entitled. AHERN received more than $1.5 million in fees from his clients for preparing and filing the fraudulent returns.
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AHERN, 40, of Little Neck, New York, pled guilty to 13 counts of making and presenting false, fictitious, and fraudulent claims to the United States, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
AHERN is scheduled to be sentenced on November 1, 2016, at 11:00 a.m., before Judge Batts.
Mr. Bharara praised the investigative work of IRS-CI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Shawn G. Crowley is in charge of prosecution.
Bourbon Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bourbon, Mo., man who was a federal fugitive for more than a year, was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Lucas John Haslag, 31, of Bourbon, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Jan. 21, 2016, Haslag pleaded guilty to participating in a conspiracy to distribute methamphetamine between June 19, 2014, and Nov. 21, 2015. Haslag admitted that he is responsible for the distribution of approximately five pounds (2.265 kilograms) of methamphetamine.
Haslag was indicted by a federal grand jury in Jefferson City in June 2014 after law enforcement officers conducted a car stop and found a pound of methamphetamine, a Derringer pistol and a drug ledger in the vehicle he was driving in Freeburg, Mo.
He was a fugitive from justice, but in October 2015 federal agents obtained information about Haslag’s actions and whereabouts. This investigation led to the execution of a search warrant at the Bourbon residence shared by Haslag on Nov. 9, 2015. Law enforcement officers discovered two pounds of methamphetamine, six rifles, a shotgun, three handguns and $22,661 in a safe in Haslag’s residence. Haslag was arrested on Nov. 23, 2015.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group), the Lake Area Narcotics Enforcement Group (LANEG) and the St. Charles County Regional Drug Task Force.
Anchorage Man Sentenced to 162 Months in Prison for Distributing MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Antonio D. Washington, 56, was sentenced today in U.S. District Court in Anchorage to 162 months in federal prison for his conviction for distributing methamphetamine.
Washington was indicted by a federal grand jury in December 2015 for distributing methamphetamine on four different occasions in 2015. Washington pled guilty to one count of the indictment in March 2016, and faced a mandatory minimum sentence of 120 months (10 years) due to the amount of methamphetamine he distributed.
In sentencing Washington to 162 months, U.S. District Judge Sharon L. Gleason cited Washington’s long criminal history – with much of it involving crimes of violence – as the primary reason for the lengthy sentence. Judge Gleason stated that the need to protect the public from further crimes by Washington justified the sentence of 162 months.
The Federal Bureau of Investigation Safe Streets Task Force conducted the investigation leading to the indictment and conviction in this case.
$200,000 Community Service Payment for Hawaii Reef Projects ReceivedRead the Press Release
HONOLULU -- United States Attorney Florence T. Nakakuni (center in attached picture); Rear Adm. Vincent Atkins, Commander, Fourteenth Coast Guard District (far left); Resident Agent-in-Charge Donna Kahakui of the Environmental Protection Agency’s (EPA) criminal enforcement program (second from right), and Special Agent Eric Goldberg of the Coast Guard Investigative Service (far right) delivered a $200,000 check to Scott Hall, Director of Seabird Conservation with the National Fish and Wildlife Foundation (holding check), representing the community service payment of Doorae Shipping Co., LTD, on Friday, July 1 at the U.S. Attorney’s Office. The payment was part of the sentence Doorae received after pleading guilty in April 2016 to failing to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and making false statements to the U.S. Coast Guard concerning the discharge of oil contaminated bilge water.
According to court documents, the operation of a marine vessel, such as the B. Sky, an oil tanker ship flagged out of Vanuatu and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard. Information produced to the court established that instead of running bilge water through an oil water separator, the B. Sky discharged over 500 gallons of oily machinery space bilge water directly into the ocean and failed to record the discharge in their oil record book as required by law.
United States District Judge Leslie E. Kobayashi approved the payment of the $200,000 community service payment, per an agreement between the government and Doorae, to be donated to the National Fish and Wildlife Service Foundation to fund projects that preserve and enhance coral reefs and reef ecosystems in Hawaii. Judge Kobayashi also imposed a $750,000 fine on Doorae as part of the sentence.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "Community service can be a means through which a corporate defendant addresses the results of its criminal activity. This payment represents a significant community service contribution as part of the sentence in this case."
"Maritime pollution is a serious threat to the health of the world's oceans. Annually, Coast Guard pollution investigators respond to 210 cases here in the Hawaiian Islands, diligently striving to help keep our waters pristine and healthy," said Rear Adm. Atkins. "In this case, Coast Guard and EPA investigators built a strong case package against a blatant polluter, helping the U.S. Attorney's Office successfully prosecute this case. Importantly, the nearly $1 million paid by Doorae included $200,000 for environmental restoration in our waters."
The case was investigated by U.S. Coast Guard Sector Honolulu, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Saturday 2 July 2016
Washington Man Sentenced to 210 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ephrata, Washington, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on June 17, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Martin Purdom, age 53, was sentenced to 210 months in custody on Count 1, and 24 months on Count 2, to run concurrently, followed by 5 years of supervised release on Count 1, and 3 years on Count 2, to run concurrently, and a $200 special assessment to the Federal Crime Victims Fund.
Purdom was indicted for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person by a federal grand jury on April 8, 2015. He pleaded guilty on October 30, 2015.
From July 2014 through April 2015, Purdom conspired with others to distribute and distributed more than 500 grams of methamphetamine within South Dakota. Furthermore, on March 19, 2015, Purdom was in possession of a Ruger pistol, and was previously convicted of a felony offense in Washington in 2002.
