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23 August 2016
Orange County Man Who Aimed Laser at Orange County Sheriff’s Department Helicopter Sentenced to 15 Months in Federal PrisonRead the Press Release
SANTA ANA, California – A Santa Ana man who intentionally aimed a laser pointer at a law enforcement helicopter investigating a serious traffic accident was sentenced yesterday afternoon to 15 months in federal prison.
Mario Deleon Lopez, 35, was sentenced yesterday by United States District Judge Andrew J. Guilford, who said the offense was a “distraction” to the people in the air and that “people could die.”
Lopez pleaded guilty in March to a felony offense of aiming a laser pointer at an aircraft and admitted that he pointed a green laser at a helicopter operated by the Orange County Sheriff’s Department (OCSD).
On the evening of November 14, 2015, OCSD tactical flight deputies responded to a traffic accident in Santa Ana involving an overturned vehicle. The deputies were searching the area to see whether anyone had been thrown from the vehicle when their helicopter was struck with laser beam. The helicopter was struck multiple times with a green laser that illuminated the helicopter’s cockpit in an attack the tactical flight officer called “relentless.”
Following the laser attacks, the deputies, along with the Santa Ana Police Department, successfully tracked the source of the laser to a suspect located in the backyard of a residence in Santa Ana. Police on the ground responded to the residence and took Lopez into custody on state charges of pointing a laser at an aircraft. Lopez subsequently posted bail and was released from local custody while the federal investigation continued and culminated with the filing of the indictment.
“This defendant knew that pointing the laser at the helicopter could cause the pilot blindness and endanger those operating the aircraft, but committed the crime anyway,” said United States Attorney Eileen M. Decker. “This was a senseless crime that warrants the sentenced imposed by the court.”
The investigation into Lopez was conducted by the Orange County Sheriff’s Department, the Santa Ana Police Department and the FBI.
The case was prosecuted by Assistant United States Attorney Mark Takla of the Terrorism and Export Crimes Section.
Reports of laser attacks have increased dramatically in recent years as laser devices have become more affordable and widely available. In addition, technology has improved the effectiveness of laser devices, with a resulting increase in the potential safety hazards for pilots operating aircraft, as well as their passengers and crew. Such safety hazards include temporary distraction and impaired vision, which is particularly dangerous during the critical takeoff or landing phase of flight. California consistently leads the nation in reports of laser attacks.
New York Man Pleads Guilty to Oxycodone Distribution Conspiracy and Failure to Appear in CourtRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Manuel Tirado (34) of New York City, pleaded guilty in federal court to conspiracy to distribute oxycodone pills and failure to appear in Court.
Court documents and statements during the plea hearing showed that Tirado was a New York-based source of supply who provided oxycodone pills to a group of drug traffickers who were distributing the pills in Manchester, New Hampshire. During a law enforcement investigation in 2013 and 2014 that included the use of controlled purchases of drugs and multiple wiretaps, investigators learned that Samuel Garcia, Jennifer Nunez, and others were actively involved in the distribution of oxycodone pills. Wiretap conversations revealed that Tirado arranged to supply some of these pills. On multiple occasions, intercepted calls showed that a member of the conspiracy (Raul Hernandez) traveled to New York, obtained pills from Tirado, and then brought them back to New Hampshire. On one occasion, an individual named Jose Nunez was stopped in Massachusetts while transporting $18,900 in cash that was to be used to pay for oxycodone pills.
Several targets of the investigation were arrested in Manchester on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash, and three firearms were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Tirado was later indicted on a drug conspiracy charge. On July 23, 2015, he was arrested in New York. He was released on bond by a judge in New York and was directed to appear for an arraignment in federal court in New Hampshire on August 4, 2015. Tirado did not appear in Court and a warrant was issued for his arrest. He was arrested again in New York on August 17, 2015.
United States District Judge Joseph Laplante scheduled sentencing for December 1, 2016.
Other individuals who were involved in this conspiracy also have pleaded guilty.
Samuel Garcia (36) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is awaiting sentencing.
Jose Nunez (60) pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). He is awaiting sentencing.
Jennifer Nunez (26) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is awaiting sentencing.
Johanna Nunez (29) pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. On June 23, 2015, she was sentenced to 51 months in prison, followed by three years of supervised release.
Raul Hernandez (28) pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. On June 23, 2015, he was sentenced to 48 months in prison, followed by three years of supervised release.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
In addition to these defendants, several additional individuals who obtained oxycodone from this organization and resold it to customers have pleaded guilty to federal drug conspiracy charges. Ryan Demers (32), William Alba (25), Bonnie Labrie (51), Krystal Mailhot (28), and Yonajaira Galarza Ramos (31) have all entered guilty pleas in federal court.
Demers was sentenced on September 22, 2015, to 57 months in prison, followed by three years of supervised release.
Labrie was sentenced on March 11, 2016, to 72 months in prison, followed by three years of supervised release.
Alba was sentenced on June 17, 2016, to 72 months in prison, followed by three years of supervised release.
Mailhot and Ramos are awaiting sentencing.
“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Michael J. Ferguson. “Opiate abuse is a major problem in New Hampshire and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin and fentanyl addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively pursue any group or individual that traffics these drugs.”
U.S. Attorney Rice stated, “Many individuals begin their journey to opiate addiction through oxycodone use. While these pills have a legitimate medical use, the illicit distribution of these potentially addictive drugs has been a significant factor in the development of the opiate crisis that is affecting New Hampshire. The U.S. Attorney’s office will continue to work with the law enforcement community to stop the flow of opiates onto the streets of New Hampshire.”
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
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Methamphetamine Conspirators SentencedRead the Press Release
ABINGDON, VIRGINIA – Another two members of a conspiracy that trafficked large quantities of methamphetamine from Atlanta to Southwest Virginia was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Robert Edward Bowman, 42, of Bristol, Virginia, previously pled guilty today to one count of conspiring to possess with the intent to distribute methamphetamine. Today in District Court, Bowman was sentenced to 78 months in federal prison. In a separate hearing, Connie Diane Strouth, 51, of St. Paul, Virginia, who previously pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine, was sentenced to 46 months in federal prison.
“We are seeing large amounts of methamphetamine brought into Southwest Virginia from areas outside of the Commonwealth and we must continue to work to put a stop to it,” United States Attorney John P. Fishwick Jr. said today. “We know other crimes follow methamphetamine addiction, property crime, domestic abuse, child neglect, things that devastate communities. For those reasons alone we must get a handle on this growing problem.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Bowman and Strouth were part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Northeast Tennessee and Southwest Virginia.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Members of a Mexican Drug-Trafficking Organization Convicted and Sentenced to Federal PrisonRead the Press Release
ATLANTA – Genaro Anguiar-Guizar has been sentenced to 17 years and six months in prison for his leadership role in a cocaine and methamphetamine trafficking conspiracy. Anguiar-Guizar is the last of five defendants to be convicted and sentenced for charges including conspiracy to possess with intent to distribute methamphetamine and cocaine.
“This Atlanta based drug trafficking organization used a network of couriers and stash houses to smuggle cocaine and methamphetamine from Mexico to our community,” said U.S. Attorney John Horn. “Atlanta remains a hub for the importation of illegal drugs from Mexico after it crosses the border, and this case reflects our continued efforts to combat the influence and activity of these cartels in our city.”
“ICE Homeland Security Investigations will continue to focus investigative efforts on dismantling and bringing to justice members of drug trafficking organizations that choose to participate in the supply and sale of illicit narcotics like methamphetamine and cocaine. These individuals and organizations show a complete disregard for the violence and destruction that often accompany the use of highly addictive drugs,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “The boldness of this criminal group reflected a callous disregard for public safety that seriously underestimated the dedication of HSI and its local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”
According to U.S. Attorney Horn, the charges, and other information presented in court: the Anguiar-Guizar drug-trafficking organization imported large quantities of drugs into the U.S. from Mexico, initially storing them at a local auto body repair shop. From this location, the drugs were later parceled out to local residences for storage and distribution. Co-conspirators procured and guarded the residences, and also transported the narcotics and the drug money in secret traps located within vehicles.
During the course of the investigation, law enforcement seized nearly 19 kilograms of crystal methamphetamine and 69 grams of pure liquid methamphetamine from a residence in Jonesboro, Georgia, as well as nearly 30 kilograms of cocaine from a vehicle and residence in Morrow, Georgia.
Genaro Anguiar-Guizar, 35, of Buenavista, Michoacan, Mexico, was convicted on June 1, 2016, after he pleaded guilty. He was sentenced to 17 years, six months in prison, to be followed by 15 years of supervised release, and ordered to pay $11,601.00 in restitution. Four other members of the organization have already been sentenced. They are as follows:
- Irma Ruelas, 36, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Ruelas was convicted on July 19, 2014.
- Julian Esparza-Tovar, 32, of Morrow, Georgia, previously was sentenced to five years and three months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Esparza was convicted on July 11, 2014.
- Veronica Hernandez, 44, of Morrow, Georgia, previously was sentenced to 12 years and seven months of imprisonment, followed by five years of supervised release on the same conspiracy charge. Hernandez was convicted on June 19, 2014.
- Manuel Guizar-Sanchez, 23, of Jonesboro, Georgia, previously was sentenced to five years and ten months of imprisonment, followed by three years of supervised release on the charge of possession with intent to distribute methamphetamine. Guizar was convicted on December 4, 2013.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations with assistance of Clayton County Police Department.
Assistant United States Attorneys Tasheika Hinson and Ryan M. Christian prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Member of “Youngtorture” Group Sentenced to Seven Years for Child Pornography Distribution and PossessionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Kevin Edward Schoffman (30, Deland) to seven years in federal prison for distribution and possession of child pornography. The Court also ordered him to pay restitution to the victims of the offense. He pleaded guilty on June 3, 2016.
