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Friday 1 July 2016
New Haven Heroin Dealer Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERTO TORRES, also known as “Tony,” 49, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin from wholesale and street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
In July 2015, a grand jury in New Haven returned an indictment charging TORRES and 16 other New Haven residents with heroin trafficking offenses.
As part of the investigation, law enforcement has seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
TORRES has been detained since his arrest on July 15, 2015. On February 24, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
New Haven Gang Member Sentenced to 25 Years for Drug and Gun ConspiraciesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Christian Turner, a/k/a “P”, 29, formerly of New Haven, Connecticut, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 25 years in prison and five years of supervised release for conspiring to distribute 280 grams of cocaine base, commonly referred to as “crack” and conspiring to violate federal gun laws. He pleaded guilty to the charges on September 2, 2015.
According to court records, the defendant and other conspirators were members of the Red Side Guerilla Brims (“RSGB”), a New Haven based street gang affiliated with the Almighty Blood Nation. Between January 2010 and August 2013, the defendant conspired to acquire more than five kilograms of crack in New Haven and to distribute it in Penobscot County and elsewhere in Maine. He and other conspirators sold it in multiple half-gram and gram amounts for $40 and $80. Drug proceeds were returned to New Haven and maintained in the gang’s “kitty” that was used to finance gang activities.
Over the same period, the defendant obtained 14 handguns through straw purchases at pawnshops in Bangor and Brewer and seven other firearms through private transactions. The defendant paid for the guns with cash and drugs. In all, over 25 firearms were illegally acquired and transported back to New Haven where they were transferred to others.
In imposing the lengthy sentence, Judge Woodcock said: “the message to those people like members of the Red Side Guerilla Brimms is this: stay away from Bangor.”
The case was investigated by the Maine Drug Enforcement Agency; the New Haven Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the New Haven Police Department. Assistant U.S. Attorneys Robert Spector and Peter Markle of the U.S. Attorney’s Office for the District of Connecticut assisted in the investigation and prosecution of the case.
New Hampshire Couple Indicted on Two Counts of Illegal Distribution of Prescription DrugsRead the Press Release
United States Attorney Emily Gray Rice announced that two New Ipswich, New Hampshire, residents have been indicted on charges that they conspired to distribute misbranded prescription drugs, including controlled substances, from India.
John and Plabplueng Hayes were each charged with one felony count of conspiracy to introduce misbranded drugs into interstate commerce and one felony count of conspiracy to use a communications facility, the United States mail, to facilitate a drug trafficking offense.
According to the indictment, the defendants were part of a multi-national drug distribution operation. The defendants allegedly conspired with each other, and with co-conspirators in India and North Carolina, to receive hundreds of thousands of prescription drugs, including controlled substances, from India and other foreign locations. The defendants received these drugs at U.S. Post Office boxes throughout New Hampshire and Massachusetts, stored the drugs at their residence in New Ipswich and reshipped them in smaller parcels to individual customers throughout the United States based on instructions from the co-conspirator located in India.
“Consumers rely on the FDA to ensure that their medications are safe and effective. When misbranded drugs are introduced into the U.S. marketplace, the potential danger to the public's health is great," said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations' New York Field Office. "The FDA will continue to pursue and bring to justice those who place the public's health at risk.”
This case was investigated by FDA’s Office of Criminal Investigations, the U.S. Department of Homeland Security, the U.S. Postal Inspection Service, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen and Special Assistant U.S. Attorney Scott Kaplan.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Man Sentenced to Eight Years in Prison for Murder for Hire PlotRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Lawrence Edward Lee, age 64, of Charleston, SC, was sentenced to eight years in prison for the Use of Interstate Commerce Facilities to Commit Murder for Hire. The term of imprisonment is to be followed by three years of supervised release. Lee pled guilty on January 26, 2016. Facts at the plea hearing established that Lee approached an acquaintance about having Lee’s ex-wife killed. That individual went to the FBI, who then conducted undercover recordings of Lee and his efforts to have his ex-wife killed, including payment to the acquaintance of $5,000.00 for the murder.
Lee was sentenced by United States District Court Judge Richard M. Gergel. The conviction is the result of an investigation conducted by the Federal Bureau of Investigations. Assistant United States Attorneys Nathan Williams and Nick Bianchi of the Charleston office prosecuted the case.
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MEDIA ADVISORY-- U.S. Attorney Damon P. Martinez to Observe End of Ramadan with Muslim Community at Islamic Center of New MexicoRead the Press Release
ALBUQUEQUE – The U.S. Department of Justice has placed a priority on prosecuting bias crimes and incidents of discrimination against Muslims, Sikhs, and other persons of Arab descent, as well as persons perceived to be members of these groups. It also is engaging in extensive outreach efforts to educate these communities about their rights. U.S. Attorney Damon P. Martinez, President Abbas Akhil of the Islamic Center of New Mexico (ICNM), and Ahmad Assed, ICNM Legal Advisor and Member of the ICNM’s Shura Advisory Council, will be available to address the media at 8:00 p.m. on Saturday, July 2, 2016, at the Islamic Center of New Mexico in Albuquerque, N.M., as part of the Justice Department’s outreach efforts.
They will be joined by representatives of the FBI and the U.S. Attorney’s Office. This media opportunity will take place shortly before the breaking of the fast for the day and marks the last few days before the end of the holy month of Ramadan.
WHO:
U.S. Attorney Damon P. Martinez
Abbas Akhil, President of the Islamic Center of New Mexico
Ahmad Assed, ICNM Legal Advisor & Member of Shura Advisory Council
WHAT:
Media Opportunity before Ramadan Observation
WHEN:
Saturday, July 2, 2016 at 8:00 p.m.
WHERE:
Islamic Center of New Mexico
1100 Yale Blvd. SE
Albuquerque, N.M.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media outlets who wish to participate in this media opportunity should notify the U.S. Attorney’s Office at [email protected] by 2:00 p.m. on Saturday, July 2, 2016.
Louisiana Man Sentenced on Child Pornography ChargesRead 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 John K. Carrillo, 35, of Lake Charles, Louisiana, who was convicted of possession of child pornography, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $4,000 in restitution to the victims in the case.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on November 11, 2014, the defendant possessed images and videos of child pornography which were stored on a laptop computer. Carrillo obtained the images and videos over the internet.
At the time, an undercover FBI agent logged onto a peer-to-peer sharing program downloaded 69 images and seven videos of child pornography directly from a username belonging to the defendant. At the time of this download, the defendant possessed the images and videos of child pornography on his laptop computer which was located in his residence in Williamsville, New York.
On February 27, 2015, while Carrillo was then living in Lake Charles, Louisiana, he was found to again be utilizing a peer-to-peer network to distribute child pornography. Some of the images and videos depicted violence involving minors less than 12 years old.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge, Adam S. Cohen.Leader of Large Drug Trafficking Network Sentenced to Ten Years in PrisonRead the Press Release
The leader of a large drug trafficking group with ties to California and Mexico, was sentenced today in U.S. District Court in Seattle to ten years in prison for conspiracy to distribute controlled substances, announced U.S. Attorney Annette L. Hayes. EDIBERTO ASEVEZ SANTILLANO, 37, of Renton, Washington was arrested in August 2015 with two kilos of methamphetamine in his bedroom and more than $17,000 in cash in his residence. During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, six pounds of cocaine, approximately $178,000 in cash and 16 firearms, including five assault rifles. At the sentencing hearing U.S. District Judge Marsha J. Pechman said, “You brought serious drugs into this country…. Your whole family has suffered because of this.”
The investigation involved court authorized wire-taps and extensive surveillance of members of the criminal group. When law enforcement moved in to make arrests they served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group. Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington. In all 22 defendants were charged in the case.
Those sentenced to date in this case include:
Brian Christensen, 40, of Port Orchard, Washington – seven years in prison;
Will Edward Brambila, 27, of Kent, Washington – four years in prison;
Sendhy Amairany Felix Acevez, 22, of SeaTac, Washington – three years in prison;
Francisco Flores Penuelas, 44, of Kent, Washington – three years in prison;
Hanzel Knight, 43, of Auburn, Washington – five years in prison;
Heriberto Pacheco Juarez, 23, of Kent, Washington – five years in prison;
Alfonso Leos Villasenor, 21, of Kent, Washington – five years in prison;
Steven James Montgomery, 53, of Edmonds, Washington --four years in prison;
Ricardo Topete, 25, of Seattle – four years in prison.
Clarence Daniels, 36, of Kent, Washington – seven years in prison.
Joseph Moore, 49, Kent, Washington – five years in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration, the FBI and the Seattle Police Department. The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.
Jury convicts Schenectady man of crack cocaine distributionRead the Press Release
Binghamton, NEW YORK – A jury on Wednesday voted to convict Nicholas Khan, age 23, of Schenectady, New York, of distribution of crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
The jury convicted Khan following a three-day trial in Binghamton. Khan faces up to 20 years in prison, and a term of post-imprisonment supervised release of at least 3 years and up to life, when he is sentenced on October 26, 2016 by Senior United States District Judge Thomas J. McAvoy. Khan is already serving a state term of imprisonment of 25 years to life for an October 2014 murder conviction.
This case was investigated by the Drug Enforcement Administration and the Colonie Police Department, and was prosecuted by Assistant United States Attorney Kofi Sansculotte.
Jury Convicts Rock Island Man for Heroin Distribution Resulting in DeathRead the Press Release
Rock Island, Ill. – A jury deliberated for two hours today before returning guilty verdicts on all counts against Phil Trent, 51, of Rock Island, Ill. Trent was charged with distribution of heroin resulting in death, three counts of distributing heroin, and conspiring to distribute heroin resulting in death. U.S. District Judge Sara Darrow scheduled sentencing for Nov. 3, 2016. Trent remains in the custody of the U.S. Marshals Service.
The trial began on June 27. Over four days of testimony, the government presented evidence that Trent conspired with others to distribute heroin in the Rock Island area from early July through September 2014. During the trial, the government presented evidence that Trent distributed heroin on August 13, October 1, and October 2, 2014, either directly or through co-conspirators, to undercover agents. Evidence was also presented that Trent distributed the heroin that resulted in the death of Tyler Corzette on Aug. 29, 2014. Corzette was 21 years old at the time of his death.
Two other defendants, Kyle Hull and Curtis Land, were also charged in connection with Corzette’s death. Both Hull and Land pled guilty on May 19, 2015, and are scheduled for sentencing on July 21, 2016.