This case was investigated by Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich prosecuted the case.
Purdom was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Sinjin Cameron, age 23, was indicted on June 14, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on June 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 26, 2016, Cameron unlawfully assaulted an adult male with shod feet, with the intent to do bodily harm to him.
The charge is merely an accusation and Cameron is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Cameron was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
La Plant Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a La Plant, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Elliot Little Bear, age 52, was indicted on June 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2011, and June 14, 2016, Little Bear, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and Little Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Little Bear was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for August 16, 2016.
Guatemalan Citizen Convicted of Third Illegal Entry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Otilio Sales-Gomes, 34, of Guatemala, pled guilty yesterday in United States District Court in Syracuse to one felony count of illegally reentering the United States after having been previously deported following a felony conviction, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Field Office Director, U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations—Buffalo Field Office.
Sales-Gomes admitted in federal court that he returned to the United States approximately one year ago and was most recently living and working illegally in Oriskany, New York. Sales-Gomes came to the attention of law enforcement after he was arrested in Oneida County earlier this year for endangering the welfare of a child. As part of his guilty plea in federal court, Sales-Gomes also admitted that he was first removed from the United States in September 2005, and later returned here illegally. Nearly two years later, in June 2007, Sales-Gomes was convicted in the United States District Court for the District of New Mexico of one felony count of reentry after removal, after which he was deported a second time.
Sales-Gomes will be sentenced on November 2, 2016, by Chief United States District Judge Glenn T. Suddaby. The felony charge to which Sales-Gomes pled guilty carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000. Following his completion of any prison sentence, Sales-Gomes will be subject to removal proceedings for the third time. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Faith Man Charged with Conspiracy to Distribute Methamphetamine and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Faith, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Roy Eugene Antrim, age 39, was indicted on June 14, 2016. He appeared before U.S. Magistrate Mark A. Moreno on June 24, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years and up to life of supervised release, $100 to the Federal Crime Victims Fund, and the potential forfeiture of firearms and U.S. currency seized as part of the investigation. Restitution may also be ordered.
The Indictment alleges that between September 1, 2015, and June 14, 2016, Antrim conspired and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in South Dakota. The Indictment also alleges that on or about April 14, 2016, at Faith, Antrim possessed 13 firearms, including rifles, handguns, and a shotgun, even though he was prohibited from doing so because he was an unlawful user of and addicted to a controlled substance. The Indictment further alleges that on or about April 21, 2016, at Eagle Butte, Antrim possessed a handgun, even though he was prohibited from doing so because he was an unlawful user of and addicted to a controlled substance.
The charges are merely an accusation and Antrim is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Antrim was released pending trial, which has been set for August 16, 2016.
Box Elder Man Indicted for Illegal Possession of a FirearmRead 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 Possession of a Firearm by a Prohibited Person and Possession and Sale of a Stolen Firearm.
Daniel Joseph Newingham, age 41, was indicted on June 21, 2016. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 27, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is ten years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Newingham illegally possessing a Glock 9mm pistol at Rapid City. The charges are merely an accusation and Newingham is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Pennington County Sheriff’s Office, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Newingham was remanded to the custody of the U.S. Marshals Service pending trial.
Friday 1 July 2016
Wichita Bookkeeper Pleads Guilty to Embezzling $247,000Read the Press Release
WICHITA, KAN. - A former bookkeeper pleaded guilty Friday to embezzling $247,000 from a Wichita steel company where she worked, Acting U.S. Attorney Tom Beall said.
Cynthia K. Griffith, 58, Wichita, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted she stole the money from Griffith Steel Erection of Wichita where she worked. She wrote unauthorized checks on the company’s operating account.
Sentencing is set for Sept. 21. She faces a penalty of up to 30 years in federal prison and a fine up to $1 million. Beall commended the Wichita Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
Violent Sex Trafficker Sentenced to 22 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Jerome Robert Barnhart, 36, of Washington, D.C., was sentenced today to 264 months in prison for kidnapping, followed by five years of supervised release.
Barnhart pleaded guilty on Dec. 7, 2015. According to court documents, Barnhart met the victim in Maryland and, after striking up a romance with her and supplying her with marijuana, Barnhart persuaded the victim to be prostituted and to turn over her earnings to him. Barnhart prostituted the victim in Washington, D.C., New York, Maryland, and Virginia. Barnhart imposed a monetary quota on the victim, and when the victim was unable to meet the quota, he became enraged. He periodically beat the victim and threatened her with bodily harm. On one such occasion, Barnhart used the lid of a can to slice the victim’s finger.
In August 2015, after the victim again failed to meet her quota, Barnhart beat the victim at a hotel in Maryland, and then drove the victim to Virginia. During the ride, Barnhart continued to beat the victim with a tire iron. Barnhart threatened the victim and told her that he was going to dump her body where nobody would find it. While Barnhart was beating the victim with the tire iron, his car swerved on the George Washington Memorial Parkway. The U.S. Park Police initiated a traffic stop and found Barnhart and the bruised victim in the car. Because the victim was bruised and crying, the police separated her from Barnhart and she began to recount her ordeal. A grand jury later indicted Barnhart for kidnapping, sex trafficking by force, fraud, coercion, and assault with a dangerous weapon, among other charges.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert D. MacLean, Chief of U.S. Park Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney M. Molly Scullin and Assistant U.S. Attorney Michael J. Frank prosecuted the case.
