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19 August 2016
Federal Law Enforcement Leaders to Hold Community Open House August 23 at Old Town PavilionRead the Press Release
POCATELLO – U.S. Marshal Brian Underwood and U.S. Attorney Wendy Olson will hold a community open house meeting Tuesday, August 23, at the Old Town Pavilion in Pocatello. Underwood and Olson will be at the Old Town Pavilion, 420 N. Main, from 5 – 6 p.m. to meet and visit with persons interested in learning more about federal law enforcement in Idaho.
“We will be available for any question, concern or issue community members would like to talk about,” said Olson. “Frankly, we simply want members of the public, whom we serve, to have a chance to personally visit with their federal law enforcement leaders in Idaho. We recognize that it is not always practical for people to come to our offices.”
“Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people,” said Underwood. “In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Like our local law enforcement partners, we want to ensure that we are doing our part in community policing and relationship building.”
Underwood and Olson were both appointed to their positions in 2010 by the President. They serve the entire state of Idaho, which is a single federal judicial district. Underwood and Olson also are both graduates of Pocatello High School.
Federal Court Orders Florida Tax Return Preparer to Stop Preparing Federal Tax Returns for OthersRead the Press Release
Return Preparer Allegedly Claimed Fraudulent Education and Fuel Credits
Today a federal court in Miami, Florida, permanently enjoined Rose M. Chazulle and her company, RMC Professional Services Corporation, from preparing federal tax returns for others. The defendants agreed to the civil injunction orders entered against them. In addition to barring the defendants from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered the defendants to deliver a copy of the injunction to all of their customers since Jan. 1, 2010.
According to the complaint, the defendants prepared federal income tax returns for customers that falsely claimed:
- Refundable credits, including American Opportunity Tax Credit and Lifetime Learning Credit for customers who did not incur educational costs and otherwise did not qualify for these credits;
- Fuel tax credits for customers who had no businesses of any kind, even though the credit can only be taken when fuel is used for certain business purposes or to operate a school bus;
- Fabricated business losses, claimed on Schedule C, Profit or Loss from Business, even though the customers did not have a business; and
- Wages described as household help income in order to falsely claim an Earned Income Tax Credit or to create a larger refund than the customer otherwise would have been able to claim.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ex-Auburn, Georgia, Police Officer Pleads Guilty to Extortion and Drug Trafficking ChargesRead the Press Release
ATLANTA - Charles F. Hubbard has pleaded guilty to extortion and drug trafficking conspiracy charges. The defendant was an officer with the Auburn, Georgia, Police Department who used his law enforcement position and his patrol car to intercept and steal drugs and money.
“Hubbard assisted drug traffickers for his own financial gain,” said U. S. Attorney John Horn. “He used his position as a police officer to perpetrate his scheme while betraying his community and the honest law enforcement officers who serve honorably every day.”
“It is deeply disappointing when an officer betrays his oath.” said Jack Killorin, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area. “What should be heartening to the community is that a task force of Federal, State and local police responded by upholding theirs.”
According to U.S. Attorney Horn, the charges and other information presented in court: Hubbard, while an officer with the Auburn Police Department, conspired with at least five other people to steal money and transport drugs. For example, in January 2015, one of Hubbard’s conspirators ordered six kilograms of cocaine. Hubbard used his Auburn police vehicle to intercept the drugs. Afterward, federal court authorized wiretaps exposed Hubbard agreeing to conduct a traffic stop on an individual carrying drugs in exchange for a $5,000 payment.
Then, on April 4, 2016, wearing clothing identifying himself as a police officer, and using his official police vehicle, Hubbard seized the confidential source's money. Hubbard provided the confidential source with a receipt purporting to be from the “East Metro Drug Task Force,” a non-existent entity, so that the seizure would look official. Hubbard then released the confidential source and met with two conspirators to split the money. Hubbard was taken into custody and, upon searching his vehicle, law enforcement officers found additional unused blank property sheets in the name of the non-existent East Metro Task Force that Hubbard had manufactured.
Sentencing for Charles F. Hubbard, 51, of Loganville, Georgia, is scheduled for November 7, 2016, before U.S. District Judge Leigh Martin May.
This case is being investigated by the Drug Enforcement Administration, the Atlanta-Carolinas HIDTA, and the Georgia State Patrol.
Assistant United States Attorneys Elizabeth M. Hathaway and Vivek Kothari are prosecuting 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.
Enforcer for Atlantic City “Dirty Block” Gang Sentenced to Life in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man who was an enforcer and street level dealer for a gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City was sentenced today to life in prison, U.S. Attorney Paul J. Fishman announced.
Malik Derry, a/k/a “Lik,” 25, was previously convicted of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. He was convicted after a six-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Malik Derry was an enforcer and a street level seller for “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,”, which was led by his brother Mykal Derry, a/k/a “Koose,” 36, of Atlantic City. The gang used force, gun violence and intimidation to control the lucrative drug trafficking area of the Stanley Holmes public housing complex, Brown’s Park and the surrounding area.
The evidence at trial showed that Malik Derry, Mykal Derry, enforcer Shaamel Spencer, 32, of Atlantic City, and other members of the gang routinely carried loaded handguns and engaged in at least eight drug related shootings between October 2010 and February 2013, including the shooting of a teenager on April 17, 2011, which left the teenager paralyzed.
Additional testimony established that Mykal Derry and Malik Derry planned and carried out the shooting murder of a rival drug dealer in Atlantic City on the evening of Feb. 10, 2013. Mykal Derry told members of his gang that he wanted them to “put him down” (referring to an order to shoot the rival dealer) when they saw him. Malik Derry shot the victim in the head from close range while riding a bicycle past him as the victim stood in front of an Atlantic City restaurant.
The murder weapon, a stolen .380 caliber semi-automatic handgun, was later recovered from the drop ceiling in an apartment located on Green Street in Atlantic City, which, at the time, was shared by Mykal Derry and his girlfriend, Kimberly Spellman, 34, of Egg Harbor Township, New Jersey. Atlantic City police detectives also found 18 “bricks” of heroin (approximately 900 individual packets of heroin) and drug packaging materials inside the apartment.
The evidence presented by the government at trial consisted of recordings of hundreds of telephone calls and text messages between Mykal Derry, Malik Derry, and over 19 other members of the gang, physical evidence including the recovery of twenty firearms, ballistics evidence from shooting scenes, crime scene evidence from eight different shooting scenes in Atlantic City, recovery of substantial quantities of heroin and drug packaging materials, approximately $40,000 in drug proceeds, the testimony of dozens of FBI agents and Atlantic City police detectives, ballistics experts, a narcotics expert, and two cooperating witnesses who had previously pleaded guilty to federal drug trafficking offenses.
In addition to the prison term, Judge Hillman sentenced Malik Derry to serve a term of 10 years of supervised release.
Mykal Derry was sentenced on Jan. 7, 2016 to life in prison. He was previously convicted at trial of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane M. Ruberton; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey.
Ellisville, Missouri Woman Indicted on Bankruptcy Fraud ChargesRead the Press Release
St. Louis, MO – Julie A. Fish was indicted on charges involving a bankruptcy scheme and concealing assets.
According to the indictment, Fish filed for bankruptcy in February 2014. The indictment states that she understated the value of her home in Ellisville by listing the value as $145,000. The property sold for $289,900. Additionally, in her Schedule B, Personal Property declaration she understated or failed to list the value of clothing, furs and jewelry by several thousand dollars. Also, as part of her preparation for the bankruptcy filing, Fish delivered several items of valuable jewelry to a local jewelry store to be sold on consignment, which she failed to list on the Schedule B document.
Fish, Ellisville, MO, was indicted by a federal grand jury on July 27, on one felony count each of bankruptcy fraud, making false statements in bankruptcy and concealment of bankruptcy assets. She was arraigned in federal court this morning.
If convicted, each count of the indictment carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
East Chicago Man Indicted on Murder and RICO ChargesRead the Press Release
HAMMOND – United States Attorney David A. Capp announced that a federal grand jury in Hammond returned a 9 count superseding indictment charging Luis Allen Perez a.k.a. “LA”, 26, of East Chicago, Indiana with murder in aid of racketeering activity & RICO conspiracy in addition with numerous other charges.
According to the indictment, Perez allegedly is a member of the Imperial Gangsters street gang and was involved in committing various acts in furtherance of the criminal enterprise. Perez is alleged to have killed Manuel Martinez in East Chicago, Indiana on or about June 17, 2016 for the purpose of maintaining or increasing position in the gang. During the June 17 killing Perez allegedly also attempted to murder another individual.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Dean Lanter.
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Colombian Citizen Sentenced for his Participation in an International Money Laundering ConspiracyRead the Press Release
A Colombian citizen was sentenced to 30 months in prison, to be followed by two years of supervised release for his participation in an international money laundering conspiracy.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Juan Carlos Medina Cardenas, 46, previously pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
According to court documents, Medina was employed as a branch manager at a Colombian bank where his duties included handling customer accounts. In January 2009, Medina opened an account for co-defendant Leonardo Forero Ramirez, 59, [case number 1:13-20556] at the bank. The account could be used to receive and disburse funds through wire transfers, cash, or other withdrawals. The bank was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions.
Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Medina was involved in the receipt of approximately $338,000 from IRS undercover accounts in the United States to the bank in Colombia, and the conversion of the dollars into pesos and their withdrawal by Forero. Medina understood that the money transfers were falsely represented as payments for fictitious services in order to disguise their source and origin as proceeds from illegal drug trafficking.
Forero was sentenced on July 17, 2015 to 37 months in prison, to be followed by one year of supervised release for his participation in the scheme.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colleyville, Texas, Businessman Arrested for Running Ponzi Oil and Gas Fraud SchemeRead the Press Release
FORT WORTH, Texas — A Colleyville, Texas, businessman, James VanBlaricum, who operated an oil and gas exploration company, was arrested Wednesday by U.S. Postal Inspectors on a federal criminal complaint charging him with mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
VanBlaricum, 77, made his initial appearance in federal court yesterday before U.S. Magistrate Judge Hal R. Ray, who ordered that he remain in custody pending a detention hearing set for Tuesday, August 23, 2016, at 2:00 p.m.
According to the complaint, Signal Oil and Gas Company (SOG) was incorporated by VanBlaricum in 2000; he was the registered agent and sole incorporator. The Land Lease Program (LLP) was one of several oil and gas investment programs offered for purchase to SOG investors. Texas Energy Management and Texas Energy Mutual (TEM) are the names of SOG’s follow-on companies that VanBlaricum and other coconspirators began operating in 2008. SOG initially operated from an Airport Freeway address in Fort Worth, but in 2004, it also began receiving mail at a commercial mail receiving agency on Northwest Highway in Grapevine, Texas. The name on this mail box was changed in November 2010 to TEM.
The investigation began when the U.S. Postal Inspection Service was contacted by the Texas State Securities Board (TSSB) after it began receiving complaints about VanBlaricum related to various programs he promoted and misrepresentations made to them by SOG salespeople. One of the main complaints was lack of investment payments. In fact, an investigation disclosed that from January 21, 2006, through January 31, 2009, 53 victims of a mail fraud scheme involving SOG’s LLP were identified with investments totaling $2,633,090.
Each LLP prospectus reflected 1) an “assured” rate of return on an initial investment; 2) the “assured” rate of return ranged from nine to 15 percent of the amount invested; and 3) investors would receive a full refund of their initial investment amount after the three to five-year investment period. Some prospectuses provided Minimum Assured Income Schedules that reflected assured and estimated potential rates of return of five to 35 percent, and some prospectuses reflected potential, projected, or examples of the allocation of investor funds in 50 percent hard assets and 50 percent oil and gas exploration.
An analysis of the use of LLP investor funds SOG received showed that approximately $2 million of LLP investor funds were deposited into SOG Wells Fargo bank accounts along with comingled funds from other sources. The analysis further revealed that funds deposited into the Wells Fargo accounts had not been used for purposes described in prospectuses and appear to have been misused by SOG and VanBlaricum. In fact, more than one-half of investor funds went to employee payroll and day trading.
“Dividend” or investor payments included payments to older investors from programs that preceded LLP, and those “dividend” payments came from Wells Fargo accounts where deposits from newer investors were kept – highly indicative of a Ponzi scheme where older investors are paid with newer investor money. Many of the victims in VanBlaricum’s LLP program invested at the recommendation of several financial consultants.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the charged offense, mail fraud, is 20 years in federal prison and a $250,000 fine.
The investigation is being led by the U.S. Postal Inspection Service with assistance from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Douglas A. Allen is in charge of the prosecution.
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Cocaine Trafficker Sentenced to 262 Months in Federal PrisonRead the Press Release
DALLAS — A Garland, Texas, resident, Chester Brown, a/k/a “Baldy,” 41, was sentenced today by U.S. District Judge Sidney A. Fitzwater to serve a total of 262 months in federal prison on drug conspiracy convictions, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown pleaded guilty in February 2016 to one count of conspiracy to distribute cocaine and one count of conspiracy to distribute cocaine base (crack cocaine). Judge Fitzwater sentenced him to 240 months on the cocaine conspiracy and 22 months on the crack cocaine conspiracy, to run consecutively.
Brown is one of the main defendants charged in a 20-defendant cocaine and crack cocaine distribution indictment returned in May 2015. Most of the defendants named in that indictment, including Brown, were arrested on May 26, 2015, in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI-Violent Gang Safe Streets Task Force.
According to documents filed in his case, on several occasions between January 2013 and May 2015, Brown possessed with the intent to distribute and distributed cocaine and crack cocaine. While the conspiracy was ongoing, in fact, he possessed with the intent to distribute and/or distributed 2,649 grams of cocaine and 451.5 grams of crack cocaine.
Of the 20 defendants indicted, 16 have pleaded guilty and seven of those have been sentenced. Charges against one defendant were dismissed, and three are set for trial in December 2016.
Assistant U.S. Attorney Phelesa Guy is prosecuting the case.
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California Woman Sentenced to 50 Months in Prison for Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
HSI and DCIS investigated the case. Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
California Woman Sentenced to 50 Months in Prison for Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
HSI and DCIS investigated the case. Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Businessman Convicted of Offering Millions of Dollars to Department of Defense Procurement OfficialRead the Press Release
ALEXANDRIA, Va. – Razak A. Dosunmu, 61, of Washington, D.C., was convicted yesterday by a federal jury on charges of offering illegal gratuities to a procurement official with the U.S. Department of Defense, Defense Logistics Agency (DLA) while Dosunmu was negotiating aviation fuel contracts with DLA worth over $1 billion.
Dosunmu was indicted on March 8. According to court records and evidence at trial, Dosunmu initially offered to purchase a house for the procurement official. In subsequent conversations, Dosunmu offered, among other things, $2 million to the procurement official.
Dosunmu faces a maximum penalty of two years in prison for each count of conviction 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; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jack Hanly and Special Assistant U.S. Attorney Edward P. Sullivan are prosecuting the case.
The case was jointly investigated by the FBI’s Washington Field Office and the Defense Criminal Investigative Service.
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-54.
Buchanan County Deputy Honored for Drug-Trafficking Investigation; ICE Agent Honored for Phillipines Child Porn InvestigationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Buchanan County Sheriff’s Deputy and an agent for Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) have received the Guardian of Justice Award.
Deputy J.D. Roberts and Agent James D. Holdman were honored on Thursday, Aug. 18, 2016, during the 14th Annual LECC Training Seminar in Springfield, Mo.
J.D. Roberts
Roberts is a Buchanan County Drug Strike Force investigator and is assigned to the Drug Enforcement Administration as a task force officer. Roberts began a drug-trafficking investigation in 2010 that, over the course of five years, culminated in 151 defendants charged in nine separate federal indictments. To date, there have been three jury trial convictions and dozens of guilty pleas. Additionally, there are still active spin-off investigations and indictments expected this year.
Defendants were charged with participating in conspiracies to distribute methamphetamine, heroin, or other controlled substances and money laundering. Many were charged with various firearm offenses. Money judgments into the millions have been obtained and more will be obtained when the related cases are resolved. These investigations successfully dismantled at least three intertwined multi-jurisdictional drug-trafficking organizations, with three others at least disrupted via the pending charges.
The geographic scope of this investigation initially was limited to the Buchanan County area; however, Roberts worked with DEA partners and the federal Organized Crime Drug Enforcement Task Force to expand into a large area of northwest Missouri, parts of southern Iowa and Nebraska, the Kansas City metropolitan area and Kansas. Roberts also partnered with Midwest HIDTA, the FBI, the Kansas Bureau of Investigation and police departments in Kansas City, Mo., Independence, Mo., and Kansas City, Kan.
James D. Holdman
Holdman located a Craigslist advertisement for photography services in the Philippines in July 2012, and his suspicion that the advertiser was involved in producing child pornography launched an investigation into Kenneth Gaylord Stokes, a U.S. citizen and prior sex offender who resided in the Philippines. As a result of the investigation, Stokes pleaded guilty to a federal indictment that charged him with sexually abusing five separate child victims and was sentenced to 120 years in federal prison without parole.
Holdman exchanged e-mails with Stokes and traveled to the Philippines to meet in person at Stokes’ gated compound. Stokes told Holdman that he would help facilitate sexual liaisons with both his own wife and Filipino children. Stokes also expressed his desire for Holdman to impregnate his wife in hopes that he would later be able to use the child for sexual purposes. Stokes explained that his wife would not consent to having sex with Holdman and encouraged him to rape her.
Stokes bragged that he had taken thousands of images depicting child pornography, and indicated that people in other countries paid him to produce made-to-order child pornography. Stokes showed Holdman multiple images of child pornography on his laptop computer.