According to court documents, Schoffman, a first-year law student at the time, was part of a group of individuals who used a messaging application to send and receive images of child pornography. The group went by the name “YoungTorture” and circulated images of children as young as infants being sexually abused by adults. Schoffman was an active participant in the group, and at the time of his arrest possessed 1,012 images and 416 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
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 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.
Lynchburg Man Pleads Guilty to Federal Gun ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Lynchburg man, who illegally possessed a firearm after being a previously convicted felon, pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to a federal firearms charge, United States Attorney John P. Fishwick Jr. announced today.
Shawn Vernol Preston, 54, of Lynchburg, pled guilty today to one count of unlawful transport of a firearm. Preston will be sentenced on November 15, 2016.
“It has been a priority of my office to work with our law enforcement partners, on the local, state and federal levels, to rid our communities of illegal firearms,” United States Attorney Fishwick said today. “We remain committed to prosecuting those individuals who are prohibited from possessing firearms, which we believe will, in turn, make our communities safer.”
According to evidence presented at today’s guilty plea hearing by United States Attorney John P. Fishwick Jr., on December 18, 2015 at around 7:39 p.m., Preston was approached by a Lynchburg Police Officer after he matched the physical description of someone who was reported to be seen with a gun. When Preston was approached by the officer, he refused to be patted down and eventually took off running.
A foot chase ensued and the Lynchburg police officer observed Preston reach into the front waistband of his pants and pull out a pistol with a silver slide. Preston ran behind a row of houses. The officer did not pursue him because she was alone and the lighting was poor. After additional units arrived, Preston emerged from behind the houses without the gun. He was arrested and placed in handcuffs. After searching behind the homes where Preston ran, another officer with the Lynchburg Police Department located a loaded, .45 silver pistol with a black grip lying on the ground.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lynchburg Police Department. United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Luzerne County Woman Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County woman pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton, to participating in a heroin trafficking conspiracy that operated in Luzerne County during February through October 2014.
According to United States Attorney Peter Smith, the defendant, Brandy Carey Malinowsky, age 40, admitted to conspiring with others to distribute heroin to customers in the Luzerne County area. The defendant acknowledged being involved in distributing more than 100 grams of heroin as part of the conspiracy, the equivalent of more than 3,300 retail bags.
Milinowsky was indicted by a federal grand jury in Scranton in February 2016, as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston and Plymouth Police Departments, and the Luzerne County District Attorney’s Office.
The indictment charged six additional people with participating in a larger conspiracy headed-up by Desmond Mercer. Mercer, who was charged in a previous indictment, pleaded guilty and was sentenced to 14 years in prison. Mercer’s co-defendants Shaliek Stroman, of Wilkes-Barre, and Shaquan Murphy, of New Jersey, were both sentenced to more than 12 years in prison.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for November 29, 2016. The charge to which the defendant pleaded guilty carries a mandatory minimum sentence of five years in prison, and a potential maximum sentence of 40 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 40 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, 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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Leon Man Sentenced to 40 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GEORGE WILLIAM RUSSELL, age 39, of Leon, Oklahoma, was sentenced to 40 months imprisonment, followed by 3 years of supervised release for DISTRIBUTION OF METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
A Criminal Complaint filed in October, 2015, alleged that on or about May 29, 2015, within the Eastern District of Oklahoma, GEORGE WILLIAM RUSSELL did knowingly and intentionally commit the crime of Distribution of a Controlled Substance. The defendant was Indicted in November, 2015 and pled guilty in December, 2015.
The charge arose from a joint investigation by the Ardmore Police Department, Carter County Sheriff’s Department and the Federal Bureau of Investigation.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
First Assistant United States Attorney Doug Horn represented the United States.
Leading Member of Bloods Sentenced to 55 Years for Murder, Shooting, and Narcotics TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMAL SMALLS was sentenced today to 55 years in prison for the July 26, 2012, drug-related murder of Doneil White; leading a narcotics trafficking conspiracy that distributed powder cocaine, crack cocaine, and heroin in 2012 and 2013; and using and discharging firearms in connection with that narcotics conspiracy. SMALLS was convicted in Manhattan federal court on November 20, 2015, following a two-week jury trial before United States District Judge Naomi Reice Buchwald, who imposed sentence.
U.S. Attorney Preet Bharara said: “Jamal Smalls, convicted by a jury of a drug-related murder, narcotics trafficking, and gun charges, has now been sentenced for his crimes. For his years of murder, mayhem, and drug peddling, Smalls has received an appropriately severe sentence. Thanks to the FBI and the NYPD, Smalls no longer poses a threat to public safety.”
According to the Superseding Indictment, evidence admitted at trial, and statements made at court proceedings and in court filings:
JAMAL SMALLS, a/k/a “Poo Black,” a/k/a “Machiavelli,” a/k/a “Mack,” was a high-ranking member of the Bloods. In 2012 and 2013, SMALLS ran a drug trafficking crew that operated in and around the John Adams Houses in the Bronx, New York. SMALLS and his crew sold large quantities of powder cocaine, crack cocaine, and heroin in and around the housing project, as well as in North Carolina, South Carolina, and Virginia.
In 2000, SMALLS was convicted of first degree manslaughter in New York State. Throughout SMALLS’s term of incarceration, he received narcotics from his brother and people working on behalf of the crew to distribute within the state prison system. In April 2012, SMALLS was released from New York State prison. After his release, SMALLS began to lead the crew with his brother, participating in large-quantity narcotics deals in the Bronx and out-of-state.
SMALLS was also involved in repeated violence committed in connection with the crew’s drug trafficking. On July 18, 2012, SMALLS tried to shoot Doneil White, a rival drug dealer, but missed; SMALLS, however, hit a bystander in the back outside the Johns Adams Houses. A week later, on July 25, 2012, SMALLS again shot at Doneil White in the John Adams Houses, but missed again. Early the next morning, on July 26, 2012, SMALLS paid a member of his crew $10,000 to shoot Doneil White in a stairwell at the John Adams Houses. White died a few days later as result of his severe injuries.
Following his arrest in August 2012, and while in pre-trial detention, SMALLS continued to lead the narcotics conspiracy, by, among other things, giving directives to members of the crew through telephone calls and in-person visits.
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In addition to the prison sentence, Judge Buchwald sentenced SMALLS to 10 years of supervised release and ordered SMALLS to pay a $300 special assessment fee.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. Mr. Bharara also thanked the Bronx District Attorney’s Office for their valuable assistance with the investigation.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Kan M. Nawaday, Joshua A. Naftalis, and Drew Johnson-Skinner are in charge of the prosecution.
Las Cruces Man Sentenced to Five Years for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Edward Valenciano, 38, of Las Cruces, N.M., was sentenced today in federal court to 60 months in prison for his conviction on a heroin trafficking charge. Valenciano will be on supervised release for four years following his prison sentence.
Valenciano was arrested in June 2015, on a criminal complaint charging him with conspiracy to distribute heroin on June 11, 2015, in Doña Ana County, N.M. The complaint alleged that Valenciano was involved in the sale of approximately 353.4 grams of heroin to an individual working with law enforcement.
Valenciano was subsequently indicted on Oct. 15, 2015, and charged with conspiracy to distribute heroin from June 3 through 16, 2015, and possession of heroin with intent to distribute on June 16, 2015. The indictment included forfeiture allegations requiring Valenciano to forfeit $6,000, the proceeds of the drug trafficking charged, to the United States.
On March 24, 2016, Valenciano pled guilty to conspiracy to possess heroin with intent to distribute. In entering the guilty plea, he admitted that on June 3, 2015, he directed another individual to provide heroin to a person who unbeknownst to him was working with law enforcement. Valenciano further admitted that on June 11, 2015, he accepted $6,000 from the same person in payment for the heroin provided on June 3, 2015.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Kyle Man Sentenced for Assaulting a WomanRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man convicted of Assault With a Dangerous Weapon was sentenced on August 16, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Adam Shangreaux, age 29, was sentenced to 33 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Shangreaux was charged on November 17, 2015, and pleaded guilty on April 29, 2016. The conviction stems from Shangreaux assaulting a woman at Kyle, causing a collapsed lung and abdominal injuries.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Shangreaux was immediately turned over to the custody of the U.S. Marshals Service.
Justice Department sues Georgia for Unnecessarily Segregating Students with DisabilitiesRead the Press Release
ATLANTA – The United States Attorney’s Office and the Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).
“This complaint alleges that many children in the GNETS program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art, and sports,” said U.S. Attorney John Horn. “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.”
“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated, and unequal settings, failing to comply with the Americans with Disabilities Act. The Justice Department seeks to make the promise of community integration a reality for all of the state’s students. Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students in general education classrooms.”
The lawsuit, filed in U.S. District Court of the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs. The department’s complaint seeks declaratory and injunctive relief.
Approximately 4,600 students with disabilities are currently in GNETS. In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities. The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities. Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes. Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings.
The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program. Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings. The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.
The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments. The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs. The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities. Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division. For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Sues Georgia for Unnecessarily Segregating Students with DisabilitiesRead the Press Release
The Lawsuit is the First Challenge to a State-Run School System for Segregating Students with Disabilities
The Justice Department announced today that it has filed a lawsuit against the state of Georgia alleging that its treatment and segregation of students with disabilities in the Georgia Network for Educational and Therapeutic Support (GNETS) Program violates the Americans with Disabilities Act (ADA).
The lawsuit, filed in U.S. District Court for the Northern District of Georgia, alleges that Georgia’s administration of its mental health and therapeutic educational services for students with behavior-related disabilities unnecessarily segregates students with disabilities in GNETS when they could appropriately be served with their peers in general education settings. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including children with behavioral disabilities – in the most integrated setting appropriate to their needs. The department’s complaint seeks declaratory and injunctive relief.