The Fairfax County Police Department, the Northern Virginia Human Trafficking Task Force, and the City of Frederick (Maryland) Police assisted in the investigation.
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. 1:15-CR-270.
U.S. Attorney Damon P. Martinez to Observe End of Ramadan with Muslim Community at Islamic Center of New MexicoRead the Press Release
ALBUQUEQUE – U.S. Attorney Damon P. Martinez will join Abbas Akhil, President of the Islamic Center of New Mexico, the Albuquerque Muslim Community, and representatives of other faiths tomorrow evening to celebrate the last four days of the holy month of Ramadan. Ramadan is the ninth month of the Islamic calendar and is observed by Muslims worldwide as a month of fasting from dawn to dusk to commemorate the first revelation of the Quran to the Prophet Muhammad. The breaking of the fast for the day will take place at the Islamic Center of New Mexico in Albuquerque, N.M., beginning at 8:30 p.m. on July 2, 2016.
U.S. Attorney Martinez joins the Muslim Community for this observation as part of the Department of Justice’s continuing efforts to address backlash against Muslim, Arab and Sikh Americans following the horrific terrorist attacks in recent months and to combat religious discrimination throughout the country.
“All Americans should be free from violence and protected from hatred no matter who they are,” said U.S. Attorney Martinez. “The Justice Department is committed to safeguarding the civil rights of every American – including Muslim, Arab and Sikh Americans, who are often the targets of threats on the basis of their appearance or religion. There is no place for such intolerance here in New Mexico and throughout our country, and we are committed to working with our law enforcement partners and community leaders to defend the safety and the dignity of all our people.”
“The Albuquerque Muslim community once again welcomes U.S. Attorney Martinez to our Center to share the breaking of the fast with us. This symbolic sharing signifies his commitment to defend the civil rights of all Americans,” said ICNM President Akhil. “This is particularly important at a time when Muslims are targeted by those who misrepresent our faith and are determined to undermine the contributions of American Muslims to the fabric of our great country. The U.S. Attorney’s participation in breaking the fast with us tomorrow reassures my community that we are equal partners in our shared Citizenship.”
“The FBI is committed to safeguarding the civil rights of all Americans, no matter their religion or background,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “We look forward to continuing our strong relationship with the Islamic Center of New Mexico as we work together to secure a safe, peaceful future for all Muslim-Americans.”
The Department of Justice has a long-standing commitment to protecting Muslim, Arab and Sikh Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Nationwide, the Department of Justice has prosecuted more than 60 defendants in such cases, with 58 convictions to date. One of the convictions was obtained in United States v. Payne, a case filed in New Mexico by the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division. The defendant, a North Carolina man, pleaded guilty in that case in May 2016, to using force or threat of force to intentionally obstruct a Muslim woman in the free exercise of her religious beliefs.
Turkish National Convicted of Arms Export Control Act OffensesRead the Press Release
ALEXANDRIA, Va. – Hamza Kolsuz, 43, a Turkish national, was convicted today by the Senior U.S. District Judge T.S. Ellis III on three counts relating to his attempted exportation of weapons parts to the Republic of Turkey in violation of the Arms Export Control Act.
Kolsuz was indicted on March 2, 2016. According to court records and the evidence at trial, Kolsuz has on at least three occasions since 2012 attempted to smuggle various weapons parts to Turkey. Kolsuz, who engaged in this unlawful conduct for profit along with other individuals, purchased weapons and weapons parts in the United States and then traveled with them to Turkey, where they would be reassembled and sold. In an attempt to circumvent U.S. weapons exportation laws, Kolsuz would either pack the weapons parts in luggage and check the bags in connection with flights to the Republic of Turkey, or he would send weapons parts through the mail.
According to evidence presented at trial, on December 2, 2012, Kolsuz checked in for a flight at JFK International Airport in New York with a final destination of Istanbul, Republic of Turkey. His checked luggage included: forty upper receivers for semi-automatic pistols; twenty grip modules for Sig Sauer pistols; sixteen barrels for semi-automatic pistols; twenty-six firearms magazines for firearms; and one pistol grip.
On January 8, 2013, Kolsuz checked in for a flight at JFK International Airport with a final destination of Istanbul. Despite having been specifically informed on December 2, 2012 that it was illegal to export weapons parts without an export license, his checked luggage contained one Beretta slide, one firearm barrel, one Beretta recoil spring, and one Beretta guide rod.
On February 2, 2016, Kolsuz began his return trip to Istanbul by checking in at Miami International Airport for a flight that took him to Cleveland Hopkins International Airport. He then checked in for a flight that was to take him and his checked luggage from Cleveland through Washington Dulles International Airport before embarking for Istanbul. In Cleveland, Kolsuz checked luggage containing four 9mm Glock 31-round magazines; four 9mm Glock 17-round magazines; four 9mm Glock 15-round magazines; eight 9mm Glock 10-round magazines; one 9mm Smith & Wesson 32-round magazine; four 9mm Sig Sauer handgun barrels; and five 9mm threaded Glock 19 barrels, in addition to various other weapons parts.