Holdman left the house and returned with local law enforcement officers to arrest Stokes, who was deported to the United States. Investigators seized Stokes’s computers and conducted a forensic examination. Investigators found thousands of pictures and video recordings depicting child pornography on Stokes’s computers, as well as a script for a movie depicting the sexual and physical abuse of a child.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Bowling Green, Kentucky, Substitute Teacher Sentenced to Ten Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
Arrest part of an international undercover investigation by Toronto, Ontario police
BOWLING GREEN, Ky. – A substitute teacher, formerly employed by the Bowling Green (Kentucky) School system, was sentenced to ten years in prison and a lifetime of supervised release this week in United States District Court, by United States District Judge Greg N. Stivers, for possession and distribution of child pornography, announced United States Attorney John E. Kuhn, Jr.
Leon Lussier, of Bowling Green, Kentucky, was arrested by criminal complaint on September 1, 2015, and charged by grand jury indictment on September 16, 2016. He pleaded guilty to the charges in May of 2016.
In court today, Lussier admitted that on three occasions, from June 23, 2015, to July 21, 2015, he participated in video conferencing rooms (chat rooms) where he was a participant in streaming child pornography through his webcam which was shared with other users in the room.
According to the initial charges, the international investigation that led to Lussier’s arrest started in January 2015, when the Toronto, Ontario, Canada Police Service, Child Exploitation Section, received information regarding the investigation of a group of individuals involved in the sexual abuse of children, including the distribution of child pornography. On June 23, 2015, a Toronto Police Service Detective Constable logged into an undercover software account and observed a person with the username “I luv boys” was streaming child pornography videos by sharing his computer screen. The user streamed four videos containing child pornography. Further investigation led law enforcement to Lussier as the person with username “I luv boys.”
A search warrant of Lussier’s Bowling Green home resulted in the seizure of numerous computer media. A preview of an HP Pavilion by a Computer Forensics Agent revealed several videos containing child pornography. Several of the videos had been previously viewed in a chat room by an undercover officer. The videos were being live-streamed on a computer with an IP address assigned to Lussier.
In addition to the sentence, Lussier was ordered to pay $15,000 to victims and $50,000 in fines.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless. This case is being investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Canadian authorities, Bowling Green Police Department and U.S. Marshals Service.
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."
Bank Robbery IndictmentRead the Press Release
United States Attorney Deborah Gilg announced that an indictment was unsealed charging Charles McSpadden, age 42 of Omaha, with bank robbery. The indictment alleges he took by force, violence and intimidation, approximately $5,376.00 of United States currency belonging to and in the care, custody, control, management and possession of U.S. Bank, 3225 South 42nd Street, Omaha, Nebraska on or about August 5, 2016. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Army Deserter Charged for Receiving Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Roy Lee Ross, Jr., a.k.a. Daniel Alfred Sullivan, Jr, 64, of Morganton, N.C., is facing multiple federal charges for defrauding the U.S. Department of Veterans Affairs (the VA) by receiving veteran benefits based on fraudulent service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the federal indictment, Ross enlisted in the United States Army (the Army) in September 1973 under his true name. While in the Army, the defendant was stationed in the United States and in West Germany, but never served in Vietnam or Korea, was not in the Special Forces, and never sustained any service-connected injuries. The indictment alleges that while stationed in Hawaii in 1978, the defendant was determined to be Absent Without Leave (AWOL), and a “Deserter Verification” was issued for him. Ross was later apprehended and eventually requested to be discharged rather than undergo a court-martial. Ross’s official Department of Defense form known as “DD Form 214” or “Report of Separation,” indicates that the defendant was discharged “Under Conditions Other Than Honorable.”
According to allegations contained in the indictment, at least by June 2007, Ross began to falsely represent himself to the Charles George VA Medical Center (the VAMC) in Asheville, as a U.S. Army veteran named “Daniel Alfred Sullivan, Jr.” The indictment alleges that the defendant claimed that he had served in the Special Forces, that he had been wounded in combat, and that he had been honorably discharged from the Army. The indictment further alleges that Ross claimed he was suffering from nightmares caused by his wartime service and his combat-related injuries. As a result of his misrepresentations, in 2007, Ross was diagnosed with suffering from service related Post Traumatic Stress Disorder (PTSD) and began receiving health benefits from the VA.
The indictment alleges that in 2012, based on the PTSD diagnosis and other multiple false statements regarding his military service, including his fictitious injuries, honors and medals received, Ross filed for, and was granted, disability-based compensation at a rate of 60%, he was given a retroactive lump sum of $18,349 and began receiving a monthly tax-free compensation of $1,026. Then, in 2014, the defendant filed a second claim for “increased evaluation” seeking additional disability-based compensation. The indictment alleges that Ross, still using the name Sullivan, claimed he had been shot in the neck during combat, and that he was suffering from physical pain due to his service-connected injury. As a result of Ross’s false statements and accounts, his disability rating was increased, reflecting an increase in his monthly tax-free compensation to $1,743.48. Then in 2015, still falsely claiming to be Daniel Sullivan, the defendant filed a third claim for “increased evaluation,” claiming that he was suffering from cervical (neck) impairment and pain, due to his injuries while on active duty. The defendant was eventually granted his claim, and Ross received a $3,490.95 back payment award and his monthly disability payment was increased to $2,906.83.
The indictment alleges that in addition to his disability benefits, the defendant received approximately $57,000 in health care benefits from the VA, to which he was not lawfully entitled. The defendant also defrauded the VA’s Beneficiary Travel Program, after filing claims for mileage reimbursement in connection with his medical appointments. Lastly, the indictment alleges that Ross defrauded the Veterans Retraining Assistance Program (VRAP), by receiving $10,218.14 in VRAP payments. The VRAP program offers up to 12 months of training assistance at a VA-approved educational program and it is available to unemployed veterans who meet certain criteria.
“The actions of the defendant are contrary to the code of military conduct,” said U.S. Attorney Rose. “As alleged in the indictment, Ross received thousands of dollars in VA benefits based on lies and a fabricated military career. Ross allegedly conjured up stories about fighting in multiple wars and receiving the Purple Heart, a distinguished medal presented to our country’s bravest wounded in combat. Now, the scheme has been exposed and Ross, a disgraced deserter, must answer for his actions in a federal court.”
The federal criminal indictment charges Ross with one count of executing a scheme to defraud a health benefit organization (the VA), which carries a maximum penalty of 10 years in prison and a $250,000 fine; and two counts of making false statements in connection with the delivery of health care benefits by the VA, which carries a maximum penalty of five years in prison and a $250,000 fine. He is also charged with two counts of stealing from the VA, a charge that levies a potential maximum prison term of five years and a $250,000 fine, and one count of a making false claim for travel benefits from the VA, which carries a potential maximum prison term of five years and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the VA-OIG for their investigation of the case. Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Armed Fugitive Arrested on Cape CodRead the Press Release
BOSTON – A Hyannis man who has been a fugitive since he was indicted in April 2016 was arrested yesterday in connection with drug trafficking charges.
Shaun Miller, 31, of Hyannis, Mass., was arrested yesterday in South Yarmouth, Mass. Miller was detained pending a detention hearing in U.S. District Court in Boston scheduled for Aug. 31, 2016. In April 2016, Miller was charged in an indictment with Denzel Chisholm, Brooke Cottel and others with possession of heroin with intent to distribute.
As alleged during the arraignment today, on Thursday, Aug. 18, 2016, law enforcement officers surrounded a residence in South Yarmouth where Miller was believed to be staying. Officers ordered Miller out of the residence and Miller, disguised as an elderly man, walked outside. Upon further investigation, officers determined that the “elderly man” was in fact Miller, and at that point, officers pulled off Miller’s realistic disguise and placed him under arrest. A subsequent search of the residence revealed two loaded weapons hidden in a laundry basket and nearly $30,000 in cash.
United States Attorney Carmen M. Ortiz; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Barnstable Police Chief Paul MacDonald; and Yarmouth Police Chief Frank Frederickson, made the announcement today. The federal case against Miller is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
AgQuest Accountant Sentenced to 42 Months in Prison for Embezzling more than $1.7 MillionRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of DIANE MARIE EILER, 48, to 42 months in prison for stealing $1.7 million from her employer. EILER, who pleaded guilty to one count of wire fraud on April 15, 2016, was sentenced today before Senior U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“Eiler systematically abused the trust of her employer to steal more than $1.7 million,” said Assistant United States Attorney Joseph H. Thompson. “The sentence imposed today by the court demonstrates that financial crimes are taken seriously and that white collar criminals are subject to significant consequences for their illegal acts.”
According to the defendant’s guilty plea and documents filed in court, EILER was the Director of Accounting at AgQuest Financial Services, Inc., a financial services company based in Morgan, Minn., which offers loans and insurance to farmers and other agricultural producers. From 2007 through November 2015, EILER used her position to funnel money from AgQuest to her own personal bank accounts.
According to the defendant’s guilty plea, EILER stole company checks and wrote them out to herself, using the signature stamps of the company’s executives. She hid the theft by creating false entries in AgQuest’s ledger to disguise the payments as payments to AgQuest customers. In total, EILER wrote more than 250 checks to herself, which totaled more than $1.7 million. EILER gambled away almost all of the stolen money.
This case was prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the FBI.
