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Friday 24 June 2016
Former Yuba City Police Officer Pleads Guilty to Federal Programs BriberyRead the Press Release
SACRAMENTO, Calif. — Harminder Phagura, 36, of Yuba City, pleaded guilty today to one count of federal programs bribery in connection with a drug trafficking scheme, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, while he was employed as a Yuba City police officer, Harminder Phagura exchanged sensitive information gained from his official position and exchanged it for money. Co‑defendant Gursharan Phagura transmitted this police-only information to a government source, who was posing as a cocaine trafficker
During the investigation, on July 29, 2014, federal agents observed Gursharan Phagura meet with Harminder Phagura in a Yuba City Police vehicle. At the same time, Gursharan Phagura and the government source were exchanging text messages regarding the state of police presence in the area. Agents then caused an alert to be transmitted on the Yuba City Police Department’s dispatch system. Within a few minutes, the government source received text messages indicating, in coded language, that law enforcement was in the area.
Over the course of several undercover operations, the government source paid a total of $6,000 for the information. The Yuba City Police Department receives grant funds from a Federal program.
“It’s profoundly troubling when sworn personnel use their training and expertise to flout the law, rather than uphold it,” said Ryan L. Spradlin, the special agent in charge who oversees HSI’s enforcement activities throughout northern California. “As the charges in this case make clear, no one is above the law, least of all law enforcement. This plea is gratifying for the HSI special agents and other investigators who worked tirelessly to see justice served.”
Co-defendant Gursharan Phagura is charged with possessing, with intent to distribute, cocaine. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. Harminder Phagura and Gursharan Phagura were arrested on April 15, 2015. Harminder Phagura is out of custody on a $100,000 bond. Gursharan Phagura is in custody.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Federal Bureau of Investigation and the Yuba City Police Department. Assistant United States Attorney Paul Hemesath is prosecuting the case.
Harminder Phagura is scheduled to be sentenced on October 14, 2016. He faces a maximum statutory penalty of 10 years in prison and a $100,000 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.
Former Terrebonne Sheriff’s Detective Charged with Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that former Terrebonne Parish Sheriff’s Office Detective DAWN C. FORET, age 38, of Houma, was charged today in a one count Bill of Information for theft of government funds.
According to the Bill of Information, from November of 2010 through July of 2012, FORET willfully and knowingly stole at least $1,000 of federal funds from the United States Department of Transportation.
If convicted, theft of government funds carries a maximum term of imprisonment of ten years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and $100 special assessment.
U.S. Attorney Polite reiterated that today’s Bill of Information describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the investigative work of the Federal Bureau of Investigation for its handling of the matter. Assistant U.S. Attorneys Edward J. Rivera and Harry “Bill” McSherry are in charge of the prosecution.
Former Teacher Sentenced for Sexual Exploitation of ChildrenRead the Press Release
MARQUETTE, MICHIGAN — Thomas Kevin Hamel, 67, of St. Ignace, Michigan, was sentenced to 180 months in federal prison for sexual exploitation of a minor, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Hamel to serve five years of supervised release from prison, to pay a fine of $25,000 and a $100 special assessment. Hamel will also be required to register as a sexual offender.
On February 1, 2016, Hamel pled guilty to sexual exploitation of a minor. Hamel’s activities came to light through an investigation into the distribution of child pornography in the U.S. by a foreign company. U.S. Postal Inspection Service agents obtained subscriber information and shipping records from this company, which identified Hamel as a subscriber who had purchased suspected child pornography videos. Hamel’s electronic media, including computers and flash drives, were seized during the execution of a search warrant. Forensic analysis of the electronic media revealed a significant collection of child pornographic images and videos, including what appeared to be home-made videos. Further investigation by agents of the Federal Bureau of Investigation showed that Hamel, a retired teacher who served as an athletic trainer for the football and wrestling teams at St. Ignace LaSalle High School, had secretly videotaped boys from the football and wrestling teams while they were nude.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the Mackinac County Sheriff Department, the St. Ignace Police Department, and the Michigan State Police Computer Crimes Unit investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Former Nurse Pleads Guilty to ID Theft and Bank FraudRead the Press Release
RICHMOND, Va. – Capri M. Williams, 25, of Richmond, pleaded guilty today to identity theft and bank fraud charges related to her stealing personal identifying information (PII) of hundreds of patients while employed at Commonwealth Primary Care (CPC), Inc., in Richmond.
According to the statement of facts filed with the plea agreement, in February 2015 Williams was employed as a licensed practical nurse by CPC, and had access to PII of patients at CPC. On Feb. 11, 2015, Williams accessed the PII of B.S., a patient who had received care at CPC. That same day, Williams used B.S.’s name, date of birth, and Social Security number to apply for a credit card with Citibank. The application was approved and Williams eventually used the account to issue a balance transfer check made out to her for $4,500. After receiving the check she deposited it into an account in her name. The total loss amount of Williams’ conduct is at least $34,906.15.
Williams was charged by criminal information on June 17, and will be sentenced on September 15.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Maria L. Kelokates, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick C. Young. Assistant U.S. Attorneys Heather L. Hart and David Harbach are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-76.
Former High School Assistant Track Coach Sentenced to 17 1/2 Years in Prison for Sexually Abusing Seven StudentsRead the Press Release
WASHINGTON - Charles Young, 35, of Washington D.C., was sentenced today to 17 ½ years in prison for sexually abusing seven different male students at Dunbar Senior High School, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD). The abuse occurred between January 2013 and May 2014, during which time the defendant worked at Dunbar as a business manager and assistant track coach.
Young pled guilty in February 2016, in the Superior Court of the District of Columbia, to seven felony counts of sexual abuse, including first-degree child sexual abuse with aggravating circumstances, attempted first-degree sexual abuse of a minor, and multiple counts of attempted second-degree sexual abuse of a minor. Each of the seven counts concerns a different victim. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Young will be placed on supervised release for the rest of his life. He also must register as a sexual offender for the remainder of his life.
According to the government’s evidence, from 2012 to 2014, Young was employed as Dunbar’s business manager and was responsible for managing the school’s finances. Although he did not teach any classes, he served as a senior class advisor, designed and distributed Dunbar school apparel, volunteered as an assistant boys’ track coach, and held other responsibilities that regularly put him in contact with students.
Between January 2013 and May 2014, Young sexually abused seven male students, all between the ages of 14 and 17 years old. All the incidents occurred on the Dunbar campus, which is located in the 100 block of N Street NW. In one incident that occurred in the fall of 2013, a 15-year-old came to Young’s office to borrow a shirt to wear at basketball practice. Young led the boy into a closet next to his office that contained Dunbar apparel, closed the door, and eventually began performing oral sex on the student. In another incident that occurred in February or March 2013, a 17-year-old came to Young’s office to pay school fees. Once alone with the student, Young had him lift his shirt and pull down his pants and underwear purportedly so that he could show the student, who was an athlete, muscle groups he needed to strengthen. Young had the student pull down his pants and underwear, began touching the student’s penis with his hand, and pressed his mouth to the student’s penis.
On multiple occasions, Young used his position as a track coach to sexually abuse his juvenile victims. In one incident in November 2013, Young brought a 16-year-old to an empty bathroom after track practice, purportedly to provide him some additional one-on-one coaching. Inside the bathroom, he began touching the student on his stomach, pointing out muscle groups the defendant claimed needed work. Young gradually began lowering the student’s shorts before grabbing the boy’s penis and attempting to pull it out of his pants. In a separate incident that occurred in January or February of 2014, Young called a 14-year-old to his office to try on the new track team uniforms. After the student disrobed, Young began touching the student’s abdomen, pointing out exercises he could do to deepen his abdominal muscles. Young began touching the student near his groin and began pulling the student’s underwear down, exposing his penis. He then touched the boy’s penis with his hand.
The defendant would also voice concerns about student hygiene as a ploy to sexually abuse them. On multiple occasions, Young, while alone with a male student, would claim that the student smelled bad, apply hand sanitizer or lotion to his hand, and begin rubbing the boy’s abdomen, claiming that he was getting rid of the smell. Young would then attempt to reach into the boy’s pants and touch his penis.
The abuse came to light in November 2014 when one of the students reported to Dunbar administrators that the defendant had sexually abused him. That student’s disclosure triggered an investigation that ultimately uncovered seven different students whom Young had sexually abused over the span of just three school semesters. Young has been in custody since his arrest in November 2014.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work performed by detectives from the Metropolitan Police Department’s Youth and Family Services Division. They also recognized the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Victim/Witness Services Coordinator Katina Adams-Washington, Litigation Technical Specialist Jeanie Latimore-Brown, Paralegal Specialist D’Yvonne Key, Criminal Investigators John Marsh and Mark Fitzgerald, former Legal Interns Stephanie Dinan and Emma MacArthur, and Assistant U.S. Attorneys Chrisellen Kolb and Sarah McClellan. Finally, they commended the work of Assistant U.S. Attorney Jodi Lazarus, who conducted much of the investigation, and Assistant U.S. Attorneys Jason Park and Julianne Johnston, who prosecuted the case.
Former Fayetteville Teacher Sentenced to 10 Years in Federal Prison for Online Enticement of a MinorRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Evan Ballowe, age 25 of Fayetteville, was sentenced today to 10 years in federal prison and 15 years of supervised release for Online Coercion and Enticement of a Minor with the Intent to Engage in Criminal Sexual Activity. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, a complaint was made by a 13 year old boy to his school resource officer about an online conversation he had with another individual on social media in which he was propositioned for sexual activity. The minor turned over his tablet containing the online conversation to law enforcement. A review of the online conversation reflects that on October 12, 2015, a user profile named Southern Guy contacted the 13 year old asking if he was single, telling him he was cute, and asking his age. The minor responded that he was 13 and Southern Guy stated he was 15 and lived in Springdale. Southern Guy proceeded to engage the minor in a sexually explicit conversation and sent him sexually explicit photos. The minor tells him no that he is not gay but Southern Guy persists trying to convince the minor to sneak out of the house when his parents are asleep to meet him for sex. Law enforcement was able to obtain the subscriber information related to the Southern Guy screen name which returned to the Fayetteville address of the defendant Evan Ballowe. After Ballowe made another attempt to contact the minor, law enforcement executed a search warrant on his home. During the post Miranda interview, Ballowe admitted to using the online screen name of Southern Guy and to engaging in the sexually explicit conversation with the 13 year old minor. Ballowe was indicted by a federal grand jury on December 9, 2015 and pleaded guilty on February 3, 2016.
This case was investigated by the Homeland Security Investigations and the Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Federal Jury Finds Two San Diego-Area Men Interfered with Flight CrewRead the Press Release
AMARILLO, Texas — Following an eight-day trial before U.S. District Judge Sidney A. Fitzwater, a federal jury has convicted two men who were on a flight last year that was diverted to Amarillo on the felony offense of interference with a flight crew and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
The jury convicted Jonathan Khalid Petras, 21 and Wisam Imad Shaker, 23, residents of the San Diego area, on the charge that was outlined in an indictment returned by a federal grand jury in Amarillo in September 2015. Each defendant will remain on bond pending sentencing, which is set for November 14, 2016, before Judge Fitzwater. Each faces a maximum statutory sentence of 20 years in federal prison and a $250,000 fine.
Essa Solaqa, 21, and Khalid Yohana, 20, also residents of the San Diego area were acquitted.
At trial, the government presented evidence that on August 31, 2015, the defendants were aboard Southwest Airlines flight 1522, from San Diego to Chicago. During that flight, the defendants, who were sitting together in two adjacent rows, repeatedly failed to comply with safety instructions, were loud and disruptive, screamed profanities at flight attendants when they were denied alcohol, and some of the men lunged and made other aggressive movements toward the flight attendants.
The flight was diverted to Rick Husband International Airport in Amarillo so law enforcement could remove the defendants from the flight.