All of the weapons parts found in Kolsuz’s checked luggage on December 2, 2012; January 8, 2013; and February 2, 2016 are and were defense articles controlled on the United States Munitions List and therefore required a license or other written authorization from the United States Department of State’s Directorate of Defense Trade Controls (the “DDTC”) in order to be lawfully exported from the United States. Kolsuz has never applied for and has never received any licenses or other written authorization from the DDTC to export defense articles from the United States. Accordingly, on each occasion when weapons parts were found in Kolsuz’s checked luggage, all of the parts were seized by law enforcement and were never returned to Kolsuz.
Kolsuz faces a maximum penalty of 20 years in prison when he is sentenced on October 7, 2016. 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the verdict was announced. The case is being prosecuted by Special Assistant U.S. Attorney Heather N. Alpino and Assistant U.S. Attorney Dennis M. Fitzpatrick.
HSI Washington, D.C., received assistance with this investigation from HSI New York and U.S. Customs and Border Protection’s Office of Field Operations.
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-53.
Three Georgia Real Estate Investors Plead Guilty to Bid Rigging and Bank Fraud at Public Home Foreclosure AuctionsRead the Press Release
Three Georgia real estate investors pleaded guilty today for their roles in bid-rigging and fraud conspiracies committed at public real estate foreclosure auctions in Georgia, the Department of Justice announced today.
Jeffrey Wayne Brock, David Wallace “Chuck” Doughty, and Stanley Ralph Sullivan each admitted that they agreed to rig auctions of foreclosed homes in Cobb County from June 2007 until January 2012. According to court documents filed in the U.S. District Court for the Northern District of Georgia, Brock, Doughty, Sullivan and their co-conspirators agreed not to compete for the purchase of selected foreclosed homes so that they could win the auctions for those homes with artificially low bids. The winning bidders then made payoffs to conspirators who had refrained from bidding against them. As a result, conspirators profited from money that otherwise would have gone to mortgage holders and other secured debt holders, and in some cases, to the owners of foreclosed homes.
“These defendants conspired to corrupt foreclosure auctions that should have benefited lenders and homeowners,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to work with our colleagues at the FBI to pursue those who took advantage of disruption caused by the financial crisis to line their own pockets.”
“Foreclosure auction fraud in Georgia remains a focus for the FBI investigators and federal prosecutors within the Antitrust Division of the U.S. Department of Justice,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division. “By the very nature of this criminal act, the bank, and more importantly, the home owner in financial distress, are the victims that these federal laws were created to protect. The FBI will continue to provide investigative assets toward these matters in order to keep the level playing field that the law intended regarding these auctions.”
Including the individuals pleading today, twenty defendants have been charged in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area. Eighteen of those have either pleaded guilty or agree to plead guilty.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since 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 about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Sylacauga Woman Indicted for Embezzling from Union LocalRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Sylacauga woman for embezzling more than $23,000 from a construction trades union local based in Irondale, announced U.S. Attorney Joyce White Vance and Department of Labor, Office of Labor-Management Standards, District Director Craig Neel.
A 20-count indictment filed in U.S. District Court charges MICHELLE R. CLIFTON, 49, with embezzling from International Association of Heat and Frost Insulators and Allied Workers, Local 78, where she worked as office manager and bookkeeper. According to the indictment, Clifton carried out the theft between December 2012 and September 2013 by forging 17 checks drawn on four separate union accounts.
The indictment also charges Clifton with making false statements to Labor Department investigators, claiming a business manager at the union office had directed her to forge the checks and alter union records to hide the payments.
The maximum penalty for both embezzlement of union assets and for making a false statement to a government agent is five years in prison and a $250,000 fine. The maximum penalty for forged securities of an organization is 10 years in prison and a $250,000 fine.
The Labor Department’s Office of Labor-Management Standards investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Stamford Resident Charged with Operating Extensive Immigration Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging DAVID NIKOLASHVILI, 51, a citizen of the Republic of Georgia residing in Stamford, with various offenses stemming from an alleged immigration fraud scheme.
According to statements made in court, it alleged that NIKOLASHVILI operated an immigration fraud scheme through which he obtained false immigration status from U.S. Citizen and Immigration Services for approximately 50 to 60 citizens of European countries. As part of the scheme, after aliens paid NIKOLASHVILI thousands of dollars, he would arrange sham marriages between the aliens and U.S. citizens in order to obtain immigration benefits for the aliens. The U.S. citizens were paid to enter into the sham marriages.
On November 3, 2015, a grand jury in New Haven returned an indictment charging NIKOLASHVILI with one count of conspiracy to defraud the U.S. and to commit document fraud, an offense that carries a maximum term of imprisonment of five years, and six counts of making a false swearing in an immigration matter, an offense that carries a maximum term of imprisonment of 10 years on each count.
NIKOLASHVILI was arrested on June 21, 2016. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $75,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being investigated by Homeland Security Investigations, U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security Unit, and U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Man Sentenced for Stealing Mail, Credit Card FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for possessing stolen mail and for credit card fraud.
Eric David Vancil, 47, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool on Thursday, June 30, 2016, to three years in federal prison without parole. The court also ordered Vancil to pay $477 in restitution.
Vancil, who pleaded guilty on Dec. 18, 2015, admitted that he stole mail from at least 55 individuals in Greene County, Mo., and elsewhere between Oct. 23, 2013, and April 28, 2015. Law enforcement investigators determined that the mail matter included checks, credit cards, and other personal identification cards and information that belonged to other individuals. Vancil used the stolen mail and information to create or activate credit card accounts that contained personal identification numbers issued to others. Vancil then conducted fraudulent financial transactions using the stolen credit, debit and identification cards to make purchases.