Defendant Information:DIANE MARIE EILER, 48
Bird Island, Minn.Convicted:
• Wire fraud, 1 count
Sentenced:
• 42 months in prison
• 3 years supervised release
• $1,738,459 in restitution
18 August 2016
Wilmington Man Indicted on Charges of Threatening Arson to Boston’s Largest MosqueRead the Press Release
BOSTON – A Wilmington man was indicted today in connection with making threats over Facebook to burn a local mosque and with unlawfully possessing ammunition.
Patrick Keogan, 44, of Wilmington, was indicted on two counts of making a threat over Facebook to injure or intimidate another individual or to unlawfully damage or destroy a building by means of fire and one count of being a convicted felon in possession of ammunition. Keogan was previously charged in a criminal complaint and arrested in July 2016.
According to charging documents, on or about Nov. 14, 2015, Keogan threatened the Islamic Society of Boston Cultural Center (ISBCC), a Roxbury-based cultural center that offers a mosque and educational, spiritual, and social services to the New England Muslim community. Keogan posted on the ISBCC’s Facebook page an image depicting a mosque in flames with lettering superimposed that stated “Burn your local mosque,” along with the statement “Hello scumbags,” next to a smiley face emoji. Keogan allegedly posted the same threatening image on the Facebook page of the Islamic Society of Northeastern University (ISNU).
Through a warrant authorizing a search of Keogan’s Facebook account, law enforcement investigators found posts that approved burning mosques as early as 2013. For example, in 2013 Keogan shared a post with the following summary: “On July 4th, Joplin, Missouri's Islamic Center — the city's only mosque — suffered roof damage after an unidentified man set it on fire by tossing a burning object onto the building.” Keogan wrote in response: “Somewhere out there is an unknown hero. The people’s champion. A true God amongst mortal men. May your days be many & troubles be few my good man.” On or about Nov. 17, 2015, Keogan posted a status update saying, “Canada enters the Mosque Burning Winter Olympics of 2016 early! Who will take the Gold? Who will take the Silver? and WHO will take the Bronze??? We'll have to wait til the snow clears to find out folks but lets keep our fingers crossed for some fierce competition! And remember- you (yes you) are a qualified competitor of your own nation- so get out there and help your Country be number one in this winter’s Mosque Burning Olympics!”
According to court documents, Keogan’s Facebook account also showed that, despite his statutory prohibition as a convicted felon from possessing firearms and ammunition, Keogan continued to buy, sell, trade, build, modify, possess and shoot firearms and ammunition. After obtaining a warrant to place a GPS tracking device on Keogan’s car, federal agents tracked Keogan to a gun store in New Hampshire on or about May 1, 2016. Keogan allegedly purchased two boxes of 8mm rifle ammunition and two bags of loose 8mm rifle ammunition, and then drove the ammunition directly back to his residence in Wilmington.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Wilmington Police Chief Michael Begonis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Scott Garland of Ortiz’s Civil Rights Enforcement Team.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wheeling man charged with failing to register as a sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Joseph J. Weidman, 49, of Wheeling, West Virginia with failure to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Weidman allegedly failed to register and update his registration as a sex offender in Ohio County, WV, after having moved from Massachusetts to West Virginia in May, 2016. Weidman is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is handling the case on behalf of the government. The United States Marshals Service and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Attorney Ortiz to Probe Islamic Cemetery Proposal in DudleyRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts has opened an investigation into whether there have been violations of a federal civil rights law by the town of Dudley, Mass.
The U.S. Attorney’s Office is seeking to determine whether the Town has infringed on the Islamic Society of Greater Worcester’s right to religious exercise by placing unreasonable barriers to, and ultimately denying, their request for a conditional use permit to establish an Islamic cemetery in the Town.
“We are committed to protecting the rights of Americans of all faiths,” said U.S. Attorney Ortiz. “All Americans have the right to worship and to bury their loved ones in accordance with their religious beliefs, free from discrimination. We are opening this investigation to assess whether there have been violations of federal civil rights laws in connection with the request to establish an Islamic cemetery in Dudley.”
The U.S. Attorney’s Office is authorized to investigate allegations of discriminatory treatment under the Religious Land Use and Institutionalized Persons Act (RLUIPA), which, among other things, prohibits discrimination against any assembly or institution on the basis of religion. The U.S. Attorney’s Office has not made any determination whether RLUIPA has been violated.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two sentenced for cocaine, morphine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Two men were sentenced for their role in the distribution of cocaine and morphine, United States Attorney William J. Ihlenfeld, II, announced.
Robert Montalvo Laureano, 33, of San Lorenzo, Puerto Rico, previously of Moorefield, West Virginia, was sentenced to 21 months in prison for distributing cocaine. Laureano pled guilty in June 2015 to one count of “Cocaine Distribution – Aiding and Abetting.”
Samuel Lee Winebrenner, 29, of Petersburg, West Virginia, was sentenced to 6 months in prison for distributing morphine. Winebrenner pled guilty in February 2016 to one count of “Aiding and Abetting Distribution of Morphine.”
Assistant United States Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Two men appear in Federal court for heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court today for heroin crimes, announced United States Attorney Carol Casto. Kevin Brown, 32, of Huber Heights, Ohio, was sentenced to two years and three months in federal prison for possession of heroin with intent to distribute. In a separate drug prosecution, Christopher E. Butts, 42, of Charleston, pleaded guilty to distribution of heroin.
On June 29, 2015, an officer with the Metropolitan Drug Enforcement Network Team conducted a traffic stop on a rental vehicle Brown was driving. Brown gave a false name and false identification to the officer, but consented to a search of the vehicle. Inside the vehicle, the officer found heroin, cocaine, and marijuana, along with empty capsules and a Magic Bullet mixer which had been used to process heroin for distribution.
In a separate prosecution, Butts admitted that on May 24, 2016, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place at the corner of Delaware Avenue and Randolph Street in Charleston. Butts further admitted that he sold drugs to a confidential informant again the next day. On May 26, 2016, law enforcement executed a search warrant at the residence where Butts was staying. During the search, officers seized over six grams of heroin from Butts that was in his pocket, a firearm located near his feet, and cash from the residence. Officers additionally located approximately 75 grams of heroin behind the couch in the residence. All of the heroin recovered in the search was field tested by law enforcement and came up positive for the presence of fentanyl, which is anywhere from 25 to 50 times more potent than heroin. Butts faces up to 20 years in federal prison when he is sentenced on November 10, 2016.
The Metropolitan Drug Enforcement Network Team investigated these cases. Assistant United States Attorney Haley Bunn is in charge of the prosecution of Brown. United States District Judge Thomas E. Johnston imposed Brown’s sentence. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution of the Butts case. The plea hearing for Butts was held before United States District Judge Joseph R. Goodwin.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Men Collectively Sentenced to More Than 20 Years for Possessing Large Quantities of Multiple Controlled Substances, FirearmsRead the Press Release
Memphis, TN – Two Memphis men have been collectively sentenced to more than 240 months in federal prison for conspiring to distribute large quantities of heroin, cocaine, marijuana and oxycodone. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, 40-year-old Freeman Monger and 45-year-old Jeffrey Ingram, both of Memphis, possessed with intent to distribute large quantities of heroin, cocaine, marijuana and oxycodone. Ingram also unlawfully possessed multiple handguns and rifles.
In April 2013, Shelby County Sheriff’s Office deputies conducted a traffic stop on Ingram and found a large quantity of cocaine in his vehicle. Deputies later executed a search warrant at Ingram’s residence, as well as storage units he maintained. Eleven handguns and two rifles were recovered from the storage units.
Over two years later, in August 2015, deputies executed a search warrant on a residence owned by Monger. Upon entering the residence, law enforcement located Monger and Ingram in separate parts of the house. A subsequent search of the residence yielded hundreds of grams of heroin, cocaine, marijuana, as well as 50 oxycodone pills. The residence was reportedly used to stash and distribute narcotics.
A search warrant was also conducted on Ingram’s residence in August 2015. Deputies recovered a Beretta 9mm pistol during the search.
In February 2016, both Ingram and Monger pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to multiple offenses.
Ingram pleaded guilty to two counts of possessing with the intent to distribute cocaine; individual counts of aiding and abetting a co-conspirator in possession with the intent to distribute multiple grams of heroin, cocaine, marijuana and oxycodone; felony possession of 13 firearms; felony possession of 12 firearms in furtherance of a drug trafficking crime; and felony possession of a Beretta 9mm pistol.
Monger pleaded guilty to aiding and abetting a co-conspirator in unlawful possession with the intent to distribute heroin, cocaine, marijuana and oxycodone.
In June 2016, Judge Fowlkes sentenced Monger to 78 months in federal prison.
On Thursday, August 18, Judge Fowlkes sentenced Ingram to 168 months in federal prison.
This case was investigated by the Shelby County Sheriff’s Office.
Assistant U.S. Attorney Lorraine Craig prosecuted this case on the government’s behalf.
Two Former Community Council of South Central Texas Officials Admit to Stealing over $188,000 in Government FundsRead the Press Release
In San Antonio this morning, 65-year-old former Executive Director Robert James Lucio and 55–year-old former Chief Financial Officer Monica Lynn Russ (aka “Monica Lynn Gourley”) admitted to stealing over $188,000 from the Community Council of South Central Texas (CCSCT) announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Fred Biery, Lucio and Russ pleaded guilty to one count of theft from a program receiving federal funds. As a result, Lucio and Russ face up to ten years in federal prison.
