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17 August 2016
Christian County Jail Inmate Sentenced for Tax Fraud Conspiracy Behind BarsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate in the Christian County Jail in Ozark, Mo., was sentenced in federal court today for his role in a conspiracy to file fraudulent federal income tax returns while he was incarcerated and awaiting sentencing on another federal conviction.
John Dennis Sedersten, 40, who was an inmate in the Christian County Jail at the time of the offense, was sentenced by U.S. District Judge Roseann Ketchmark to six years and six months in federal prison without parole.
On April 5, 2016, Sedersten pleaded guilty to leading a conspiracy to defraud the government. Sedersten committed this offense, his fifth federal conviction, while incarcerated as he awaited sentencing on an earlier federal conviction for escaping from custody. Sedersten had walked away from a halfway house in Springfield, Mo., on Aug. 9, 2014. For that offense, he was sentenced on March 31, 2016, to five years in federal prison without parole. The court ordered today’s sentence to be served consecutively.
Sedersten was at the halfway house as part of his sentence for aggravated identity theft, to which he pleaded guilty in 2013. He was scheduled to be released about five months later, on Dec. 3, 2014. Sedersten also has prior federal convictions related to a counterfeit check-cashing scheme to which he pleaded guilty in 2010. Sedersten also has a 2002 federal felony conviction for counterfeit checks in the District of Nebraska.
Sedersten admitted that, while he was incarcerated, he conspired with others to prepare and submit false federal income tax returns in order to receive refunds to which the conspirators were not entitled. Sedersten’s co-conspirators, who are not identified in court documents, were not inmates of the jail.
Sedersten admitted that he provided his co-conspirators with specific instructions regarding how to complete and file the false federal income tax returns, listing wages not received, federal income tax withholdings that had not been withheld, and false business expenses. Sedersten also provided his co-conspirators with an Employer Identification Number (EIN) under which they could report the false wages and withholdings. Most of the conspirators claimed to have received wages from JDS Enterprises, which is registered to Sedersten.
All false claims but one were halted by the IRS, and the one refund issued was recovered. Sedersten’s plea agreement lists nine false claims filed by eight individuals. The government believes the total amount of the false claims submitted during the course of this conspiracy was $373,372.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the Springfield, Mo., Police Department and the U.S. Marshals Service.
Chesterfield Woman Pleads Guilty to Fraud ChargesRead the Press Release
RICHMOND, Va. – Pamela Minor-Chiles, 47, of Chesterfield, Virginia, pled guilty today to a criminal information charging her with bank fraud stemming from her misappropriation of approximately $200,000 from a medical practice. She was indicted on June 21, 2016 on 27 counts of bank fraud.
According to court documents, Minor-Chiles, the office manager of the Central Virginia OB/GYN Associates (CVOG), misappropriated approximately $200,000 from the practice from 2007 until 2012. The scheme involved Minor-Chiles writing numerous checks on the CVOG operating account at SunTrust Bank and fraudulently depositing them into her personal accounts at the Bank of America from 2007 to 2012. Minor-Chiles concealed the misappropriations by (1) putting fraudulent entries on the check stubs to make it appear that the misappropriated checks were written to outside vendors for legitimate expenses of the practice, and (2) then submitting the fraudulent check stubs to the outside accountants.
Minor-Chiles faces a maximum penalty of 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The guilty plea took place today before the Honorable M. Hannah Lauck. The sentencing is set for November 29, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after the return of the indictment. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-083.
Cherokee Co. Man Sentenced to More Than Seven Years in Prison on Federal Assault ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced late yesterday Lowney Yohnagalegi Crow, 33, of Cherokee, N.C. to 87 months in prison on charges of assault resulting in serious bodily injury, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Martin Reidinger also ordered Crow, who is an enrolled member of the Eastern Band of Cherokee Indians, to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief James Dike Sneed of the Cherokee Indian Police Department (CIPD).