The Rock Island Police Department, with assistance from the Quad City Metropolitan Enforcement Group, investigated the charges. Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo are prosecuting the case.
The statutory penalty for distribution of heroin resulting in death is a mandatory minimum term of 20 years, and up to life, in prison, and a fine of up to $1,000,000. The statutory maximum penalty for each count of heroin distribution is 20 years in prison and a fine of up to $1,000,000. The statutory penalty for conspiracy to distribute heroin resulting in death is a mandatory minimum term of 20 years, and up to life, in prison, and a fine of up to $1,000,000.
Investment Advisor Charged with Numerous Counts of FraudRead the Press Release
PHILADELPHIA - William Joseph Boyle, 53, of Bala Cynwyd, Pennsylvania, was charged by indictment yesterday with five counts of mail fraud, three counts of wire fraud, one count of securities fraud, and one count of investment adviser fraud, announced United States Attorney Zane David Memeger.
The indictment alleges that Boyle, a Bala Cynwyd-based stockbroker and investment adviser, defrauded clients, most of whom were elderly, out of over $400,000, convincing them to invest with him and utilize his services as a financial adviser by holding himself out as an investment adviser and promising to invest their money in stocks, Pennsylvania municipal bonds, interest bearing investments, and real estate, while in reality Boyle spent almost all of their money on himself, including giving client money to his wife and ex-wife, paying his children’s Catholic school tuition; and purchasing a liquor license for, and purchasing, renovating, and operate a bar called “The Blarney South Bar and Grille,” which Boyle renamed “The Boyler Room,” located in Philadelphia, Pennsylvania. The indictment also alleges that Boyle used some of the client funds to make payments to earlier clients who had invested, thereby inducing those earlier clients to believe that their investments were safe and profitable.
The indictment further alleges that Boyle continued to hold himself out as a stock broker and investment adviser and defraud clients even after his licenses were suspended and after he was permanently barred by FINRA from working as a stock broker or otherwise associating with a firm that sold securities to the public, and failed to disclosing to his clients that he had been barred and his licenses suspended.
Boyle faces a possible advisory sentencing guideline range of 57 to 71 months in prison, restitution, a period of supervised release, a possible fine, and a $1,000 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on June 29, 2016 and entering pleas of Not Guilty were:
- DOUGLAS DONALD PAIGE, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, PAIGE faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-64
- VICTOR MIGUEL RIVERA-MUNOZ, a 30-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and illegal alien in possession of a firearm. If convicted of the most serious charge contained in the indictment, RIVERA-MUNOZ faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-66
Appearing before U.S. Magistrate Johnston in Great Falls on June 28, 2016 and entering pleas of Not Guilty were:
- PAMELA STAR ANDERSEN, a 30-year-old resident of Peerless, appeared on charges of fraudulent issue of postal money orders, and misappropriation of postal funds. If convicted of the most serious charge contained in the indictment, ANDERSEN faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference. 16-42
- DEBORAH JOY DURAND, a 53-year-old resident of Vaughn, appeared on charges of false statement and fraud to obtain federal employee’s compensation, wire fraud, False Claims Act/fraudulent claims relating to workers’ compensation benefits, theft of government property. If convicted of the most serious charges contained in the indictment, DURAND faces 20 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference. 16-43
- KEVIN DAVID McGOVERN, a 46-year-old resident of Havre, appeared on charges of conspiracy to defraud the United States and the Chippewa Cree Tribe, scheme to defraud the United States and the Chippewa Cree Tribe, and bribery of an Indian tribal government official. If convicted of the most serious charges contained in the indictment, McGOVERN faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, Internal Revenue Service, U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. PACER Case Reference. 16-44
Appearing before U.S. Magistrate Lynch in Missoula on June 27, 2016 and entering pleas of Not Guilty were:
- KIRK EDWARD BARSNESS, a 47-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, BARSNESS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Montana Division of Criminal Investigations, Missouri River Drug Task Force, and the Montana Highway Patrol. PACER Case Reference. 16-15
- ANTONIO GARCIA-CARDENAS, a 26-year-old resident of Pasco, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, GARCIA-CARDENAS faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-22
Appearing before U.S. Magistrate Lynch in Missoula on June 24, 2016 and entering pleas of Not Guilty were:
- CHRISTOPHER GLEN BAIRD, a 48-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, BAIRD faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-26
- CARISSA LYNN KOPP, a 34-year-old resident of Missoula, appeared on charges of conspiracy to commit robbery affecting commerce, robbery affecting commerce, carjacking, kidnapping, possess and brandish a firearm in furtherance of a crime of violence, and possess and discharge a firearm in furtherance of a crime of violence. If convicted of the most serious charges contained in the indictment, KOPP faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation, Missoula County Sheriff’s Office, Montana Regional Violent Crime Task Force, and Missoula Police Department. PACER Case Reference. 16-28
- BRIAN WAYNE ROGERS, a 38-year-old resident of Billings, appeared on charges of conspiracy to distribute and possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, ROGERS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-26
- NICK WEST, a 38-year-old resident of Billings, appeared on charges of conspiracy to commit robbery affecting commerce, robbery affecting commerce, carjacking, kidnapping, possess and brandish a firearm in furtherance of a crime of violence, and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, ROGERS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-26
Appearing before U.S. Magistrate Ostby in Billings on June 24, 2016 and entering pleas of Not Guilty were:
- DAN CARLSON, a 49-year-old resident of Lame Deer, appeared on charges of unlawful possession of a firearm. If convicted of the charge contained in the indictment, CARLSON faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-59
- THEODORE ALLEN WARE, a 46-year-old resident of Crow Agency, appeared on charges of aggravated sexual abuse, assault resulting in serious bodily injury, and strangulation. If convicted of the most serious charges contained in the indictment, WARE faces life in prison, $250,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-70
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indianapolis woman posing as a registered nurse sentencedRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced the sentence of an Indianapolis woman for making false statements regarding health care matters and aggravated identity theft. Holly M. Whyde, 45, was sentenced to two years and six months imprisonment by U.S. District Judge Jane Magnus-Stinson.
“Nursing licenses must be earned, they cannot be stolen,” said Minkler. “Managing the health care of patients requires medicals skills that Ms. Whyde did not have. Although no patient was injured as a result of her crime, I hope this serves as a warning to others who might try to bypass the licensing process.”
Since November 2012, Whyde stole the license number of a legitimate registered nurse (RN) and masqueraded as an RN at nursing homes. She used the stolen license number and in some cases, the stolen identity and social security number to apply for nursing positions at four different nursing homes. In the course of carrying out her deception, Whyde lied not only to the nursing homes but also to the State Professional Licensing Agency.
Whyde lied about not having an RN license and repeatedly lied about her identity. Her criminal history included convictions for check deception and fraud on a financial institution. Both would likely have kept her from obtaining a position in a nursing home managing volumes of personal identifying information.
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, the Indiana Attorney General’s Medicaid Fraud Control Unit and the Columbus (IN) Police Department.
According to Assistant United States Attorney Cindy Cho, who prosecuted this case for the government, Whyde must serve one year of supervised release following her sentence.
Illinois Man Charged with Hacking Apple iCloud and Gmail Accounts Belonging to More Than 300 People, including Many CelebritiesRead the Press Release
LOS ANGELES – An Illinois man was charged today with felony computer hacking related to a phishing scheme that gave him illegal access to over 300 Apple iCloud and Gmail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Edward Majerczyk, 28, who resides in Chicago and Orland Park, Illinois, was named in a criminal information filed today in United States District Court in Los Angeles. Majerczyk has signed a plea agreement in which he agrees to plead guilty to a felony violation of the Computer Fraud and Abuse Act, specifically, one count of unauthorized access to a protected computer to obtain information.
Although Majerczyk has been charged in Los Angeles, the parties have agreed to transfer the case to the Northern District of Illinois for the entry of his guilty plea and sentencing. Once he enters the guilty plea, Majerczyk will face a statutory maximum sentence of five years in federal prison.
“Hacking of online accounts to steal personal information is not merely an intrusion of an individual’s privacy but is a serious violation of federal law,” said United States Attorney Eileen M. Decker. “Defendant’s conduct was a profound intrusion into the privacy of his victims and created vulnerabilities at multiple online service providers.”
Majerczyk’s plea agreement was lodged today in United States District Court for the Central District of California and will be executed upon transfer of the case to the Northern District of Illinois. According to the factual basis in the plea agreement, from November 23, 2013 through August 2014, Majerczyk engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from security accounts of internet service providers that directed the victims to a website that would collect the victims’ usernames and passwords. After victims responded by entering information at that website, Majerczyk had access to victims’ usernames and passwords. After illegally accessing the iCloud and Gmail accounts, Majerczyk obtained personal information including sensitive and private photographs and videos, according to his plea agreement.
“This defendant not only hacked into e-mail accounts – he hacked into his victims’ private lives, causing embarrassment and lasting harm,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As most of us use devices containing private information, cases like this remind us to protect our data. Members of society whose information is in demand can be even more vulnerable, and directly targeted.”
The charge against Majerczyk stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Majerczyk to the actual leaks. Many of Majerczyk’s victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Majerczyk accessed at least 300 accounts, and at least 30 accounts belonging to celebrities.
The case against Majerczyk is the product of an investigation by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Ryan White and Vicki Chou of the Cyber and Intellectual Property Crimes Section.
Illinois Man Charged with Attempted Sexual Exploitation of Two Boys Through Online Video GamesRead the Press Release
BOSTON – An Illinois man was indicted yesterday in U.S. District Court in Springfield in connection with exploiting boys through online video games.
Zack Sawyer, 31, was indicted on two counts of attempted sexual exploitation of children. Sawyer was previously charged in a criminal complaint.
According to court documents, Sawyer used online interactive video games including X-Box Live games and MineCraft to communicate with two boys, aged 10 to 13 years old, in Massachusetts.
In approximately May 2010, Sawyer used X-Box Live to contact two 13 year-old boys in Hampshire County, Mass. Sawyer allegedly asked one boy to send him nude photographs, and when the boy refused, Sawyer threatened to rape him and kill him. Sawyer allegedly asked the second boy to send him naked pictures and when the boy refused, Sawyer also threatened to rape him, claiming that he had a drug that would paralyze people. This conduct forms the basis of the current Indictment.