The FBI, the Amarillo Police Department and the Rick Husband International Airport Police investigated the case. Assistant U.S. Attorneys Joshua Frausto, Mark Penley, and Amy Burch are prosecuting the case.
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Federal Jury Convicts Armed Career CriminalRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Dan Reed (50, Daytona Beach) guilty of possessing a firearm after having been convicted of a felony. Due to his prior criminal record, Reed qualifies for enhanced penalties under the Armed Career Criminal Act. He faces a mandatory minimum penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for September 19, 2016. Reed was indicted on July 15, 2015.
According to testimony presented at trial, Reed engaged in a dispute with his neighbor regarding money Reed believed the neighbor owed him. In January 2015, Reed went into his house, retrieved a firearm, and brandished that weapon while threatening to kill his neighbor and those gathered with him. When the police responded, they recovered a Smith and Wesson .38 caliber revolver from Reed. At the time of the offense, Reed had multiple prior felony drug-trafficking convictions and was therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Elmira Man Sentenced for Stealing and Illegally Selling GunsRead 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 Zachary Smith, 28, of Elmira, NY, who was convicted of conspiring to deal firearms without a license and possession of stolen firearms, was sentenced to 92 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that on October 16, 2013 at approximately 3:05 a.m., the owner of “Scott’s Guns” on Watkins Drive in Horseheads, NY received a telephone call from his security alarm company. The owner alerted police and then went to the store. Upon entering the store, the owner realized he had been burglarized. The owner determined that 49 handguns of various makes and models had been stolen.
As part of their investigation, law enforcement officers reviewed footage from a security camera inside the store which revealed two individuals inside the store during regular business hours the day before, October 15, 2013. Officers recognized the two individuals to be Zachary Smith and Douglas Church. Additional investigation revealed that Smith and Church burglarized the store by having Church climb through a hole in the wall of the building, with Church handing the weapons to Smith. The two men left the guns in backpacks in a swamp behind the building the night of the burglary, with Smith and his girlfriend, Brianna Lowe, retrieving the guns the following day. Investigation also revealed that many of the guns were sold within a week and a half of the burglary in exchange for money.
Douglas Church and Brianna Lowe, both of Elmira, have been convicted and sentenced to 51 months and six months respectively.
Today’s sentencing is the result of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office, the Horseheads Police Department, under the direction of Chief William Schrom, The New York State Police, under the direction of Major Craig Hanesworth, the Chemung County Sheriff’s Department, under the direction of Christopher Moss, the Elmira Police Department, under the direction of Chief Joseph Kane, the Elmira Heights Police Department, under the direction of Chief A. Rich Churches, and the West Elmira Police Department, under the direction of Chief Peter Michalko.
Elgin Man Pleads Guilty to Federal Fraud ChargesRead the Press Release
ROCKFORD — An Elgin resident pleaded guilty today before U.S. District Judge Frederick J. Kapala to federal fraud charges.
STEPHEN T. ANGERMAN, 48, pleaded guilty to bank fraud, money laundering, and testifying falsely in a bankruptcy case.
According to the written plea agreement, from December 2009 through March 31, 2010, Angerman schemed to fraudulently obtain a $510,000 loan from Alliant Credit Union and a $64,590 loan from Prairie Community Bank in order to purchase a home on Wrenwood Circle in Elgin. Angerman admitted to making false statements on his loan application to Alliant about his employment, assets, and liabilities. Further, Angerman admitted to submitting fictitious bank account statements, pay stubs, and a W-2 earnings form, and a fraudulent Certificate of Gift form to the credit union in support of his application. Alliant issued the loan based upon Angerman’s representations.
Angerman admitted that in December 2009 and January 2010, he applied for and obtained a $64,590 loan from Prairie Community Bank by pledging a 2008 Chevrolet Corvette as collateral without disclosing that the Corvette was subject to a prior lien of approximately $40,000 held by another bank.
With regard to the money laundering charge, Angerman admitted that on March 23, 2010, he transferred most of the proceeds, $64,500, from his checking account at Allied Credit Union to an account in the name of a relative at a different bank in an attempt to conceal his bank fraud against Prairie Community Bank.
On Jan. 3, 2011, Angerman filed for bankruptcy in Rockford. Angerman admitted that on Feb. 7, 2011, he falsely testified under oath at a meeting of creditors by stating he did not own any real estate other than what he had listed in his bankruptcy schedules, and that he did not own a car, when in fact he owned the home on Wrenwood Circle in Elgin and the Corvette.
Angerman faces up to 30 years’ imprisonment for bank fraud, a fine of up to $1,000,000, and a term of supervised release of up to 5 years. For money laundering, Angerman faces a sentence of up to 20 years’ imprisonment, a fine of up to $500,000, and a term of supervised release of not more than 3 years. Angerman also is subject to a civil penalty of twice the value of the property involved in the transaction. For falsely testifying in his bankruptcy case, Angerman faces up to 5 years in prison, a $250,000 fine, and supervised release of up to 3 years. The judge must also order Angerman to pay restitution. Sentencing is set for Oct. 3, 2016, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Plea Agreement
DOJ Employee Pleads Guilty to Traveling to Engage in Sex with a MinorRead the Press Release
Baltimore, Maryland –James Cicala, age 55, of Columbia, Maryland pleaded guilty today to interstate travel with intent to engage in a sexual act with a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.
According to his plea agreement, Cicala was a career employee at the U.S. Department of Justice, providing information technology support. Cicala owned a beach house in Fenwick Island, Delaware. From March 2015 through at least July 21, 2015, Cicala placed multiple ads in the Delaware, Maryland and District of Columbia editions of an online marketplace, seeking females to engage in “daddy-daughter” relationships. On July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to Cicala’s ad entitled “Daddy’s Little Girl.” The undercover detective identified himself as “Sydney,” a 15 year old female, and Cicala identified himself as a male in his late 40’s.
Cicala and the undercover detective posing as “Syndey” exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. During their conversations, Cicala referred to himself as “Daddy.” Cicala promised to take “Sydney” on a shopping trip and to bring a pair of earrings which “Sydney” had picked out at Cicala’s request. According to the plea agreement, the meeting was initially scheduled for August 1, 2015. On August 1, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to meet “Sydney,” who did not show up, later claiming that she was with her Aunt and was unable to get away.
The texting continued and Cicala again made arrangements to meet Sydney on August 15, 2015, in Berlin. Many of the conversations Cicala had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours. Cicala frequently attempted to engage “Sydney” in sexually explicit chat, instructing her to delete the message, and sent Sydney nude and partially nude photos of himself. However, throughout the text message exchanges “Sydney” refused to send sexually explicit photos or engage in sexually explicit chat.
On August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in sexual activity with “Sydney,” whom he believed to be a 15 year old girl. He was arrested as he arrived at the meeting place. He had his DOJ issued cell phone, which he had used for sending and receiving the texts with “Sydney.” In his SUV was bedding, pillows, a giftwrapped box with the promised earrings, and cell phone batteries for the phone “Sydney” has told him she used. On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice.
Cicala faces a maximum of 30 years in prison followed by up to lifetime of supervised release for traveling interstate to have sex with a minor. U.S. District Judge Ellen L. Hollander scheduled sentencing for August 25, 2016, at 10:00 a.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Worcester County Sheriff’s Office and DOJ Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Convicted Felon Pleads Guilty to Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 40, of Providence, pleaded guilty in U.S. District Court in Providence today to trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
Appearing before U.S. District Court Chief Judge William E. Smith, Duopu pleaded guilty to one count each of possession with the intent to distribute 28 grams or more of crack cocaine and distribution of 28 grams or more of crack cocaine, three counts of distribution of crack cocaine, and one count of being a felon in possession of a firearm.
According to court records and information presented to the court, in October and November 2015, an ATF Task Force investigation of Duopu’s drug trafficking activities included at least four purchases of crack cocaine by an undercover ATF Task Force agent from Duopu, ranging in amounts from 8 grams to 52 grams for $375 to $3,200. The transactions occurred in a parking lot in Pawtucket.
On November 12, 2015, Duopu was arrested by ATF Task Force agents as he left his Providence residence to meet with an undercover Task Force agent for a previously arranged delivery of crack cocaine. Agents seized nearly 54 grams of crack cocaine and $538 in cash from Duopu. A court authorized search of Duopu’s residence immediately after his arrest resulted in the seizure of more than 67 grams of crack cocaine, nearly $20,300 dollars in cash and a loaded semi-automatic firearm.
During the course of the investigation, law enforcement seized from Duopu a total of more than 200 grams of crack cocaine and nearly $21,000 in cash.
Duopu, who has been detained in federal custody since his arrest on November 12, 2015, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
The Pawtucket Police Department and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Colorado Springs Man Sentenced to 12 1/2 Years in Federal Prison for Bank RobberyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Kenneth Wayne Fisher, Jr., age 40, of Colorado Springs, Colorado, was sentenced to 150 months in federal prison followed by three years of supervised release on one count of Bank Robbery. Fisher was also ordered to pay a $10,000.00 fine and restitution. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on August 28, 2015, officers with the Bentonville Police Department were dispatched to First Security Bank for a robbery that just occurred. Dispatch advised the white male suspect had left the bank traveling on foot in the direction of downtown Bentonville. The suspect, later identified as Kenneth Fisher, was described as wearing a red hat, dark colored shirt, glasses, and had a beard. One of the witnesses from the bank advised that when Fisher got to the teller window he handed her a note that said, “I’d like to cash this.” He then said, “I’m not kidding.” On the note, Fisher had written, “Give me the money. This is not a joke. I am very serious.” The teller then handed Fisher a stack of U.S. currency. During a K9 search for the suspect, the red cap and shirt Fisher had been wearing were located and submitted to the Arkansas State Crime lab for testing. The Crime Lab was able to obtain DNA from the shirt that came back as a match for the defendant Kenneth Fisher. Detectives were also able to compare known photographs of Fisher with the photographs from the bank surveillance and make a positive identification. Fisher was indicted by a federal grand jury on December 9, 2015 and pleaded guilty to the charge on February 4, 2016.
This case was investigated by the Federal Bureau of Investigation and the Bentonville Police Department. Assistant United States Attorney David Harris prosecuted the case 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
Charleston man pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Daniel Andrew Hicks, 42, entered his guilty plea to distribution of heroin.
Hicks admitted that on several occasions in January and February of 2016, he sold heroin to a confidential informant working with law enforcement. Following his arrest on February 18, 2016, law enforcement found Hicks with close to five grams of heroin that he intended to distribute. Additionally, officers executed a search warrant on an apartment Hicks had rented at 112 Henson Avenue in South Charleston and seized $4,924 in cash stored in a shoe box on the kitchen counter. Next to the shoe box, officers also discovered three sets of digital scales and three cell phones.
Hicks faces up to 20 years in federal prison when he is sentenced on September 28, 2016.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Convicted of Conspiracy to Distribute Heroin in Operation Goldy LocksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced yet another conviction arising from Operation Goldy Locks, an extensive investigation into a multi-state heroin enterprise.
EFRAIN BARAJAS, age 27, of Hesperia, California, pled guilty yesterday to conspiracy to distribute and possess with intent to distribute heroin, in violation of Title 18, United States Code, Section 846, as contained in an Indictment filed in October 2015. At the conclusion of the hearing, the Court accepted BARAJAS’ guilty plea, returned him to the custody of the United States Marshal, and scheduled the sentencing hearing for October 13, 2016.
During his guilty plea hearing before Chief U.S. District Judge Brian A. Jackson, BARAJAS admitted the following facts. Between January 1, 2014, and February 18, 2015, BARAJAS conspired with individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills to Baton Rouge from California, they were then distributed to mid-level drug dealers and drug abusers in East Baton Rouge and Livingston Parishes. BARAJAS admitted that during the period of the conspiracy, he transported over 30,000 pills containing heroin from California to Baton Rouge and delivered the pills to a significant heroin trafficker in Baton Rouge for further distribution. Barajas then transported significant sums of cash as payment for the heroin to a major heroin trafficker in California. BARAJAS was identified as part of a substantial heroin-trafficking and money-laundering conspiracy investigation that resulted in the indictment of BARAJAS and 10 other defendants.