“Crow’s then-fiancé suffered unspeakable violence by the man who claimed to love her. Crow beat his victim as she begged him to stop, telling her his intent was to make sure she never walked again. Then afterwards, Crow left the victim to suffer in pain overnight, finally agreeing to call for medical help after he instructed her on what to say about the cause of her injuries,” said U.S. Attorney Rose. “What Crow did to his victim is what millions of others suffer each day: domestic violence and physical, emotional, and psychological abuse at the hands of a loved one. Domestic violence can happen to anyone regardless of race, age, sexual orientation, ethnicity, religion, or gender, and it affects people of all socioeconomic backgrounds and education. It can also happen to intimate partners who are married, living together, or dating. I urge victims of domestic violence to reach out to my office, to law enforcement, to a local organization, or a loved one to alert them to their situation and to report this heinous crime. Help is available to assist domestic violence victims and to get them on a path to safety,” Rose added.
According to information contained in filed court documents and yesterday’s sentencing hearing, on March 30, 2014, officers with CIPD arrived to Crow’s residence in response to a 911 call regarding an attempted rape and assault at that location. The female victim, who was Crow’s fiancé at the time, told law enforcement officers that another individual had come into Crow’s house and attempted to sexually assault her. The officers found the alleged perpetrator laying on the floor inside Crow’s residence unconscious and in need of medical attention.
The following day, on March 31, 2014, the victim called 911 again, this time requesting transportation to the hospital because she was hurt. According to court records, at first, the victim declined to speak in detail to law enforcement and the emergency medical personnel on the scene regarding her severe injuries on her knees and abdomen. Crow also denied knowing who injured the victim when he was questioned. Court records show that later the same day and after Crow had left the hospital, the victim told law enforcement that Crow was the person who had assaulted her, after he accused her of being unfaithful to him. The victim told law enforcement that Crow had used a wooden baseball bat to hit her the night before, that the beating had lasted approximately 45 minutes, and that Crow only stopped hitting her when the bat he was using broke.
According to court records, the morning after the incident, Crow had carried the victim to the bathroom because she was unable to walk and finally agreed to get her medical attention for her injuries. Crow also told the victim to tell the police that he was not responsible for her injuries. According to court records, the victim suffered multiple fractures in her legs, hands and other parts of her body. She also required several surgeries and physical therapy before she could walk again.
An arrest warrant against Crow was issued in January 2015, following the filing of a federal complaint against him. Crow was located in California where he was arrested in January 2016. He pleaded guilty in April 2016 to one count of intentional assault resulting in serious bodily injury. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CIPD. Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
If you or someone you know is the victim of domestic violence, please call the National Domestic Violence Hotline at 1-800-799-SAFE (7233), 1-800-787-3224 (TTY), or visit: http://www.thehotline.org
Carroll County man sentenced to prison for failing to register as sex offenderRead the Press Release
A Carroll County man was sentenced to prison for failing to register as a sex offender, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.
Louis Scott, 45, was sentenced to 30 months in prison by U.S. District Judge Donald C. Nugent.
Scott was convicted in Tulsa County District Court in May 2011 of second-degree rape. As a result of that conviction he was subject to the sex offender registration requirements of the Adam Walsh Child Protection and Safety Act, according to court documents.
In January 2016 U.S. Marshals Service investigators learned that Scott was no longer at his registered address in Oklahoma and was residing in the 100 block of 12th St. NW, in Carrollton, Ohio, according to court documents.
He was arrested by the US Marshals Northern Ohio Violent Fugitive Task Force on January 15th, 2016.
“Too often sex offenders believe they can avoid their requirements to register by moving from state to state and living under the radar,” said Peter J. Elliott, U.S. Marshal for the Northern District of Ohio. “The combined efforts of the Carroll County Sheriff’s Office, the U.S. Marshals Service and Oklahoma law enforcement made this arrest possible.”
This case was prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the U.S. Marshal Service and the Carroll County Sheriff’s Office.