The charging statute provides for a mandatory minimum sentence of 15 years and a maximum of 30 years in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000 and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police Superintendent, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Houghton and Escanaba Area Heroin and Crack Cocaine Conspirators SentencedRead the Press Release
MARQUETTE, MICHIGAN — Damon Ramone Belcher, 43, of Detroit, Michigan, Corrie Venta Ruth, 36, of Flint, Michigan, and Stephanie Rae Hatch, 41, of Lake Linden, Michigan, were sentenced to prison by U.S. District Judge R. Allan Edgar for their roles in conspiring to distribute heroin and crack cocaine in the Houghton, Michigan area, U.S. Attorney Patrick A. Miles, Jr. announced today. Belcher was sentenced to 46 months in prison; Ruth was sentenced to 41 months in prison; and Hatch was sentenced to 33 months in prison. In addition to their prison terms, all three defendants were ordered to serve three years of supervised release upon the completion of their incarceration and to pay a $100 special assessment.
Earlier this year, U.S. District Judge R. Allan Edgar sentenced Isaac Scott Cooley, 31, of Mt. Pleasant, Michigan, Jaclyn Patricia Snouwaert, 29, of Escanaba, Michigan, and Donny Thomas Leffler, 25, of Escanaba, Michigan to prison for their roles in conspiring to distribute heroin and crack cocaine in the Escanaba, Michigan area. Cooley was sentenced to 120 months in prison; Snouwaert and Leffler were sentenced to 33 months in prison. In addition to their prison terms, all three defendants were ordered to serve three years of supervised release upon the completion of their incarceration and to pay a $100 special assessment.
The convictions were the result of an investigation by the Upper Peninsula Substance Enforcement Team (UPSET) and the Drug Enforcement Administration into drug distribution in the Escanaba and Houghton, Michigan areas from the beginning of 2015 through November 2015. The investigation revealed that couriers and dealers from the Detroit and Flint areas brought heroin and crack cocaine up to the Upper Peninsula, where they stayed with local residents as the drugs were distributed.
Detectives from the UPSET drug team and agents from the Drug Enforcement Administration investigated the cases. The cases were prosecuted by Assistant U.S. Attorneys Paul D. Lochner and Hannah N. Bobee.
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Gettysburg Man Charged with Production of Child PornographyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Gettysburg man has been charged with production of child pornography involving children under 12 who were in his custody.
According to United States Attorney Peter Smith, Steven L. Berwager, age 73, Gettysburg, Pennsylvania was charged in a Criminal Information with producing videos of minor children in his custody engaging with Berwager in sexually explicit conduct.
Berwager was arrested on March 23, 2016 after a search of his home by state and federal law enforcement officers led to the recovery of thousands of images of child pornography stored on electronic devices. Berwager has been in custody ever since his arrest. He was recently charged by state authorities in Adams County with sexual assault charges involving the same minor victims.
The government also filed a plea agreement in the case which is subject to the approval of the Court.
The case was investigated by the United States Department of Homeland Security Investigations, the United States Postal Inspection Service, the Pennsylvania State Police and the Adams County District Attorney’s office. Prosecution is assigned to Assistant United States Attorney William A. Behe.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a mandatory 15 years term of imprisonment up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under federal law, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fresno Man Convicted on Two Counts of Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Late Wednesday afternoon, after a two–day trial, a federal jury found Alfonso Hernandez, 58, of Fresno, guilty of two counts of receiving and distributing child pornography, Acting United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, in January 2012, agents identified Hernandez’s computer making over 500 separate child pornography files publicly available online to other users within a peer-to-peer file sharing network. A search warrant was executed at Hernandez’s residence, and in a bedroom secured with a deadbolt lock, agents seized a computer and external hard drives that were found to contain child pornography. Ultimately, it was determined that Hernandez had downloaded and shared thousands of child pornography files onto these devices. Hernandez was arrested in September 2014 and has been in custody since that time.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kings County District Attorney’s Office of Investigation, and the Fresno Police Department. Assistant United States Attorneys Brian W. Enos and Vincenza Rabenn are prosecuting the case.
“Defendants who distribute child pornography prey on innocent victims from behind their screens where they often think they cannot be found,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Together with our law enforcement partners, we remain vigilant in our tireless efforts to root out child predators from the shadows that they lurk.”
Hernandez is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Hernandez faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison and a $250,000 fine regarding each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Franklin Man Convicted of Making False Statement to Obtain $1.2 Million LoanRead the Press Release
Murray O. Wilhoite, Jr., 68, of Franklin, Tenn., was convicted yesterday of three felony charges, announced United States Attorney David Rivera. Following a trial before U.S. District Court Judge Aleta A. Trauger, the jury convicted Wilhoite of making a false statement to a bank, making a false statement in a federal bankruptcy filing, and making a false statement under oath during a bankruptcy hearing.
Evidence presented during the trial demonstrated that Wilhoite obtained a $1.2 million loan in December 2007 by pledging as collateral a Franklin, Tennessee property that he did not own. During trial, testimony and exhibits proved that Wilhoite knowingly misrepresented to an FDIC-insured bank that he owned certain real property that he pledged as collateral. However, as trial evidence proved, the property was owned at all relevant times by his father.
In documents signed during the closing for this loan, Wilhoite falsely represented that he was the owner and titleholder of the property, and the bank relied on his statements in permitting him to obtain a loan using the Franklin property as collateral in lieu of a down payment. Wilhoite subsequently lied during a 2011 bankruptcy filing, by again misrepresenting that he owned the Franklin property, and did so for the purpose of preventing the bank from foreclosing on this property after he defaulted on his loan. Wilhoite lied again at a 2013 hearing before the U.S. Bankruptcy Court for the Middle District of Tennessee, during which he perjured himself by falsely stating that he had not known that the Franklin property was designated as collateral for the loan. The evidence at trial proved that Wilhoite made the bankruptcy-related false statements knowingly and with the intent to deceive.
Wilhoite faces up to 30 years in prison and a fine of up to $1,000,000 on the false statement to a bank charge, and up to 5 years in prison and fines of up to $250,000 on the other charges. Wilhoite will be sentenced by Judge Trauger on September 23, 2016. The sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Federal Bureau of Investigation and the Office of the United States Trustee. The case is being prosecuted by Assistant U.S. Attorneys Sandra G. Moses and William F. Abely.
Four Sentenced in Drug and Money Laundering CaseRead the Press Release
Jackson, Miss - Four family members and drug money laundering associates of convicted drug dealer Marvin Rocedreck Brown were sentenced by Senior U.S. District Judge David C. Bramlette III on June 30, 2016, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation.
Corina LeAnn Cornell, 39, of Union, Crystylin D. Patrick, 42, of Union, Linda Kay Parker, 57, of Decatur, and Sandra Denise Brown, 52, of Decatur, were all indicted on April 21, 2015 with Marvin Rocedreck Brown in a 21-count criminal indictment on charges of conspiracy, laundering drug proceeds in financial transactions involving the purchase of several real properties and personal properties, and multiple counts of causing Forms 8300 to not be filed with the Internal Revenue Service for cash transactions exceeding $10,000.
Marvin Rocedreck Brown, 42, of Union, Missisisppi, pled guilty on March 28, 2016 to conspiracy to launder drug proceeds and will be sentenced on July 12, 2016 before U.S. District Judge David Bramlette. Brown will also be sentenced on July 11, 2016 by U.S. District Judge Carlton W. Reeves after being found guilty by a jury in December 2015 on three counts of conspiracy and possession with intent to distribute 50 grams or more of methamphetamine.
Corina LeAnn Cornell pled guilty on March 28, 2016, to conspiracy to launder drug proceeds. She was sentenced to 41 months in federal prison and ordered to pay a $1500 fine.
Crystylin D. Patrick pled guilty on March 28, 2016 to conspiracy to launder drug proceeds. She was sentenced to 30 months in federal prison.
Linda Kay Parker pled guilty on March 28, 2016 to a Criminal Information charging her with structuring and causing a bank to fail to file a Currency Transaction Report. She was sentenced to 2 years of probation and ordered to pay a $1,000 fine.
Sandra Denise Brown pled guilty on March 28, 2016 to a Criminal Information charging her with structuring and causing a bank to fail to file a Currency Transaction Report. She was sentenced to 2 years of probation and ordered to pay a $1,000 fine.
The Organized Crime and Drug Enforcement Task Force (“OCDETF”) investigation has also resulted in the seizure or forfeiture of various real and personal properties. This includes real estate on Highway 489, Union, Mississippi; residence and land on Highway 15, Union, MS; and the mobile home park on Rigdon Road, Union, Mississippi.
The personal assets include several vehicles, U.S. currency, a checking account, a Kubota tractor, a Kamatsu bulldozer, a Fortress track paver, motorcycles, a John Deere tractor and front loader, a Toro Z mower, a GMC dump truck, a utility fleet trailer, and several all-terrain vehicles.
Special Agent in Charge Jerome R. McDuffie, IRS Criminal Investigation, stated, “Today’s sentencing represents the conclusion of a very important investigation for this area. Corina Cornell, Crystylln Patrick, Linda Parker, and Sandra Brown were held accountable today for their role in the laundering of drug proceeds gained from the operation of Marvin Brown’s drug trafficking organization. Drug trafficking is a crime that is deterring the growth of our communities and increasing the economic depression that is so acutely apparent in rural areas such as Newton county. IRS Criminal Investigation is particularly proud of the work we do to enhance the OCDETF program, and the investigation of drug trafficking organizations. We will continue to work hand in hand with our law enforcement counterparts to put an end to the laundering of illegal drug proceeds in our communities, and do our part to help take back the streets in communities both large and small.”
The investigation was conducted by the Drug Enforcement Administration, the Internal Revenue Service Criminal Division, and the Mississippi Bureau of Narcotics with assistance from the Decatur Police Department and the Neshoba County Sherriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Darren J. LaMarca and Erin Chalk.Former Altus Bank President Convicted of Bank FraudRead the Press Release
Oklahoma City, Oklahoma –PAUL HAROLD DOUGHTY, 67, of Edmond, Oklahoma, the former president and chairman of First State Bank of Altus ("FSB"), was convicted today on ten charges of bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry, and unauthorized issuance of a bank loan in connection with FSB and various loan schemes, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. On April 14, 2016, FRED DON ANDERSON, 67, of Eagle Point, Oregon, pleaded guilty to one count of conspiring with Doughty to commit bank fraud. Anderson partnered with Doughty in several businesses headquartered in Altus. In July 2009, state banking regulators closed FSB due to the bank’s loan losses, and the Federal Deposit Insurance Corporation was appointed as the bank’s receiver.