The investigation began when federal agents were notified of numerous break-ins into mail boxes and mail collection receptacles and the theft of mail throughout the Springfield and Joplin, Mo., areas, including several neighborhood delivery collection box units where mail was stolen by prying the rear, locked doors. On Oct. 25, 2013, Vancil was stopped in his Nissan Pathfinder by Joplin police officers for a traffic violation. Officers located stolen mail bearing several Springfield addresses, including personal checks. Officers also located a pry bar inside of the vehicle at the time of the stop along with additional stolen mail and IRS tax forms.
On Dec. 24, 2013, another victim reported her mail was stolen and provided two video surveillance photos of a suspect vehicle that matched Vancil’s Nissan Pathfinder. On Feb. 4, 2014, Vancil was stopped by a Springfield police officer in his Nissan Pathfinder. The vehicle contained drugs, numerous burglary tools, stolen checks and several identifications bearing names other than the vehicle occupants.
On Feb. 20, 2014, two checkbooks, keys and multiple credit cards were stolen from a vehicle in Nixa, Mo. The credit card was used at several stores in the Battlefield Mall, including a fraudulent purchase at Foot Locker. When Vancil returned to the store the next day to return the merchandise, store employees called police and delayed Vancil until officers arrived. After a brief foot pursuit, officers detained Vancil, who was carrying checks, credit cards and other items from the theft victim.
On Jan. 27, 2015, a witness reported that a suspect later identified as Vancil drove up to a mailbox and removed mail from the box. On April 28, 2015, a witness reported a suspicious vehicle in Springfield, going from mailbox to mailbox stealing mail. Greene County sheriff’s deputies located the vehicle, the Nissan Pathfinder driven by Vancil. Vancil attempted to flee from officers and drove through some residential yards before being stopped. Deputies recovered approximately 100 pieces of mail from inside the vehicle, in addition to checkbooks, credit cards, applications for financial assistance as well as debit card information and other handwritten personally indefinable information. The recovered mail on this occasion contained addresses for 38 victims.
Among the credit card numbers found in Vancil’s vehicle was one used to make an online reservation for a Springfield motel room.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department and the Greene County, Mo., Sheriff’s Department.
Spanish Investor Charged with Impeding Federal Investigation into $4.6 Million Insider Trading SchemeRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a Spanish investor for allegedly covering up an international insider trading scheme that netted more than $4.6 million.
LUIS MARTIN-CARO SANCHEZ bought options of Canadian fertilizer producer Potash Corporation of Saskatchewan Inc., a few days before the company publicly announced an unsolicited buyout offer that drove its stock price up 27.7%, according to the indictment. Sanchez made the timely trades after communicating with banking and investor friends in Spain, the indictment states.
In five days in August 2010 Sanchez netted approximately $496,953 – a return of approximately 1,046% on his investment, the indictment states. Two of his friends made similar trades and profited approximately $993,183, while a Spanish businessman in Greece profited more than $3.1 million after communicating with a mutual acquaintance of Sanchez, according to the indictment. In subsequent civil litigation brought against him by the U.S. Securities and Exchange Commission, Sanchez allegedly lied under oath and withheld key financial evidence.
The indictment was returned yesterday in U.S. District Court in Chicago. It charges Sanchez, 42, of Madrid, Spain, with one count of obstruction of justice and two counts of perjury.
Federal authorities will seek to extradite Sanchez to the United States. An arraignment date in federal court in Chicago has not yet been scheduled.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; David Glockner, Regional Director of the SEC’s Chicago Regional Office; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to the charges, Australian mining company BHP Billiton decided in August 2010 to make a tender offer for all of Potash’s common stock. BHP dealt with several foreign investment banks to secure confidential financing commitments in an effort to underwrite the offer. During a meeting in Chicago on Aug. 12, 2010, BHP’s chief executive officer conveyed a $38.6 billion buyout offer to Potash’s chief executive. Potash rejected the offer, but it did not publicly announce the matter until Aug. 17, 2010, according to the indictment.
During those interim five days, Sanchez communicated extensively with his banking and investor friends, the indictment states. On August 12 and 13, 2010, Sanchez purchased approximately 331 out-of-the-money call option contracts for Potash stock via an account at Interactive Brokers LLC, according to the indictment. Sanchez’s contracts were set to expire within weeks of the purchase date, the indictment states.
In a telephonic deposition taken as part of the SEC lawsuit on July 1, 2011, Sanchez allegedly lied under oath when he denied knowing other people who purchased Potash securities in advance of Potash’s announcement of the buyout offer. He also allegedly lied when he denied knowing the telephone numbers of two of those individuals. Telephone records indicate that Sanchez had called each of them numerous times in the days between the private offer and Potash’s public announcement of it, the indictment states.
In late 2010 a friend who profited approximately $540,493 from Potash options sales sent 100,000 euros to Sanchez’s bank account in Zurich, Switzerland, the indictment states. Sanchez withheld information about his Swiss account from the SEC during its investigation, according to the indictment. The SEC discovered the account and the friend’s payment in January 2014 – more than two years after the SEC’s lawsuit against Sanchez had ended, the indictment states.
The obstruction count is punishable by up to 20 years in prison, while the perjury counts each carry a maximum sentence of five years. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney William Hogan.
Indictment
Shiprock Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Henderson Shorty, 53, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to an abusive sexual contact charge. Under the terms of his plea agreement, Shorty will be sentenced within the range of 24 to 30 months in federal prison followed by not less than five years of supervised release. Shorty also will be required to register as a sex offender after he completes his prison sentence.