Carl Junction Sex Offender Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man who was a prior sex offender was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Steven Ray Cottle, Jr., 36, of Carl Junction, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole followed by a lifetime of supervised release. Cottle was required to register as a sex offender due to his Jan. 25, 2001, conviction for indecent exposure in Oklahoma.
On Jan. 13, 2016, Cottle pleaded guilty to receiving and distributing child pornography over the Internet.
Agents with the Southwest Missouri Cyber Crimes Task Force were conducting an undercover investigation in December 2013 and identified Cottle’s computer as receiving and distributing child pornography over the Internet through a peer-to-peer file-sharing program. When agents executed a search warrant at his residence on Feb. 13, 2014, Cottle attempted to hide his laptop computer and two thumb drives by placing them in the attic access space, accessible from within the closet of his bedroom, before he came downstairs to talk to law enforcement officers.
Investigators discovered numerous images and videos of child pornography, as well as other images of bestiality and bondage, on the laptop and thumb drives. Some of those images depicted children as young as three years old.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Southwest Missouri Cybercrimes Task Force and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Canadian Citizen Sentenced to 78 Months in Prison for Leading an International Multimillion Dollar Fraud SchemeRead the Press Release
Earlier today, Sandy Winick, a Canadian citizen who was extradited from Thailand, was sentenced at the federal courthouse in Brooklyn, New York, to 78 months in prison following his July 2015 guilty plea to conspiring to commit wire fraud for running an international advance fee scheme. The sentencing proceeding was held before United States District Judge Eric N. Vitaliano. As part of the sentence, Winick was ordered to pay $2,431,038.32 in restitution and $5,000,000 in forfeiture.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers thanked the Federal Bureau of Investigation, New York Field Office (FBI); the Internal Revenue Service, Criminal Investigation, New York (IRS); U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Buffalo; Treasury Inspector General for Tax Administration (TIGTA); the Justice Department’s Office of International Affairs (OIA); the Royal Canadian Mounted Police (RCMP); the United Kingdom’s National Crime Agency (NCA); and law enforcement authorities in Thailand and China for their significant cooperation and assistance in this complex global investigation.
According to the indictment and other court filings, between 2008 and 2013, Winick was the leader of two multi-million dollar fraud schemes that used call centers around the world to defraud unsuspecting investors. In the first scheme, Winick, together with other defendants, was charged with engaging in an international “pump and dump” operation. Specifically, Winick and his co-defendants secretly controlled and fraudulently inflated the share price of worthless penny stocks through false and misleading press releases and manipulative trading and then sold billions of the fraudulently-inflated shares to investors across the globe. In the second scheme, Winick, together with other defendants, was charged with operating boiler rooms in four countries to induce investments in penny stocks, including investments by many of the victims in the first scheme, to pay advance fees that the defendants promised would enable them to sell the stocks and recover any losses they incurred. In reality, Winick and his co-defendants stole more than $5 million from the duped investors and never provided any services. Winick established and operated boiler rooms or call centers in various locations around the world, including Canada, Thailand, and China, to solicit fees from the victims. Winick also planned to open a call center in Brooklyn.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Christopher A. Ott and Sylvia Shweder are in charge of the prosecution, with assistance provided by Assistant United States Attorney Melanie Hendry of the Office’s Civil Division, which is responsible for the forfeiture of assets.
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This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
SANDY WINICK
Citizenship: Canada
Age: 58
Ontario, CanadaE.D.N.Y. Docket No. 13-CR-452 (S-2) (ENV)
Camden, New Jersey, Woman Admits Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – A Camden, New Jersey, woman pleaded guilty today in federal court to sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Aja M. Easley, 22, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of sex trafficking of a minor. Easley, Aaron J. Gray, 29, of Camden, and Kenneth A. Mertz, 35, of Collingswood, were previously charged in a criminal complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray was also charged in the complaint with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Easley admitted that on March 2, 2015, she communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts and drove the minor to a motel in Cherry Hill for that purpose.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts. After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley also told the victim that if any trouble arose, Gray was outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
The count to which Easley pleaded guilty carries a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Nov. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
The pending charges and allegations against Gray and Mertz are merely accusations, and the defendants are considered innocent unless and until proven guilty.