In April 2015, a federal grand jury charged Doughty and Anderson with fraud related to three alleged loan schemes: (1) a series of FSB loans to finance a real estate development in Routt County, Colorado; (2) a series of "senior life settlement loans" from FSB to support an Altus aerospace company; and (3) a $2 million unauthorized loan from FSB to a company under Doughty and Anderson’s control.
The jury heard that in 2006 and 2007, Doughty and Anderson recruited buyers for 19 Colorado real estate lots priced at approximately $700,000 each. Doughty approved and issued 14 lot loans to buyers, totaling more than $10,000,000 in loan proceeds for the seller, Mountain Adventure Property Investments, LLC ("MAPI"). MAPI was a Colorado company that Anderson had an indirect ownership interest in and where he served as president and manager. Evidence at trial showed that each loan exceeded Doughty’s individual lending authority at FSB, and most of the loans were issued without approval of FSB’s loan committee, including a $580,000 loan to Anderson’s personal company. The jury heard that Doughty and Anderson presented lots to borrowers as "zero money down" investments, and that the down payments for the purchases were often advanced or refunded to the buyers by Anderson on behalf of MAPI. Doughty and Anderson also assured the buyers that MAPI would make all payments on the loans to the bank. The jury heard that on the few occasions when Doughty presented a Colorado loan to FSB’s loan committee, he misrepresented the source and amount of borrowers’ down payments and the borrowers’ responsibility for making payment on the loans. In connection with these Colorado lot loans, the jury convicted Doughty of one count of bank fraud conspiracy, four counts of bank fraud relating to separate lot loans, and one count of unauthorized issuance of a loan to Anderson’s personal company.
Second, trial evidence showed that Doughty funded five so-called "senior life settlement" loans through FSB in 2008. Each loan was $2.5 million, and one of the loans went to Anderson’s personal company. Doughty and Anderson recruited borrowers to take out these "self-paying" loans to provide money for investments in Altus-based Quartz Mountain Aerospace, Inc. ("QMA"). Evidence at trial showed that a portion of the loan proceeds was invested in QMA, and another portion would pay the loan’s interest. The remaining proceeds on the loans would buy and maintain third-party life insurance policies, where the death benefits on the third parties were intended to repay the loan’s principal. The jury heard that each loan exceeded Doughty’s lending authority, and that he issued at least $10,000,000 in senior life settlement loans without FSB’s loan committee or board approval. With each loan, Doughty and Anderson directed $125,000.00 in "service fee"” to Altus Ventures, a company under their control. The jury heard evidence that at the time the loans were issued, the fees to Altus Ventures were not disclosed to FSB or to the borrowers taking out those loans. In connection with the senior life settlement loans, the jury convicted Doughty of one count of misapplication of bank funds and one count of a false entry in bank records related to the concealment of the fees to Altus Ventures.
Third, the jury heard evidence that in January 2008, Doughty arranged a $2 million loan from FSB to Ethanol Products Group, LLC ("EPG"), a startup company in which both Anderson and Doughty had ownership interests. Evidence showed that Doughty advanced the $2 million from FSB, above his individual lending authority, without approval by FSB’s loan committee or board. Soon before issuing the loan, Doughty e-mailed Anderson his "cash strategy" for two other companies they controlled; the "strategy" showed all the EPG loan proceeds would be directed to companies controlled by Anderson and Doughty, ultimately diverting $100,000.00 in “officer bonuses” to Anderson and Doughty. The jury found Doughty guilty of one count of unauthorized issuance of a loan and one count of misapplication of bank funds related to the EPG loan.
The jury heard evidence over seven days, and deliberated approximately seven hours before reaching a verdict this afternoon. The jury acquitted Doughty on three charges.
On April 14, 2016, Anderson pleaded guilty to a one-count Information charging him with conspiring with Doughty to commit bank fraud. As part of the plea agreement, the government agreed to dismiss at sentencing the charges against him from the indictment. Anderson testified as a witness for the government at Doughty’s trial. At sentencing, Anderson faces up to five years in prison and a fine of $250,000.
Doughty faces up to 30 years in prison and a fine of $1,000,000.00 for each of the ten counts of conviction. Under federal law, each defendant will be required to pay restitution and to forfeit to the government the amount of the proceeds of the fraudulent schemes.
These convictions are the result of an investigation conducted by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation - Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson.
Five People Indicted in Conspiracy to Distribute Prescription Drugs in and Around AuburnRead the Press Release
Montgomery, Ala. – Five individuals were arrested over the past two weeks after being indicted and charged with prescription drug distribution offenses, announced United States Attorney George L. Beck, Jr.
The individuals arrested were: Bradford A. Blount, 25, of Vestavia Hills, Alabama; Dennis Michael Elder, 26, of Vestavia Hills; Saxon R. Monk, 25, of Washington, D.C.; Randolph D. Ogburn, 64, of Valley, Alabama; and Lewis Michael James, 57, of West Point, Georgia.
According to the indictment, in 2013, the defendants were involved in a conspiracy to distribute prescription drugs, including oxycodone, in and around Auburn, Alabama. The indictment also charges Blount with possessing heroin and Elder with carrying a firearm during the commission of a drug trafficking crime.
If convicted of the drug distribution conspiracy, each individual faces a maximum sentence of 20 years’ imprisonment. Also, Elder faces an additional sentence of not less than 5 years’ imprisonment if he is convicted of the firearms offense.
An indictment merely alleges that a crime has been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Federal Bureau of Investigation and the Auburn Police Department. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Federal search warrants executed, four arrested in multi-state drug trafficking investigationRead the Press Release
WHEELING, WEST VIRGINIA – Four people were arrested after federal search warrants were executed at homes in West Virginia and Ohio this week as part of an ongoing multi-state drug trafficking investigation, United States Attorney William J. Ihlenfeld, II, announced.
On Thursday, agents from the Ohio Valley Drug Task Force and the Belmont County Drug Task Force, searched homes on North Broadway, North Huron, and South Penn Streets on Wheeling Island in Ohio County, WV and on Noble Street in Bellaire, Ohio. Quantities of cocaine, crack cocaine, and marijuana, three firearms, and $4,000 in currency were recovered by agents. A Mercedes-Benz motor vehicle was also seized.Agents arrested Clarence Bertram, 24, of Wheeling, West Virginia, and Dontrell Ivery, 38, formerly of Cleveland, Ohio and now of Wheeling, West Virginia on drug and gun charges and both will appear in state court in West Virginia.
Terrell Bruce Allen, 32, of Cleveland, Ohio was also arrested on drug and gun charges and will appear in state court in Ohio.
Niamah Assamad, 36, of Wheeling, West Virginia, was arrested on an outstanding warrant for Felonious Assault and she will appear in state court in Ohio.
“This week’s execution of federal search warrants is just continuing proof of the success of the drug task force, and the cooperation of city, county, state and federal authorities,” said Ohio County Sheriff Pat Butler. “I know citizens get impatient when they see obvious drug operations in their neighborhood, however these investigations take time.”
“I am personally and professionally vested in Wheeling Island, and I appreciate the cooperation among the local, state, and federal agencies that were, and are still, involved in the investigation,” said Wheeling Police Chief Shawn Schwertfeger.The Ohio Valley Drug Task Force is a HIDTA-funded initiative and is comprised of officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police-Bureau of Criminal Investigations, and the Drug Enforcement Administration.
The Belmont County Drug Task Force is comprised of officers and agents from the Barnesville Police Department, Belmont County Sheriff’s Office, Bellaire Police Department, Bethesda Police Department, Bridgeport, Ohio Police Department, Martins Ferry Police Department, Powhatan Police Department, Shadyside Police Department, and St. Clairsville Police Department.
According to Ihlenfeld, additional charges arising from the investigation will be filed in the near future in both state and federal court.
Federal Jury Finds Pasco County Aircraft Mechanic Guilty of Child Exploitation OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today that a federal jury has found Russel Lee Orr (41, Trinity) guilty of attempted online enticement of a child to engage in sexual activity, attempted production of child pornography, and eight counts of advertising for child pornography. On the attempted enticement count, Orr faces a minimum mandatory penalty of 10 years’, up to life, imprisonment. He faces a mandatory minimum of 15 years, up to 30 years, in federal prison for the attempted production charge and for each of the advertising charges. His sentencing hearing is scheduled for October 25, 2016.
According to evidence presented at trial, from March 10, 2015, through May 20, 2015, Orr engaged in a series of text message and email conversations with an individual he believed to be a 14-year old girl. The "child" was actually a detective with the St. Johns County Sheriff’s Office. During the course of the conversations, Orr discussed in detail his desire to meet the “child” for sex. He also repeatedly solicited the “child” to produce and send pornographic pictures of her genitalia to him.
On May 21, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Orr’s apartment and arrested him. During the search of the home, the agents located and seized a smart phone that Orr had used to communicate with the “child” and also to search the Internet for materials related to the sexual exploitation of children.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the Pasco County Sheriff’s Office, and the Federal Bureau of Investigation in Jacksonville and Tampa. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Grand Jury Indicts Kentucky Man for Child Enticement and Attempted Production of Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Kentucky man on charges of enticing a minor and attempting to produce child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Alabama Law Enforcement Agency Sec. Stan Stabler.
A two-count indictment filed in U.S. District Court charges LARRY DEAN TACKETT, 55, of Wallingford, Ky., with child enticement and attempted production of child pornography in 2016 in Kentucky, Tennessee and Clay County, Ala.
The maximum penalty for child enticement is life imprisonment and a fine of $250,000; the maximum penalty for attempting to produce child pornography is 30 years in prison and a $250,000 fine.
The FBI and ALEA investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
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Exeter Man Sentenced to 41 Months for Making False Statements and Pharmacy RobberyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Clifford Sprague, 38, of Exeter, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 41 months in prison to be followed by three years of supervised release making false statements to obtain Social Security Disability Insurance (“SSDI”) benefits and for being an accessory after the fact to a pharmacy robbery. The defendant was also ordered to pay $18,042 in restitution. The defendant pled guilty to the charges on September 16, 2015.
According to court records, from March 2011 until March 2012, the defendant received $12,864 in SSDI benefits for himself and his three dependent children. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with a disability. In November 2011, the defendant was required to undergo a Continuing Disability Review to determine if he was still disabled. During this review, the defendant told his representative payee to falsely represent that he did not work outside the house and did require someone to clean, bathe, dress and cook for him. In truth and fact, the defendant did not have disabilities that required someone else to clean, bathe, dress and cook for him and did a significant amount of work outside the house including working as a scrap metal dealer, carpenter and woodcutter.