According to court records, in 2012, CCSCT received over $4 Million in federal funding administered by the U.S. Department of Health and Human Services through the Comprehensive Energy Assistance Program and the Community Services Block Grant program. In 2012, Lucio and Russ schemed to provide themselves with unauthorized salary increases, bonuses and incentive payments despite policies and procedures put in place by CCSCT Board of Directors to prevent such actions. An internal audit completed in 2013 revealed that the total amount of unauthorized overpayments to Lucio totaled $92,881; Russ, $95,590.
Lucio and Russ remain on bond pending sentencing scheduled for January 6, 2017.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
Three Gang Members Charged in Federal Court with Racketeering Offenses, Including Murder and Firearm OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the charges against three members of the Sex Money Murder gang (“SMM”), COREY BROWN, a/k/a “CB,” JOSNEL RODRIGUEZ, a/k/a “DO,” and CHRISTOPHER CANADA, a/k/a “Brabs,” with racketeering and firearms charges, including the gang-related murder of Vincent Davis on July 15, 2012.The case has been assigned to United States District Judge Denise L. Cote. RODRIGUEZ was presented before Judge Cote yesterday; BROWN was presented before Judge Cote today.
Manhattan U.S. Attorney Preet Bharara said: “The Sex, Money, Murder gang has terrorized residents of the Bronx for years with drug dealing, gang violence, and even murder. Today’s charges against three alleged members of this notoriously violent gang – possible only because of the work of the FBI and the NYPD – is another step toward keeping our communities free from drugs and gang violence.”
FBI Assistant Director in Charge Diego Rodriguez said: “The drugs these inner city gangs push end up on the streets everywhere in our cities and communities, not just in the areas they control. As long as there is a market for their products, these gangs will continue to commit crimes to maintain control. Unfortunately in this case, murder has become the normal course of their business day. The FBI New York Metro Safe Streets Task Force will continue to go after the heads of these gangs in the hope that one day the demand for their drugs will go away.”
As alleged in the Indictment and in other court papers[1]:
SMM is a criminal enterprise that operates mainly in and around several housing developments in the Bronx, New York. From 2011 up to and including 2016, members and associates of SMM enriched themselves by selling drugs, such as crack cocaine, cocaine, and heroin, and engaged in acts of violence, including murder and attempted murder of rival gang members, rival drug traffickers, and fellow gang members.
On July 15, 2012, SMM members BROWN and RODRIGUEZ participated in the murder of Vincent Davis, in the vicinity of 566 Pugsley Avenue, Bronx, New York, in order to maintain and increase their standing within SMM. CANADA later assisted his fellow SMM members avoid arrest by disposing of the murder weapon after Davis was shot.
Count One charges BROWN, RODRIGUEZ, and CANADA with participating in a racketeering conspiracy for their involvement in the SMM gang, which carries a maximum sentence of life in prison.
Count Two charges BROWN and RODRIGUEZ with murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of death, or life in prison.
Count Three charges BROWN and RODRIGUEZ with conspiracy to commit murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of 10 years in prison.
Count Four charges BROWN and RODRIGUEZ with murder through the use of a firearm, in connection with the murder of Davis, which carries a maximum sentence of death, or life in prison.
Count Five charges CANADA with being an accessory after the fact to murder in aid of a racketeering conspiracy, in connection with the murder of Davis, which carries a maximum sentence of 15 years’ imprisonment.
Mr. Bharara thanked the FBI and the NYPD, in particular, the New York Metro Safe Streets Task Force, as well as the Criminal Investigators at the United States Attorney’s Office for their work on the investigation.
RODRIGUEZ, 26, of the Bronx, New York, and BROWN, 37, of the Bronx, New York, were taken into custody yesterday. CANADA, 27, of Bronx, New York, remains at large.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Brooke Cucinella, Rebekah Donaleski, and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
Three Brothers Charged with Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERRELL TATE, age 26, GEREME TATE, age 24, and MICHAEL TATE, age 30, three brothers from New Orleans, were indicted on today a federal grand jury with being felons in possession of firearms.
According to the Indictment, the TATE brothers, all of whom had been previously convicted of felonies in Orleans Parish Criminal District Court, possessed a Glock 19C semiautomatic pistol, and a Taurus PT111 9mm pistol on July 4, 2016.
If convicted, each defendant faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
Third Defendant in Fraud Scheme Pleads GuiltyRead the Press Release
COLUMBUS, Ohio – Richard Morin, 48, of Portland, Connecticut pleaded guilty in U.S. District Court here today to one count of conspiracy, a crime punishable by up to five years in prison, for his role in a scheme that defrauded a Columbus-based company out of between $250,000 and $1,500,000 over the course of a year.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered before U.S. District Judge Algenon L. Marbley.
Morin is the final defendant to plead guilty in connection with the fraud. On August 16, 2016, Frank Damico, 52, of Sunbury, Ohio pleaded guilty before U.S. Magistrate Judge Kimberly A. Jolson to defrauding Damico’s employer by working for both his employer and a competitor at the same time and using a hunting buddy’s name to hide the fact that he was working for the two competing companies simultaneously.
Damico pleaded guilty to one count of conspiracy to commit wire fraud, a crime punishable by up to 20 years in prison and a $250,000 fine, and one count of subornation of perjury, punishable by up to five years in prison and a $250,000 fine.
According to a statement of facts presented during Damico’s hearing, Damico was national service manager for Cranel, Inc., a Columbus company that sells and services imaging equipment. In November 2011, Damico agreed to go into business with Morin, who owned Pro Image, a Connecticut company and competitor of Cranel’s. Damico transferred Cranel company documents containing trade secrets and confidential customer data to Pro Image.
Early in 2012, Damico asked Morin set up a Pro Image email account under the name of Josh Fetter, whom court documents describe as a hunting buddy of Damico’s. Fetter agreed after the fact to allow his name to be used, and has admitted to lying to FBI agents and a federal grand jury during the investigation of the fraud.
As “Josh Fetter”, Damico emailed and called existing Cranel customers in other states, persuading approximately 12 of them either switching their business to Pro Image or seeking much lower prices from Cranel.
Fetter, 32, of Ashley, Ohio pleaded guilty before U.S. Magistrate Judge Norah McCann King on June 29, 2016 to one count of criminal contempt and is awaiting sentencing.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Deborah A. Solove, who is representing the United States in this case.
St. Thomas Man Pleads Guilty to Firearms TraffickingRead the Press Release
St. Thomas, USVI – Naeem Akil Smith, 24, of St. Thomas, pleaded guilty on August 11, 2016, in federal court on St. Thomas to trafficking 18 firearms in interstate and foreign commerce, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for December 15, 2016.
According to the plea agreements filed with the court, on April 27, 2016, at the Cyril E. King Airport, a law enforcement K-9 alerted to the presence of firearms inside of luggage checked in Smith’s name. CBP officers examined Smith’s luggage, which revealed one Taurus pistol, 15 Glock pistols, and two AK-47 assault rifles. His luggage also contained two AK-47 magazines, 36 other pistol magazines with capacities ranging from 9 to 15 rounds, 10 speed loaders, twenty .40 caliber Smith and Wesson rounds, and a storage box.
Smith faces a maximum term of imprisonment of not more than five years, and a $250,000.00 fine. Smith was remanded to the custody of the United States Marshals Service pending sentencing.
This case was a result of Operation Gun Dog formed by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Transportation Security Administration, Virgin Islands Port Authority and Virgin Islands Police Department to interdict contraband travelling through the Cyril E. King Airport and deter criminal activity during the St. Thomas Carnival. It was prosecuted by Assistant United States Attorney Delia Smith.
Springfield Latin Kings Leader Sentenced for Cocaine Distribution and Firearm ChargeRead the Press Release
BOSTON – The former “enforcer” of the Massachusetts Latin Kings gang was sentenced today in U.S. District Court in Springfield for distributing cocaine and illegally possessing a firearm.
Bienvenido Nuñez, 38, of Springfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In May 2016, he pleaded guilty to being a felon in possession of a firearm and distributing cocaine.
In October 2014, an investigation was initiated in an effort to disrupt and dismantle the Latin Kings’ criminal activity in Springfield and Holyoke. Members and associates of the Latin Kings were engaged in the distribution of narcotics. In addition, disputes with rival gangs over criminal activity and drug turf were on the rise and resulted in serious crimes of violence, including armed assaults with firearms and murder. The investigation led to the arrest of 12 alleged Latin Kings members, including Nuñez, in connection with drug and firearms offenses in November 2015.