16-240 ###
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey
California Commodities Trader Admits His Investment Scam Caused a Loss to Clients of More Than $3 MillionRead the Press Release
CHICAGO — A southern California commodities trader pleaded guilty in federal court in Chicago today to pocketing a portion of his clients’ money after falsely promising a 200% return on investment.
DAVID BRYANT admitted in a plea agreement that he obtained money from investors by falsely representing that his California-based company, the Bryant Family Investment Fund LLC, had successfully generated profits of more than 200% a year. In fact, the fund had performed no trading in its name, and the trading that Bryant did in his personal accounts – using client funds –resulted in large losses.
Bryant, 63, of Palos Verdes Estates, Calif., admitted fraudulently obtaining approximately $5.1 million from investors and a financial institution, and causing a loss to investors and others of approximately $3.6 million. Some of Bryant’s personal accounts were located in Chicago.
Bryant pleaded guilty to one count of wire fraud. The conviction carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. U.S. District Judge Matthew F. Kennelly scheduled a sentencing hearing for Jan. 18, 2017, at 1:30 p.m.
According to the plea agreement, Bryant attempted to make the scam appear legitimate by providing the victims with fraudulent documents that he created, including fictitious trading records and account statements that purported to reflect the clients’ growing investment proceeds. He further concealed the scheme by making Ponzi-type payments to other investors. Some of the money for the Ponzi payments came from a bank loan that Bryant fraudulently obtained by forging his mother’s signature on a property deed and using it as collateral for the loan, according to the plea agreement.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. The U.S. Commodity Futures Trading Commission, which filed a civil complaint against Bryant, assisted in the investigation.
A Court order entered in May in the civil suit required Bryant to pay a $3 million civil monetary penalty and more than $3.08 million in restitution. The order also imposed permanent trading and registration bans on Bryant, and prohibited him from committing further violations of the anti-fraud and registration provisions of the Commodity Exchange Act.
The government is represented in the criminal case by Assistant U.S. Attorney Jacqueline Stern.
Plea Agreement
Caldwell Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE - John Paul Tate, 48, of Caldwell, Idaho, pleaded guilty today in United States District Court to conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Tate was indicted by a federal grand jury on March 8, 2016.
According to evidence presented at the plea hearing, Tate conspired with others to distribute methamphetamine in the state of Idaho between October of 2015, and February 22, 2016. Tate and his co-conspirators arranged for delivers of methamphetamine in Ada and Canyon counties. Investigating officers discovered the conspiracy and were able to intervene.
The charge of conspiracy to distribute methamphetamine is punishable by a term of imprisonment of not less than ten years or more than life, a term of supervised release of at least five years, and a maximum fine of $10,000,000.
Sentencing is set for November 17, 2016, before Senior U.S. District Judge Edward J. Lodge.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, and City County Narcotics Unit of Canyon County.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Boston Man Sentenced for Multiple RobberiesRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with robbing three financial institutions: the East Cambridge Saving Bank and Naveo Credit Union in Cambridge and Rockland Trust in Allston.
Kim N. Daley, 46, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 100 months in prison, three years of supervised release and restitution of $8,339. In May 2016, Daley pleaded guilty to three counts of bank robbery.
On June 1, 2015, Daley entered the East Cambridge Savings Bank in Cambridge and gave the teller a note demanding money. The teller handed Daley money from her drawer and he fled the bank. Surveillance video recorded the robbery and Daley’s image was circulated on the Massachusetts Crime Network. A state parole officer recognized Daley as the robber and notified the Cambridge Police Department.
On Aug. 7, 2015, Daley entered the Rockland Trust in Allston. Once again, Daley gave the teller a note demanding money. The teller handed Daley money from her drawer and he fled the bank. Following the robbery, Daley was identified by bank employees from a photo array.