Approximately 4,600 students with disabilities are currently in GNETS. In July 2015, the department issued an extensive findings letter, notifying the state that it was violating the ADA by unnecessarily providing mental health and therapeutic educational services to students with behavior-related disabilities in segregated settings, denying them opportunities for meaningful interaction with their peers without disabilities. The department found that most students in GNETS spend their entire school day, including meals, exclusively with other students with disabilities. Specifically, more than two-thirds of GNETS students are assigned to attend school in regional GNETS centers that exclusively serve students with disabilities in buildings that are often located far from students’ homes. Other students are assigned to regional GNETS classrooms located within general school buildings, but often in separate wings or isolated sections of the buildings.
“Seventeen years ago, the Supreme Court made clear that states must serve people with disabilities, including children with disabilities, in the most integrated setting appropriate to their needs,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Georgia has relegated thousands of students with behavior-related disabilities to separate, segregated and unequal settings, and placed other students at serious risk of entering such settings, failing to comply with the Americans with Disabilities Act. The Justice Department seeks to make the promise of community integration a reality for all of the state’s students. Students with disabilities in Georgia are entitled to access the services and supports that they need in the most integrated setting appropriate, where they can interact with and learn alongside their non-disabled peers and access educational opportunities that are equal to those available to other students.”
“This complaint alleges that many children in the GNETS Program are consigned to dilapidated buildings that were formerly used for black children during segregation, or to classrooms that are locked apart from mainstream classrooms, with substantially fewer opportunities of participating in extracurricular activities like music, art and sports,” said U.S. Attorney John A. Horn of the Northern District of Georgia. “The law mandates that all children, including those with behavior-related disabilities, must have equal opportunities for education, and several existing programs within our Georgia schools show that with appropriate support and services, these students can enjoy far greater integration with their peers.”
The lawsuit further alleges that as a result of the state’s unnecessary segregation, students in GNETS lack equal access to academic and extracurricular opportunities enjoyed by their peers outside the GNETS Program. Mental health and therapeutic educational services and supports are available in Georgia to a limited number of students with disabilities in integrated educational settings. The students who receive such services, many of whom have disabilities similar to GNETS students, are able to interact to the fullest extent possible with their non-disabled peers, participate in curriculum that corresponds to appropriate grade-level standards and partake in a wide range of extracurricular activities.
The ADA prohibits discrimination on the basis of disability by public entities, including state and local governments. The ADA requires public entities to ensure that individuals with disabilities are provided services in the most integrated setting appropriate to their needs. The Justice Department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability and to conduct compliance reviews regarding the programs and services offered by public entities. Visit www.ada.gov and www.justice.gov/crt to learn more about the ADA and other laws enforced by the Civil Rights Division. For more information on the Civil Rights Division’s Olmstead enforcement, please visit: www.ada.gov/olmstead/.
GNETS Complaint
Justice Department Alleges California Loan Modification Service Providers Discriminated Against Hispanic HomeownersRead the Press Release
The Justice Department today filed a lawsuit alleging that several mortgage loan modification service providers violated the federal Fair Housing Act and Equal Credit Opportunity Act by intentionally discriminating against Hispanic homeowners by targeting them for predatory mortgage loan modification services and interfering with their ability to receive financial assistance to maintain their homes. The defendants named in the lawsuit are The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc., Spieker Law Office and the principals of these entities: Omar Alcaraz, Araceli Castro, Oralia Gutierrez, Hortencia Leon, Raul Luna, Elena Ramirez and David Spieker.
The complaint, which was filed today in the U.S. District Court for the Northern District of California, alleges that the defendants engaged in a pattern or practice of marketing to and encouraging Hispanic homeowners to pay approximately $5,000 for unnecessary and ineffective loan audits. The defendants told the homeowners that audits were essential for a loan modification, but in fact the audits had no impact on the loan modification process and provided no financial benefit. As part of their advertised loan modification service, the defendants encouraged their clients to stop making mortgage payments and instructed them to cease contact with their lenders. This conduct resulted in many homeowners defaulting on their mortgage payments and ultimately losing their homes.
This lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by two of the defendants’ former clients. The complainants elected to have the case heard in federal court and HUD referred the case to the Justice Department.
“Intentionally targeting any community or person with predatory mortgage services because of their ethnicity or national origin violates federal law, harms working families and hurts our entire economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The defendants in this case tried to exploit Hispanic communities and homeowners already suffering from abusive, discriminatory financial practices during the Great Recession that drove the American housing market into crisis and our economy into freefall. The Justice Department’s lawsuit serves as a stark reminder and sends a clear message that we will work tirelessly to ensure that all homeowners can access mortgage services free from discrimination.”
“Hispanic families struggling to stay in their homes do not need empty promises that make their housing and financial situation worse,” said Gustavo F. Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is gratified that the Department of Justice is taking action against individuals and companies that victimize homeowners because of where they come from or because they speak Spanish or other languages.”
The Civil Rights Division and other agencies involved in this matter are part of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Anyone with information on the loan modification services provided by The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc. or Spieker Law Office should contact the Civil Rights Division’s Housing and Civil Enforcement Section at 1-800-896-7743 (press 1 to continue in English, and select option 5) or at [email protected].
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be found at www.justice.gov/fairhousing. Fighting illegal lending discrimination is a top priority of the Justice Department. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
THLA Complaint
Jury Returns Verdict Against Easley Man in Mail Fraud CaseRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Richard Elmer Sundblad, age 65, of Easley, was found guilty in federal court in Greenville, for aiding and abetting a scheme and artifice to defraud by use of the mails, a violation of 18 U.S.C. §§ 1341 and 2. United States District Judge J. Michelle Childs, of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the trial established that Richard Sundblad’s wife Retta worked as the purchasing manager for Griffin Thermal Products (“GTP”), a Greenville County business that manufactures high-end, custom-made radiators. Retta Sundblad has pled guilty and is awaiting sentencing. During an internal audit in December 2014, GTP determined that beginning in or around 2012 a large number of invoices had been submitted to GTP by a business named Upstate Industrial Services, LLC (“Upstate Industrial”). GTP discovered that Upstate Industrial had never provided any products or services and that the Upstate Industrial invoices were fictitious. A template for Upstate Industrial invoices was found on the work computer of Retta Sundblad. An investigation revealed that Upstate Industrial was formed by Richard Sundblad and that he deposited numerous GTP checks into a bank account that he and his wife controlled. The stolen money enabled the Sundblads to purchase cars, a motor coach, and to generally live a lavish lifestyle.
The loss to GTP from the scheme exceeds $800,000.
Ms. Drake stated the maximum penalty the Sundblads can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Greenville County Sheriff’s Office and the United Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.
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Jacksonville Man Sentenced for Conspiracy to Defraud the United States, Theft of Government Money and Aggravated Identity TheftRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams, Jr. has sentenced Lorne Jordan to 51 months in federal prison for conspiracy to defraud the United States, theft of government funds, and aggravated identity theft. He was also ordered to pay restitution to the Internal Revenue Service in the amount of $120,713.09. Jordan pleaded guilty on April 15, 2016.
According to court documents, the Internal Revenue Service received information that Jordan was in possession of a large amount of U.S. Treasury checks and needed assistance in cashing them. Over a series of several meetings, Jordan provided more than 25 Treasury checks, totaling over $70,000, to an undercover agent for cashing. He also advised that he had previously worked with a postal employee to cash additional Treasury checks he had obtained. On January 13, 2016, agents executed a search warrant at Jordan’s residence and found personal identifying information of at least 100 individuals.
The case was investigated by The Internal Revenue Service - Criminal Investigation, United States Postal Service -Office of Inspector General, Florida Department of Law Enforcement, and the North Florida Financial Crimes Task Force. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Inland Empire Man with Lengthy Record Sentenced to 4 years in Federal Prison for Illegally Possessing Stolen HandgunRead the Press Release
LOS ANGELES – A Riverside man who pleaded guilty to being a convicted felon in possession of a stolen handgun has been sentenced to four years in federal prison.
Joseph Sanchez, 37, received the 48-month sentence at a hearing yesterday before United States District Judge Virginia A. Phillips.
Sanchez pleaded guilty on May 16 to one count of being a felon in possession of a firearm and ammunition.
This case stemmed from a September 18, 2015 probation search by the Riverside Police Department. When officers entered the residence, Sanchez was sitting on a couch with a bag on his lap. Inside the bag, officers found a loaded 9mm Glock. Investigators determined that the handgun was reported stolen from a Riverside County Sheriff’s Deputy on July 3, 2015. In addition to the loaded handgun, police also found Sanchez to be in possession of another bag that contained another nine 9mm rounds.
“This defendant has a lengthy and serious criminal record which disqualifies him from possessing a firearm,” said United States Attorney Eileen M. Decker. “His new prison sentence was warranted because, not only was he in possession of a handgun and ammunition, he knew the gun had been stolen from a police officer and he was under court supervision at the time after being convicted in a narcotics case.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Agents learned Mr. Sanchez did not hesitate to engage in criminal activity, even after being previously convicted of similar offenses,” said ATF Special Agent in Charge Eric D. Harden. “ATF will investigate and pursue prosecution of those that continue to threaten the safety of our neighborhoods.”
This case was prosecuted by Special Assistant United States Attorneys Stephen T. Merrill and Deana L. Bohenek of the Riverside Branch Office.
Independence Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who sexually assaulted five child victims was sentenced in federal court today for producing child pornography.
Randy Mull, 37, of Independence, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole. The court also sentenced Mull to spend the rest of his life on supervised release following incarceration.