Shorty was arrested in Feb. 2016, on an indictment charging him with abusive sexual contact. The indictment charged Shorty with sexually abusing a child under the age of 12 years on Jan. 24, 2013, in Indian Country in McKinley County, N.M.
During today’s proceedings, Shorty pled guilty to an abusive sexual contact charge in a felony information. In entering the guilty plea, Shorty admitted that from Jan. 1, 2013 through March 31, 2013, he had sexual contact with a child under the age of 12. Shorty admitted committing the crime on the Navajo Indian Reservation. Shorty remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI. The case is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez 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/.
Serial Robber Sentenced to Lengthy Prison TermRead the Press Release
ATLANTA - Avery Frazier has been sentenced to 20 years in federal prison for a series of violent armed robberies of title loan stores in Rockdale County, and Cobb County, Georgia.
“Frazier repeatedly traumatized hard working people at gunpoint,” said U. S. Attorney John Horn. “He sowed fear throughout our communities, robbing multiple title loan stores over time. Thankfully, a quick police response helped identify his vehicle and, ultimately, led to his arrest.”
“The FBI is proud of the role that it played in bringing Mr. Frazier forward for federal prosecution. The lengthy prison sentence in this case is reflective of the serious nature of the repeated violent robberies committed and the emotional victimization left in his wake,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“Frazier’s actions during these robberies were terrifying to his victims,” stated City of Conyers Chief of Police Gene Wilson. “We appreciate how the FBI and the US Attorney’s Office took this case to its conclusion and this sentence will help keep the citizens safe for a long time to come. Because this case was prosecuted in federal court, Frazier got the sentence he deserved.”According to U.S. Attorney Horn, the charges and other information presented in court: Between 2013 and 2014, 34 robberies of title loan stores occurred in different areas of the metropolitan Atlanta area. In each, the robber had a similar method of operation. He would wear a mask, enter a title loan store brandishing a firearm at employees, and demand the business’s cash. He would then force employees to move to the rear of the store. Eventually, he started forcing the employees to remain in a bathroom or storage room until he left. The robber also threatened store employees by telling them at gunpoint that they must follow his directions or risk never seeing their families again.
In early 2014, believing that the robberies were being committed by the same individual based on the method of operation and descriptions by witnesses, local law enforcement officers from several different Atlanta-metro police departments formed a task force and began working with the FBI to identify the robber.
On October 30, 2014, a local Conyers Police Department officer, who was responding to a call for assistance at a different location, captured Frazier’s license plate as Frazier fled the scene of a robbery at the Title Bucks store in Conyers, Georgia. After further investigation and information sharing among the FBI and local police departments, Frazier was identified as the suspect in the series of armed robberies. Conyers Police Department officers obtained a warrant for his arrest, and Frazier was arrested on that warrant on November 5, 2014.
On April 19, 2016, Frazier pled guilty to the following four armed commercial robberies:
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February 17, 2014 - Frazier robbed the employees of the Georgia Auto Pawn in Conyers, Georgia, while brandishing a firearm.
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May 20, 2014 - Frazier robbed the employees of a Title Max in Smyrna, Georgia, while brandishing a firearm.
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October 7, 2014 - Frazier robbed the employees of a different Title Max in Smyrna, Georgia, while brandishing a firearm. He told these employees that they had to go into a back room of the store and stay in the room if they wanted to see their families again.
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October 30, 2014 - Frazier robbed the employees of a Title Bucks in Conyers, Georgia, while brandishing a firearm. During the robbery, Frazier rounded up two employees and a customer who was present in the store at gunpoint. Brandishing the gun at them, he made them give him the day’s deposit of cash. He then ordered the three victims at gunpoint to go into a back room of the store and to wait ten minutes. He shut them in the room and left the store with the cash. It was in leaving this robbery that Frazier’s license plate was picked up by a local Conyers officer’s license plate reader.
The investigation revealed that during the time frame of the robberies, Frazier was a serious gambler at a casino in North Carolina, and he was making purchases of tens of thousands of dollars of casino chips in the weeks surrounding the robberies. Investigation further revealed that since Frazier was taken into custody in November 2014, there have been no further robberies of title loan stores in Atlanta that showed the same method of operation.
Avery Frazier, 49, of Douglasville, Georgia, was sentenced to 20 years in prison to be followed by three years of supervised release, and restitution of $14,218.
This case was investigated by the Federal Bureau of Investigation, with special assistance from the Conyers Police Department, Smyrna Police Department, Sandy Springs Police Department, Clayton County Police Department, Cobb County Police Department, Atlanta Police Department, Marietta Police Department, Oakwood Police Department, Douglas Co. Sheriff’s Department, Dekalb County Police Department, Snellville Police Department, Gwinnett Police Department, and Newnan Police Department.
Assistant United States Attorneys Mary L. Webb and Angela Marie Munson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Second meth mule pleads guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A woman caught transporting a significant load of crystal methamphetamine from California to West Virginia pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Kelly Newcomb, 56, of Nevada, entered her guilty plea to interstate travel in furtherance of a drug crime.