On Aug.14, 2015, Daley entered the Naveo Credit Union in Cambridge. Daley gave the teller a note demanding money and stated, “hurry up, I have a gun.” The teller handed Daley money from her drawer and he then fled the bank. Surveillance cameras recorded the robbery which law enforcement reviewed and identified Daley.
On Aug. 21, 2015, Daley was arrested in New York City and transported to Massachusetts to face charges.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Cambridge Police Acting Commissioner Christopher Burke; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Avera, U.S. Attorney’s Office, and Children’s Home Society Host Child Sexual Abuse ConferenceRead the Press Release
Media are invited Thursday, Aug. 18, to the Sioux Falls Convention Center. Media may come and film a portion of Matthew Sandusky’s presentation at 9:30 a.m. in the convention center ballroom, followed by a press conference at 10:05 a.m. in Meeting Room 9. At the press conference, keynote speaker Matthew Sandusky will give comments and will be available for interviews, along with State Senator Deb Soholt, and U.S. Attorney Randolph Seiler.
SIOUX FALLS (Aug. 16, 2016) – A Child Sexual Abuse Conference will be held Thursday, Aug. 18 and Friday, Aug. 19 at the Sioux Falls Convention Center in Ballrooms A and B. This event is sponsored by Avera, the U.S. Attorney’s Office of South Dakota, and Children’s Home Society.
“Child sexual abuse is one of the most devastating criminal activities we face. In South Dakota, it’s estimated that child sexual abuse impacts 4,000 children every year – and these are only the kids we know about. The actual number is much higher, because abuse is often hidden for years, and some victims never tell. Through this event, we hope to have a lasting impact in our community, region and state,” said Randolph Seiler, U.S. Attorney for the District of South Dakota.
Keynote speakers include:
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Matthew Sandusky, Founder and Executive Director of Peaceful Hearts Foundation, and a victim of childhood sexual abuse at the hands of his adopted father, Jerry Sandusky.
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Erin Merryn, childhood sexual abuse survivor, and now author and advocate for the abused. She has been named 2012 Glamour Magazine Woman of the Year and among “HEROES Among Us” in People Magazine in 2013.
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Robert Anda, MD, co-founder of the Adverse Childhood Experiences – or ACE Study – with the Centers for Disease Control and Prevention (CDC).
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Victor Vieth, JD, Founder and Senior Director of the Gundersen National Child Protection Training Center, in Winona, Minn., and author of a groundbreaking journal article: “Unto the Third Generation: A Call to End Child Abuse in the United States within 120 Years.”
This is the third annual conference sponsored by Avera and the U.S. Attorney’s Office, along with other community sponsors, to explore issues of justice, well-being and safety in our state and region. Past topics have included human trafficking and living with disabilities.
“This year, we sought to bring together a group of people concerned for stopping the horrors that children experience in the form of sexual abuse,” said Deb Soholt, Women’s Health for Avera Medical Group, as well as South Dakota State Senator representing District 14 in Sioux Falls.
Throughout this two-day event, the goal is to open up a larger conversation between people from all walks of life in South Dakota. Attendees represent the legal system, government, health care, education, social work, ministries and more.
A turnout of over 350 is expected. “This high turnout demonstrates our collective need to move forward toward bring about real and significant change,” Soholt added.
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August Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 12 indictments charging 13 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Randy Arnold, 50, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt of child pornography from on and before August 25, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life and a $100 special assessment. Count II of the Indictment charges Arnold with possession of child pornography on or about June 11, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Jose Agapito Rodriguez Castellanos, age 27, of Omaha, is charged with illegal reentry into the United States after deportation on or about August 8, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 2 year term of supervised release and a $100 special assessment.