U.S. Attorney Green stated: “My office, together with the DEA and our other federal, state, and local partners, will continue to aggressively pursue those responsible for distributing heroin and other dangerous drugs on our streets and in our neighborhoods. We should not be fooled about the impact of such crimes. The consequences are not only devastating to our communities generally, they are increasingly deadly.”
Stephen G. Azzam, Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “Heroin has become an epidemic in the greater Baton Rouge area and DEA is attacking the criminals who prey on the weak and addicted through their drug trafficking. This investigation targeted a pill form of heroin disguised as oxycodone. This type of heroin, as well as heroin laced with fentanyl, is growing in popularity across the country. As a result, the number of overdoses from this deadly drug is growing nationally, too. Because of persistent and collaborative efforts of multiple law enforcement agencies in the area, a major supplier of heroin to this region of Louisiana is out of business.”
The investigation was conducted by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad and the Internal Revenue Service’s Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Buffalo Man Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Salvatore Letizia, 40, of Buffalo, NY, pleaded guilty to wire fraud and tax evasion before U.S. District Judge Richard J. Arcara. The wire fraud charge carries up to 20 years in prison and the tax evasion charge carries up to five years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that from 2005 until 2009, Letizia defrauded four individuals out of more than $360,000. The defendant made false representations to entice the victims to invest in fictional business ventures. Letizia took the invested funds and credit lines and used them for his personal benefit. In addition, the defendant failed to file any tax returns for the tax years 2005 through 2009 declaring the income that resulted from the fraudulent activity.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen Niagara, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for September 29, 2016, at 12:30 p.m. before Judge Arcara.
Bronx Man Sentenced to 121 Months for Supplying Heroin to Wilmington Drug Trafficking OrganizationRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Miguel Angel Diaz, age 40, was sentenced in U.S. District Court to 121 months in prison and 5 years of supervised release, for conspiracy to distribute heroin. Diaz, of the Bronx, New York, served as the source of supply for a Wilmington-based drug organization, known as the “30th Street Crew,”
Diaz has been incarcerated since March 25, 2014, when he was arrested by the FBI at JFK International Airport returning from a trip to the Dominican Republic. Since his arrest, he has been held without bail on federal drug trafficking charges. With Diaz’s conviction and sentence, a total of fifteen individuals associated with the 30th Street Crew have been indicted and found guilty on federal drug trafficking charges. Other co-defendants are now serving jail terms of between two and six and a half years.
This is Diaz’s second federal drug trafficking conviction. In 2007, he was convicted in the Southern District of New York for distributing five or more kilograms of cocaine, and served a 62 month sentence.
According to court documents, following a nearly five month wire-tap investigation, law enforcement identified and dismantled the 30th Street Crew, which was a dominant drug trafficking organization throughout the north side of Wilmington. In so doing, law enforcement determined that Diaz – despite being on federal supervised release for his earlier drug conviction – was the principal supplier of heroin for the 30th Street Crew. The investigation determined that between June 2012 and June 2013, Diaz shipped up to 200 logs of heroin twice-a-month to members of the 30th Street Crew in Wilmington. These heroin shipments were estimated to have a street value of between $40,000-$70,000 per shipment. To conceal these heroin shipments from law enforcement, Diaz organized a sophisticated drug operation, including using multiple cell phones to speak with other members of the organization, talking in code, using covert money pickups, and employing a drug courier.
To distribute the heroin supplied by Diaz, the 30th Street Crew used a residence at 3000 N. Madison Street, Wilmington – situated just blocks away from P.S. DuPont Middle School – as its headquarters. That house served as a retail center for drug distribution, with a regular influx of customers and sub-distributors arriving to make drug purchases from conspiracy members. The house was also a center for violence, including at least two shootings which occurred outside the residence in November and December 2011.
Diaz’s conviction and sentencing brings to a close the long-term investigation into the 30th Street Crew, which was led by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the State of Delaware Department of Corrections Division of Probation and Parole. Critical support for the investigation and arrests was provided by Delaware State Police, Delaware Division of Gaming Enforcement, New Castle County Police Department, United States Marshals Service, and the United States Department of Agriculture.
Acting United States Attorney David C. Weiss thanked the federal, state, and local law enforcement agencies for their participation in this investigation, and stated, “This investigation not only dismantled a large-scale drug trafficking organization that had heretofore operated with near-impunity on the streets of Wilmington, but brought to justice the person responsible for supplying the heroin.”
The case was being prosecuted by Assistant United States Attorneys Jamie M. McCall and Elizabeth Van Pelt.
7 Indicted for Bankruptcy FraudRead the Press Release
HOUSTON – A federal grand jury has returned a total of seven separate indictments against individuals alleged to have filed multiple bankruptcy cases to prevent creditors from initiating foreclosure proceedings against their properties, announced U.S. Attorney Kenneth Magidson.
The separate, but similar cases charge Hugo O. Parra, 43, of Cypress; Carmen P. Turner, 55, of Missouri City; LaTasha Riles, 47, of Huntsville; Leslie Nicole Breaux, 40, of Sugar Land; and Jermaine S. Thomas, 40, Angelina Gailey, 57, and Patrick Lee Gailey, 25, all of Houston. All are expected to appear before a U.S. magistrate judge in the near future.
The individuals are each charged with filing multiple bankruptcy cases to obtain an “automatic stay” from the bankruptcy courts which would prevent their creditors from initiating foreclosure proceedings against property for which they had outstanding loans.
Each defendant filed multiple bankruptcy cases to prevent a foreclosure proceeding by their creditors, according to the indictments. Each time a creditor would issue a “Notice of Foreclosure,” the defendants would allegedly file a bankruptcy case in order to obtain an automatic stay of the foreclosure. The charges allege that they would take no further action to abide by the requirements of the court to file additional documents and submit a payment plan to the court to pay their debts under the protection of the bankruptcy laws. Following a 45-day-period of no action by the defendants, their cases would be dismissed, according to the indictments.
The number of bankruptcy cases the defendants allegedly filed ranged from four within less than two hears to 12 over a five-year-period.
The defendants did not make any payments to their creditors under a court approved payment plan, according to the charges. Additionally, each time a defendant filed a bankruptcy case, he/she allegedly failed to list all of the cases they had previously filed. They also signed each filing as being true and correct under penalty of perjury, according to the indictments.
Each person is charged with bankruptcy fraud-scheme to defraud and making false declarations under penalty of perjury. If convicted of either charge, they face up to five years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigations with the assistance of the U.S. Trustee’s Office. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.12 Members of Drug Trafficking Operation Sentenced to Total of over 80 Years in Federal PrisonRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that 12 Defendants who were all part of a drug trafficking organization in the Fort Smith area were sentenced to federal prison this week. The Honorable P.K. III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, in November 2014, law enforcement in Fort Smith learned that large quantities of methamphetamine were being distributed in the area by Armando Picazo, Jose Mendez (who has pled guilty and will be sentenced at later date), and other members of a drug trafficking organization. Over the course of the next several months, investigators conducted six separate controlled purchases from Mendez and his associates. In early June 2015, Picazo and Mendez made arrangements for Mendez to travel to California to pick up a large amount of methamphetamine and bring it back to Fort Smith for distribution. On his way back from California in mid-June, Mendez was stopped for a traffic violation in Fort Smith and approximately 11 pounds of methamphetamine was seized by law enforcement. In September 2015, Armando Picazo and Ascencion Salas-Macias arranged the purchase of approximately six pounds of methamphetamine which were seized by law enforcement. Each of the defendants was indicted by a federal grand jury in September, 2015, and each has pleaded guilty to the following charges.
Listed below are the defendants, their charges, and their sentences:
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Armando Picazo, age 30 of Fort Smith, was sentenced to 240 months in federal prison and five years of supervised release on each of two counts of Possession with Intent to Distribute More than 50 Grams of Actual Methamphetamine, Aiding and Abetting.The sentences will run concurrent with each other.
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Ascencion Salas-Macias, age 31, of Fort Smith, was sentenced to 151 months in federal prison and five years of supervised release for Possession with Intent to Distribute More than 50 Grams of Actual Methamphetamine, Aiding and Abetting
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Amber Nicole Cottrell, age 28 of Fort Smith, was sentenced to 30 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Casey Allen Cottrell, age 31, of Fort Smith, was sentenced to 70 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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John Wayne Davis, age 41, of Cabot, was sentenced to 51 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Aris Orellana, age 29, of Fort Smith, was sentenced to 46 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Erick Padilla, age 35, of Oklahoma City, Oklahoma, was sentenced to 87 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Maria D. Jesus Martinez, age 33, of Fort Smith, was sentenced to 120 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Joseph Glenn Kutter, age 31 of Van Buren, was sentenced to 70 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Jose Quinones, age 37, of Fort Smith, was sentenced to 24 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
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Melinda Sue Quinones, age 39, of Fort Smith, was sentenced to 24 months in federal prison and two years of supervised release for Conspiracy to Distribute Methamphetamine
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Noel Ramirez-Osorio, age 31, of Oklahoma City, Oklahoma, was sentenced to 51 months in federal prison and three years of supervised release for Conspiracy to Distribute Methamphetamine
Three additional defendants in this case - Jose Mendez, Jose Christian Lemus-Vanegas, and Roxana Cardona, have all pleaded guilty to drug charges and will be sentenced at a later date.
“The successful prosecution of the members of this major drug trafficking organization should be a warning to others who engage in this type of activity,” stated DEA Special Agent in Charge Stephen G. Azzam. “This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs and bring them to justice,” said Azzam.
Agencies that took part in the investigation were the Drug Enforcement Administration (DEA), the Fort Smith Police Department, The Sebastian County Sheriff’s Office, and the 12th Judicial District Drug Task Force. Assistant United States Attorney Candace Taylor prosecuted the case 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
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Thursday 23 June 2016
Yuengling to Upgrade Environmental Measures to Settle Clean Water Act Violations at Two Pennsylvania BreweriesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that D. G. Yuengling and Son Inc., has settled Clean Water Act violations involving its two large-scale breweries near Pottsville, Pennsylvania.
In a consent decree filed today in federal court in Harrisburg, Pennsylvania, the company has agreed to spend approximately $7 million to improve environmental measures at its brewery operations after it allegedly discharged pollutants into the Greater Pottsville Area Sewer Authority municipal wastewater treatment plant. Yuengling will also pay a $2.8 million penalty.
In addition, the consent decree includes a requirement to implement an environmental management system (EMS) focused on achieving CWA compliance at the facilities. Yuengling must hire a third party consultant to develop the EMS and a third party auditor to ensure proper implementation at the facility operations.
The company allegedly violated Clean Water Act requirements for companies that discharge industrial waste to municipal publically-owned wastewater treatment facilities numerous times between 2008 and 2015. Companies must obtain and comply with permit limits on discharges of industrial waste that goes to public treatment facilities, which in many cases require “pretreatment” of waste before it is discharged. The case was referred to EPA by the Greater Pottsville Area Sewer Authority (GPASA).
“It is vital that companies using municipal wastewater treatment facilities strictly follow pretreatment guidelines and permit limits for their wastewater. It is what good neighbors expect, and it is what the law requires,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This settlement requires Yuengling to put into place an environmental management system designed to manage compliance with the Clean Water Act in a systemic, planned, and documented manner to establish a top-down, prevention-focused approach. The settlement also mandates independent audits of Yuengling’s compliance with the consent decree, among other requirements.”
“Yuengling is responsible for serious violations of its Clean Water Act pretreatment discharge limits, posing a potential risk to the Schuylkill River which provides drinking water to 1.5 million people,” said EPA Regional Administrator Shawn M. Garvin. “This history of violations and failure to fully respond to orders from the Greater Pottsville Area Sewer Authority and EPA to correct the problems resulted in this enforcement action.”