On April 6, 2016, Mull and co-defendant Kenneth R. Davis, 36, of Independence, each pleaded guilty to aiding and abetting one another to produce child pornography on July 15, 2010, by taking a series of pornographic photos of a 14-year-old child victim in their bedroom.
According to court documents, two victims (a brother and sister, identified as Victim #1 and Victim #2) reported to the Independence Police Department on Sept. 15, 2014, that they had been sexually assaulted by Mull and Davis over a four-year period. During the sex acts with Victim #1, which began when he was 14 years old, photographs were taken by Davis and Mull.
Investigators found images of child pornography on Davis’s computer, including pornographic images of additional child victims apparently taken over a period of several years. In all, five victims (two under the age of 12) were identified as victims of the sexual assaults and child pornography production. In some instances, the minors were allowed to stay overnight in the care of Davis and Mull at their residence with the permission of the victims’ parents.
A sentencing hearing has not been scheduled for Davis. Under federal statutes, Davis is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Davis also must pay $5,000 in restitution to each of five separate victims whose images of child sexual abuse he received or possessed; or $3,000 to each victim if he can pay restitution within 30 days of the sentencing date.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Independence, Mo., Police Department and the Kansas City, Kan., Police Department.
Project Safe Childhood
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."
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLAN WENDERLAY DOMINGUEZ age 47, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of removed alien previously convicted of an aggravated felony.
U.S. District Judge Jay C. Zainey sentenced DOMINGUEZ to 37 months imprisonment followed by one year of supervised release, and a $100.00 special assessment. Following completion of his sentence, DOMINGUEZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to the Indictment, on or about February 11, 2016, DOMINGUEZ was found in the United States after having been officially deported following a conviction for theft of goods. He was ordered removed and deported on or about June 24, 2011, and again on September 12, 2012.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol, in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Gretna Man Charged with Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GIORDIO COSENZA, age 28, of Gretna, was charged today in a one-count Bill of Information with distributing images and videos depicting the sexual exploitation of children.
If convicted, COSENZA faces a maximum term of imprisonment of not less than five years and not more than twenty years imprisonment, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
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.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Fraud Schemer Sentenced to 10 Years’ ImprisonmentRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Christopher A. Maguire (34, formerly of Orlando) to 10 years in federal prison for wire fraud and illegal monetary transactions. As part of his sentence, the Court also entered a money judgment in the amount of $4,938,574.40, the proceeds of the charged criminal conduct. Maguire pleaded guilty on May 18, 2016.
According to court documents, from at least May 2012 through April 2014, Maguire operated a scheme where he, and promoters employed by him, solicited victim-investors to send him funds via electronic wire or check. Maguire and his promoters targeted individuals and groups of victim-investors for funding using companies operated by Maguire including M Development LLC, IQ Options LLC, and Vivid Funding LLC.
The victims’ funds were never actually invested into the opportunity presented to them. Maguire used some of the funds on personal expenditures, as well as payments to his promoters. Maguire also made numerous payments back to certain victims, often enticing these victims to reinvest the proceeds of the transaction, sometimes triggering additional investment of funds by the victims or their associates.
Through this scheme, Maguire was responsible for losses of over $4.9 million to over 150 victim-investors. The majority of the victims were located in central Florida and in northern Ohio.
This case was investigated by Internal Revenue Service - Criminal Investigation, and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Fort Worth Man Sentenced to 60 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — A 31-year-old man from Fort Worth, Texas, Jarrod Mayes, was sentenced today by Senior U.S. District Judge Terry R. Means 60 months in federal prison, following his guilty plea in April 2016 to an indictment charging one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Mayes, who has been on bond since his arrest in December 2015, was remanded into custody following the sentencing hearing.
Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Mayes’ home on December 17, 2015, and during the execution of the warrant, special agents seized digital media belonging to Mayes, including his iPhone.
According to documents filed in the case, Mayes admitted he first started using the KiK Messenger smartphone application (app) in 2009, and that was the first time he had observed child pornography. He acknowledged that he had saved videos and images of child pornography in a hidden folder inside of a calculator app on his cellphone. He advised that he stored the images in this app because he did not want his wife to find them, and that when he deleted Kik from his cellphone, it would delete the images. He also stated that when he would reinstall Kik, he would post images of child pornography in group messages because other users would not send him any child pornography until he posted images of child pornography. A forensic review of his iPhone revealed three video files; Mayes knew the files depicted real minors, to include prepubescent minors, engaged in sexually explicit conduct.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
ICE HSI investigated the case; Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Former Ub Student Pleads Guilty to Drug and Money Laundering 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 Zhe Wang, 20, of Queens, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, controlled substances and money laundering conspiracy, before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
“This is a case where virtual meets real,” said U.S. Attorney William Hochul. “However, as a result of today’s conviction, a crime committed in part in the virtual world will now result in a real world punishment.”
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Wang distributed Xanax. The proceeds of the Xanax sales were used to buy or attempt to buy approximately $74,000 in bitcoins. The defendant then used the bitcoins to buy more drugs for distribution. Wang was an engineering student at the University at Buffalo during a part of the conspiracy between March 2015 and March 2016. In March 2016, law enforcement agents intercepted two packages mailed from Canada and addressed to one of Wang’s co-defendants in Amherst, NY. Each package contained nearly 3,000 Xanax bars.
Wang was charged along with co-defendants Kevin Szura and Adam Brzozowski. Charges are pending against Szura and Brzozowski. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
Sentencing is scheduled for November 30, 2016, at 1:00 p.m. before Judge Arcara.
Former MCC Construction Company Officer and Owner Pleads Guilty to Conspiring to Defraud GovernmentRead the Press Release
Defendant Illegally Obtained Federal Contracts Meant for Small, Disadvantaged Businesses
Walter Crummy, a former officer and owner of MCC Construction Company (MCC), pleaded guilty to a federal charge of conspiring to commit wire fraud. Crummy also agreed to pay forfeiture in the amount of $105,618.
The plea was announced by Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division; U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; Inspector General Peggy E. Gustafson for the Small Business Administration (SBA); Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA); Special Agent in Charge Brian J. Reihms, of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, MCC and others conspired with two companies that were eligible to receive federal government contracts set asides for small, disadvantaged businesses with the understanding that MCC would illegally perform all of the work. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small and disadvantaged businesses.
“We will continue to work with our colleagues at the U.S. Attorney’s Office and in law enforcement to protect the integrity of federal contracting programs,” said Acting Assistant Attorney General Hesse.
“Walter Crummy knowingly participated in a scheme that allowed MCC Construction Company to illegally cash in on federal contracts designated for small disadvantaged businesses. This prosecution shows our determination to maintain the integrity of federal contracting programs meant to aid small, disadvantaged businesses,” said U.S. Attorney Phillips. “We will continue to work with our law enforcement partners to identify and prosecute those who abuse these programs at the expense of deserving businesses.”
“The FBI and our law enforcement partners are committed to upholding the integrity of the federal contracting process and protecting opportunities intended for small and economically disadvantaged businesses,” said Assistant Director in Charge Abbate. “Those who cheat the system through unlawful, fraudulent means are harming small businesses and stealing from American taxpayers, and they will be held accountable under the law."
“Those who commit fraud in SBA’s preferential contracting programs will face justice,” said SBA Inspector General Gustafson. “The integrity of SBA’s programs is vital to honest, hard-working small business owners across the nation. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”
“Federal vendors who use deceitful practices to game the small business set-aside program will be held accountable,” said GSA Inspector General Ochoa.
“The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs and operations and maintain the integrity of the procurement system,” said Special Agent in Charge Reihms.
Crummy, 63, of Morrison, Colorado, was charged in a criminal information on July 27, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. He waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and accepted responsibility for his criminal conduct. The charge carries a statutory maximum of five years in prison and potential financial penalties.
The Honorable Ketanji Brown Jackson scheduled a sentencing hearing for Dec. 13.
Court documents state that MCC violated the provisions of the SBA 8(a) program. The SBA 8(a) development program is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Court documents also state that Crummy drafted corporate documents between MCC and one of the SBA-eligible companies whereby MCC would provide all labor, equipment, materials, safety and supervision and in return receive 97 percent of the contract task order amount. This agreement by its terms meant that the SBA-eligible company would be violating SBA rules and regulations and would instead collect a 3 percent fee for allowing their small business status to be used.
Earlier this year, MCC pleaded guilty to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. In June, Thomas Harper, another former officer and owner of MCC, pleaded guilty to conspiring to obstruct proceedings before a department or agency.
The investigation is being conducted by the FBI’s Washington Field Office, the Inspector General for the U.S. Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution is being handled by Assistant U.S. Attorney Matt Graves and John Marston of the U.S. Attorney’s Office for the District of Columbia and Assistant Chief Craig Y. Lee and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
Former MCC Construction Company Officer and Owner Pleads Guilty to Conspiring to Defraud GovernmentRead the Press Release
WASHINGTON – Walter Crummy, a former officer and owner of MCC Construction Company (MCC), pleaded guilty to a federal charge of conspiring to commit wire fraud. Crummy also agreed to pay forfeiture in the amount of $105,618.
The plea was announced by Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division; U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Peggy E. Gustafson, Inspector General for the U.S. Small Business Administration (SBA); Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration (GSA); Brian J. Reihms, Special Agent in Charge of the Central Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, MCC and others conspired with two companies that were eligible to receive federal government contracts set asides for small, disadvantaged businesses with the understanding that MCC would illegally perform all of the work. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small and disadvantaged businesses.
“We will continue to work with our colleagues at the U.S. Attorney’s Office and in law enforcement to protect the integrity of federal contracting programs,” said Acting Assistant Attorney General Hesse of the Justice Department’s Antitrust Division.