Newcomb admitted that on March 10, 2016, she rented a vehicle in Las Vegas and drove with a codefendant to California, where 10 pounds of crystal methamphetamine were concealed in the vehicle for transportation to West Virginia. Newcomb and the codefendant then began the drive to West Virginia, and during the course of the trip Newcomb learned about the concealed drugs. Newcomb further admitted that on March 18, 2016, she arrived in West Virginia, rented a room at the Super 8 Motel in Huntington, and followed the instructions of another codefendant by leaving the vehicle unlocked in the parking lot. After Newcomb’s arrival, an undercover officer, in accordance with instructions obtained through a cooperating individual, removed the spare tire where the drugs were concealed.
Newcomb faces up to five years in federal prison when she is sentenced on October 6, 2016.
Another woman used as a mule to transport methamphetamine during the course of this conspiracy, Danielle Dessaray Estrada, 21, of Los Angeles, previously pleaded guilty and faces up to five years in federal prison when she is sentenced on October 6, 2016.
This prosecution is the result of a multi-agency investigation which led to an eight-count indictment implicating 14 defendants, including Estrada. Estrada’s codefendants are presumed innocent unless and until proven guilty in a court of law.
The FBI, DHS 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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Rochester Man Sentenced on Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Laree Greggs, 39, of Rochester, NY, who was convicted of conspiracy to commit sex trafficking of a minor before, was sentenced to 80 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Tiffany H. Lee and Melissa M. Marangola, who handled the case, stated that in April 2013, Greggs attempted to transport a minor from Rochester to the State of Pennsylvania for the purpose of engaging in prostitution in furtherance of the conspiracy. The defendant used Backpage.com to post ads for the minor.
Greggs was arrested in April 2014 along with Jodia Campbell and Jennifer Miller. Miller has been convicted and sentenced. Campbell has been convicted and is awaiting sentencing.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Prior Felon from Albuquerque Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Bradley Soza, 34, of Albuquerque, N.M., was sentenced yesterday afternoon in federal court to 66 months in prison followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
Soza was arrested on Feb. 9, 2015, on an indictment charging him charging him with being a felon in possession of firearms and ammunition on June 29, 2014, in Bernalillo County, N.M. Soza was prohibited from possessing firearms or ammunition because of his prior felony convictions for armed robbery, conspiracy to commit armed robbery, tampering with evidence, aggravated fleeing a law enforcement officer and being a felon in possession of a firearm or destructive device.
On March 22, 2016, Soza pled guilty to the indictment and admitted that on June 29, 2014, he was in possession of a pistol loaded with ammunition. Soza further admitted that he was prohibited from being in possession of firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Timothy S. Vasquez prosecuted the case.
Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
DAYTON – Sherrod J. Dyer, 25, of Dayton, Ohio was sentenced in U.S. District Court to 58 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, member agencies of the Community Initiative to Reduce Gun Violence, announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to court documents, Dayton Police approached Dyer as he exited a vehicle in the driveway of a Dayton home in January 2016. Dyer attempted to flee into the home but, as police apprehended him, a loaded Sig Sauer 9mm firearm fell from Dyer. Police found empty gel capsules and approximately 1.9 grams of a heroin/fentanyl mixture intended for distribution inside the vehicle in which Dyer had arrived.
At the time of this incident, Dyer had previously been convicted in 2011 of three counts of felony trafficking in heroin in Montgomery County, Ohio. Because his prior offenses were punishable by more than one year in prison, Dyer was prohibited from possessing firearms.
Dyer pleaded guilty on March 15, 2016 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.
Acting U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who represented the United States in this case.
Previously Convicted Bank Robber Admits to Robbing Second Bank with an AK-47 While on Federal Supervised ReleaseRead the Press Release
Baltimore, Maryland – Jesse Allen Burney, age 34, of Harrisburg, Pennsylvania, pleaded guilty today to armed bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Tyree C. Blocker, Superintendent of the Pennsylvania State Police, and Harford County Sheriff Jeffrey R. Gahler.
In January 2005, Burney pleaded guilty in federal court in the Middle District of Pennsylvania to charges arising from an armed bank robbery. He was sentenced to 144 months in federal prison and released on May 30, 2014.
According to his plea agreement, on April 27, 2015 and while on supervised release for the bank robbery conviction, Burney entered a bank in Whiteford, Maryland wearing a motorcycle helmet with the reflective visor down, a tactical vest, gloves and a backpack. A loaded AK-47 with a sock over the barrel was poking out the top of the backpack.
Shortly after entering the bank, Burney withdrew a taser, turned it on, pointed it at the tellers stating that this is a robbery. He demanded $100,000. Burney threatened to start shooting if the safe was not opened in 15 seconds. The tellers gave Burney money from the bank’s vault. Burney put $97,237 in his backpack. As he walked out of the bank, Burney told the employees that he would come back and shoot them if he saw any police.
Burney fled the scene on a dirt bike. Several miles away, he left the bike on a country road hidden under a tarp. He drove away in an SUV that he had left at that location. Law enforcement officers were able to track Burney as he drove into a farm field in Lower Chanceford Township, Pennsylvania, via a GPS device deposited with the money he had stolen. Burney then fled from the SUV and hid in the woods.
A Pennsylvania State Trooper found Burney in the woods. Investigators recovered a loaded AK-47 magazine in the backpack, as well as the AK-47 which had a loaded 30-round magazine attached and a round in the chamber. The stolen money was also recovered, along with the helmet and tactical vest Burney wore during the robbery. Burney told investigators that he owed $100,000 in restitution for the prior federal bank robbery conviction.