In a complaint filed concurrently with the settlement, the United States alleged that Yuengling violated pretreatment permit requirements, including discharge limits for biological oxygen demand (BOD), phosphorus, zinc and pH to the GPASA treatment plant, at least 141 times from 2008 to 2015.
Pretreatment helps remove or change the composition of pollutants in wastewater. Unpermitted or excessive industrial discharges may interfere with the operation of public wastewater treatment plants, which are generally designed to handle sewage and domestic waste, leading to the discharge of untreated or inadequately treated wastewater into local waters.
In addition to the monetary penalty, Yuengling has also agreed to take measures that will prevent future violations including:
- Designing and implementing an environmental management system for both breweries to ensure compliance with environmental laws;
- Conducting a series of environmental audits and inspections to ensure ongoing environmental compliance;
- Constructing a comprehensive pretreatment system at the Old Brewery;
- Optimizing and improving operation and maintenance of the pretreatment system at the New Brewery;
- Developing and implementing a communication and notification plan to quickly notify GPASA of any changes to the brewery facilites’ wastewater that may impact the public treatment facility;
- Hiring two certified wastewater treatment operators; and implementing a process to identify, investigate and respond to any future CWA violations quickly and efficiently.
The consent decree, which is subject to a 30-day public comment period and final court approval, is available at: www.justice.gov/enrd/
More information on the settlement: www.epa.gov/compliance/resources/cases/civil/cwa/arch.html
Woman Pleads Guilty for Impersonating FBI Agent in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
AUGUSTA, GA – A 30-year-old woman pleaded guilty yesterday for her role in a Jamaica-based lottery fraud scheme. Vania Lee Allen pleaded guilty in the Southern District of Georgia to one count of conspiracy to commit wire fraud and false impersonation of an employee of the United States. Allen faces a maximum statutory sentence of five years in prison. A sentencing date has not been scheduled.
As part of her guilty plea, Allen acknowledged that she and a co-conspirator in Jamaica sought to unlawfully enrich themselves through a fraudulent lottery scheme targeting an elderly resident of Evans, Georgia. As alleged in the indictment, Allen’s co-conspirator falsely informed the victim that he had won money in a lottery and instructed the victim to make payments to various people in order to collect the purported lottery winnings. As part of her plea agreement, Allen acknowledged in order to induce the victim to continue to make payments as directed by her co-conspirator, Allen traveled from Jamaica to the United States to meet with the victim personally and falsely portrayed herself to the victim as an FBI agent. Allen also acknowledged that when she met the victim, she falsely portrayed herself as a FBI agent, provided the victim with a cell phone, and directed him to speak with the person on the line, who was Allen’s co-conspirator in Jamaica.
“This conviction shows the extraordinary lengths fraudsters will use to rip off someone in the United States,” said U.S. Attorney Edward J. Tarver of the Southern District of Georgia. “Such schemes will not be tolerated, and we will prosecute fraudsters whether they operate from inside or outside of the United States.”
“Lottery fraud schemes operating from Jamaica targeting Americans typically get help from at least one co-conspirator in the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Impersonating an FBI agent is just one way fraudsters convince innocent victims that the international lottery is legitimate. It isn’t. The Justice Department will actively pursue and charge those who participate in such criminal activity.”
“The Postal Inspection Service is dedicated to investigating and combating international lottery schemes, especially since they prey on elderly Americans,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “The Postal Inspection Service is committed to uncovering and pursuing individuals involved in international lottery fraud schemes targeted at victims in the United States.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
The case was prosecuted by Assistant U.S. Attorney C. Troy Clark of the Southern District of Georgia and Trial Attorney Clint Narver of the Civil Division’s Consumer Protection Branch. The case was investigated by the U.S. Postal Inspection Service and the Columbia County Georgia Sherriff’s Office. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Violent Felon Sentenced to 13 Years in Prison for Using Firearm to Obstruct JusticeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that QUENTRELL D. FOUNTAIN, age 28, of Baton Rouge, Louisiana, was sentenced to serve 13 years in federal prison for discharging a firearm during the commission of a crime of violence (obstruction of justice). Specifically, the defendant was sentenced yesterday by U.S. District Court Judge John W. deGravelles to a 156-month term of imprisonment, which will be followed by a five (5) year term of supervised release. FOUNTAIN was also ordered to make restitution to his victim, to pay a $100 special assessment, and to forfeit the firearm and any other property used in his crime.
The sentence is a result of FOUNTAIN’s efforts to prevent law enforcement from learning about his possession of a firearm as a convicted felon, a federal crime. Specifically, on December 3, 2015, FOUNTAIN was convicted of discharging a firearm during the commission of a crime of violence (obstruction of justice), in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii).
FOUNTAIN’s conviction arose from a series of events in January 2014. As FOUNTAIN admitted during his guilty plea, on January 8, 2014, he beat and threatened the victim, a former girlfriend, with a firearm, telling her that he was going to kill her. At the time, FOUNTAIN was a convicted felon prohibited from possessing a firearm, by virtue of a 2006 conviction for simple robbery. After law enforcement learned of the incident and began an investigation, the defendant threatened the victim again by phone, on several occasions. Then, on January 11, 2014, at approximately 3:20 a.m., FOUNTAIN drove to the victim’s home and fired multiple gunshots in the vicinity of the victim’s home, while the victim and her child were inside.
U.S. Attorney Green stated: “The protection of victims and witnesses is a top priority of this office. As this case illustrates, we will aggressively pursue anyone who attempts to harm or intimidate a victim or witness as a result of conveying information about a possible federal crime to law enforcement.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Baton Rouge City Police, and the Port Allen City Police. It is being prosecuted by Assistant United States Attorneys Kevin Sanchez, M. Patricia Jones, and Fred Menner.
Utah Woman Pleads Guilty to Bank Fraud and Concealment of AssetsRead the Press Release
COEUR D'ALENE – Nicolette P. Valentine, 37, of Liberty, Utah, pleaded guilty yesterday to bank fraud, concealment of assets in connection with a bankruptcy case and false statements under oath, U.S. Attorney Wendy J. Olson announced. Valentine was indicted by a federal grand Jury in Coeur d'Alene on February 18, 2015.
According to the plea agreement, Valentine defrauded Mountain West Bank when she made material false statements which were relied upon by Mountain West Bank and caused them to lend her $43,766.27 to refinance a truck. Instead of paying off the existing loan on the truck so that Mountain West Bank could obtain clear title to the collateral, the Valentine deposited the proceeds into her bank account and used the money for living expenses.
In November 2011, Valentine and her husband and co-defendant, Cortney Valentine, contracted to sell 103 Festive Lane, Sagle, Idaho, to a third party for $1,150,000. Instead of the proceeds from the sale going into the bankruptcy estate because the property was part of the codefendant’s bankruptcy filing in May 2011, the Valentines used the money for living expenses. Nicolette Valentine acted knowingly, fraudulently and with the intent to deceive the creditor, trustee or bankruptcy judge. In May 2012, Nicolette Valentine, filed for relief under Chapter 13 of Title 11. During her bankruptcy proceedings, and while under oath, Nicolette Valentine made material false statements when questioned about various matters under the supervision of the bankruptcy court.
The charge of bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000, and up to five years of supervised release. The charges of false statement under oath and concealment of assets in connection with a bankruptcy case are punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for August 16, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI).
US Attorney Kenyen Brown Meets with Members of Mobile LBGTQ Community in the Wake of the Tragic Events in Orlando, FloridaRead the Press Release
U.S. Attorney Kenyen Brown of the U.S. Attorney’s Office for the Southern District of Alabama and his civil rights staff members, hosted a gathering of LGBTQ community leaders from a variety of groups in Mobile and Southern Alabama this week.
The meeting included, amongst other guests, Rev. Sara Sills of Cornerstone Metropolitan Community Church; Cari Searci, of Equality Alabama; Lane Galbraith, an LBGTQ rights advocate and activist, and; Kimberly McKeand and Lanita Kharal, the Executive Director of AIDS Alabama South and the Community Development Director for AIDS Alabama South respectively. The meeting was held in response to the tragic events that unfolded in Orlando, Florida less than two weeks ago where 49 fellow Americans were murdered and more than 50 others were wounded at the Pulse nightclub.
U.S. Attorney Brown said, "In the aftermath of the Orlando shooting, it is essential to reassure the people of Alabama of federal law enforcement’s commitment to protecting the civil rights of all persons." Included in this week’s discussion was information about the protections afforded by federal hate crime laws, especially the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009, and where to report potential hate crimes.
"The U.S. Attorney’s office brings prosecutions and enforces civil rights laws to protect all residents of our region, including members of the LGBTQ community," Brown said. "We are working closely with leaders of LGBTQ organizations to ensure the security of individuals or groups who may be potential targets of hate crimes."
FBI Special Agent in Charge, Robert Lasky stated, "Hate crimes are a top investigative priority of the FBI’s Civil Rights Program because of the devastating effect they can have on entire communities. While the FBI in Southern Alabama is working daily with our law enforcement partners to protect against acts of terrorism, individuals who threaten or commit acts of violence motivated by animus towards others due to their lifestyle, religion, national origin, or gender will be investigated to the fullest extent of the law."
The meeting, this week, solidified all of the groups’ commitment to continue enhanced inclusionary community outreach efforts in the Mobile region.
"Diversity and inclusion will change our future going forward for the better. Equality affects everybody. We accomplish more as a city, state and nation when we choose to work together for the greater good of all," said LBGTQ rights advocate Lane Galbraith. Ms. Cari Searci of Equality Alabama stated "Now more than ever, it is important for the LGBTQ community to feel that we are equally supported and protected under the law. It is reassuring to know that the US Attorney’s Office of the Southern District of Alabama is listening to our concerns and is committed to protecting the civil rights of all Alabamians."
"Our agency is very grateful to US Attorney Brown for inviting us and other local leaders and agencies to his office to personally discuss issues affecting our community. In the wake of the Orlando terrorist attack targeting the LGBTQ community, U.S. Attorney Brown and his office are committed to protecting the lives, civil rights, and liberties of all the citizens of Mobile and the Southern District of Alabama," said Kimberly McKeand of AIDS Alabama South. Lanita Kharal, the Executive Director of AIDS Alabama South added, "With the unthinkable and horrific murders of our fellow Americans in Orlando, AIDS Alabama South remembers the precious people who were taken, injured, and targeted by a mind fermented in hate and lacking any shred of humanity or compassion for life. Each of them were special and unique and will leave an unending void for their loved ones. We pray for peace, love and light for each person affected by this tragedy and for healing of our country."
Lastly, Rev. Sara Sills added, "The members and friends of Cornerstone MCC are deeply saddened by the hate crime that was perpetrated against the LGBTQ community in Orlando. We stand in solidarity with all who believe that the only thing that can overcome such hatred is love. We are a church built on love and we offer a place of refuge to all."
U.S. Attorney Eileen Decker Announces Formation of Civil Rights Section Focused on Affirmative Civil Enforcement and OutreachRead the Press Release
LOS ANGELES – United States Attorney Eileen M. Decker today announced the formation of a new Civil Rights Section within the Civil Division of the United States Attorney’s Office. This Section will focus exclusively on affirmative enforcement of federal civil rights laws, including federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin.
“My office is committed to protecting the civil rights of every single resident in our district,” U.S. Attorney Decker said. “The formation of the Civil Rights Section will increase our capacity to address civil rights complaints and enhance our community engagement on these issues. Protecting these rights, and especially those of our most vulnerable residents, is one of my top priorities.”
The newly formed Civil Rights Section will focus on enforcing federal laws that:
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prohibit discrimination and harassment on the basis of race, color, sex, disability, religion, familial status and national origin;
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prohibit police misconduct;
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protect the constitutional rights of institutionalized persons;
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protect the employment rights of individuals serving in our armed services; and
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prohibit discrimination in housing and lending.