On March 10, 2012, Michael Thompson entered the Rite Aid pharmacy in Guilford, Maine wearing a bandana, a hood, sunglasses and gloves. He jumped over the pharmacy counter, brandished a large hunting style knife and demanded narcotics. A pharmacist opened the locker containing narcotics and Thompson filled his back pack with more than $5000 worth of them. After the robbery, Thompson called Sprague, told him that he had robbed the pharmacy and asked Sprague to pick him up in his car. Sprague did so. Shortly after picking up Thompson, Sprague saw a Somerset County Sheriff’s Office vehicle. Sprague slowed down his vehicle and told Thompson he needed to get out. Thompson got out of Sprague’s vehicle and fled into the woods. Later, Sprague used and sold some of the narcotics Thompson stole. On June 29, 2015, Thompson was sentenced to 82 months in prison for his role in the pharmacy robbery.
The false statements investigation was conducted by the SSA’s Office of the Inspector General. The pharmacy robbery investigation was conducted by the Piscataquis County Sheriff’s Office, the Maine State Police, the Federal Bureau of Investigation and the Somerset County Sheriff’s Office.
Convicted Cross-Burner Sentenced on Federal Gun ChargesRead the Press Release
Montgomery, Alabama – Steven Joshua Dinkle, 30, a former Exalted Cyclops of the Ozark, Alabama chapter of the International Keystone Knights of the Ku Klux Klan (KKK), was sentenced to 15 months in prison, to be followed by 3 years of supervised release, on charges of being a felon in possession of a firearm, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Dinkle was previously convicted in May of 2014 of several federal felonies surrounding the burning of a cross in a predominantly black neighborhood. Dinkle served his sentence for the previous convictions and was released in May of 2015. While on supervised release from May to August 2015, Dinkle was cited for multiple violations of the terms of his probation, including possession of a firearm, and his probation was revoked.
Federal law makes it a crime for anyone who has been convicted of a felony offense to possess a firearm, unless they have had their gun rights restored.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the United States Probation Office, and the Dale County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Susan Redmond.
Colorado Man Pleads Guilty in New Mexico to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Michael Pawletzki, 34, of Lakewood, Colo., pled guilty today in federal court in Albuquerque, N.M., to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Pawletzki was charged by indictment on Nov. 17, 2015, with violating SORNA by failing to update his sex offender registration. During today’s proceedings, Pawletzki pled guilty to a felony information charging him with failing to update his registration from Dec. 2014 through Nov. 2015, in Valencia County, N.M.
Pawletzki remains in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Pawletzki faces a maximum penalty of ten years in federal prison. Pawletzki will be required to register as a sex offender after completing his prison sentence.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Broward County Resident Sentenced to 4 Years in Prison for Possessing at Least 652 Identities Used in Stolen Identity and Tax Fraud SchemesRead the Press Release
A Broward County resident was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $12,640.35 for possessing at least 652 identities that were used in stolen identity and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.
Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, previously pled guilty to one count of using an unauthorized access device to obtain $1,000 or more, in violation of Title 18, United States Code, Sections 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals. Also seized from the duffel bag were 13 debit or visa cards from various banks where some of the real account owners had reported fraud on their accounts.
IRS-CI Special Agents determined that some of the individuals whose personal identifying information (PII) was found in the duffel bag had tax returns filed in their names. The agents interviewed numerous individuals and found that the individuals did not authorize Charles-Coldros to have their names, dates of birth, and Social Security numbers in her possession, and did not authorize anyone to file a tax return in their names. Another individual did not authorize Charles-Coldros to have a debit card in his/her name.
According to court documents in a separate, but related, (case #1:16-cr-20055), when Federal Protective Services (FPS) agents advised Charles-Coldros of the outstanding warrant for her arrest related to identity theft, the defendant ran away from the agents and jumped through the opened front-passenger window into another individual’s car. An FPS agent unsuccessfully attempted to pull Charles-Coldros out of the car. Fearing that the other individual, who was already in the driver's seat of the car, would drive away with the defendant in the car, the FPS agent jumped through the opened front-passenger window into the car with his legs dangling out. While in the car, the defendant and other individual repeatedly struck the FPS agent. In this case, Charles-Coldros previously pled guilty to one count of forcibly assaulting and interfering with officers and employees of the United States, and inflicting bodily injury in the commission of the offense, in violation of Title 18, United States Code, Sections 111(a)(1) and (b) and 2. Sentencing is scheduled in this case for July 12, 2016 before U.S. District Judge Kathleen M. Williams. The defendant faces a maximum of twenty years in prison for the assault charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service and the U.S. Marshals Service for their assistance in this matter. The cases are being prosecuted by Assistant U.S. Attorneys Cynthia R. Wood and Brian J. Shack.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Park Man Sentenced to Ten Years in Prison for Sex Trafficking of A Teenage GirlRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of MYKEL LAMAR HARRIS, 25, for trafficking a teenage girl who he sold for sex. HARRIS, who pleaded guilty on January 25, 2016, was sentenced Thursday before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
“Sex trafficking is not just an international or national problem—it is also a local one,” said Assistant United States Attorney Laura M. Provinzino. “The U.S. Attorney’s Office is committed to protecting the children of Minnesota from commercial sexual exploitation by prosecuting those who harm children. We urge members of the community to continue to contact law enforcement when children are in danger.”
According to the defendant’s guilty plea, in September 2013, HARRIS used Facebook to recruit a teenage girl who was in high school at the time, to commit sex acts in exchange for money. HARRIS took partially nude photos of the victim and used them to advertise the victim on a backpage.com post linked to his personal email account. Over a three-day period in December 2013, HARRIS sold the victim for sex at a hotel in Roseville, Minn. Customers were charged $150 for a half hour and $250 for an hour. HARRIS took all of the money the victim collected for those sexual encounters.
According to documents filed in court, HARRIS again caused the victim to engage in commercial sex in January, February and April 2014, during which time she missed days of high school and at her legitimate place of employment. HARRIS used the victim’s own debit card to rent hotel rooms in which he sold her for sex.
The successful prosecution resulted from an anonymous tip handwritten on a backpage.com advertisement. Based on the victim’s photographs, the tipster reported: “I am as sure as I can be ‘this is a child.’ Please do something!”
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
This case is the result of an investigation conducted by the Saint Paul Police Department and Homeland Security Investigations.
Defendant Information:
MYKEL LAMAR HARRIS, 25
Brooklyn Park, Minn.
Convicted:
- Sex trafficking of a minor, 1 count
Sentenced:
- 120 months in prison
- 10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Baltimore Man Sentenced for Role in Home Depot Shoplifting RingRead the Press Release
ALEXANDRIA, Va. – Christopher Lee Miller, 38, of Baltimore, Maryland, was sentenced today to 15 months in prison for wire fraud conspiracy.
Miller pleaded guilty on April 7, 2016. According to court documents, Miller was a member of a shoplifting ring that targeted Home Depot stores in Virginia, Maryland, Pennsylvania, and New Jersey. Miller and his co-conspirators would steal merchandise from Home Depot stores and then return the stolen merchandise without a receipt. In exchange, they would receive store credit, which they sold for cash. Over the course of five years, Miller helped to defraud Home Depot of approximately $140,000 in store credit.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Tyler McGaughey prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-210.
Ansley Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Darrell W. Jenkins, 42, formerly of Ansley, Nebraska, was sentenced today in Lincoln, Nebraska, to 17 years in prison by United States District Judge John M. Gerrard, for receiving child pornography. Following his release from prison, Jenkins will serve 17 years on supervised release and continue to be required to register as a sex offender. Jenkins was previously convicted in 2005 of Third Degree Sexual Assault in Custer County, Nebraska.
In April of 2015, the Nebraska State Patrol was contacted by the Alliance Police Department after receiving information that Jenkins had been sending sexual text messages to a 14 year old minor via Facebook. Officers of the Alliance Police Department provided the State Patrol with Jenkins’s Facebook account information and IP logs for a specific date range during which time an undercover officer had communicated with Jenkins, while posing as the minor victim. During this time, Jenkins communicated lewd, lascivious or obscene language or sound to the officer posing as the minor. Investigation determined that the IP address was assigned to Jenkin’s residence in Ansley, Nebraska.
A search warrant was executed at the residence and investigators took possession of Jenkins’ electronic devices and after further forensic examination identified 37 videos and 46 pictures of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Alliance Police Department and the Nebraska State Patrol.
Thursday 30 June 2016
Virginia Man Sentenced to 35 Years in Prison for Kidnapping A Philadelphia Woman Off A City StreetRead the Press Release
PHILADELPHIA - Delvin Barnes, 38, of Charles City County, Virginia, was sentenced today to 35 years in prison for kidnapping. Barnes pleaded guilty to the charge on September 10, 2015. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered a $100 special assessment.
On November 2, 2014, at approximately 9:40 p.m., in the area of 100 W. Coulter Street in Philadelphia, Barnes violently grabbed a 22-year old woman from a sidewalk as she walked home. Barnes dragged the victim down the street and forced her into his car. A video recording capturing the abduction shows the victim struggling with the defendant in her attempt to get away. The victim struck Barnes in the head with a hammer after he forced her into his car. The defendant threatened that if she did not stop fighting, he would kill her.
Barnes drove to Maryland with the victim, bound by her wrists, in the trunk of the car. On November 5, 2015, federal agents arrested Barnes in Jessup, Maryland, and the victim was rescued. She identified Barnes as her abductor.
The case was investigated by the FBI, the Philadelphia Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal’s Service with assistance from the Charles City County Sheriff’s and Kent County Sheriff’s Offices. It was prosecuted by Assistant United States Attorney Jeanine Linehan.
Vineland, New Jersey, Man Admits Conspiracy, and Fraud and False StatementsRead the Press Release
CAMDEN, N.J. – A Vineland, New Jersey, man today admitted his role in a scheme to defraud a bank and to filing fraudulent tax returns, U.S. Attorney Paul J. Fishman announced.
Richard T. Pepe, 69, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding information charging him with one count of conspiracy to commit bank fraud and one count of fraud and false Statements on his 2008 U.S. Individual Income Tax Return.
According to documents filed in this case and statements made in court:
From 2004 through October 2008 Pepe knowingly conspired and agreed with others to execute a scheme to defraud M&T Bank. The object of the conspiracy was for Pepe, the general manager of Chevrolet 73, and others acting on Pepe’s behalf, to fraudulently obtain money from M&T Bank, intended as floor plan financing for Chevrolet 73, by providing false information to the bank. Pepe then converted that money – $2.95 million – to his own use to pay for personal expenses for himself and his family members.