* William Alexander Garcia, age 29, of Van Nuys, California, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about July 22, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Jose Iglesias-Gomez, age 43, is charged with illegal reentry into the United States after deportation on or about July 28, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Sherman Johnson, age 42, of Los Angeles, California and Sarkis Labachyan, age 35, of Glendale, California are charged with possession with intent to distribute 5 kilograms or more of a mixture containing cocaine on or about June 21, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Greg Jones, age 51, of Fremont, Nebraska, and Robert Blevins, age 53, of Ames, Nebraska, are charged with possession with intent to distribute a mixture containing methamphetamine on or about May 18, 2016. The maximum possible penalty if convicted is 30 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Thomas G. Mace, age 49, of Sioux City, Iowa is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Mace with attempt to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Joshue Jonatan Martinez Cordero, a/k/a Luis Gregory Chavez, a/k/a Josue Martinez, age 31, is charged with illegal reentry into the United States after deportation following an aggravated felony conviction on or about July 22, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Luis Ortiz-Bustamante, age 37, of Columbus, is charged with illegal reentry into the United States after deportation following an aggravated felony conviction on or about March 2, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Carlos Prada and Jorge E. Charry are charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about May 10, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Dale Rinabarger, age 41, of Omaha, is charged with possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about July 7, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Jaime Sermeno Pacheco, age 33, is charged with illegal reentry into the United States after deportation on or about July 21, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 2 year term of supervised release and a $100 special assessment.
Ada Man Pleads Guilty to Misrepresentation of United States CitizenshipRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that TITUS OMBINA ABOGE, age 32, of Ada, Oklahoma, pled guilty to MISREPRESENTATION OF UNITED STATES CITIZENSHIP, in violation of Title 18, United States Code, Section 911.
The charge arose from an investigation by the United States Immigration and Customs Enforcement, Homeland Security Investigations. The defendant was indicted in June, 2016.
The Indictment alleged that on or about December 12, 2012, in the Eastern District of Oklahoma, the defendant, TITUS OMBIMA ABOGE, a citizen of the Republic of Kenya, and an alien in the United States, did falsely and wilfully represent himself to be a citizen of the United States in a Department of Homeland Security, U.S. Citizenship and Immigration Services, Employment Eligibility Verification Form I-9.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 3 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Timothy Hammer represented the United States.
Accountant Sentenced for $4 Million Embezzlement SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Overland Park, Kan., accountant was sentenced in federal court today for an embezzlement scheme in which he stole more than $4 million from his firm’s clients and purchased dozens of luxury vehicles.
Thomas Hauk, 42, of Overland Park, was sentenced by U.S. District Judge Howard F. Sachs to 9 years in federal prison without parole. The court also ordered Hauk to pay $4,157,306 in restitution to his victims.
On Dec. 22, 2015, Hauk pleaded guilty to five counts of bank fraud, two counts of wire fraud, five counts of counterfeit securities and four counts of money laundering.
Hauk was employed as an accountant at Assured Management Company from approximately 2005 to July 2015. He voluntarily resigned in 2015 to begin employment at a new financial management company, JIM Management, with one of the victims of his fraud scheme. JIM quickly dissolved when the underlying investigation related to Hauk’s embezzlement at Assured Management began to unfold in July 2015.
Between 2006 and July 2015, Hauk engaged in several schemes to defraud Assured Management clients by embezzling funds from their accounts. The purpose of each scheme was to steal money for Hauk’s own financial use and personal gain to pay living expenses during two marriages and divorces, to send money to a paramour, and to purchase valuable items and motor vehicles, including the purchase of high-dollar vehicles, trailers, jewelry and motorcycles.
For example, Hauk purchased a 2006 Ford GT for $223,249, a 2009 Ferrari for $205,953 and a 2014 Ducati motorcycle for $64,160. Hauk stored the vehicles and motorcycles in three storage units he purchased in Kansas City, Mo., for $163,500.
Hauk defrauded five victims by embezzling funds from their accounts held at Assured Management. Hauk stole the identity of a sixth victim by using his signature stamp to endorse fraudulent checks.