The Section will also focus on increasing community outreach on these issues.
This week, approximately 40 Assistant United States Attorneys from across the United States who handle affirmative civil rights enforcement matters are in Los Angeles for training. This training, which is sponsored by the Executive Office for United States Attorneys in Washington, will provide AUSAs with in-depth instruction on various civil rights enforcement topics.
The United States Attorney’s Office for the Central District of California serves residents in the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo. The Central District of California, with a population of more than 19 million people, is by far the largest federal district in the nation.
Assistant United States Attorney Joanna Hull has been appointed to serve as the chief of the new Civil Rights Section. AUSA Hull received her undergraduate and law degrees from the University of California at Berkeley, where she was Order of the Coif. She spent seven years with the Department of Labor, both in Washington and in the Los Angeles regional office. Shortly after joining the United States Attorney’s Office in 2010, AUSA Hull joined the newly formed Civil Rights Unit in the Civil Division, which was the predecessor to the Civil Rights Section. AUSA Hull has worked on affirmative civil rights cases in a variety of areas, including disability rights and military service members’ rights. She also participated in the Civil Division’s investigation which resulted in a court-enforceable agreement with Los Angeles County and the Los Angeles County Sheriff’s Department to ensure the constitutional rights of all county jail inmates, specifically to protect them from serious suicide risks and excessive force. AUSA Hull is returning to Los Angeles in mid-July after a one-year detail as the National Civil Rights Coordinator at the Executive Office for U.S. Attorneys. In that role, she served as a subject-matter expert on all civil rights matters and assisted in developing and providing training to federal prosecutors across the nation.
More information on the new Section can be found here. For more information on the Department of Justice’s civil rights efforts, please visit www.justice.gov/crt.
The Public Corruption and Civil Rights Section in the Criminal Division will continue to handle prosecutions related to criminal civil rights violations, including hate crimes and allegations that law enforcement officers used excessive force.
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Two Men Charged in Connection with Hartford Soccer Stadium ProjectRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a 26-count indictment yesterday charging MITCHELL ANDERSON, 51, of Avon, and JAMES C. DUCKETT JR., 44, of Somers, with conspiracy, fraud and related offenses stemming from the City of Hartford’s efforts to revitalize Dillon Stadium and a plan to bring a professional soccer team to the city.
ANDERSON was arrested this morning at this residence. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond. DUCKETT surrendered to the FBI in Las Vegas, and is expected to appear in Las Vegas federal court tomorrow.
According to indictment, in September 2014, Hartford entered into a professional services agreement with ANDERSON’s company, Premier Sports Management Group (“PSMG”) to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location in Hartford. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, ANDERSON joined with DUCKETT, who agreed to be the majority owner of the professional soccer team. ANDERSON and DUCKETT subsequently represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.
The indictment alleges that, beginning in approximately March 2015, ANDERSON and DUCKETT submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, ANDERSON and DUCKETT directed hundreds of thousands of dollars that they received from the city to themselves, PSMG, Black Diamond and to other entities not related to the Dillon Stadium project. In addition, the indictment alleges that ANDERSON and DUCKETT caused inflated invoices to be submitted to the city.
The indictment charges both ANDERSON and DUCKETT with conspiracy to commit mail and wire fraud. The indictment also charges ANDERSON with four counts of mail fraud, and both defendants with multiple counts of wire fraud and conducting illegal monetary transactions.
If convicted of the conspiracy, mail and wire fraud counts, the defendants face a maximum term of imprisonment of 20 years on each count. If convicted of conducting illegal monetary transactions, the defendants face a maximum term of imprisonment of 10 years on each count.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Toano Man Pleads Guilty to Impersonating a Federal AgentRead the Press Release
NEWPORT NEWS, Va. – Luis Latorre-Roman II, 41, of Toano, pleaded guilty today to charges of false impersonation of a federal agent.
According to the statement of facts filed with the plea agreement, Latorre-Roman II is described as having appeared as a witness at a sentencing in the Circuit Court of James City County on February 24. After being sworn, Latorre-Roman II claimed to be a Special Agent with the Department of Homeland Security. He provided this testimony in an effort to persuade the Circuit Court Judge to impose a lesser sentence on the defendant in that proceeding. Latorre-Roman has never been a Special Agent with the Department of Homeland Security.
Latorre-Roman II was indicted by a federal grand jury on May 10, and faces a maximum penalty of three years in prison sentenced on October 3. 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 Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-47.
Timber Lake Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Timber Lake, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on June 21, 2016, by U.S. District Judge Roberto A. Lange.
Dustin Buffalo, age 33, was sentenced to 40 months in custody, to be served concurrent with the sentence he received in another, but separate, assault case. Following his release, Buffalo will be on supervised release for 2 years. He was ordered to pay a special assessment of $100 to the Federal Crime Victims Fund.
Buffalo was indicted by a federal grand jury on January 21, 2016. He pled guilty on March 29, 2016.
The conviction stems from an incident that occurred on November 5, 2015, at Timber Lake, when the victim attempted to intervene in a physical altercation that was taking place between Buffalo and one of the victim’s stepchildren. When the victim attempted to intervene in the altercation, Buffalo turned on the victim and began physically assaulting him, hitting him on the right side of his head with a large, heavy metal cross. The blows knocked the victim to the floor. His head was cut open and he began to bleed. Buffalo repeatedly hit and kicked the victim while he was lying on the floor. The victim received medical treatment for his injuries, but continues to have problems with dizziness, headaches, and blurred vision because of the assault.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Buffalo was immediately turned over to the custody of the U.S. Marshals Service.
Three Navajo Men Sentenced to Lengthy Federal Prison Terms for Convictions Arising from Kidnapping and Murder of Navajo WomanRead the Press Release
ALBUQUERQUE – Earlier this week a federal judge sitting in Santa Fe, N.M., sentenced three members of the Navajo Nation to lengthy federal prison terms for convictions arising out of the kidnapping and murder of a Navajo woman in Oct. 2013. Scott Thompson, 28, of Farmington, N.M., was sentenced to 23 years; Justin Benally, 28, also of Farmington, was sentenced to 22 years; and Patrick Benally, 28, of Kirtland, N.M., was sentenced to 18 years. Each defendant will serve a five-year term of supervised release after completing his prison sentence.
The sentences were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Thompson, Justin Benally and Patrick Benally, together with co-defendants LaSheena Jacquez, 27, and Mariah Benally, 22, both of Kirtland, were indicted in Jan. 2014, on criminal charges arising from the kidnapping and murder of a 28-year-old Navajo woman on Oct. 23, 2013. The indictment charged all five defendants with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Justin Benally, Mariah Benally, Jacquez and Thompson with harboring Patrick Benally to prevent his arrest on charges arising out of an assault that was unrelated to the kidnapping and murder case. The crimes charged in the indictment occurred on the Navajo Indian Reservation within San Juan County, N.M. All five defendants previously had been arrested in Dec. 2013, on a criminal complaint filed after law enforcement authorities received information that the victim, who was missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
All five defendants entered guilty pleas to second-degree murder charges. Patrick Benally also pleaded guilty to an assault with a dangerous weapon charge in a separate case. The assault conviction arose out of an Oct. 10, 2013, incident during which Patrick Benally shot a different Navajo woman in the face during an argument in the victim’s home in Fruitland, N.M.
The kidnapping and murder case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. The assault case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting both cases.
These cases were brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Three Charged in Violent Home Invasion RobberyRead the Press Release
PHILADELPHIA - Tyree Mansell, 40, of Philadelphia, PA, Sterling Wallace, 27, and Jamain Wallace, 26, of Philadelphia and Yeadon, PA, were charged today by indictment with conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, attempted Hobbs Act robbery, and carrying a firearm during and in relation to a crime of violence.
The indictment charges that on June 15, 2015, the defendants conspired in a home invasion robbery in Broomall, Pennsylvania, in an attempt to steal business proceeds from the victim. The indictment alleges that all three defendants went to a home in the 2600 block of Old Cedar Grove Road in Broomall; that Mansell and Sterling Wallace rang the doorbell and when a young child (“Victim #1”), answered the door, they pointed their firearms at the child, forced their way into the home, and Wallace struck the child in the face and head with his gun causing a severe laceration and bleeding. Mansell confronted another person (“Victim #2”) on the second floor of the home, pointed his firearm at Victim #2 and him/her into a bedroom as defendant Sterling Wallace forced Victim #1 to the second floor at gunpoint. Defendant Jamain Wallace joined the other two defendants, took Sterling Wallace’s gun and stood guard over the victims Victim #1 and Victim #2 as his co-defendants searched the home for cash and other items to steal. The defendants took money and jewelry from a safe in the home.
If convicted of all charges, each defendant faces a mandatory minimum sentence of seven years in prison with a maximum sentence of life, up to five years of supervised release, a possible fine, and a $300 special assessment.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Charged in 40 Kilogram Cocaine DeliveryRead the Press Release
HOUSTON – A two-count federal indictment has been returned charging two Houston residents and one Mexican National in a cocaine conspiracy, announced U.S. Attorney Kenneth Magidson.
The indictment against Shuntel Coco, 44, and Christopher Williams, 43, both of Houston, along with Jesus Esquivel-Ayala, 37, a citizen of Mexico, was returned today. They were all originally charged by criminal complaint last month, after which Coco and Esquivel-Ayala were ordered into custody pending further criminal proceedings, while Williams was released on bond. They are all expected to appear before a U.S. magistrate judge on the indictment in the near future.
The three men are charged for their roles in a conspiracy to possess with intent to distribute approximately 40 kilograms of cocaine. According to the charges, Williams had leased a storage unit where Esquivel-Ayala was to deliver the cocaine. On May 26, 2016, Esquivel-Ayala delivered the 40-kilogram load to the storage unit to Williams who was receiving it on Coco’s behalf, according to the criminal complaint.
Esquivel-Ayala and Williams were arrested on site. Coco had been monitoring the progress of the delivery and transaction at a gas station/convenience store parking lot nearby and was also taken into custody.
They all face a minimum of 10 years and up to life in federal prison, if convicted.
The Drug Enforcement Administration conducted the investigation with the Houston Police Department. Assistant U.S. Attorney Bryan K. Best is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Thirteen Atlanta-Based Members of a Mexican Drug Trafficking Organization Convicted and Sentenced to Federal PrisonRead the Press Release
ATLANTA – Thirteen members of a drug-trafficking cell which used passenger buses to smuggle staggering amounts of illegal drugs from Mexico to communities in the Northern District of Georgia have been sentenced for conspiracy to distribute methamphetamine, heroin and cocaine, and conspiracy to commit money laundering.
“After distributing these deadly drugs in the Atlanta area and elsewhere, the traffickers then shipped hundreds of thousands of dollars in drug money back to Mexico,” said U.S. Attorney John Horn. “This case stands as a disturbing example of Atlanta’s role as a trans-shipment hub for the Mexican cartels as they package drugs for distribution across the East Coast and collect the proceeds for transportation back to Mexico. Due to the tremendous cooperative effort between federal agencies and local law enforcement, this drug organization has been dismantled, and its members are in federal prison.”
“Methamphetamine, heroin and cocaine are highly addictive plagues that drug traffickers inflict upon law-abiding communities without any regard for the violence and destruction that often accompany their use,” said Special Agent in Charge of HSI Atlanta Nick S. Annan. “The boldness of this criminal group reflected a callous disregard for public safety that seriously underestimated the dedication of HSI and its federal, state and local law enforcement partners to identify and seek prosecution of those engaged in this criminal conspiracy.”