“Walter Crummy knowingly participated in a scheme that allowed MCC Construction Company to illegally cash in on federal contracts designated for small disadvantaged businesses. This prosecution shows our determination to maintain the integrity of federal contracting programs meant to aid small, disadvantaged businesses,” said U.S. Attorney Phillips. “We will continue to work with our law enforcement partners to identify and prosecute those who abuse these programs at the expense of deserving businesses.”
“The FBI and our law enforcement partners are committed to upholding the integrity of the federal contracting process and protecting opportunities intended for small and economically disadvantaged businesses,” said Assistant Director in Charge Abbate. “Those who cheat the system through unlawful, fraudulent means are harming small businesses and stealing from American taxpayers, and they will be held accountable under the law."
“Those who commit fraud in SBA’s preferential contracting programs will face justice,” said SBA Inspector General Gustafson. “The integrity of SBA’s programs is vital to honest, hard-working small business owners across the nation. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”
“Federal vendors who use deceitful practices to game the small business set-aside program will be held accountable,” said GSA Inspector General Ochoa.
“The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs and operations and maintain the integrity of the procurement system,” said Special Agent in Charge Reihms
Crummy, 63, of Morrison, Colorado, was charged in a criminal information on July 27, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. He waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and accepted responsibility for his criminal conduct. The charge carries a statutory maximum of five years in prison and potential financial penalties.
The Honorable Ketanji Brown Jackson scheduled sentencing for Dec. 13, 2016.
Court documents state that MCC violated the provisions of the SBA 8(a) program. The SBA 8(a) development program is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Court documents also state that Crummy drafted corporate documents between MCC and one of the SBA-eligible companies whereby MCC would provide all labor, equipment, materials, safety and supervision and in return receive 97 percent of the contract task order amount. This agreement by its terms meant that the SBA-eligible company would be violating SBA rules and regulations and would instead collect a 3 percent fee for allowing their small business status to be used.
Earlier this year, MCC pleaded guilty to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. In June, Thomas Harper, another former officer and owner of MCC, pleaded guilty to conspiring to obstruct proceedings before a department or agency.
The investigation is being conducted by the FBI’s Washington Field Office, the Inspector General for the U.S. Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution is being handled by Assistant U.S. Attorney Matt Graves and John Marston of the U.S. Attorney’s Office for the District of Columbia and Assistant Chief Craig Y. Lee and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
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Former Lee County Deputy Arrested for Receipt and Possession of Child PornographyRead the Press Release
Montgomery, Alabama – Kevin Wayne Taylor (39), a resident of Phenix City, Alabama and former Lee County Deputy Sheriff, was arrested today for receipt and possession of child pornography, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Last week, a federal grand jury indicted Taylor for receipt and possession of child pornography. Evidence presented to the grand jury showed that the charges occurred in Phenix City, Alabama. Specifically, the indictment alleges Taylor received child pornography between August 20, 2004 and October 7, 2015, and that he was in possession of child pornography on or about November 13, 2015.
The indictment and arrest stem from a complaint made to the Lee County Sheriff’s Office. Due to Taylor’s employment with the Lee County Sheriff’s Office, Sheriff Jay Jones immediately turned over the investigation to the Alabama State Bureau of Investigation and terminated Taylor’s employment.
An indictment is merely a method of charging a defendant. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
United States Attorney Beck would like to thank the following agencies for their involvement with this case: Alabama State Bureau of Investigation, the Lee County Sheriff’s Office, and the Department of Homeland Security. Assistant United States Attorneys Hollie Worley and Curtis Ivy are prosecuting the case.
Former CFO for Grand Prairie, Texas, Independent School District IndictedRead the Press Release
DALLAS — The former Chief Financial Officer (CFO) of the Grand Prairie, Texas, Independent School District (GPISD), Carolyn Foster, was arrested yesterday by special agents with the U.S. Secret Service on a federal indictment returned last week in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Foster was arrested at her current place of employment, International Leadership of Texas in Richardson, Texas, where she is the director of finance. She made her initial appearance yesterday in federal court before U.S. Magistrate Judge David L. Horan and pleaded not guilty to the charge; she was released on bond,
Specifically, the one-count indictment charges Foster, 61, of Lewisville, Texas, with one count of federal program theft, alleging that from October 2014 to July 2015, she fraudulently obtained approximately $600,000.00 from the GPISD.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for this offense is 10 years in federal prison and a $250,000 fine. Restitution may also be ordered.
The U.S. Secret Service and the U.S. Department of Education Office of Inspector General are investigating the case. Assistant U.S. Attorney Aaron Wiley is in charge of the prosecution.
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Former Air Force Reservist Sentenced for Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Steven Fine, 30, of Orchard Park, NY, who was convicted of distribution of child pornography, was sentenced to 96 months in prison and 10 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the investigation began when the defendant, a former United States Air Force Reservist, distributed videos containing child pornography to an undercover agent. On September 12, 2014, law enforcement officers executed a search warrant at the defendant’s mother’s house in West Seneca, NY and recovered electronics being used by Fine. A subsequent forensic examination determined that several of the electronics contained images and videos of child pornography, including a video that the defendant had produced of himself engaging in sexually explicit conduct with a minor under the age of 16.
The sentencing is the culmination of an investigation by the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Town of West Seneca Police Department under the direction of Chief Daniel Denz.
Financial Services Company Executive Sentenced to 15 Months for Obstruction of JusticeRead the Press Release
The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, was sentenced today in the U.S. District Court for the Western District of North Carolina to 15 months in prison for engaging in an elaborate obstruction of justice scheme to conceal from the government millions of dollars, which were subject to a freeze order and seizure warrant.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina; Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division; and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
On March 23, Jaymes Meyer, aka James Meyer, 47, pleaded guilty to one count of obstruction of justice. In addition to imposing the prison term, U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina entered a monetary judgment of $4.8 million against Meyer.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, resulting in an order freezing all of RVG’s assets and appointing a receiver to marshal, manage and distribute remaining RVG assets to impacted investors. The U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the freeze order and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control after learning about the SEC’s investigation and used that money to purchase homes in Napa and the Turks and Caicos, and took additional measures to conceal his RVG assets.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer consented to the $4.8 million money judgment entered against him and forfeited the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and IRS-CI investigated the case. Assistant U.S. Attorney Jennifer Grus Sugar of the Western District of North Carolina and Trial Attorneys Kevin Lowell and Brian D. Frey of the Criminal Division’s Asset Forfeiture and Money Laundering Section – Bank Integrity Unit prosecuted the case.
Eufaula Man Pleads Guilty to Wire Fraud, Criminal ForfeitureRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CRAIG DUANE GREENLEE, age 33, of Eufaula, Oklahoma pled guilty to an Information charging him with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both and a CRIMINAL FORFEITURE ALLEGATION.
The Information alleged beginning in or about 2012 and continuing through April 2016, within the Eastern District of Oklahoma, the defendant knowingly, and with the intent to defraud, devised and executed a scheme to defraud an individual by falsely representing that the individual could obtain a farm tractor and trailer by paying GREENLEE for the towing fees to remove the farm tractor and trailer from a ditch. GREENLEE did so by using a personal handheld device to transmit communications through text messages and emails.
GREENLEE continued to use wire communications to defraud multiple victims of over $500,000.00.
The charges are a result of an investigation by the Federal Bureau of Investigation.
First Assistant United States Attorney Doug Horn represented the United States.
El Departamento de Justicia Alega que Proveedores de Servicio de Modificación de Préstamos de California Discriminaron a Propietarios HispanosRead the Press Release
El Departamento de Justicia entabló hoy una demanda en la que alega que varios proveedores de servicios de modificación de préstamos hipotecarios violaron la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito al discriminar intencionalmente a propietarios hispanos al ofrecerles servicios de modificación de préstamos hipotecarios predatorios e interferir en su capacidad de recibir asistencia financiera para conservar sus hogares. Los demandados nombrados en la demanda son The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc., Spieker Law Office y los directores de estas entidades: Omar Alcaraz, Araceli Castro, Oralia Gutierrez, Hortencia Leon, Raul Luna, Elena Ramirez y David Spieker.
La demanda, entablada hoy en el Tribunal Federal de Distrito del Distrito Norte de California, alega que los demandados exhibieron un patrón o práctica de comercialización a propietarios hispanos, incentivándolos a que pagaran alrededor de $5.000 por auditorias de préstamo innecesaria e inefectivas. Los demandados dijeron a los propietarios que las auditorías eran esenciales para la modificación de préstamo. Sin embargo, las auditorías no tenían ningún impacto en el proceso de modificación de préstamo y no brindaban ningún beneficio financiero. Como parte del servicio de modificación de préstamos que publicitaban, los demandados incentivaban a los clientes a dejar de realizar los pagos de sus hipotecas y les indicaban que cesaran el contacto con sus prestamistas. Esta conducta tuvo como resultado que muchos propietarios pasaron a estar en situación de mora en el pago de sus cuotas hipotecarias y, finalmente, perdieran sus hogares.
Esta demanda surgió como resultado de denuncias presentadas al Departamento de Vivienda y Desarrollo Urbano de EE.UU. [Department of Housing and Urban Development (HUD)] por dos ex clientes de los demandados. Los denunciantes eligieron que se tratara el caso en el tribunal federal y HUD remitió el caso al Departamento de Justicia.
“Tener como objetivo intencional a cualquier comunidad o persona con servicios hipotecarios predatorios debido a su grupo étnico u origen nacional viola la ley federal, perjudica a familias trabajadoras y hace daño a nuestra economía entera,” señaló la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, a cargo de la División Civil del Departamento de Justicia. “Los demandados en este caso trataron de explotar a comunidades hispanas y propietarios que ya sufrían debido a prácticas financieras abusivas y discriminatorias durante la Gran Recesión que causó la crisis del mercado de la vivienda de EE.UU. y la caída libre de nuestra economía. La demanda entablada por el Departamento de Justicia sirve de fuerte recordatorio y transmite el claro mensaje de que trabajaremos sin descanso para permitirles a todos los propietarios de vivienda acceso a servicios hipotecarios libres de discriminación.”