Burney and the government have agreed that if the Court accepts the plea agreement Burney will be sentenced to 252 months in prison. U.S. District Judge Ellen L. Hollander scheduled sentencing for September 2, 2016 at 11:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Pennsylvania State Police and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Aaron S.J. Zelinsky, who is prosecuting the case.
Pinellas County Man Convicted of Being A Felon in Possession of A Firearm and 159 Rounds of AmmunitionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Michael W. Kelly (29, Largo) guilty of possessing a firearm and ammunition as convicted felon. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for October 5, 2016.
According to evidence presented at trial, on October 15, 2015, FBI agents executed a search warrant at Kelly’s home and recovered a semi-automatic pistol from his bedroom. The firearm was loaded and contained nine rounds of 9mm ammunition. Agents also recovered three boxes of ammunition, containing a total of 150 rounds, from the top of his dresser. Kelly has multiple prior felony convictions, including possession of a sawed off shotgun and aggravated assault, and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Simon Gaugush.
Opiate Enforcement Strategy Pays Dividends in F-M AreaRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on May 12, 2016, approximately 100 local, state, and federal law enforcement agents and prosecutors met in Fargo to discuss investigative and prosecutorial strategies to combat opiate traffickers with an emphasis on fentanyl or analogues of fentanyl. The goal was to fashion an enforcement strategy to reduce the death and injury from opiates that have been plaguing the area.
Since that meeting, all of the law enforcement in the Fargo-Moorhead area joined efforts with the United States Attorney’s Office for the District of North Dakota to indict the following individuals:
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Brandon Beyer, 20, Conspiracy to Distribute and Distribute a Controlled Substance Analogue
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Steven Jay Maynard Hoffman, 21, Distribution of a Controlled Substance Analogue Resulting in Serious Bodily Injury
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Chase Fliginger, 20, Conspiracy to Distribute a Controlled Substance Analogue
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Naomi Danielson, 21, Distribution of a Controlled Substance Analogue Resulting in Serious Bodily Injury
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Christian Harris, 19, Conspiracy to Distribute a Controlled Substance Analogue
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Gregory Alan Krutsinger, 38, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury
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Tyrone Wilburn, 43, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance and a Controlled Substance Analogue Resulting in Serious Bodily Injury
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Brandon Joseph Jacobs, 30, a/k/a B.J. Simonson, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury
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John Michael Iten, 23, a/k/a Jack Iten, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury
USA Myers stated, “The law enforcement response from all of our partners has been incredible. Every agency in the Fargo-Moorhead area helped in this enforcement effort.”
The “Eyes Wide Open” community forum that was held in West Fargo on May 5, 2016, brought to light the fact that the opiate crisis has risen to an epidemic level in the Red River Valley. Since January, there have been over 10 deaths and over 50 hospitalizations attributed to opiates - mostly impacting young people.
To combat this complex problem, there must be a multi-faceted response from not just law enforcement, but the entire community. This includes, but is not limited to, parents, healthcare providers, educators, treatment experts, and faith-based organizations. Law enforcement cannot fight this alone; however, law enforcement will continue to work tirelessly to identify, target, and dismantle opiate drug trafficking organizations.
USA Myers continued, “While this is some measure of success, we do not intend to stop there. Opiate-based drugs still continue to plague our community and are devastating lives. We will continue our aggressive approach on the enforcement side of the equation but will also continue working with our community partners to continue the dialogue about how best to find a multi-faceted solution to this opiate crisis. Working together, we can make a difference.” As the investigation continues there may be more defendants charged.
The next community forum, “Eyes Wide Open Phase II” will be held at the Fargo Theatre on July 20, 2016. The third community forum, “Arms Wide Open,” will be scheduled in the fall and will focus on where individuals and families can turn for help. This forum will also continue the dialogue on the need for systemic changes to help families struggling with addiction.
The United States Attorney’s Office for the District of North Dakota will also be hosting an “Eyes Wide Open” community forum in Bismarck on July 28, 2016, at the Heritage Center, starting at 6:00 p.m. The purpose of this forum will be to highlight awareness regarding the issues with opiates that are being faced in the Bismarck-Mandan area.
An Indictment is merely an accusation and not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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North Chesterfield Man Pleads Guilty to Theft from Defense Supply CenterRead the Press Release
RICHMOND, Va. – William M. Johnson, 57, of North Chesterfield, pleaded guilty yesterday to charges of theft of government property.
According to a statement of facts filed with the plea agreement, in 2007, the Defense Logistics Agency Aviation (“DLA”), located at the Defense Supply Center Richmond in Chesterfield, VA, began a project to recycle steel from steel shelving units in DLA warehouses that were scheduled for demolition. DLA employees were tasked with dismantling the shelving units, collecting the steel, and transporting the steel to a recycling company for payment. The DLA employees were then required to return the money from the recycling company to DLA, which would deposit the money into an account earmarked for the DLA’s Family and Morale, Welfare and Recreation fund.
Beginning in 2014, an investigation led by the Office of Inspector General for DLA and Office of Inspector General for the Department of Defense revealed that Johnson would take the steel to the recycling company and receive payment, but would not turn the money in to DLA. The investigation further revealed that between the fall of 2011 through June 2013, Johnson stole approximately $106,830 as a result of the recycling project, all of which belonged to DLA.
Johnson pleaded guilty to a criminal information filed by the United States and now faces a maximum penalty of 10 years in prison. He will be sentenced on September 30, 3016. 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 Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-74.