“The role of IRS Criminal Investigation in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The sentences handed down today, mark the successful end of an investigation and serve as a strong message to individuals throughout the region that we will not stand for the destruction that drugs and related criminal activity bring to our communities. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
According to U.S. Attorney Horn, the charges and other information presented in court: Atenogenes Alvarado-Delgado, who was initially based in Mexico, directed his brother, Jose Alvarado-Delgado, and associate, Reberiano Arroyo-Santana, in connection with the importation of large amounts of cocaine, methamphetamine, and heroin into the Atlanta, Georgia, area from Mexico.
The investigation revealed that this organization used passenger buses, owned by Alejandro Carmona, to transport the drugs from Puebla, Mexico, across the border into the United States, and directly to the Atlanta area. The drugs were often concealed inside of non-functioning batteries stored on the buses. Alan Arnold Lopez traveled on the drug-filled buses on numerous occasions to ensure their safe passage. Aside from Lopez and the bus drivers, Carmona’s buses traveled thousands of miles between Atlanta and Mexico without any paying passengers.
Once the buses arrived in Atlanta, they were concealed in local warehouses where Jose Cardenas-Garcia off-loaded the drugs concealed within secret compartments in the buses. Jose Antonio Pineda-Maldonado, Rufino Pineda-Perez, Ranferi Pineda-Campos and Miguel Salinas distributed the drugs in the Atlanta area. The drugs were also stored in local residences, including a house in Lilburn, Georgia occupied by Jose Ocampo-Jaimes.
During the investigation, which commenced in October 2013, law enforcement seized approximately 644 pounds of methamphetamine, 37 kilograms of heroin, 27 kilograms of cocaine, and $680,000 in drug proceeds, which included the following seizures:
- October 8, 2013, agents observed Jose Pineda-Maldonado meet with Miguel Salinas in a parking lot located at 2450 Cumberland Pkwy near Vinings, Georgia.Agents followed Salinas onto Interstate 285 east to Buford Highway, where officers of the Doraville Police Department conducted a traffic stop.Salinas attempted to flee on foot, but was quickly apprehended.A search of Salinas’s vehicle revealed over 17 kilograms of methamphetamine, or “ice”.
- October 11, 2013, agents seized 54 kilograms of “ice” methamphetamine pursuant to a search warrant of an apartment on Cleburne Parkway in Hiram, Georgia, and 37 kilograms of cocaine and 18 kilograms of heroin pursuant to a search warrant of an apartment on Cumberland Parkway in Cobb County, Georgia.
- December 7, 2013, agents observed Yarley Pineda board a bus at 4600 South Atlanta Road, near Smyrna, Georgia, that was destined for Mexico. Later that day, officers with the Alabama Drug Task Force conducted a traffic stop of the bus and discovered $145,000 in drug money concealed in hollowed out shoes in Yarley Pineda’s suitcase.
- January 3, 2014, Jose Pineda-Maldonado delivered five kilograms of methamphetamine to a customer of Blanca Hernandez.Shortly thereafter, Pineda-Maldonado was stopped by the Cobb County Police on the East-West Connector in Cobb County.A search of the car revealed a suitcase with three commercial batteries in the back seat and seven more batteries in the trunk. Agents disassembled the batteries and found six bricks of methamphetamine in each battery, with a total weight of 51 kilograms of methamphetamine.
- January 4, 2014, law enforcement responded to an explosion at an apartment on Jameson Pass in Alpharetta, Georgia, which was used by the organization as a methamphetamine laboratory. A search of the apartment revealed a large quantity of liquid methamphetamine as well as approximately 15 grams of cocaine and 535 grams of powder methamphetamine.
- January 24, 2014, law enforcement seized approximately 19 kilograms of heroin from a bus at the U.S.-Mexico border in Laredo, Texas.The bus had just entered the United States from Mexico and was enroute to the drug cell in Atlanta.
- March 18, 2014, the Georgia State Patrol (GSP) stopped a vehicle on I-85 southbound in Gwinnett County, Georgia.During a search of the vehicle, agents seized approximately one kilogram of cocaine which was concealed in a cereal box and arrested Rufino Pineda-Perez.
- March 19, 2014, agents observed a bus used by the organization at a warehouse located at 1311 Fulton Industrial Boulevard in Atlanta.At that time, Jose Cardenas-Garcia loaded the concealed compartment in the bus with drug proceeds.Later that afternoon, the GSP stopped the bus and located $277,490 concealed in false compartments within the bus frame.
- May 29, 2014, law enforcement stopped a bus owned by Alejandro Carmona in Cobb County. A search of the bus revealed approximately 22 kilograms of cocaine concealed in the floorboard.
- May 29, 2014, agents served a federal search warrant at a residence located at 1055 Omaha Drive in Norcross.Upon entering the residence, law enforcement observed Jose Ocampo-Jaimes attempting to dispose of suspected methamphetamine by washing it down the tub drain.During the search of the residence, agents located approximately five kilograms of “ice” methamphetamine in the kitchen and bedrooms.
All defendants in this case were sentenced by Chief United States District Judge Thomas W. Thrash, Jr., as follows:
• Alejandro Carmona, 65, of Arlington, Texas was sentenced to 20 years in prison, followed by five years of supervised release. Carmona was found guilty of a narcotics conspiracy charge on November 9, 2015 after a week-long federal jury trial.
• Reberiano Arroyo-Santana, 38, of Atlanta, Georgia was sentenced to 20 years in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Atenogenes Alvarado-Delgado, 35, of Powder Springs, Georgia was sentenced earlier today to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Jose Alvarado-Delgado, 37, of Austell, Georgia was sentenced to 19 years and seven months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Ranferi Pineda-Campos, 29, of Lilburn, Georgia was sentenced to 11 years and three months in prison, followed by three years of supervised release on charges of narcotics and money laundering conspiracy.
• Alan Arnold Lopez, 26, of Mableton, Georgia was sentenced to 11 years and three months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Jose Antonio Pineda-Maldonado, 24, of Smyrna, Georgia was sentenced to 10 years and one month in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Miguel Salinas, 24, of Lawrenceville, Georgia was sentenced to eight years and ten months in prison, followed by four years of supervised release on a narcotics conspiracy charge.
• Blanca Hernandez, 43, of Alpharetta, Georgia was sentenced to eight years and one month in prison, followed by five years of supervised release on a narcotics conspiracy charge.
• Rufino Pineda-Perez, 50, of Lawrenceville, Georgia was sentenced to six years and six months in prison, followed by three years of supervised release on a narcotics conspiracy and illegal re-entry by a previously removed alien charge.
• Jose Ocampo-Jaimes, 37, of Lilburn, Georgia was sentenced to five years and ten months in prison, followed by five years of supervised release on narcotics conspiracy and illegal re-entry by a previously removed alien charges.
• Jose Cardenas-Garcia, 50, of Kennesaw, Georgia was sentenced to four years and nine months in prison, followed by five years of supervised release on charges of narcotics and money laundering conspiracy.
• Yarely Pineda, 24, of Smyrna, Georgia was sentenced to two years and six months in prison, followed by three years of supervised release on a charge of money laundering conspiracy.
The investigation and prosecution of this case was a coordinated effort through the David G. Wilhelm OCDETF Strike Force, led by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigations. Valuable assistance was also provided by the Cobb County Police Department, Cobb County Sheriff’s Office, Marietta Police Department, Powder Springs Police Department, Henry County Police Department, Clayton County Sheriff’s Office, Georgia Bureau of Investigation, DeKalb County Police Department, Alabama Drug Task Force, Newnan Police Department, Conyers Police Department, Gwinnett County Judicial Task Force, United States Customs and Border Protection, and the Georgia State Patrol.
Assistant United States Attorneys Michael Herskowitz, Nicholas Hartigan, and Michael J. Brown prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- October 8, 2013, agents observed Jose Pineda-Maldonado meet with Miguel Salinas in a parking lot located at 2450 Cumberland Pkwy near Vinings, Georgia.Agents followed Salinas onto Interstate 285 east to Buford Highway, where officers of the Doraville Police Department conducted a traffic stop.Salinas attempted to flee on foot, but was quickly apprehended.A search of Salinas’s vehicle revealed over 17 kilograms of methamphetamine, or “ice”.
Storeowner Admits Selling Drug Paraphernalia, Counterfeit Sports HatsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of selling and offering for sale drug paraphernalia, conspiracy to sell and offer for sale drug paraphernalia, and trademark counterfeiting, United States Attorney David J. Hickton announced today.
Akhil Mishra, 72, of Glenshaw, Pa., (Indiana Twp.) pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Assistant United States Attorney Troy Rivetti advised the Court that the Mishra family has been selling drug paraphernalia for more than twenty years, mainly through two stores -- Giggles, located in downtown Pittsburgh, and Rock America, located in the North Hills. Akhil Mishra was federally convicted of selling drug paraphernalia in both 1992 and 2000, and he owned and operated the Giggles store, along with his wife. Both Giggles and Rock America, however, carried much of the same merchandise, including various types of drug paraphernalia. In February 2013, agents executed search warrants at the Mishra family businesses (Giggles and Rock America), and at the homes of both Akhil Mishra and his son, Mayank Mishra, and found evidence of drug paraphernalia, including products used to dilute heroin, glassine stamp bags for packaging heroin, various marijuana-related paraphernalia, and more than $900,000 in cash.
Based on the foregoing, Mayank Mishra was arrested and granted bond. Subsequent to his release, agents received information that Mayank Mishra was continuing to sell heroin cutting agents and glassine bags for packaging. Agents then utilized a confidential informant to purchase cutting agents and glassine bags, and the confidential informant successfully recorded the transaction. The confidential informant explicitly asked for “cut” and “bags”, and Mayank Mishra provided a material typically used to dilute heroin and the glassine stamp bags typically used to store heroin. Based on that information, agents obtained another set of search warrants for Mayank Mishra’s business and home. Once again, agents seized additional heroin cutting agents, glassine bags, marijuana paraphernalia, and cash ($86,000). Mayank Mishra was arrested a second time, and he was detained pending trial. Akhil Mishra was present in the courtroom when the evidence against his son was discussed, as well as the illegality of the drug paraphernalia.
The arrest of his son did not stop Akhil Mishra from continuing to sell cut and stamp bags to heroin dealers. The agents received information that Akhil Mishra was continuing to sell that merchandise, and a confidential informant was able to make a controlled purchase from his store in June 2014. That evidence led to the execution of a third set of search warrants at various locations associated with the Mishra family and their businesses in July 2014. Once again, the agents found cut, stamp bags, and marijuana-related paraphernalia.
Separate and apart from the drug paraphernalia investigation, investigators with the Pennsylvania State Police received information that Akhil Mishra was selling counterfeit Major League Baseball Hats. In December 2014, an investigator entered Giggles and observed counterfeit Pittsburgh Pirates winter hats and baseball hats. On Feb. 25, 2015, the same investigator purchased an unlicensed counterfeit Pittsburgh Pirates winter hat. The following day, Pennsylvania State Police investigators obtained and executed a search warrant at Giggles, resulting in the seizure of the following counterfeit merchandise: 137 Pittsburgh Steelers winter hats; seven Pittsburgh Steelers headbands; 79 Pittsburgh Pirates baseball hats; 23 various National Football League winter hats; 14 National Basketball Association winter hats; seven Philadelphia Eagles hats; two Miami Dolphins hats; one Baltimore Ravens hat, one Chicago Bears hat; five Denver Broncos hats; six Seattle Seahawks hats; one Green Bay Packers hat; eight Chicago Bulls hats; and six Los Angeles Lakers hats.
Judge Bissoon scheduled sentencing for Aug. 25, 2016, at 2:15 pm. The law provides for a maximum total sentence of nine years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Akhil Mishra.
South Dartmouth Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man was indicted today on child pornography offenses.
Jack L. Bean, Jr., 29, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Bean was charged in a criminal complaint and arrested in April 2016.