As alleged in court documents, Nuñez held the position of “enforzador,” or “enforcer,” of the Massachusetts chapter of the Latin Kings gang at the time of his arrest on Nov. 9, 2015. Nuñez pleaded guilty today to distributing seven grams of cocaine in Chicopee on Aug. 4, 2015, and to possessing a .40 caliber Beretta pistol on the day of his arrest.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Sex Offender Pleads Guilty to Failing to Update His Registration StatusRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Shawn Peterkin, 39, formerly of South Carolina, pleaded guilty before U.S District Judge Charles J. Siragusa to failure to update his sex offender registration status. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in 2011, the defendant was convicted of Taking Indecent Liberties with a Child in the State of North Carolina and was required to register as a sex offender. In October 2014, the defendant relocated to South Carolina and registered as a sex offender. However, in June 2015, Peterkin failed to update his registration. In November 2015, a warrant was issued for his arrest by South Carolina authorities. The United States Marshal’s Service found the defendant residing in Rochester, NY in February 2016. Peterkin admitted to being wanted in South Carolina for failure to register as a sex offender. He also admitted to not registering with any authorities in the State of New York.
The plea was the culmination of an investigation on the part of the United States Marshal’s Service, under the direction of Charles Salina.
Sentencing is scheduled for November 29, 2016 at 10:00 a.m. before Judge Siragusa.
San Francisco Resident Sentenced to More Than Eight Years in Prison for Brandishing A Firearm and Assaulting Persons Assisting A Federal OfficerRead the Press Release
SAN FRANCISCO – Donnie Bell was sentenced to 97 months and one day in prison today after pleading guilty to assaulting a person assisting a federal officer in the performance of official duties and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Brian J. Stretch and U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
As part of his plea agreement, Bell, 34, of San Francisco, admitted he met with two individuals at a gas station in San Francisco and later learned that the individuals were working as confidential informants on behalf of special agents of the ATF. He then entered the back seat of the informants’ car and brandished a firearm in such a way as to put the informants in fear of immediate bodily harm.
Bell was originally charged by complaint on April 29, 2015. On March 16, 2016, he was charged by superseding information with one count of assault on a person assisting a federal officer or employee in the performance of official duties, in violation of 18 U.S.C. § 111(b); and one count of brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c). On March 24, 2016, Bell pleaded guilty to both counts in the superseding information.
Judge Orrick also sentenced Bell to a five-year period of supervised release, to commence after Bell completes his prison sentence. Bell has been in custody since his arrest in April of 2015. He will begin serving his sentence immediately.
Assistant U.S. Attorney Scott Joiner prosecuted the case with assistance from Ponly Tu. The prosecution is the result of an investigation by the ATF.
Sacramento Man Pleads Guilty to False Claims and Identity Theft ChargesRead the Press Release
SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, pleaded guilty today to mail fraud, conspiracy to submit false claims, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. The defendant and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Co-defendants Tracy Hartway and Audrey Johnson are scheduled for a status hearing on September 1, 2016. Co-defendant Lejohn Windom Jr. is scheduled for a status hearing on December 1, 2016. The charges as to the co-defendants are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Windom Sr. is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on November 10, 2016. Windom faces a maximum statutory penalty of 20 years in prison for mail fraud, 10 years in prison for conspiracy to submit false claims, and a mandatory sentence of two consecutive years in prison for aggravated identity theft. He also faces a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ponchatoula Woman Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 28, of Ponchatoula, pled guilty today to Theft of Mail.
According to court records, the investigation was initiated in September 2015, by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the Northshore. Postal inspectors determined BERTHELOT stole approximately 1,428 items of mail.
BERTHELOT faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Lance M. Africk set sentencing on November 17, 2016.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Owner Boston-Area Fried Chicken Restaurant Charged in Second Tax Fraud SchemeRead the Press Release
BOSTON – A man who operated a Boston-area fried chicken restaurant has been charged with conspiring to file false tax returns as part of a long-running scheme to avoid paying payroll and income taxes.
Hazrat Khan, 56, of Middletown, NY, was indicted on one count of conspiracy to defraud the United States and 11 counts of willful failure to account for and pay taxes. Khan was previously indicted in April 2016 on similar charges relating to two other Boston-area fried chicken restaurants that he operated.
According to the indictment, Khan used a variety of means to avoid paying payroll and income taxes owed by his restaurant, New York Fried Chicken, located on River Street in Hyde Park. As part of the conspiracy, Khan directed a co-conspirator to manage the restaurant and took steps to conceal his ownership interest. Khan provided tax preparers with false information about the restaurant’s payroll and income. Federal law requires employers to withhold payroll taxes and pay them to the IRS. As part of the scheme, Khan falsely reported the number of employees, some of whom were undocumented, and wages paid to the IRS. He also paid employees under the table and filed income tax returns under penalties of perjury that falsely described their sales, total income, compensation of officers, salaries, wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of failure to account for and pay taxes provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and the costs of prosecution and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Assistant U.S. Attorneys John A. Capin and Eric P. Christofferson of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Okaloosa County Man Arrested and Charged with Online Enticement of A Child, Traveling with Intent to Engage in Sex with A Child, and Other Child Pornography OffensesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Chad Theodore Dillon (44, Okaloosa County) with 11 counts related to the sexual abuse of children. These charges include coercion and enticement of a minor, traveling with the intent to engage in sexual conduct with a minor, production of child pornography, transportation of child pornography, advertising for child pornography, and receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in federal prison on four of the counts, and a maximum of life in federal prison on two of the counts.
On August 3, 2016, Dillon was arrested in Jacksonville pursuant to a criminal complaint. He is being held in federal custody.
According to court documents, between July 6 and July 13, 2016, Dillon engaged in a series of graphic online conversations with a 15-year-old child. During the course of these conversations, he discussed his desire and intention to travel to Georgia to have sex with the child, which he later did. Dillon took a photo of himself engaged in sexual activity with the child and sent it to her. He also sent the child explicit photos of himself.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Oakland Resident Sentenced to Twelve Years in Prison for Armed Bank RobberyRead the Press Release
OAKLAND – Shawn Hermann McGee, AKA Shawn Burris, was sentenced today to 12 years in prison, and ordered to pay $7,200 in restitution for an armed bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence, imposed by Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, follows a guilty plea entered by McGee on April 7, 2016.
According to the plea agreement, on May 16, 2015, McGee, 52, of Oakland, entered the Wells Fargo bank located inside a Safeway in Antioch. He was wearing a hard hat, a blue jumpsuit, dark sunglasses, and gloves. McGee placed a note demanding money on the teller counter, pointed a gun at the victim teller’s chest, ordered her to give him money, and threatened to shoot her if she pushed the silent alarm button. McGee fled the bank using a bicycle in the parking lot, then threw the bicycle into a pickup truck and led police on a high speed chase toward East Oakland. After reaching speeds of over 100 miles per hour, McGee eventually crashed his truck. McGee then ran toward an apartment complex in Oakland and, in an attempt to evade capture, entered one of the apartments. Inside the apartment, McGee found a resident who he told to keep quiet, remain on the sofa, and not alert the police. McGee remained inside the apartment with the resident for several hours. McGee eventually was arrested at the entrance to the apartment and officers collected the proceeds of the robbery near the location where McGee crashed his truck. McGee, was indicted by a federal grand jury on July 2, 2015. He was charged with armed bank robbery, in violation of 18 U.S.C. § 2113, and forced accompaniment, in violation of 18 U.S.C. § 2113.
In addition to the prison term, Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release. McGee, who has been in custody since his May, 2015 arrest, will begin serving his 12-year sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant, Melissa Dorton, and Patty Lau. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Antioch Police Department, Oakland Police Department and California Highway Patrol.
Northwest Arkansas Pair Sentenced to 71 Months in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Sherri Vanderpool, age 38, of Harrison, Arkansas, and Helen Smith, age 49, of Marble Falls, Arkansas were sentenced today for drug trafficking charges. Vanderpool was sentenced to 41 months in federal prison followed by three (3) years of supervised release on one count of Distribution of Methamphetamine. Smith was sentenced to 30 months in federal prison followed by three (3) years of supervised release on one count of Aiding and Abetting in the Distribution of Methamphetamine. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
Vanderpool: According to the plea agreement, on February 3, 2016, the Drug Enforcement Administration arranged for a controlled purchase of two ounces of methamphetamine from Sherri Vanderpool. On that same day, Vanderpool sold approximately 2 ounces of methamphetamine for $2,600. The suspected substance was sent to the DEA Laboratory where it was confirmed to be a mixture containing 44.0 grams of actual methamphetamine.
Smith: According to the plea agreement, on December 8, 2015 during a controlled purchase arranged by the Drug Enforcement Administration, Helen Smith provided methamphetamine in exchange for $500. The suspected substance was sent to the DEA Laboratory where it was determined to be a mixture of 6.7 grams of actual methamphetamine.
Vanderpool and Smith were both indicted by a federal grand jury on March 16, 2016, and both pleaded guilty on April 25, 2016.
These cases were investigated by the Drug Enforcement Administration. Assistant United States Attorney Denis Dean prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Northwest Alabama Pharmacies Owner Pleads Guilty to Obstructing Medicare AuditRead the Press Release
BIRMINGHAM – The owner of two northwest Alabama pharmacies pleaded guilty today to obstructing a Medicare audit and agreed to pay a $2.5 million penalty to the government.