“Las familias hispanas que luchan por permanecer en sus hogares no necesitan promesas vacías que solo empeoran su situación de vivienda y financiera,” señaló Gustavo Velásquez, Secretario Adjunto de Vivienda Justa e Igualdad de Oportunidades con el Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos. “HUD se siente complacido que el Departamento de Justicia esté actuando contra personas y compañías que victimicen a dueños de casa debido a su país de origen o porque hablen español u otros idiomas.”
La División de Derechos Civiles y otras agencias que participan en el caso forman parte del Grupo de Trabajo de Coacción contra el Fraude Financiero, establecido por el Presidente Obama para llevar adelante una iniciativa agresiva, coordinada y proactiva para investigar y enjuiciar los delitos financieros. El grupo de trabajo incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. El grupo de trabajo está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre el grupo de trabajo, visite www.StopFraud.gov.
Cualquier persona con información sobre los servicios de modificación de préstamos prestados por The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc. o Spieker Law Office debe comunicarse con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles llamando al 1-800-896-7743, presione el 2 para continuar en español y seleccione la opción 5 o escribiendo a [email protected].
Se encuentra una copia de la demanda, así como información adicional sobre las iniciativas del Departamento de Justicia, de cumplimiento de ley asociadas al otorgamiento de préstamos justos, en www.justice.gov/fairhousing. La lucha contra la discriminación ilegal respecto del otorgamiento de préstamos es una de las principales prioridades del Departamento de Justicia. Encontrará más información sobre la División de Derechos Civiles y las leyes que hace valer en www.justice.gov/crt.
THLA Demanda (en inglés)
El Departamento de Justicia Alega que Proveedores de Servicio de Modificación de Préstamos de California Discriminaron a Propietarios HispanosRead the Press Release
WASHINGTON – El Departamento de Justicia entabló hoy una demanda en la que alega que varios proveedores de servicios de modificación de préstamos hipotecarios violaron la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito al discriminar intencionalmente a propietarios hispanos al ofrecerles servicios de modificación de préstamos hipotecarios predatorios e interferir en su capacidad de recibir asistencia financiera para conservar sus hogares. Los demandados nombrados en la demanda son The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc., Spieker Law Office y los directores de estas entidades: Omar Alcaraz, Araceli Castro, Oralia Gutierrez, Hortencia Leon, Raul Luna, Elena Ramirez y David Spieker.
La demanda, entablada hoy en el Tribunal Federal de Distrito del Distrito Norte de California, alega que los demandados exhibieron un patrón o práctica de comercialización a propietarios hispanos, incentivándolos a que pagaran alrededor de $5.000 por auditorias de préstamo innecesaria e inefectivas. Los demandados dijeron a los propietarios que las auditorías eran esenciales para la modificación de préstamo. Sin embargo, las auditorías no tenían ningún impacto en el proceso de modificación de préstamo y no brindaban ningún beneficio financiero. Como parte del servicio de modificación de préstamos que publicitaban, los demandados incentivaban a los clientes a dejar de realizar los pagos de sus hipotecas y les indicaban que cesaran el contacto con sus prestamistas. Esta conducta tuvo como resultado que muchos propietarios pasaron a estar en situación de mora en el pago de sus cuotas hipotecarias y, finalmente, perdieran sus hogares.
Esta demanda surgió como resultado de denuncias presentadas al Departamento de Vivienda y Desarrollo Urbano de EE.UU. [Department of Housing and Urban Development (HUD)] por dos ex clientes de los demandados. Los denunciantes eligieron que se tratara el caso en el tribunal federal y HUD remitió el caso al Departamento de Justicia.
“Tener como objetivo intencional a cualquier comunidad o persona con servicios hipotecarios predatorios debido a su grupo étnico u origen nacional viola la ley federal, perjudica a familias trabajadoras y hace daño a nuestra economía entera,” señaló la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, a cargo de la División Civil del Departamento de Justicia. “Los demandados en este caso trataron de explotar a comunidades hispanas y propietarios que ya sufrían debido a prácticas financieras abusivas y discriminatorias durante la Gran Recesión que causó la crisis del mercado de la vivienda de EE.UU. y la caída libre de nuestra economía. La demanda entablada por el Departamento de Justicia sirve de fuerte recordatorio y transmite el claro mensaje de que trabajaremos sin descanso para permitirles a todos los propietarios de vivienda acceso a servicios hipotecarios libres de discriminación.”
“Las familias hispanas que luchan por permanecer en sus hogares no necesitan promesas vacías que solo empeoran su situación de vivienda y financiera,” señaló Gustavo Velásquez, Secretario Adjunto de Vivienda Justa e Igualdad de Oportunidades con el Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos. “HUD se siente complacido que el Departamento de Justicia esté actuando contra personas y compañías que victimicen a dueños de casa debido a su país de origen o porque hablen español u otros idiomas.”
La División de Derechos Civiles y otras agencias que participan en el caso forman parte del Grupo de Trabajo de Coacción contra el Fraude Financiero, establecido por el Presidente Obama para llevar adelante una iniciativa agresiva, coordinada y proactiva para investigar y enjuiciar los delitos financieros. El grupo de trabajo incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando juntos, aprovechan un poderoso espectro de recursos de coacción penal y civil. El grupo de trabajo está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre el grupo de trabajo, visite www.StopFraud.gov.
Cualquier persona con información sobre los servicios de modificación de préstamos prestados por The Home Loan Auditors LLC, Century Law Center LLC, SOE Assistance Center Inc. o Spieker Law Office debe comunicarse con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles llamando al 1-800-896-7743, presione el 2 para continuar en español y seleccione la opción 5 o escribiendo a [email protected].
Se encuentra una copia de la demanda, así como información adicional sobre las iniciativas del Departamento de Justicia, de cumplimiento de ley asociadas al otorgamiento de préstamos justos, en www.justice.gov/fairhousing. La lucha contra la discriminación ilegal respecto del otorgamiento de préstamos es una de las principales prioridades del Departamento de Justicia. Encontrará más información sobre la División de Derechos Civiles y las leyes que hace valer en www.justice.gov/crt.
Eighth Circuit Court of Appeals Affirms Conviction and Sentence in Drug Conspiracy CaseRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the conviction and sentence of Lona Lee Colhoff who was found guilty by a federal jury of two counts of conspiracy to distribute a controlled substance and one count of attempted witness tampering. The district court sentenced Colhoff to concurrent 45-month sentences for each conviction.
In her appeal, Colhoff challenged the sufficiency of the evidence on the witness-tampering conviction and asserts that the statement underlying her conviction was protected expression under the First Amendment. She also argued that the conspiracy charges were improperly joined with the witness tampering charge.
The case involved the prosecution of a drug distribution network headed by Colhoff’s brother. Her brother relied on a network of family members and friends to transport, store, and distribute cocaine and marijuana on and around the Pine Ridge Indian Reservation.
Because there was a reasonable basis to conclude that Colhoff and a co-defendant were involved in a common scheme to distribute drugs, the district court did not plainly err by permitting joinder of Colhoff’s conspiracy charges with the charge that she attempted to tamper with a witness against a co-defendant.
Assistant United States Attorney Ted L. McBride prosecuted the case at the district court level and handled the appeal for the government. The case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force.
Eighth Circuit Court of Appeals Affirms 20-Year Sentence for Elementary School Custodian who was Enticing MinorsRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the sentence of Casey James Godfrey who pled guilty on January 14, 2015, to one count of Enticement of a Minor by Use of the Internet. Godfrey was sentenced in June 2015 by Chief Judge Jeffrey L. Viken, U.S. District Court, to 20 years’ imprisonment, followed by 20 years of supervised release.
“As the two federal courts that have now reviewed this case have said, the punishment here is not only deserved for this terrible crime, but it should serve as a lesson for anyone else considering victimizing others, especially our children,” U.S. Attorney Seiler said. “Federal sentences contain no potential for parole, and so a 20-year sentence should be a wake-up call for internet predators.”
Godfrey worked as a custodian at an elementary school in Rapid City, South Dakota, from July 2013 until January 2014. On December 17, 2013, he emailed – unbeknownst to Godfrey – a Nebraska law enforcement officer who was conducting an online investigation by posing as a 14-year-old girl. He communicated with the officer by email and text messages for about one month. During that time, Godfrey asked for nude photos of the child and also sent the undercover agent nude images of himself, standing in front of a bathroom mirror at the school. Godfrey also expressed sexual interest in an 11-year-old female student who attended the school where he worked.
He was arrested on January 23, 2014. Search warrants served on various internet and email providers revealed that Godfrey had also exchanged images of child pornography with other individuals and had communicated with minors, trying to entice them to send him illicit photographs of themselves. Godfrey convinced two minor females, one from Illinois and one from Texas, to provide him nude images of themselves.
At sentencing, the district court determined that, to send a clear message to the public, it was necessary to sentence Godfrey above the recommended range of the federal Sentencing Guidelines. The court expressed particular concern that Godfrey used the school to create and transmit photos during his attempt to induce a minor victim. The court also reasoned that Godfrey’s actions in a public setting required heightened protection from future predatory conduct.
The Eighth Circuit found that the district court did not abuse its discretion in sentencing Godfrey as it did. The appellate court reasoned that “Congress specifically made general deterrence an appropriate consideration, and we have described it as ‘one of the key purposes of sentencing.’”