According to the court documents, in September 2015, a law enforcement investigation identified an Internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was allegedly identified as a user on the bulletin board. During a search executed by law enforcement officers, Bean admitted that he downloaded and saved child pornography from the Internet, and that he had a sexual preference for girls approximately 14 years old. During the execution of the search warrant, agents identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime 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; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Dartmouth Police Chief Robert W. Szala, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Slidell Man Pleads Guilty to Receiving Images and Videos Depicting the Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIAN GRACO, age 35, of Slidell, pled guilty today to receiving images and videos depicting the sexual exploitation of children.
According to court documents, on May 27, 2014, law enforcement officials executed a search warrant at GRACO’S residence, during which time they seized several electronic items, including three computers, one external digital storage device, and three removable digital storage devices. A preliminary review of the electronic devices determined that a desktop computer contained images and videos depicting the sexual victimization of children. A more intensive forensic examination of the device revealed that GRACO had used the desktop computer to access Internet websites and networks devoted to the advertisement and distribution of child pornography. Between June 4, 2013 and May 27, 2014, GRACO discussed matters pertinent to the sexual abuse of children to search for, download, and save images and videos of children as young as five (5)-years-old engaging in sexually explicit conduct. The forensic examination determined that GRACO possessed at least10,264 images and 130 videos of children engaging in sexually explicit conduct. After downloading the images and videos, GRACO stored them on special folders he created on his computer.
GRACO faces a mandatory minimum term of imprisonment of five (5) years and a maximum penalty of twenty (20) years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. U.S. District Judge Eldon E. Fallon set sentencing for September 29, 2016.
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.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and J. Ryan McLaren are in charge of the prosecution.
Sentencings for July 16 - 22, 2016Read the Press Release
Scott Michael Lewis, 27, of Lakewood, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on June 22, 2016, for operating an unregistered aircraft. Lewis received 36 months of supervised probation and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the U.S. Department of Transportation Office of Inspector General and the U.S. Department of Homeland Security Immigration and Customs Enforcement.
Garrett Ross Castleman, 27, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 20, 2016, for possession of child pornography. Castleman was arrested in Casper, Wyoming. He received four months imprisonment, to be followed by five years of supervised release. Castleman will be required to wear an electronic home monitoring device for the first four months of supervised release. In addition, Castleman was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Amber Lynn Troudt, 28, was sentenced by Federal District Court Alan B. Johnson on June 17, 2016, on two counts of distribution of methamphetamine. Troudt was arrested in Torrington, Wyoming. She was sentenced to 75 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Karen Michelle Cox, 52, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Alan B. Johnson on June 16, 2016, for conspiracy to distribute between 1.5 to 3.0 kilograms of methamphetamine. Cox was arrested in Salt Lake City, Utah. She received 121 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $900.00. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Seattle Area Man who Claimed Fictitious Twin Brother to Collect Additional Federal Benefits Sentenced to 30 Months in PrisonRead the Press Release
A SeaTac man who used a second identity to defraud federal and state public assistance programs for more than 20 years was sentenced today in U.S. District Court in Seattle to 30 months in prison, announced U.S. Attorney Annette L. Hayes. TRAVIS EDWARD FISCHER, 49, lived with his girlfriend and three children in SeaTac, while also claiming benefits under the name Edward Travis Fischer in Seattle. By pretending to be two completely separate people, FISCHER was able to illegally collect hundreds of thousands of dollars in benefits administered by the Social Security Administration, the Washington Department of Social and Health Services, and the Seattle Housing Authority. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said FISCHER stole money that should have been used to help other needy beneficiaries. Chief Judge Martinez also added: “These crimes have a corrosive effect on the public’s confidence that these programs can be administered properly.”
According to records filed in the case and testimony at trial, FISCHER applied for Social Security disability benefits in his true name in August 1984, and collects them to the present day. In 1987, FISCHER also applied for Supplemental Security Income (SSI) benefits in the name of Edward Fischer, using a different Social Security number. Benefits were approved and paid to that identity beginning in 1987. In order to keep receiving benefits FISCHER had to make false representations to Social Security at various times over the last 25 years. FISCHER illegally collected more than $160,000 in benefits administered by the Social Security Administration.
The fraud did not stop with Social Security benefits but extended to food and medical assistance from the Washington State Department of Social and Health Services (DSHS) totaling more than $154,000. Further, FISCHER defrauded the Seattle Housing Authority by using the false identity to claim a low income unit in the Queen Anne neighborhood of Seattle while living in SeaTac with his girlfriend and children. From 1990 to 2013, FISCHER used the Queen Anne residence as a home base for his fictitious second identity, and as his address for separate bank accounts and benefits in the Edward name. The housing benefits totaled more than $152,000.
A case manager first noticed the fraud after finding both names in a DSHS database in 2011. When confronted, FISCHER first claimed he was the victim of identity theft, and then claimed that he had a twin brother who was also collecting benefits.
In all, FISCHER was convicted of seven counts of mail fraud, seven counts of theft of government funds, Social Security Fraud, Misuse of a Social Security Number, and two counts of making a false statement to the United States. He was ordered to pay $466,100 to the agencies he defrauded and will be on supervised release for three years following his prison term.
The case was jointly investigated by the Social Security Administration Office of the Inspector General (SSA-OIG), the Department of Housing and Urban Development Office of the Inspector General (HUD-OIG) and the DSHS Office of Fraud and Accountability.
The case was prosecuted by Special Assistant United States Attorney Benjamin Diggs and Assistant United States Attorney J. Tate London. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 21, 2016, by U.S. District Judge Roberto A. Lange.
Daniel Red Horse, Jr., age 45, was sentenced to 24 months in custody, followed by 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Red Horse was indicted by a federal grand jury on March 15, 2016. He pled guilty on April 26, 2016.
Red Horse was convicted in federal court in 1990 for Sexual Abuse of a Minor, and in 2012 for Sexual Contact. Red Horse was released from custody in August 2013. He is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. The current conviction stemmed from Red Horse moving out of his residence in Rapid City, returning to the Cheyenne River Reservation, and failing to update his registration. Red Horse had not registered during the nearly six weeks he was on absconder status from supervised release.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Horse was immediately turned over to the custody of the U.S. Marshals Service.
Pocatello Man Sentenced for Social Security FraudRead the Press Release
POCATELLO – Timmy Adam Allen, 51, of Pocatello, Idaho, was sentenced today to four months in prison for social security fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Allen to pay restitution to the Social Security Administration. Allen pleaded guilty on January 28, 2016.
According to the plea agreement, Allen admitted that in February 2012, he applied for social security benefits for his son and requested to be the representative payee. As part of the application, Allen falsely represented that his son lived with him. In reliance on that application and the false statement it contained, the Social Security Administration determined the son was eligible for benefits and appointed Allen as the representative payee. From on or about February 9, 2012 through on or about July 3, 2014, Allen received $21,681 in social security benefits for his son. Allen did not spend any of the money on his son or conserve it for his future use. Instead, Allen took the $21,681 and spent it on himself.
The case was investigated by the Social Security Administration Office of Inspector General with assistance from the Power County Sheriff’s Office. The case was prosecuted by a Special Assistant U.S. Attorney as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office to prosecute social security fraud.
Plaquemines Parish Resident Pleads Guilty to Defrauding the Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHANQUITTA JONES-DILLON, age 40, of Buras, pled guilty today to a one-count Bill of Information charging her with wire fraud.
According to court documents, in 2010, JONES-DILLON filed a false claim for damages arising out of the Deepwater Horizon Oil Spill. As part of the scheme to defraud, JONES-DILLON submitted false documents to the Gulf Coast Claims Facility (GCCF) during the claims process. The fraudulent claim submitted by JONES-DILLON caused the GCCF to release over $63,000 in damage payments to which she was not entitled.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Lance M. Africk set sentencing for September 15, 2016.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution
Pinellas County Doctor Arrested and Charged with Multiple Offenses Related to Writing Prescriptions for Compounded MedicationsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Dr. Anthony Baldizzi (52, Tierra Verde) with one count of conspiracy to defraud the United States, twenty-one counts of health care fraud, one count of money laundering, one count of making a false statement, and one count of receiving illegal kickbacks. The health care fraud and money laundering counts each carry a maximum penalty of 10 years in federal prison. The remaining counts each carry a maximum penalty of five years. The indictment also notifies Baldizzi that the United States is seeking a money judgment in the amount of at least $5.3 million as proceeds of the conspiracy and health care fraud offenses and forfeiture of a 2015 BMW M3, which is alleged as property traceable to proceeds of the charged conduct.
According to the indictment, Baldizzi is a licensed medical doctor who practices at an urgent care clinic in Pinellas County. In or around 2014, he entered into an agreement with the owners and operators of Lifecare Compounding Pharmacy to receive kickbacks for each prescription he wrote and directed to Lifecare for filling. Later, the principals of Lifecare introduced Baldizzi to the principals of Centurion Compounding, a marketing firm, and these parties entered into another kickback relationship whereby Baldizzi agreed to become a Centurion “in-network” doctor and write prescriptions for compounded creams marketed by Centurion and filled at Lifecare. In exchange, the principals of Lifecare and Centurion jointly paid Baldizzi a kickback of each paid claim, equal to approximately 10% of the after-cost amount of the payment. Many of these prescriptions were written for beneficiaries of TRICARE, a federal health care benefit program. Lifecare submitted to TRICARE claims for prescriptions written by Baldizzi, pursuant to their illegal kickback agreement, totaling approximately $5.3 million. Lifecare also submitted to Medicare claims for prescriptions written by Baldizzi, pursuant to their illegal kickback agreement, totaling approximately $71,312.41.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Pine Ridge Man Indicted for Health Care FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for False Statements Relating to Health Care Matters and Attempt to Obtain Controlled Substance by Fraud.
William Wounded, age 20, was indicted on March 22, 2016. Wounded appeared before U.S. Magistrate Judge Daneta Wollmann on June 20, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Wounded using a falsified prescription to obtain Hydrocodone on October 21, 2015, at the Indian Health Services Pharmacy in Pine Ridge.
The charges are merely accusations and Wounded is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Wounded was released on bond pending trial. A trial date has been set for August 23, 2016.
Philadelphia man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raheem Cuffee, 32, of Philadelphia, Pennsylvania was sentenced today to 110 months in prison for heroin distribution, United States Attorney William J. Ihlenfeld, II, announced.
Cuffee previously pled guilty to “Distribution of Heroin within 1,000 feet of a Protected Location” He admitted to selling heroin in Morgantown, West Virginia during 2014.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigations investigated.
U.S. District Judge Irene M. Keeley presided.
Palm Beach County Resident Pleads Guilty in Stolen Identity Tax Refund Fraud Conspiracy Involving Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A Palm Beach County resident pled guilty for his participation in a stolen identity tax refund fraud conspiracy involving students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Terry L. Rhodes, Executive Director, Florida Highway Patrol (FHP), made the announcement.
Oniel Winston Scarlett, 28, pled guilty to one count of conspiracy to commit wire fraud, to retain and conceal monies stolen from the United States, and to commit identity theft, all in violation of Title 18, United States Code, Section 371; one count of wire fraud, in violation of Title 18, United States Code, Section 1343; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing is scheduled for September 30, 2016 before U.S. District Judge Kenneth A. Marra. At sentencing, Scarlett faces a maximum of five years imprisonment for the conspiracy charge, a maximum of twenty years imprisonment for the wire fraud 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, Scarlett and his co-conspirators fraudulently obtained and exchanged amongst themselves the PII of other individuals, filed fraudulent income tax returns with the IRS using the stolen PII, and directed fraudulent refunds to be deposited onto pre-paid debit cards in the names of other individuals using the stolen PII.
The defendant was in possession of stolen PII during a traffic stop on September 20, 2011. During the traffic stop, the FHP trooper conducted a consent search of Scarlett’s vehicle and found 92 Wal-Mart pre-paid debit cards; printouts of hundreds of peoples’ PII; pre-paid debit card information and money amounts for the cards; more than fifty Palm Beach County School Board’s mainframe database printouts with students’ names, Social Security numbers, and dates of birth; two laptop/notebook computers with accessories; two memory sticks; a cell phone; and a phone book for the Belle Glade, Florida area. The trooper also found bank account information, where it was later determined that nearly $77,000 in federal tax refunds were direct deposited from fifty-two separate fraudulent tax returns filed with the IRS.