U.S. Attorney Joyce White Vance, Department of Justice Criminal Division Assistant Attorney General Leslie Caldwell, FBI Special Agent in Charge Roger C. Stanton, Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson, and Food and Drug Administration Office of Criminal Investigation Special Agent in Charge Robert J. West announced the guilty plea. The sentencing date has not been set.
RODNEY DALTON LOGAN, 63, of Muscle Shoals, pleaded guilty to one count of obstructing a 2012 federal audit of Medicare claims submitted by a pharmacy he owned, as charged by the U.S. Attorney’s Office for the Northern District of Alabama. Logan, a registered pharmacist, owned Leighton Pharmacy Inc., which did business as Sheffield Pharmacy and Homecare in Sheffield, and Russellville Pharmacy in Russellville. At various times, according to Logan’s plea agreement with the government, he was the lead pharmacist at both Sheffield and Russellville.
The Sheffield and Russellville pharmacies operated as both compounding and retail pharmacies. A compounding pharmacy is one that prepares customized medications for individual patients, usually by mixing ingredients in order to create a prescription. The two pharmacies sold compounded prescriptions to patients in Alabama and other states.
According to the charges and plea agreement, Logan obstructed a 2012 audit of the Sheffield pharmacy’s claims for Medicare reimbursement on compounded prescriptions as follows:
CVS/Caremark Inc. administered prescription drug claims for Medicare Part D and served as an auditor on Medicare’s behalf. Part D prohibited reimbursement to pharmacies for compounded medications made using bulk pharmaceutical powders. Russellville and Sheffield nonetheless sought Part D reimbursement after February 2009 for compounded medications, primarily topical pain creams, made from bulk powders. The pharmacies, however, used the billing code for the tablet or capsule form of the ingredient.
In response to the 2012 audit, Logan caused Sheffield to submit falsified and misleading documents stating that medications in tablet or capsule form were used as ingredients for the compounded prescriptions.
The maximum penalty for obstructing a federal audit is five years in prison and a fine of $250,000 or twice the amount improperly gained through the defendant’s conduct.
FBI, HHS-OIG and FDA-OCI investigated the case, which Assistant U.S. Attorney Chinelo Diké-Minor and Trial Attorney William S.W. Chang of the Justice Department’s Criminal Division Fraud Section are prosecuting.
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North Side Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on Aug. 17, named Maurice Tinsley, age 35, of Pittsburgh, PA.
According to the indictment, on July 15, 2016, Tinsley possessed with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance. The indictment further alleges that on July 15, 2016, Tinsley conspired with others to distribute and to possess with intent to deliver 100 grams or more of heroin. On July 15, 2016, Tinsley also possessed a loaded 9 mm caliber semi-automatic S&W pistol, and 9 mm caliber ammunition in furtherance of those drug offenses, after having been convicted of crimes punishable by more than one year in prison. Those cases include one conviction for Illegally Carrying a Firearm Without a License and one conviction for a Felony Drug offense.
The law provides for a minimum of 10 years and a maximum of life imprisonment, a fine of up to $10,500,000, and the forfeiture of the firearm, ammunition, and money. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Miami Beach Resident Pleads Guilty to Possessing 225 Stolen IdentitiesRead the Press Release
A North Miami Beach resident pled guilty to possessing 225 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Vicky Egalite Pierre, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for November 3, 2016 before U.S. District Court Judge Kathleen M. Williams. At sentencing, Pierre faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a probation compliance check of Pierre’s residence, law enforcement located a small notebook in her night stand that contained over 225 names, social security numbers and date of births. The notebook containing the personal identifying information was processed for latent prints, and six latent prints from various pages in the notebook belonged to the defendant.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the notebook, and confirmed that he/she did not authorize Pierre to be in possession of the personal identifying information. The defendant knew that the names, dates of birth, and social security numbers belonged to real persons.
The intended loss in this case is more than $95,000 but less than $150,000.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, ICE-HSI, and the NMBPD, and thanked the State of Florida Probation Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Norfolk Man Sentenced for Possessing Marijuana Inside Federal PrisonRead the Press Release
ABINGDON, VIRGINIA – A Norfolk man, serving a federal prison sentence for illegally possessing a firearm, will serve additional federal time for illegally possessing marijuana inside a federal prison after being sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Terrance Edward Brown, 34, of Norfolk, pled guilty in January 2015 to one count of possessing a prohibited object, marijuana, while being an inmate as the United States Penitentiary Lee (USP Lee). Today in District Court, Brown was sentenced to imprisonment for a term of five years.
“Mr. Brown has repeatedly shown that he has no desire to follow the laws of the United States, whether it is outside the walls of the federal penitentiary or inside,” United States Attorney Fishwick said today.
Brown previously admitted to possessing marijuana on March 3, 2015, while being housed as an inmate at USP Lee.
The investigation of the case was conducted by the Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Norfolk Man Sentenced for Illegally Distributing InsulinRead the Press Release
ABINGDON, VIRGINIA – A Norfolk, Virginia man, who sold insulin on Craigslist to an undercover FDA agent, 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.
Patrick Simanjuntak, 41, of Norfolk, Virginia, previously pled guilty to one count of misbranding a drug and selling a drug outside of a legitimate supply chain. Today in District Court, Simanjuntak was sentenced to five years of probation. The defendant, who is an Indonesia native in the United States on an expired 1998 visa, has 30 days to leave the U.S. and is not permitted to return to the country until after he has successfully completely his sentence.
“The public must be sure the drugs they consume are safe, have been properly inspected and are only being used under the care of a licensed physician,” United States Attorney Fishwick said today. “When individuals like Mr. Simanjuntak put lives at risk by selling prescription drugs on the black market, without a prescription or the umbrella of Food and Drug Administration [FDA] oversight, we will hold them accountable.”
“FDA’s oversight of prescription drugs is intended to ensure that consumers are taking prescription drugs that are both safe and effective, and only under a practitioner’s supervision. When criminals attempt to market stolen prescription drugs directly to consumers, they put the public’s health at risk,” said Special Agent in Charge Mark A. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “Our office will continue to protect consumers by bringing to justice any criminal who sells potentially harmful prescription drugs.”
In November 2015, the FDA learned that a person, later identified as the defendant, was advertising the sale of insulin on multiple Craigslist sites in the mid-Atlantic region. In these advertisements, Simanjuntak claimed the insulin had been obtained from medical facilities, specifically nursing homes.
On November 16, 2015, an undercover FDA agent contacted Simanjuntak at the telephone provided in the ads. Subsequent to this contact, the agent made five separate purchases of pre-filled insulin injection pens from the defendant. Cumulatively, between November 2015 and February 2016, FDA’s undercover agent purchased 17 boxes of pre-filled insulin pens, each box containing five pens, for which the agent paid a total of $1,870 to the defendant through Paypal. At no time during these transactions did Simanjuntak ask for, or require, the special agent to provide a valid prescription for the insulin. On two occasions, the agent received boxes of insulin from the defendant which still had affixed to them prescription labels for other patients. Simanjuntak is neither a licensed medical professional nor licensed to distribute prescription medication.
The investigation of the case was conducted by the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
New Jersey Resident Sentenced to 5 Years in Federal Prison for Role in Multi-State Burglary SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIONIS PEREZ, 40, a citizen of Cuba last residing in New Jersey, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by three years of supervised release, for participating in a multi-state burglary spree.
According to court documents and statements made in court, on August 2, 2013, PEREZ and others traveled from New Jersey to Connecticut. The next day, they broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole watches valued at approximately of $250,000. Following the burglary, they returned to New Jersey with the stolen merchandise.
On August 18, 2013, PEREZ and others attempted to break into the Movado store located in Kittery, Maine.
On September 19, 2013, PEREZ and others broke into the Fossil store located in Miramar Beach, Fla., and stole watches valued at approximately of $170,000.
On October 4, 2013, PEREZ and others broke into the Fossil store located in Hagerstown, Md., and stole watches valued at approximately $750,000.
On October 24, 2013, PEREZ and others broke into the Fossil store located in Grove City, Penn., and stole watches valued at approximately $195,000.
On November 22, 2013, PEREZ and others traveled from New Jersey to Massachusetts and stole a van. The next day, they broke into the Michael Kors store in Lee, Mass., disabled the alarm system and stole watches and bag valued at approximately $500,000. The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.
During the evening of August 7 or early morning hours of August 8, 2014, PEREZ and others burglarized a Radio Shack store located in Chesterfield, Mo. However, the burglary was interrupted and they were able to steal only a small amount of cash.
The following evening, PEREZ and others burglarized a Sunglass Hut Store located in Leawood, Kan., and stole 623 pairs of sunglasses valued at approximately $113,000.
In the early morning hours of August 10, 2014, PEREZ and others burglarized a Radio Shack in Franklin, Tenn., and stole approximately 50 smartphones valued at approximately $28,000. Later that day, PEREZ and his co-conspirators were arrested in a hotel room in Nashville, Tenn. The property stolen from the Sunglass Hut in Kansas and Radio Shack in Tennessee was recovered in connection with the arrest.