Pepe also admitted he made false statements on his 2008 U.S. Individual Income Tax Return by claiming his total income for tax year 2008 to be $36,628, when he knew and believed his total income to be in excess of that amount.
The conspiracy charge to which Pepe pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000. The fraud and false statement charge to which Pepe pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000. As part of the plea agreement, Pepe will make full restitution for all losses and consented to the entry of a forfeiture money judgment of $2.95 million. Sentencing is scheduled for Oct. 14, 2016.
U.S. Attorney Fishman credited special agents of the FBI Philadelphia Division’s Cherry Hill Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr., and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq. Assistant Federal Public Defender, Camden
Valparaiso Man Sentenced to 50 Years on Child Pornography ChargesRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Brian Reider, 55, of Valparaiso, Indiana was sentenced before Senior District Court Judge James T. Moody for one count of production of child pornography and one count of distribution of child pornography.
Reider was sentenced to 600 months (50 years) imprisonment followed by 20 years of supervised release and ordered to pay $3000 in restitution to victim “John Doe”.
Reider's sentence follows his guilty plea to knowingly producing sexually explicit depictions of then-12-year-old John Doe on or about September 13, 2009 and knowingly distributing child pornography on or about September 17, 2010.
According to documents filed in the case, Reider met 12 year-old John Doe at a BMX bike park in Illinois and communicated with the boy via the social networking site “My Space.” Reider provided the boy with parts for his BMX bicycle and asked the boy to allow Reider to take sexually explicit photographs in exchange. Numerous sexually explicit photographs and a video of John Doe were created in a wooded area near the Illinois bike park and transported by Reider back to his Indiana home where they were later found by law enforcement saved to Reider's computer.
Further investigation revealed that Reider was also trading child pornography online via a peer-to-peer file sharing program and had amassed a collection of over 20,000 images and 4,400 videos depicting minors engaging in sexually explicit conduct.
Also found on Reider's computer were numerous sexually explicit photographs and videos taken in Defendant's residence of at least three other unidentified minor male victims in addition to John Doe.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Highland, Indiana Police Department through a Child Sexual Predator Program Grant; the Kokomo, Indiana Police Department; and the DuPage County, Illinois States Attorney’s Office. This case was handled by Assistant United States Attorney Jill R. Koster.
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Vallejo Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gregory M. Cox, 51, of Vallejo, charging him with being a felon in possession of a firearm, unlawful possession of a short-barrel shotgun, and unlawful possession of a short-barrel rifle, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2016, Cox, a convicted felon, was found in possession of a Norinco Model 99 12-gauge shotgun, a Savage Arms Stevens Model 940E 12-gauge shotgun with a shortened 13-inch barrel, and a Surplus Ammo and Arms Model LOW15 .223-caliber M4 assault rifle, with a shortened 10-inch barrel and a flash suppressor.
This case is the product of an investigation by the Federal Bureau of Investigation and the Vallejo Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.
If convicted, Cox faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is a product of the FBI Safe Streets Task Force initiative.
University of Missouri-Columbia Agrees to Pay United States $2.2 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the University of Missouri-Columbia has agreed to pay the United States $2.2 million to settle allegations that it violated the False Claims Act by submitting claims for radiology services to federal programs such as Medicare, Medicaid, and TRICARE. The United States alleged that certain attending physicians certified that they had reviewed the images associated with interpretative reports prepared by resident physicians when, in fact, they had not reviewed those images.
“Hospitals and physicians have the highest obligation to both protect patients by complying with the standard of care and to protect taxpayers by complying with the rules for billing federal programs. This lengthy investigation by multiple agencies working together has produced a just result for both patients and taxpayers,” said United States Attorney Dickinson.
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Regional Office, stated, “Our office will continue to work with our law enforcement partners to ensure that qualified medical professionals are reviewing radiology exams such x-rays, MRIs, CT scans, ultrasounds, etc., to accurately diagnose our beneficiaries’ medical conditions.”
"The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs, operations and resources. The victims of this kind of fraud are real people and it impacts those who have served our country the most," said Brian J. Reihms, Special Agent in Charge, Defense Criminal
Investigative Service (DCIS).
A federal investigation commenced in 2011 and led to an internal investigation by the university. The university determined that two attending radiologists, Dr. Kenneth Rall and Dr. Michael Richards, violated Medicare and hospital rules when they certified certain interpretive reports prepared by resident physicians. Medicare will pay claims for resident physicians to interpret radiological images but only if an attending radiologist also reviews the image and provides any necessary input to the interpretive report. Rall and Richards left the employment of the university in June 2012. The university cooperated throughout the lengthy investigation. In addition to this False Claims Act settlement, the university also entered into a Corporate Integrity Agreement with HHS-OIG.
The case, United States ex rel. Galuten v. University of Missouri-Columbia, et al., Case No. 11-cv-04140-FJG (W.D. Mo.), was handled by the U.S. Attorney’s Office for the Western District of Missouri, HHS-OIG, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case was prosecuted by Assistant U.S. Attorney Cindi Woolery. It was investigated by HHS-OIG and DCIS
Union County, New Jersey, Man Sentenced to 70 Months in Prison for Role in Illegal International Procurement NetworkRead the Press Release
NEWARK, N.J. – A Mountainside, New Jersey, man was sentenced today to 70 months in prison for his role in an international procurement network that obtained and smuggled more than $65 million worth of electronics from the United States to Russia in violation of export control laws, U.S. Attorney Paul J. Fishman announced.
Alexander Brazhnikov Jr., 37, a naturalized United States citizen born in Moscow, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit money laundering, one count of conspiracy to smuggle electronics from the United States, and one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA). Brazhnikov also agreed to the entry of a forfeiture money judgment against him in the amount of $65 million. Judge Martini imposed the sentence today in Newark federal court.
“Brazhnikov was responsible for nearly 2,000 illegal shipments of regulated, sensitive electronics components, many of which wound up in the hands of Russian military and security forces,” U.S. Attorney Fishman said. “He also admitted going to extraordinary lengths to conceal the nature and destination of the shipments, as well to hide the tens of millions of dollars in illegal proceeds generated by the scheme. The sentence imposed on him today reflects the seriousness of his crimes.”
Brazhnikov Jr. was arrested at his home on June 26, 2014, following a joint investigation by the FBI, the U.S. Department of Commerce (DOC), and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). From January 2008 through June 2014, he was the owner, chief executive officer, and principal operator of four New Jersey microelectronics export companies, each of which were used in the various conspiracies uncovered by the investigation. Following his arrest, special agents seized $4,075,237 in proceeds related to the charged offenses, as well as real property and other assets valued at more than $600,000.
“Today's sentencing represents a collaborative effort among law enforcement agencies,” Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, said. “I commend our colleagues at the FBI and Homeland Security Investigations for their efforts. The Office of Export Enforcement will continue to pursue violators of our export control laws by leveraging our unique authorities to protect national security.”
“HSI will continue to use all the resources at its disposal to prevent sensitive and restricted technology from being exported illegally,” Special Agent in Charge Terence S. Opiola, HSI, Newark, said. “HSI as the principal enforcer of export controls will continue to ensure that sensitive technology doesn’t fall into the wrong hands.”
According to documents filed in this case and statements made in court:
Brazhnikov Jr. and his companies are part of a sophisticated procurement network that has surreptitiously acquired large quantities of license-controlled electronic components from American manufacturers and vendors and exported those items to Russia on behalf of Russian business entities that were authorized to supply them to the Ministry of Defense of the Russian Federation, the Federal Security Service of the Russian Federation (the FSB), and Russian entities involved in the design of nuclear warheads, weapons, and tactical platforms.
The defendant conspired with his father, Alexander Brazhnikov Sr., owner of a Moscow-based procurement firm whose agents helped initiate the purchase of electronics components from United States vendors and manufacturers on behalf of the conspirators’ clients in Russia. Brazhnikov Jr. finalized the purchase and acquisition of the requested components from the various distributors, then repackaged and shipped them to Moscow. He routinely falsified the true identity of the end-user of the components and the true value of the components in order to avoid filling out required export control forms. Brazhnikov Jr. purposefully concealed the true destination of the parts that were exported by directing that the shipments be sent to various “shell” addresses in Russia – some of which have been identified as vacant storefronts and apartments – which were established and controlled by the Moscow-based network. All shipments initially directed to the shell addresses were redirected to a central warehouse controlled by the conspirators’ Moscow-based network.
The funds for the network’s illicit transactions were obtained from the various Russian purchases and initially deposited into one of the conspirators’ primary Russia-based accounts. Disbursements for purchases were made from that primary Russian account through one or more foreign accounts held by shell corporations in the British Virgin Islands, Latvia, Marshall Islands, Panama, Ireland, England, United Arab Emirates, and Belize, and ultimately into one of the defendant’s U.S.-based accounts. The network’s creation and use of dozens of bank accounts and shell companies abroad was intended to conceal the true sources of funds in Russia, as well as the identities of the various Russian defense contracting firms receiving U.S. electronics components.
In addition to the prison term and forfeiture, Judge Martini sentenced Brazhnikov to three years of supervised release and fined him $75,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the U.S. Department of Commerce, under the direction of Special Agent in Charge Carson, New York Field Office; and special agents of HSI, under the direction of Special Agent in Charge Opiola, with the investigation leading to today’s sentencing. He also thanked officers from the Union County Police Department, under the direction of Captain Chris Debbie; and officers of the Mountainside Police Department, under the direction of Police Chief Allan Attanasio, for their important contributions to the investigation. The U.S. Justice Department’s Office of International Affairs provided assistance with this case.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Peter Gaeta of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Jack Arseneault Esq., Chatham, New Jersey
U.S. Attorney's Office Files Federal Charges Against 16 Individuals for Fraudulent Receipt of Travel Reimbursement Benefits from U.S. Department of Veterans AffairsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that in the month of June the U.S. Attorney’s Office in Asheville has filed federal charges against 16 individuals that defrauded the U.S. Department of Veterans Affairs (the VA) by submitting fraudulent travel vouchers for reimbursement.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney Rose in making today’s announcement.
According to allegations contained in filed court documents, the Charles George Veterans Affairs Medical Center (VAMC), located in Asheville, is operated by the VA and provides services for veterans of the United States military. Under certain circumstances, veterans with service-connected disabilities are reimbursed for travel expenses on mileage they incur when traveling to and from their residence and the VAMC. In order to claim mileage reimbursement, eligible veterans must go to the Travel Benefits Office at the VAMC and provide information about the distance traveled. The veterans then obtain a voucher which they submit to the Agent Cashier to receive reimbursement for their travel.