Assistant U.S. Attorney Sarah Boensch Collins prosecuted the case and handled the appeal for the government. The case was investigated by the South Dakota Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, Nebraska State Patrol, Chadron Police Department, Illinois Internet Crimes Against Children Taskforce, Montgomery County Illinois Sheriff’s Office, and the Texas Attorney General’s Office.
Edgewood Man Exiled to over Three Years in Prison After Pleading Guilty to Possession of an Unregistered SilencerRead the Press Release
Greenbelt, Maryland – U.S. District Judge J. Frederick Motz sentenced Ronnie Candelario, age 32, of Edgewood, Maryland, today to 41 months in prison, followed by three years of supervised release, after Candelario pleaded guilty to the possession of an unregistered silencer.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Harford County Sheriff Jeffrey R. Gahler.
According to his plea agreement, from at least April until June 2016, Candelario manufactured and sold AR-15 style assault rifles in Maryland without a license. Between April 15 and June 16, 2016, a confidential source working with the ATF purchased six automatic and semi-automatic assault rifles as well as two silencers from Candelario, typically meeting in a gas station parking lot to complete the transactions. The source told Candelario that the firearms he was purchasing were for resale in New York. Candelario told the source that he was manufacturing the guns and silencers that he sold and that he had other customers for whom he was manufacturing AR-15 style firearms. Candelario did not have any guns or silencers registered to him.
On June 22, 2016, ATF agents executed a search warrant at Candelario’s residence in Edgewood and recovered items used to manufacture firearms and silencers, including: boxes of AR-15 lower receivers; a fuel filter with an adapter used in the assembly of silencers; AR-15 magazines and rifle sights with boxes; and vices, a drill press, and other tools.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth Clark, who prosecuted the case.
Easton Woman Who Stole $380K from Greenwich Employer Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAWN MININBERG, 48, of Easton, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release with the first 12 months on home confinement, for stealing approximately $380,000 from her employer.
According to court documents and statements made in court, MININBERG worked for a company located in Greenwich where she provided financial services. MININBERG was issued an American Express corporate credit card for business purposes and, as part of her duties, she prepared expense reports justifying the charges to all of the corporate credit cards, including her own. Over the course of approximately two years, MININBERG charged approximately $380,000 in personal expenses to her corporate credit card for clothing and other items purchased at high-end stores, theater tickets, children’s parties and lessons, charitable donations, vacations and the purchase of an $11,000 jungle gym. MININBERG hid these expenditures by categorizing them as office supplies, meals, meetings or lodging.
Judge Underhill ordered MININBERG to pay restitution in the amount of $386,907.77.
On January 15, 2016, MININBERG pleaded guilty to one count of wire fraud.
This matter was investigated by the Connecticut Financial Crimes Task Force, U.S. Secret Service and Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
East Bay Resident Pleads Guilty to Possession with Intent to Distribute Crystal MethamphetamineRead the Press Release
OAKLAND – Joseph Edward Conner pleaded guilty in federal court in Oakland yesterday to possessing with the intent to distribute over four pounds of crystal methamphetamine announced United States Attorney Brian J. Stretch, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin, Internal Revenue Service (IRS), Criminal Investigation, Special Agent in Charge Michael Batdorf, U.S. Postal Inspection Service, Inspector in Charge Rafael E. Nunez, U.S. Customs and Border Protection Director of Field Operations Brian J. Humphrey, and Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Ryan L. Spradlin. All of the methamphetamine was at least 97.5% pure.
In pleading guilty, Conner, 47, of Bay Point, Calif., admitted he engaged in three transactions with an undercover officer working with the DEA in an effort to distribute the methamphetamine. On August 22, 2014, Conner negotiated the sale of a half-pound of 99% pure methamphetamine for $3,000. Conner sold the drugs to an undercover DEA Task Force officer in the parking lot of the Sun Valley Mall in Concord, Calif. Later, Conner used text messages to arrange another meeting with the undercover officer that would take place on November 6, 2014, at the same parking lot. Upon meeting with the undercover, Conner handed the officer a pound of 99.5% pure methamphetamine in exchange for $5,400. The third transaction occurred on December 16, 2014, for three pounds of 97.5% pure methamphetamine. On this occasion, Conner sought to sell the drugs for $14,400, but was arrested prior to completing the sale.
Conner was indicted by a federal grand jury on June 2, 2015. He was charged with three counts of possession of methamphetamine with intent to distribute, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). Under the plea agreement, Conner pleaded guilty to all three counts alleged in the indictment.
Following his arrest on December 16, 2014, Conner was released on a $150,000 secured bond. His next court appearance is scheduled for November 28, 2016, for a sentencing hearing before the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, in Oakland. The maximum penalty for a violation of 21 U.S.C. § 841 is 20 years’ imprisonment and a $1,000,000 fine. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Claudia A. Quiroz, Andrew Dawson, and David Countryman are prosecuting the case with the assistance of Lance Libatique and Carolyn Jusay. The prosecution is the result of an investigation by the DEA, assisted by IRS Criminal Investigations, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Contra Costa County Sheriff’s Office, South San Francisco Police Department, Oakland Police Department, Oakland School Police Department, Walnut Creek Police Department, and San Ramon Police Department.
The case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Delaware County Podiatrist Pleads Guilty to $5 Million Health Care FraudRead the Press Release
PHILADELPHIA – Stephen A. Monaco, D.P.M., 59, of Broomall PA pleaded guilty to health care fraud today for perpetrating a $5 million scheme to defraud Medicare, Medicaid and four private victim insurance companies, announced United States Attorney Zane David Memeger.
In a hearing before United States District Court Judge Juan Sanchez, Monaco admitted that he had committed the fraud using his practice, A Foot Above Podiatry, Inc. (“A Foot Above”), located in Havertown PA. Between January 2008 and October 31, 2014, Monaco submitted fraudulent claims to Medicare, Medicaid and four private victim insurance companies for podiatric procedures that were not provided, and podiatric procedures that were not performed, including injections, debridement (removal of dead, infected or foreign material to promote wound healing) and nail avulsions (removal of the entire or partial nail plate).
Monaco faces 10 years in prison, $5,000,000 restitution, substantial fines and criminal forfeiture. In addition, as a condition of his plea, Monaco surrendered his DEA license. Sentencing is set for November 30, 2016.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of the Inspector General, the Drug Enforcement Administration, the Office of Personnel Management Office of the Inspector General, and the United States Railroad Retirement Board Office of Inspector General, and is being prosecuted by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan.
Congressional Staffer Charged with Failure to File Tax Returns for Five YearsRead the Press Release
A congressional staffer was charged yesterday with five counts of willfully failing to file a tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to the criminal information and affidavit, Isaac Lanier Avant of Arlington, Virginia, is a staff member employed by the U.S. House of Representatives since approximately 2002. For tax years 2009 through 2013, Avant earned annual wages of over $170,000, but did not timely file a personal income tax return for any of those years. In May 2005, Avant filed a form with his employer that falsely claimed he was exempt from federal income taxes. Avant did not have any federal tax withheld from his paycheck until the Internal Revenue Service (IRS) mandated that his employer begin withholding in January 2013.
If convicted, Avant faces a statutory maximum sentence of one year in prison for each count, as well as a term of supervised release and monetary penalties.
An information merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation and the FBI, who investigated the case, and Assistant U.S. Attorney Jack Hanly and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Congressional Staffer Charged with Failing to File Tax Returns for 5 YearsRead the Press Release
ALEXANDRIA, Va. – Isaac Lanier Avant, of Arlington, who is currently employed as a staffer by the U.S. House of Representatives, has been charged with five counts of willfully failing to file a tax return.
According to the criminal information and affidavit, Avant has been employed as a staff member of the U.S. House of Representatives since approximately 2002. For tax years 2009 through 2013, Avant earned annual wages of over $170,000, but did not timely file a personal income tax return for any of those years. In May 2005, Avant filed a form with his employer that falsely claimed he was exempt from federal income taxes. Avant did not have any federal tax withheld from his paycheck until the Internal Revenue Service (IRS) mandated that his employer begin withholding in January 2013.
Avant faces a maximum penalty of five years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Jack Hanly and Assistant Chief Todd Ellinwood of the Tax Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-385.
A criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Charleston man pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who illegally possessed a firearm pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Lachance D. Woodson, 28, entered his guilty plea to being a felon in possession of a firearm.
Woodson admitted that on December 22, 2015, he possessed a Hi-Point .40 caliber pistol in Charleston. Woodson was prohibited from possessing any firearm under federal law because of a 2010 conviction in the United States District Court for the Southern District of West Virginia for possession of a firearm after a misdemeanor conviction for domestic violence.
Woodson faces up to 10 years in federal prison when he is sentenced on November 17, 2016.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Bolivar Man Sentenced to 30 Years for Sexual Exploitation of a Minor, Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bolivar, Mo., man was sentenced in federal court today for the sexual exploitation of a minor and for receiving and distributing child pornography.
Monte D. Gann, 54, of Boliver, was sentenced by U.S. District Judge M. Douglas Harpool to 30 years in federal prison without parole. The court also sentenced Gann to serve 10 years of supervised release following incarceration.
On March 8, 2016, Gann pleaded guilty to the sexual exploitation of a minor and to receiving and distributing child pornography.
The National Center for Missing and Exploited Children received two cybertips from Tumblr in September 2015. Tumblr had discovered 13 images and one video file that contained possible child pornography, which were uploaded from Gann’s computer. Law enforcement officers executed a search warrant at Gann’s residence on Dec. 16, 2015.
Gann told officers that he had been looking at child pornography for several years, and that he used the Internet to search for and view child pornography. Gann also admitted to using the websites Omegle, Kik and Skype to contact male children to exchange pornographic pictures. Gann engaged in chat sessions and live streaming video sessions via webcams with multiple minors (as young as nine years old) on multiple occasions.