PEREZ has been detained since his arrest on August 10, 2014. On May 23, 2016, he pleaded guilty to two counts of conspiracy to engage in the interstate transportation of stolen property.
Judge Chatigny ordered PEREZ to pay restitution in the amount of $1.865 million.
This investigation is being conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department, Berkshire County (Mass.) Sheriff’s Office, Franklin (Tenn.) Police Department and Nashville (Tenn.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry in the District of Connecticut, and Assistant U.S. Attorney Lee Deneke in the Middle District of Tennessee.
Mortgage Company President Charged with Defrauding Ginnie MaeRead the Press Release
BOSTON – The president and founder of a Falmouth mortgage company was charged in U.S. District Court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of nearly $3 million.
Robert Pena, 67, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges. Pena was arrested today and will appear in before U.S. District Court Magistrate Judge Marianne B. Bowler this afternoon.
The charges arise out of Pena’s alleged scheme to defraud Ginnie Mae, the government-run corporation which makes housing more affordable by injecting capital into the U.S. housing market. Ginnie Mae guarantees the timely payment of principal and interest to investors in bonds backed by government-sponsored mortgage loans, such as those offered by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA).
According to court documents, MSI was contracted with Ginnie Mae to pool eligible residential mortgage loans and then sell Ginnie Mae-backed mortgage bonds to investors. MSI was responsible for servicing the loans in the pools it created, including collecting principal and interest payments from borrowers, as well as loan payoffs, and placing those funds into accounts held in trust by Ginnie Mae, which would ultimately pass them along to investors. Among other things, Ginnie Mae required issuers like MSI to provide regular reports to Ginnie Mae concerning the status of the loans in the pools.
According to the indictment, beginning in 2011, Pena began diverting money that borrowers were sending to MSI. Specifically, he is alleged to have deposited large-dollar, loan-payoff checks into secret accounts unknown to Ginnie Mae and then using those funds for his own personal and business uses. Pena also diverted borrowers’ escrow funds and mortgage-insurance premiums for his own use. In total, Pena took nearly $3 million, which Ginnie Mae then had to pay the investors whose investments it had guaranteed. Pena also attempted to cover up his scheme by providing false reports to Ginnie Mae about the status of the loans MSI was servicing.
The charge of conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office wishes to acknowledge the invaluable assistance of the U.S. Department of Veterans Affairs, Office of Inspector General, the U.S. Department of Agriculture, Office of Inspector General and the Falmouth Police Department. The case is being prosecuted by Assistant U.S. Attorneys Eric P. Christofferson and Brian LaMacchia of Ortiz’s Economic Crimes Unit and Civil Division, respectively.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Morehead Man Sentenced to 35 Years for Coercing Minor to Engage in Sexually Explict ConductRead the Press Release
LEXINGTON, Ky. – A Morehead, Ky., man has been sentenced to 35 years in federal prison for video recording himself engaged in sexually explicit conduct with a minor, under the age of 12 years old.
On Monday, August 15, U.S. District Judge David L. Bunning sentenced Steven Michael Rose, 44, for the offense. Under federal law, Rose must serve at least 85 percent of his prison sentence. Upon his release, he will then be under the supervision of the U.S. Probation Office for 15 years.
At his guilty plea, in April of this year, Rose admitted that he coerced the minor to engage in sexually conduct with him and he made a video of the encounter on his cell phone.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney David A. Marye prosecuted this case on behalf of the federal government.
Montana U.S. Attorney's Office, Reentry Task Force, and Great Falls Chamber Host Reentry SymposiumRead the Press Release
GREAT FALLS – The U.S. Attorney’s Office for the District of Montana, the Montana Reentry Initiative Task Force, and the Great Falls Area Chamber of Commerce will present a program addressing offender reentry initiatives on Friday, August 19, 2016.
Montana has a very high recidivism rate, which impacts communities and families throughout the state. This problem is not unique to Montana, but is prevalent throughout the country, and the work being done in Montana on reentry issues is consistent with the principles of the Justice Department’s national initiative to address reentry issues. These principles include the formulation of individualized reentry plans; educational, employment, life skills, and substance abuse programs during incarceration; resources to maintain and build family relationships for inmates while incarcerated; establishment of halfway house and supervised release programs that cater to the needs of individuals; and the provision of comprehensive reentry-related information and resources necessary for former offenders to succeed as citizens.
The State of Montana has taken a timely and innovative approach to this issue through entities such as the Reentry Initiative Task Force, special drug courts, and veterans’ courts, as well as individualized tribal reentry programs that address the unique needs of former offenders reentering tribal communities. The US Attorney’s Office, representing the Justice Department, is fully committed to assisting in the development and growth of these state and tribal programs.
Friday’s program will cover a broad range of reentry issues, and will include presentations by US Attorney Mike Cotter on the Justice Department’s “Roadmap to Reentry” and related programs, Eighth Judicial District Court Judge Greg Pinski, who will present on veterans’ and drug court programs, and many others.
The program will take place on Friday, August 19, at Heritage Hall at the Great Falls College MSU from 1:00pm-4:30pm.
Methamphetamine Conspirators SentencedRead the Press Release
ABINGDON, VIRGINIA – Three members of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest, Virginia, were sentenced this week in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Brandin Travis Hyde, 38, of Castlewood, Va., previously pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine and one count of possessing a firearm while being an unlawful user of a controlled substance. This week in District Court, Hyde was sentenced to 151 months in federal prison. Also in District Court this week, in separate hearings, two other members of the conspiracy, Jeffrey Bruce Bartley, 27, of Bristol, Tenn, was sentenced to 51 months in federal prison and Melissa Harless, 54, of Abingdon, Va., was sentenced to 151 months in federal prison.
“We must continue to be vigilant in our fight against methamphetamine being brought into the Western District of Virginia from elsewhere,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to dismantle large, wide-ranging distribution conspiracies like the one this defendant was involved with.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Hyde was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
In April 2015, Hyde was interviewed in Bristol, Virginia and admitted that on multiple occasions he accompanied Jeremy Bartley to Atlanta, Georgia to pick up five ounces of crystal methamphetamine. Hyde also admitted to carrying a firearm trafficking in methamphetamine. Hyde returned to Southwest Virginia with the methamphetamine and further distributed it to others.
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.
Manchester Man Pleads Guilty to Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Zakee Stuart-Holt, 34, of Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to a federal indictment charging him with one count of conspiracy to distribute heroin and fentanyl and one count of money laundering, announced United States Attorney Emily Gray Rice.
According to court documents, the defendant distributed drugs in the Manchester, New Hampshire area since at least July of 2014. Pursuant to a search warrant, law enforcement recovered approximately 1.8 kilograms of fentanyl and $198,000 in drug proceeds from an apartment occupied by the defendant and another individual. In addition, law enforcement seized approximately $560,000 in drug proceeds from a safe deposit box in the defendant’s name. The defendant was not employed at the time of the conspiracy and the currency recovered by law enforcement constituted proceeds of the defendant’s drug distribution conspiracy.
Stuart-Holt’s plea agreement includes a binding stipulated sentence of 210 months’ incarceration. It also provides for the forfeiture of any property constituting or derived from the conspiracy. A sentencing hearing has been scheduled for 10 a.m. on November 29, 2016, in front of United States District Judge Landya B. McCafferty. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Stuart-Holt’s sentence.
“I commend the Manchester Police Department and the DEA on their thorough investigation of this case leading to the seizure of such a significant quantity of drugs and drug proceeds,” stated United States Attorney Emily Gray Rice. “Prosecuting those individuals who introduce dangerous narcotics into our community, and ensuring that they do not profit from doing so, is a critical priority of my office.”
“Those suffering from the disease of heroin addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin and fentanyl to the citizens of New Hampshire need to be held accountable for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported 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. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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Local Man Admits to Counterfeiting $100 BillsRead the Press Release
HOUSTON – A 34-year-old Houston man has been convicted for his role in a conspiracy to distribute counterfeit $100 bills, announced United States Attorney Kenneth Magidson.
Clinton Walker, 34, of Houston, participated in the scheme between January and March 2016. He admitted he agreed and conspired with others to bring counterfeit U.S. Federal Reserve Notes from Nigeria to the U.S. to be sold, exchanged, transferred, received and delivered.
These counterfeit notes were sold at a price of 40 cents on the dollar and were distributed to multiple individuals. Specifically, Walker knowingly sold and delivered at least 11 counterfeit notes to a female minor in January 2016.
At the time of his arrest March 3, 2016, authorities found more than 300 counterfeit notes which Walker admitted he intended to sell as well. He knew they were counterfeit and intended them to be passed or used as genuine monies. In total, Walker distributed, or aided in the distribution of, at least $400,000 in counterfeit monies.
Walker faces up to 20 years for dealing in counterfeit securities as well as five years in prison for the conspiracy. He also faces the possibility of up to a $250,000 fine on both counts. U.S. District Judge Sim Lake, who accepted the guilty plea, has set sentencing for Nov. 9, 2016. He will remain in custody pending that hearing.
The Secret Service conducted the investigation. Assistant U.S. Attorney Julie Searle is prosecuting the case.