The charging documents allege that the defendants submitted fraudulent travel vouchers that overstated the distance they traveled for medical appointments or to receive medical treatment. The VA reimbursed the defendants for their travel expenses based on mileage information on the fraudulent vouchers. A total of 16 individuals have been charged separately in connection with travel voucher fraud.
A federal grand jury returned federal indictments on June 7, 2016, against three individuals, charging each defendant separately with one count of making a false claim for travel benefits from the VA, for allegedly submitting multiple fraudulent travel vouchers over a period of months or years. The charge levies a maximum penalty of five years in prison and a $250,000 fine. The three indicted are:
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Arlan M. Land, 53, of Nolanville, TX, was indicted for allegedly obtaining from the VA approximately $18,839.10 in fraudulent claims.(Docket no. 1:16-cr-72)
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David B. Wright, 56, of Asheville, is facing federal charges for allegedly obtaining approximately $15,391.52 from the VA. (Docket no. 1:16-cr-73)
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Pamela L. Smith, 55, of Asheville, has been indicted for allegedly defrauding the VA of approximately $5,318.96. (Docket no. 1:16-cr-71)
Criminal bills of information have also been filed against 13 defendants. They are each charged with one count of stealing money from the VA, a charge that levies a potential maximum prison term of one year and a $100,000 fine. The loss amount associated with each case is less than $5,000. Those charged are:
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Harris Hamilton, 60, of Chesnee, S.C., is charged for allegedly obtaining from the VA approximately $2,662 in fraudulent claims. (Docket no. 1:16-mj-72)
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Marcus McEachin, 45, of Asheville, is charged for allegedly obtaining from the VA approximately $4,029 in fraudulent claims. (Docket no. 1:16-mj-73)
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Michael Tate, 55, of Asheville, is charged for allegedly obtaining from the VA approximately $2,919 in fraudulent claims. (Docket no. 1:16-mj-74)
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Christopher Miller, 52, of Spartanburg, S.C., is charged for allegedly obtaining from the VA approximately $3,411 in fraudulent claims. (Docket no. 1:16-mj-75)
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Tommie Borders, 62, of Asheville, is charged for allegedly obtaining from the VA approximately $1,426 in fraudulent claims. (Docket no. 1:16-mj-76)
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Ruben Dixon, 59, of Lenoir, N.C., is charged for allegedly obtaining from the VA approximately $1,234 in fraudulent claims. (Docket no. 1:16-mj-77)
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Jeffrey Franklin, 58, of Asheville, is charged for allegedly obtaining from the VA approximately $3,486 in fraudulent claims. (Docket no. 1:16-mj-78)
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Violet McKinney, 53, of Asheville, is charged for allegedly obtaining from the VA approximately $4,737 in fraudulent claims. (Docket no. 1:16-mj-79)
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Guy Stivender, 57, of Asheville, is charged for allegedly obtaining from the VA approximately $1,534 in fraudulent claims. (Docket no. 1:16-mj-80)
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TC Littlejohn, 56, of Asheville, is charged for allegedly obtaining from the VA approximately $1,514 in fraudulent claims. (Docket no. 1:16-mj-83)
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Kevin Simms of Asheville, is charged for allegedly obtaining from the VA approximately $ 4,348 in fraudulent claims. (Docket no. 1:16-mj-84)
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Marshall Dukes, 61, of Asheville, is charged for allegedly obtaining from the VA approximately $3,780 in fraudulent claims. (Docket no. 1:16-mj-85)
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Kenneth Pickens, 47, of Asheville, is charged for allegedly obtaining from the VA approximately $2,480 in fraudulent claims. (Docket no. 1:16-mj-86)
“The travel reimbursement program exists to ease the financial burden on military veterans seeking medical treatment and access to good medical care. The system relies upon veterans to submit honest and accurate forms, reflecting actual travel expenses. Unfortunately, these 16 individuals allegedly decided to lie and make some extra cash by padding their travel vouchers. We simply cannot allow this type of fraud, waste and abuse to go on and we will prosecute anyone who steals money from a program put in place to provide much-needed assistance to our country’s veterans,” said U.S. Attorney Rose.
The charges contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the VA-OIG and the Veterans Affairs Police Department for their investigation of the cases. Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
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Tennessee man sentenced to nearly 20 years in prison for sexually exploiting 14-year-oldRead the Press Release
A Tennessee man was sentenced to nearly 20 years in prison for traveling to Ohio to sexually exploit a 14-year-old, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
David K. Turner, 24, of Knoxville, Tennessee, was sentenced to 238 months of prison after previously pleading guilty to a four-count indictment that charged him with sexually exploiting a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercing and enticing a minor, and traveling with the intent to engage in illicit sexual conduct.
“All forms of child exploitation are deeply troubling, and this case illustrated how quickly online child exploitation can lead to sexual exploitation said Acting United States Attorney Carole S. Rendon. “Mr. Turner coerced a girl that he knew was only 14 to perform sex acts on camera and then planned to take her across the country in the hope of further exploiting her. We commend the Canton and Massillon Police Departments and the FBI Canton Resident Agency in pursuing justice for the victim and her family."
The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Canton and Massillon Police Departments and the FBI Canton Resident Agency.
Stafford Man Pleads Guilty to Attempting to Arrange Sex with a MinorRead the Press Release
ALEXANDRIA, Va. – Justin Frank Clark, 28, formerly of Stafford, pleaded guilty yesterday to attempting to coerce and entice a minor.
According to court documents, from April through May, Clark responded to an online ad posted by an undercover agent, claiming to advertise a ten-year-old girl for sex. Through a series of emails and messages, Clark arranged to travel from Stafford to Washington, D.C., to have sex with the minor. While arranging the meeting, Clark also sent multiple videos containing child pornography to the undercover agent.
Clark faces a mandatory minimum of ten years and a maximum penalty of life in prison when he is sentenced on September 16. 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and David P. Decatur, Stafford County Sheriff, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Whitney Dougherty Russell 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. 1:16-cr-157.
Six Mexican Nationals Indicted in Fraudulent Identification Document ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 16-count indictment today charging six Mexican nationals with conspiracy, transferring false identification documents, possessing document-making implements, and fraud and misuse of alien registration receipt cards, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 17, 2016, Angelica Moreno-Velasquez, 31; Maria Victoria Perez‑Vasquez, 30; Francisco Javier Hidalgo-Flores, 25; Lizet Amairani Ramirez-Zazueta, 26, and Veronica Rosales-Capitaine, 49, all of Fresno, and Fidel Vasquez-Velasquez, 22, of Madera, conspired to possess, transfer, and sell false U.S. social security cards and alien registration cards in Fresno and Madera County. The defendants are scheduled to be arraigned at 2:00 pm today before U.S. Magistrate Judge Stanley A. Boone.
According to court documents, Vasquez-Velasquez, Hidalgo-Flores and Rosales‑Capitaine manufactured fraudulent identification documents, including social security cards and alien registration receipt cards. Vasquez-Velasquez, Hidalgo-Flores and Perez-Vasquez took orders, photographs and biographical information from customers, and delivered the completed fraudulent identification documents to the customers, charging between $80 and $150 for one set. Moreno-Velasquez and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher D. Baker is prosecuting the case.
If convicted, the maximum statutory penalty for transferring false identification documents or possessing document-making implements is 15 years in prison and a $250,000 fine; the maximum statutory penalty for fraud and misuse of alien registration receipt cards is 10 years in prison and a $250,000 fine, and the maximum statutory penalty for the conspiracy charge is five years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SRA International Inc. and Galaxy Scientific Corp. to Pay $1.1 Million to Resolve Alleged False Claims Related to Military ContractsRead the Press Release
NEWARK, N.J. – SRA International Inc. and Galaxy Scientific Corp. will pay more than $1.1 million to resolve civil claims relating to a scheme to bill for, and capture, unlawful profits on certain military contracts, U.S. Attorney Paul J. Fishman of the District of New Jersey announced today.
In the civil settlement, SRA International Inc. (SRA), Galaxy Scientific Corp. (GSC), Galaxy Technology LLC (GTech), and Engineering Integrated Services L.L.C. (EIS), agreed to pay $1,105,087 plus accrued interest to the federal government to resolve allegations under the False Claims Act. The United States alleged that in 2004 and 2005 GSC used shell affiliates to improperly induce the Government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.
With respect to a task order involving the use of image and audio compression technology over low-bandwidth networks (Task Order 29 under the Communications-Electronics Life Cycle Management Command’s [CECOM’s] Rapid Response Contract No. DAAB07-03-D-B011), the United States alleged that GSC, a company whose majority shareholder and CEO was Dr. James Yoh, created a shell affiliate, GTech, a company wholly owned by Dr. Yoh, which it used to disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.
In another task order involving communications in the Kuwait-Iraq theater of operations (Task Order Y601 of the same contract above), the United States alleged that GSC created another shell affiliate, EIS, again owned and controlled by Dr. Yoh, to improperly induce the government to fund and award the task order, disguise actual costs and capture unlawful profit.
The civil settlement resolves a False Claims Act lawsuit filed under the FCA’s qui tam provisions in federal court in the District of New Jersey by John Carr, who worked as a contracting officer for GSC. As part of today’s resolution, Mr. Carr will receive approximately $250,000 from the civil settlement amount.
U.S. Attorney Fishman credited Resident Agent in Charge Richard Monticello of the Defense Criminal Investigative Service, New Jersey Resident Agency, and Investigative Auditor Brandy Saul of the Defense Contract Audit Agency, Mid-Atlantic Region, for the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the U.S. Attorney’s Office’s Civil Division in Newark and Trial Attorney Arnold Auerhan of the Civil Frauds Section in the U.S. Department of Justice.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Counsel for relator: Eric H. Jaso Esq., New York, and William J. Hardy Esq., Washington, D.C.
Rounds Crew Gang Leader Sentenced on Racketeering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Johnny Rounds, who was convicted of racketeering conspiracy involving murder and drug dealing and operating a continuing criminal enterprise, was sentenced to 300 months in prison by Senior U.S. District Judge William M. Skretny.According to Assistant U.S. Attorneys Joel L. Violanti and Wei Xiang, who handled the case, between 2004 and June 2010, the defendant was the head of the Rounds Crew which committed numerous acts of violence and narcotics trafficking on the East Side of Buffalo encompassing Broadway and several intersecting streets. Members of the gang guarded that territory and resorted to acts of violence to insure that no rival gang members or other individuals encroached upon their territory for any reason, including selling or distributing drugs.