According to court documents, Gann also used the Internet to meet multiple male children for hands on sexual contact during the past year. He not only engaged in sexual contact with these victims, but also traded sexually explicit images and videos with the child victims. More than 400 images and eight videos of child pornography were located on Gann’s cell phone; the youngest child was five years old.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force, the Polk County, Mo., Sheriff’s Department, the Bolivar, Mo., Police Department and the FBI.
Project Safe Childhood
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."
Area Tax Preparer Sentenced on Tax ChargesRead the Press Release
St. Louis, MO – Ricker Brooks was sentenced to 18 months in prison and ordered to pay restitution of $99,273 on charges involving his preparation of false tax returns. Brooks overstated business expenses of a client for the tax years 2009 and 2010. Brooks owns Brooks Accounting Service, providing accounting and tax preparation services. Zondra Jones owns Alliance In-Home Care Services, which provides home health care services to individuals.
According to court documents, after Jones reviewed the tax returns that Brooks prepared for her, she thought that the contract labor expense for her business was overstated. Although there was discussion between the two of them regarding the overstatement, Jones and Brooks agreed to file the tax returns with the overstatement. After the IRS began to investigate the returns, Brooks prepared false 1099 forms and check schedules which falsely represented payments made by Alliance In-Home Care Services to contract employees. Jones provided these false documents to the IRS.
"Knowingly falsifying documents filed with the IRS is a crime,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “We hope today's sentence sends the strong message that tampering with the integrity of our nation's tax system will result in jail time."
Brooks, St. Louis County, pled guilty in May to one felony count of conspiracy to defraud the U.S. and two felony counts of aiding and assisting in the preparation of a false income tax return. He appeared today for sentencing before United States District Judge Ronnie L. White. Brooks was taken into custody immediately following his sentencing.
Zondra Jones, Florissant, pled guilty last November to related charges. She was sentenced in May to probation for a term of three years and restitution of $99,273.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Steven Muchnick handled the case for the U.S. Attorney's Office.
Anchorage Man Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Wallen Olrun, Jr., 30, a resident of Anchorage, Alaska, was sentenced yesterday by U.S. District Judge Timothy M. Burgess to five years in prison, to be followed by a 20-year term of supervised release, for possession of child pornography. Olrun pleaded guilty to the charge on March 29, 2016.
According to court documents and arguments made during yesterday’s sentencing hearing, on June 28, 2015, law enforcement connected with the defendant’s computer through an internet file-sharing service and downloaded five files of child pornography. A second connection with the defendant’s computer was made on July 5, 2015. During this second session, the FBI downloaded a file of child pornography.
On Aug. 6, 2015, law enforcement executed a search of the defendant’s residence. Located on the defendant’s phone and computer were 3,500 files of child pornography, including images of children as young as 2 to 4 years old, as well as images and videos showing sadistic and masochistic conduct. During a later interview, the defendant admitted to searching for and downloading images of child pornography, saying that he started downloading images from the internet in 2010.
In sentencing the defendant, Judge Burgess addressed the seriousness of the defendant’s crime, noting the impact the defendant’s downloading and possessing of child pornography had on the victims shown in the images. “What you have done has had a tremendous impact on some of these children,” said Judge Burgess, “this is something they will have to live with for the rest of their lives.” According to Judge Burgess, the defendant’s crimes contributed to the marketplace of individuals molesting children, and taking pictures and videos of those acts. “The only reason this material is generated is because people like you like to look at it,” said Judge Burgess.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.
Alexandria Man Pleads Guilty to Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Lucas Aronson, 31, of Alexandria, pleaded guilty today to production of child pornography for enticing minors to engage in sexually-explicit conduct online and recording the acts.
According to the statement of facts filed with the plea agreement, Aronson streamed a video of an adult male engaged in sexually explicit conduct with a toddler-aged female on a chat website in January 2015. Prior to that time, Aronson also posed as a minor girl online and chatted with minor girls, asking them to send him sexually explicit videos of themselves. Videos of minor girls chatting and responding to Aronson’s requests were found in his residence.
Aronson faces a mandatory minimum penalty of 15 years and a maximum penalty of 30 years in prison when sentenced on November 18. 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; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. The Northern Virginia/Washington, D.C. Internet Crimes Against Children Task Force (ICAC) assisted in the investigation. Assistant U.S. Attorney Jay V. Prabhu and Trial Attorney Lauren Britsch of the U.S. Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-138.
Albuquerque Man Sentenced to Prison for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – Fabian Baros, 38, of Albuquerque, N.M., was sentenced today in federal court to 37 months in prison followed by three years of supervised release for his bank robbery conviction.
Baros was arrested in Sept. 2015, on a criminal complaint charging him with robbing the BBVA Compass Bank located at 1201 San Pedro Dr. in Albuquerque, on Sept. 10, 2015. The complaint alleged that Baros robbed the bank by approaching the bank teller and demanding money. Baros was arrested later that day by the Albuquerque Police Department.
Baros was subsequently indicted on Oct. 7, 2015. On March 21, 2016, Baros pled guilty to the indictment and admitted that he robbed the BBVA Compass Bank on Sept. 10, 2015.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Alamogordo Man Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging William Allen Patterson, 34, of Alamogordo, N.M., with federal child pornography charges. Patterson was detained pending trial.
Patterson was arrested on August 10, 2016, on a criminal complaint alleging that he possessed and received visual depictions of minors engaged in sexually explicit activity from 2002 to 2012 and Aug. 10, 2016, in Otero County, N.M. According to the criminal complaint, the investigation into Patterson began in Aug. 2016, after Patterson allegedly admitted to a polygraph examiner that he was addicted to child pornography while undergoing a polygraph examination as part of the application process to be a Border Patrol Agent. On Aug. 9, 2016, law enforcement searched Patterson’s residence and allegedly found a hard drive containing at least 10,000 images of child pornography.
If convicted on the receipt of child pornography charge, Patterson faces a statutory penalty of a mandatory minimum of five years and a maximum of 20 years in prison. If convicted on the possession of child pornography charge, he faces a statutory maximum penalty of ten years in prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
22 August 2016
Wise Business Owner Pleads Guilty to Selling Synthetic PotRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Southwest Virginia who previously pled guilty to distributing synthetic drugs.
Bradford Levi Moore, 37, of Wise, Virginia, previously pled guilty to one count of conspiring to distribute synthetic cannabinoids. Today in the United States District Court for the Western District of Virginia in Abingdon, Moore was sentenced to 24 months in federal prison.
“Synthetic forms of drugs have deadly effects on the body and the brain, even more so than common street drugs,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Moore admitted to being a distributor of synthetic cannabinoids in Wise County, Virginia from January 2013-January 2015. On January 22, 2015, a controlled delivery of synthetic cannabinoids was made to Moore at his business in Wise County.
The investigation of the case was conducted by the United States Postal Inspection Service, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Wise County Sheriff’s Department and the Southwest Virginia Drug Task Force. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Wheeling man sentenced for transporting minors to engage in illicit sexual conductRead the Press Release
WHEELING, WEST VIRGINIA – Kevin J. Wick, 43, of Wheeling, West Virginia, was sentenced today to 312 months in prison for traveling across state lines to engage in illicit sexual conduct with minor victims, United States Attorney William J. Ihlenfeld, II, announced.Wick transported minors across states lines from Ohio to an apartment in West Virginia where he engaged in illicit sexual conduct with the victims. He pled guilty in January 2016 to five counts of “Transportation of a Minor with Intent to Engage in Criminal Sexual Activity.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Wheeling Police Department, the West Virginia State Police, the Federal Bureau of Investigation, the Northern District of West Virginia Violent Crimes Against Children Task Force, the Martins Ferry, Ohio Police Department, and the Belmont County, Ohio Sheriff’s Department investigated.
U.S. District Judge John Preston Bailey presided.
Wasilla Man Sentenced for Child Pornography CrimesRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Sergey Silver, 41, resident of Wasilla, Alaska, was sentenced today by United States District Judge Ralph R. Beistline to 66 months in prison, to be followed by a 15-year term of supervised release, for possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). Silver pleaded guilty to the charge on January 13, 2016.
According to court documents and arguments made during today’s sentencing hearing, between November 4, 2014, and January 22, 2015, law enforcement downloaded child pornography from the defendant’s computer through an online file-sharing program. On March 11, 2015, law enforcement searched the defendant’s residence. Located on the defendant’s computer was evidence that he had recently run wiping software to delete the contents of the device. Nonetheless, law enforcement was able to recover evidence of the defendant’s use of a file-sharing program, and the names of approximately 200 files of child pornography that the defendant had downloaded and saved to his computer prior to March 11, 2015. Among these files were the images downloaded by law enforcement.
In sentencing the defendant, Judge Beistline discussed the nature and circumstances of the defendant’s conduct, including the impact the defendant’s crimes had on the minors depicted in the images that he traded. The images possessed by the defendant showed “victims being abused and being filmed…this is tragic,” said Judge Beistline. Judge Beistline’s sentence also recognized that the defendant’s online activities created a “market” for images of child pornography. According to Judge Beistline, the defendant’s sentence was intended to “protect victims so we have a safer community in which to raise our children.”
This case was investigated and prosecuted by the FBI Safe Streets Task Force, and the Alaska Internet Crimes Against Children (ICAC) Task Force. The Alaska ICAC is a federally and state funded task force managed by the Anchorage Police Department comprised of agents from federal, military, state, and local agencies. The purpose of the Alaska ICAC is to investigate online child exploitation crimes, including child pornography, enticement, and sex trafficking.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov, or contact the District of Alaska’s Project Safe Childhood Coordinator at (907) 271-5071.