Scarlett used the PII to make fraudulent cards to sell to another individual. Scarlett earned between $1,000 to $2,000 a week, for the cards. Some of the PII was also used to file false tax returns with the IRS. On the computer, law enforcement found 228 separate login user identifications used to file false income tax returns claiming approximately $290,000.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FHP. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
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.
Owner of Oklahoma City Employer Organization Charged with More Than $6 Million in Tax EvasionRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has handed down a 23-count indictment against JANIS ANN EDWARDS, of Oklahoma City, Oklahoma, for tax evasion, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the indictment, Ms. Edwards was the sole owner of Corporate Resource Management, Inc., and a number of related companies with their principal place of business in Oklahoma City. These companies operated as "professional employer organizations," or "PEOs." In essence, they served small businesses in several states in the central part of the United States by, among other things, taking on responsibilities for paying their employees’ payroll and collecting and paying payroll taxes to the IRS. The employees of small businesses became employees of one of Edwards’s entities, and their payroll taxes were to be paid under the tax identification number of one of those entities.
According to the indictment, Edwards failed to pay substantial amounts of payroll taxes collected from small businesses that had contracted with one of the CRM-related entities. The 23 counts relate to quarterly payroll tax returns filed by Oklahoma Corporate Resource, Inc.; Missouri Corporate Resource, Inc.; and Texas Corporate Resource, Inc., for various quarters in 2010 and 2011. The indictment alleges that Edwards regularly and intentionally directed her own employees to alter these quarterly tax returns to reflect less payroll tax liability than what was actually owed. For the 23 quarters identified in the indictment, Edwards is alleged to be responsible for $6,387,399.09 in unreported payroll taxes.
If convicted, Edwards faces on each count a maximum penalty of five years in prison, three years of supervised release, a fine of $250,000, and the costs of prosecution.
This case is the result of an investigation by IRS-Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Jessica L. Perry.
The public is reminded that an indictment is merely an accusation and that the defendant is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Omaha Man Sentenced to 71 years in Prison for Multiple RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Emmanuel Chaplain, age 26, of Omaha, Nebraska, was sentenced by the Honorable Laurie Smith Camp after a federal jury convicted him of multiple robberies and firearms charges in March. The jury found Chaplain guilty of seven counts of interference with commerce by means of robbery, three counts of using or possessing a firearm in furtherance of three of the robberies and felon in possession of a firearm. Chaplain was sentenced to 14 years’ imprisonment for the robberies. He was additionally sentenced to 57 years for using the firearms in furtherance of the robberies to be served after the sentence on the robbery charges. By statute, he faced a minimum of at least five years consecutive to the first robbery in which he used a gun, and 25 years consecutive on each of the other two charges of possessing and using a firearm in furtherance of the particular robberies for which he used a gun. He received a sentence of 10 years for being a felon in possession of a firearm. That sentence will be served at the same time as the other sentences. He was also ordered to pay $4,643.50 in restitution and serve 5 years of supervised release
On June 19, 2014, Chaplain and Shane Seizys robbed the Jiffy Lube located at 5819 Maple Street. Later that day they robbed a second Jiffy Lube at 1221 South 120th Street. On June 23, 2014, they robbed the Subway at 5005 Center Street and Chaplain was found guilty of possessing and using a firearm during that robbery. When they left Subway, they went to O’Reilly Auto Parts at 3620 North 72nd Street and robbed it. Within an hour of those two robberies they went to the Kum & Go at 1010 South 154th Street and robbed it. The jury found that Chaplain possessed and used a firearm during the Kum & Go robbery. On July 16, 2014, Chaplain and Seizys robbed the Game Stop at 9959 Redick Circle using a firearm and about 15 minutes later, robbed the KFC located at 7601 North 30th Street.
A bandana found in a car Chaplain was riding in on June 23, following the Kum & Go robbery, was tested for DNA. The probability that the bandana did not belong to Chaplain was one in 20 sextillion.
After the Game Stop and KFC robberies, three people matching the description of the robbers were seen changing clothes at a vehicle approximately one block away. Omaha Police Officers quickly responded to the area. Seizys and Dilang Dat were immediately arrested. Chaplain fled from police but was caught a short time later. The vehicle they ran from belonged to Chaplain’s brother. In addition to finding clothes in the car that matched those worn in the robberies, there were 5 video game boxes from Game Stop that had Chaplain’s fingerprints on them.
Seizys previously pleaded guilty and received a sentence of 29 years’ imprisonment. Dilang Dat was involved in two robberies. He pleaded guilty and was sentenced to 6½ years’ imprisonment.
The case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Northwest Arkansas Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Stacy Len Lisenbery, aka Stacy Lisenberry, age 47, of Lincoln, Arkansas, was sentenced yesterday to 180 months in federal prison followed by three years of supervised release and ordered to pay a $15,000 fine on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy O. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in April of 2014, Lisenbery was arrested on an outstanding warrant and found to be in possession of three individual baggies of methamphetamine along with $1500.00 in currency. After being released on bond, he was again arrested in February of 2015 when he attempted to take possession of a package containing approximately two pounds of methamphetamine that had been shipped to him from California. He was indicted by a federal grand jury in February, 2015 and pleaded guilty to the charge in April of 2015.
This case was investigated by the Washington County Sheriff’s Office, the Drug Enforcement Administration (DEA) and the 4th Judicial District Drug Task Force. Assistant United States Attorney Kimberly Davis Harris prosecuted the case 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
Northern California Man Sentenced to 210 Months’ Imprisonment for Production and Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Lesley James McNeal was sentenced to 210 months in prison for production and possession of child pornography, announced United States Attorney Brian J. Stretch and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down on June 21, 2016, by the Honorable William Alsup, U.S. District Judge.
McNeal, 53, of San Francisco, pleaded guilty on March 15, 2016, to one count of production of child pornography, in violation of 18 U.S.C. § 2251(a); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). According to his guilty plea, McNeal acknowledged that, beginning on or about March 26, 2011, and through September 28, 2013, he made 14 videos depicting a girl under the age of 12 engaged in sexually explicit conduct. McNeal further admitted he then installed a program into a computer that allowed others to see and download the videos. McNeal also acknowledged that, on December 14, 2014, he possessed electronic devices that contained no fewer than 26,000 images and 700 videos of child pornography. McNeal was indicted on August 18, 2015, and charged with one count each of production of child pornography and possessing child pornography.
In addition to the prison term, Judge Alsup also sentenced the defendant to a 10-year period of supervised release and ordered him to pay restitution.
Assistant U.S. Attorney Michael Maffei prosecuted the case with the assistance of Rawaty Yim and Patricia Mahoney. The prosecution is the result of an investigation by HSI and the San Francisco Police Department.
Nine Defendants Sentenced in $11.1 Million Tax Refund and Food Stamp Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – Nine defendants have been sentenced for conspiracy, theft of government funds, and aggravated identity theft. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants and sentences are:
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John Walter Simmons, 35, Tampa, Florida, 168 months in prison;
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Daria Patrice Simmons, 34, Tampa, Florida, 65 months in prison;
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Jazzman Shabazz Simmons, 27, Tallahassee, Florida, 65 months in prison;
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Anre’ Juardon Davis, 34, St. Petersburg, Florida, 36 months in prison;
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Rashard LaVonta McMillian, 27, Quincy, Florida, 36 months in prison;
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Ronald Edward Brown, 28, Quincy, Florida, 30 months in prison;
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Addrain Montez McMillan, 30, Overland Park, Kansas, 18 months in prison;
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Ja’baree Vazquez Allen, 27, Tallahassee, Florida, 3 years of probation, 600 hours community service;
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Mercedes Shevon Sutton, 25, Tampa, Florida, 3 years of probation, 300 hours of community service; and
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Jasmine Junae Robinson, 26, Tallahassee, Florida, sentencing hearing scheduled for August 19, 2016.
During their guilty pleas in February 2016, the defendants admitted that they conspired to file fraudulent income tax returns using stolen personal identifying information (PII) from approximately 2,800 individuals. The PII sources included an insurance provider, an online database, and an area hospital. The stolen PII was used to file 1,466 fraudulent income tax returns, claiming refunds of approximately $11.1 million and resulting in $2,695,253 being issued by the IRS. During their pleas, Sutton, John Simmons, and Jazzman Simmons also acknowledged their involvement in a scheme to file fraudulent Supplemental Nutrition Assistance Program (SNAP) applications. Between August 2013 and January 2014, stolen PII was used to electronically submit 165 fraudulent food stamp applications, seeking $176,704 in benefits.
“These conspirators stole the personal information of thousands of real victims and used their identities to fraudulently obtain millions of dollars from government programs and lawful taxpayers,” said U.S. Attorney Christopher P. Canova. “I commend our law enforcement partners for their hard work investigating this case.
“This case is a good example of the continuing efforts of IRS Criminal Investigation and our local law enforcement partners working in concert to combat identity theft,” said Kimberly A. Lappin, Special Agent in Charge of the Tampa Field Office for IRS Criminal Investigation. “This crime can make honest taxpayers face a more difficult time obtaining their lawful refund or bring more pain to the families whose deceased relative was also a victim. This sentence demonstrates that criminals will have a price to pay for their roles in perpetrating these crimes.”
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, Tallahassee Police Department, and the Leon County Sheriff’s Office. Assistant United States Attorney Jason R. Coody prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
Nigerian National Sentenced to Federal Prison for Collecting Millions of Dollars in a Stolen Identity Refund Fraud (SIRF) SchemeRead the Press Release
In Austin today, 32-year-old Adefemi Olokodana (aka “Coker Akosua Paul”), a Nigerian national residing in Austin, was sentenced to six years in federal prison for his role in a scheme to collect millions of dollars in tax refunds using stolen identification information announced United States Attorney Richard L. Durbin, Jr. and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
In addition to the prison term, U.S. District Judge Lee Yeakel ordered that Olokodana pay approximately $4.3 million restitution and be placed on supervised release for a period of three years after completing his prison term.
Stolen Identity Refund Fraud or "SIRF" is a category of schemes that victimize both the United States Treasury and individual taxpayers. Under such schemes, perpetrators file false income tax returns using the identities of actual taxpayers, including the taxpayers' true personal identifiers such as Social Security numbers, addresses, and employers. The identities are stolen, and the taxpayers are unaware of the returns. The returns claim refunds, and the perpetrators arrange for the IRS to pay the fraudulent refunds to them, rather than to the owners of the stolen identities. Perpetrators of such schemes often file the false returns and receive the fraudulent refunds electronically, through intermediaries, and using false identities.
On January 22, 2016, Olokodana pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. By pleading guilty, Olokodana admitted that from January 2010 until May 2015, he used stolen personal identification information to file hundreds of fraudulent tax returns. Olokodana collected millions of dollars in refunds based on those fraudulent tax returns.
In May 2015, authorities with the Department of Homeland Security apprehended Olokodana in Laredo, TX, as he attempted to cross the border into Mexico using a counterfeit Ghanaian passport in the name of Coker Akosua Paul to avoid prosecution. He has remained in federal custody since his arrest.
“Today's sentencing of Adefemi Olokodana for running a stolen identity refund fraud scheme is another triumph for the American taxpayer, and another defeat for identity thieves,” said IRS-Criminal Investigation San Antonio Field Office Special Agent in Charge William Cotter. “When Adefemi Olokodana made the mistake of making a run for the border to escape American justice, he sealed his fate. IRS-CI special agents are relentless in our pursuit of those who attempt to steal from the U.S. Treasury.”
This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorneys Alan Buie and Matt Harding prosecuted this case on behalf of the Government.