Acts of violence included the murders of three people who did not have any affiliation with gang activity, and the attempted murders of several others:
• The July 10, 2009 murder of Brandon Haugabook, on the corner of Paderewski and Townsend Streets in Buffalo;
• The August 12, 2009 murder of Larry Crosland on William Street in Buffalo;
• The August 13, 2009 murder of Shawn Kozma on Reed Street in Buffalo. Kozma’s body was found burned a day later on August 14, 2009 in a vacant field on William Street;
• Several attempted murders and shootings of rival gang members.
In addition to committing the murders and attempted murder, the Rounds Crew engaged in narcotics trafficking offenses in their territory which included Reed, Detroit, Townsend, and Coit Streets in Buffalo.
Johnny Rounds and seven other Rounds Crew Gang members have been convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. Additional assistance was provided by the Erie County District Attorney's Office.
Rexburg Man Indicted for Unlawful Possession of FirearmsRead the Press Release
BOISE – Joshua Black, 34, of Rexburg, was indicted June 28, 2016, by a federal grand jury in Pocatello for unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about May 20, 2016, Black possessed a Taurus, 9mm caliber pistol and a Plumcrazy Firearms, 5.56 caliber rifle, as well as 82 rounds of 9mm caliber ammunition and 945 rounds of .223/5.56 caliber ammunition. Black is prohibited from possessing firearms and ammunition because he was previously convicted of the felony crime of unlawful manufacture of marijuana on January 23, 2012 in Clackamas County, Oregon.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The government is seeking forfeiture of the firearms and ammunition involved in the offense.
The case was investigated by the Rexburg Police Department, the Madison County Prosecutor’s office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 13 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Redmond Man Pleads Guilty to Stealing Federal BenefitsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice appeared in federal court this week and admitted to stealing more than $55,000 from the Department of Veterans Affairs, U.S. Department of Agriculture, and U.S. Department of Health and Human Services. Bruce A. Endicott, 34, pled guilty to theft of government funds before U.S. District Court Judge Robert E. Jones on Tuesday, and admitted he committed the theft over a course of more than three years.
According to court records, Endicott began receiving service-connected disability benefits through the Department of Veterans Affairs (VA) in 2005. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included physical and mental impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months. In fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013 and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (formerly known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his Individual Unemployability (IU) claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits.
Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
According to the plea agreement, the government will be seeking a 30-day term of imprisonment. The actual sentence will be determined by Judge Jones at Endicott’s sentencing hearing which is scheduled for October 5, 2016.
The case was investigated by the Criminal Investigations Division of the Veterans Affairs Office of Inspector General, the Oregon Department of Human Services, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Puerto Rico Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
A 12-count indictment was unsealed today charging four current and former Police of Puerto Rico (POPR) Caguas Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted in Caguas, Puerto Rico, on Aug. 15, 2015. The indictment alleges that during the police operation, the officers used excessive force against two arrestees and that they unlawfully seized, concealed and destroyed evidence of their misconduct.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico.
According to the indictment, while acting under color of law, POPR Sergeant Maximo Cano Diaz physically struck an individual identified only as A.C.N., resulting in bodily injury. The indictment also alleges that while acting under color of law, POPR Agent Antonio Rodriguez Ortiz assaulted an individual, identified only as G.A.H., by deploying a taser onto G.A.H.’s body, which resulted in bodily injury. Cano, Rodriguez and former POPR Agent Javier Ortiz Gonzalez then commanded an individual, identified only as X.R.C., to stop recording video and surrender her cell phone while pointing a taser at her. The defendants allegedly then pursued X.R.C. to the gate of her home; seized her cell phone, which was used, in part, to record police conduct on or about Aug. 15, 2015; and erased the contents of the cell phone by resetting the phone to its factory settings. On the same day, Cano allegedly seized and kept a cell phone belonging to another individual, identified only as J.R.D., which was also used to record police conduct. According to the allegations, Cano, Ortiz and POPR Agent Iris Rivera Figueroa then made false statements to cover up the conduct.
Cano is charged with four counts of obstruction of justice, three counts of deprivation of rights under color of law and one count of making false statements. Ortiz is charged with one count of obstruction of justice, one count of deprivation of rights under color of law, one count of making false statements and one count of perjury. Rodriguez is charged with one count of obstruction of justice and one count of deprivation of rights under color of law. Rivera is charged with one count of making false statements.
If convicted, the defendants face a maximum sentence of 20 years in prison for each of the obstruction of justice charges and a maximum sentence of 10 years in prison for each of the civil rights violations. The false statements and perjury charges each carry a maximum sentence of five years in prison. The defendants also face a potential $250,000 fine for each count.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorney José Contreras of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Julia Gegenheimer of the Civil Rights Division.
Cano Diaz et al Indictment
Providence Resident Pleads Guilty to Sex Trafficking 16-Year OldRead the Press Release
PROVIDENCE, R.I. – Paris Peters, 24, of Providence, pleaded guilty in federal court in Providence today to sex trafficking a 16-year old female. Peters admitted to the court that beginning in August 2015, he and two co-defendants conspired to post photographs and advertisements on Backpage.com offering the juvenile female for prostitution, and arranging for and transporting the victim to various locations in Rhode Island and Massachusetts to engage in commercial sexual activity.
Appearing before U.S. District Court Chief Judge William E. Smith, Peters pleaded guilty as charged in a federal indictment returned on December 3, 2015, with conspiracy to sex traffic a child, sex trafficking a child, transportation of a minor with the intent to engage in criminal sexual activity.
Paris Peters’ guilty plea is announced by United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Pawtucket Police Chief Paul King and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court records and information presented to the court, it is alleged that in mid-August 2015, a 16-year old female was introduced to Paris Peters and Marcus Jamal Gibbs, 28, of Providence, with the intent that the she work for them as a prostitute. Within days, the two men introduced her to a third individual, Michael Sabatino, 24, of Providence. It is alleged that from approximately August 20, 2015 to September 27, 2015, the three men recruited, enticed, transported, harbored and advertised the minor victim for purposes of prostitution.
Peters is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 14, 2016. Gibbs and Sabatino are detained in federal custody awaiting trial on charges of conspiracy to sex trafficking a child, sex traffic a child, transportation of a minor with the intent to engage in criminal sexual activity.
According to information presented to the court, an investigation by Pawtucket Police detectives and HSI agents determined that on the night of August 20-21, 2016, Peters posted pictures of the juvenile victim in various stages of undress on Backpage.com, offering her for prostitution. The advertisement posted by Peters claimed the person in the photographs was 20-years old, knowing that she was only 16-years old.
According to information presented to the court, over the next several weeks numerous individuals responded to the advertisement on Backpage.com posted by Peters. As a result, it is alleged that the victim was driven by the defendants to various hotels and private residences in Rhode Island and Massachusetts to engage in commercial sexual activity.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being co-prosecuted in federal court by Assistant U.S. Attorney Adi Goldstein and Rhode Island Assistant Attorney General Daniel Guglielmo.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Philadelphia Man Charged with Trying to Ship Methamphetamine Thru the U.S. MailRead the Press Release
PHILADELPHIA - Nelson Rodriguez, 65, of Philadelphia, Pennsylvania, was charged today by information with attempted possession with intent to distribute and aiding and abetting the attempted possession with intent to distribute methamphetamine, announced United States Attorney Zane David Memeger. The charge arises from the defendant’s involvement in the shipment of methamphetamine using the U.S. Postal Service Priority Mail.
If convicted the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 29, 2016, Christopher R. Pelate, 34, of Pinckneyville, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Pelate, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 110 months in federal prison, to be followed by 3 years’ supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Pelate was involved with others in the manufacture and distribution of methamphetamine. Pelate provided pseudoephedrine for use in the manufacture of methamphetamine. Pelate also distributed methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the judge found that Pelate was responsible for the distribution of 35 grams of ice and 7.78 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Eight co-defendants have previously been sentenced for their role in the drug conspiracy.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
Peoria Man Pleads Guilty to Producing Child Pornography While Registered as Sex OffenderRead the Press Release
Peoria, Ill. – A September sentencing date has been scheduled for a Peoria, Ill., man, Jordan D. Salem, 24, of the 600 block of S. Byron Court. Salem appeared before U.S. Magistrate Judge Jonathan E. Hawley on June 28, 2016, to enter his pleas of guilty to production of child pornography while registered as a sex offender. Pursuant to a plea agreement, Salem faces a stipulated sentence of 35 years in federal prison, subject to acceptance by U.S. District Judge Michael M. Mihm. Sentencing before Judge Mihm has been scheduled for Sept. 22, 2016.
According to court documents, beginning in 2013, Salem created several false identities on Facebook, using another male’s picture, and solicited naked photographs and sexual acts from female victims, including minors. Acting under his false personas, including “Cody Miller” and “Ryan Daniel Singer,” Salem represented that he was employed as a performer by an internet pornography website that was seeking females to produce short pornographic videos. Salem promised that the girls would be paid thousands of dollars by the website and that their identities would not be revealed.
When a girl inquired with Salem’s false persona on Facebook, Salem would provide additional details about the job and direct them to send several naked images of themselves if they were interested. If a girl complied with his request for naked photographs, Salem would then direct her to his residence for the purpose of producing the pornographic film with him. In the course of his Facebook chats with females he knew to be minors, Salem would reassure them that he had produced pornography with minors in the past and he could either blur their face or keep their face out of the video to protect them from being discovered.
With his plea of guilty, Salem further admitted that the investigation, including the results of search warrants executed on his Facebook accounts and e-mail accounts, revealed that Salem used the fictitious Facebook profiles to solicit sex and sexually explicit images from at least 28 females, including 10 minors. Salem used the scheme to persuade six of the minor females, including an 11 year-old, to produce sexually explicit images of themselves and send them to him on the internet. Over the course of the scheme, at least 22 females, seven of whom were minors, engaged in sexual intercourse with Salem with the expectation that they were going to be paid large sums of money by a pornographic film production company. Salem did not pay any of his victims the money they were promised for taking part in the production of sexually explicit images.
At the time of these offenses, according to court documents, Salem was required to register as a sex offender under Illinois law. In May 2012, Salem pleaded guilty to the offense of statutory rape in Tennessee. In that case, Salem admitted that he traveled to Tennessee and engaged in sexual intercourse with a minor.
Salem has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 30, 2015.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Assistant U.S. Attorney Ron Hanna is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.