While Hauk’s financial fraud scheme began at least in 2006, the amount of money taken by Hauk during the embezzlement accelerated during the last two to three years before the financial fraud scheme was uncovered in July 2015. During that time, Hauk used embezzlement proceeds to make at least 66 complex automobile and motorcycle purchases.
In a separate civil proceeding, the government has seized 33 luxury cars, high-end motorcyles and other vehicles still in Hauk’s possession, which he had purchased for a total of $1,651,146. Hauk bought and traded expensive vehicles on a continuing basis until discovery of his fraud in July 2015. He used proceeds stolen from Assured Management clients, laundering the funds through companies he created, making down payments, paying existing liens, making regular large monthly payments and purchasing vehicles outright. Hauk provided significant false information to qualify for large car loans. Hauk routinely represented himself as a Certified Public Accountant (CPA), which he is not, and falsely represented his legitimate income in excess of $300,000 to $400,000 per year.
Hauk used his ill-gotten gains to support a lavish lifestyle for himself, including expensive cars, jewelry, credit card bills and vacations. During a five-year period, Hauk spent approximately $1,207,639 using three credit cards to purchase such items as:
• $30,500 at Hannoush Jewelry on a 2.5 karat diamond ring,
• $2,400 at Alexander McQueen on a handbag,
• $4,725 at Hannoush Jewelry on a 1887 Carrera bracelet,
• $6,458 at Hannoush Jewelry on a Tag Heuer Carrera watch,
• $4,464 at Hannoush Jewelry on another Carrera 1887 bracelet,
• $8,000 at Custom Wheels related to vehicle accessories,
• $10,123 at Reno’s Powersports related to motorcycles and vehicle accessories,
• $24,555 on insurance related expenses,
• $5,078 at KC Trends related to vehicle accessories,
• $3,107 at B&H Photo Video,
• $3,900 at Sline Motorsports related to vehicle accessories,
• $9,700 on Paypal transactions,
• $8,819 on airline related expenses,
• $6,468 on hotel related expenses,
• $3,792 at Bikesource, and
• $5,436 on Apple products and services.
Hauk perpetrated an “On-the-Books” fraud scheme. The perpetrator of an “On-the-Books” scheme attempts to balance debits and credits in the accounting system to obfuscate transactions and avoid detection. Hauk stole money through a variety of methods and created false accounting entries in Assured Management’s accounting system. Hauk deposited checks from the victims into his business accounts and then wrote checks and cashier’s checks from his companies to his personal accounts and his trust.
Since pleading guilty, Hauk has charged excessive debt to credit cards and made the minimum monthly payment, including a vacation in Hawaii. With imminent incarceration and a significant restitution judgment, Hauk incurred this debt with no means to repay.
During the course of their investigation, according to court records, FBI agents discovered Hauk entered into a settlement agreement with a former client to avoid criminal charges while he was employed at a firm in Indiana in 2003. A client hired him to provide bookkeeping and tax services for her business. Hauk forged her husband’s name on multiple checks, and ultimately deposited the checks into Hauk’s personal account. When confronted with the embezzlement, Hauk agreed to pay back the stolen money, in addition to legal fees, bank fees, and accounting fees. The total amount Hauk paid back was $70,720. The former client also reported Hauk contacted her later to apologize for his actions and thanked her for not filing criminal charges against him.
In addition, according to court documents, an individual in Indiana loaned Hauk $70,000 about 12 years ago. Hauk told this individual he needed a $70,000 loan to complete the construction of his home. After loaning Hauk $70,000, the individual learned Hauk was caught stealing from an employer and needed the money to get out of trouble. He confronted Hauk and was able to recover all but about $8,000 of the loan.
The United States Marshals Service held a live auction in Kansas City on April 28, 2016, and sold 22 of the high value cars and motorcycles, including a 2006 Ford GT for $285,000, a 2009 Ferrari for $218,000 and a 2008 Ducati Desmosedici for $47,500. The remaining vehicles and motorcycles were sold in online auctions. The United States Marshals Service has also sold the three condo garages which housed many of the luxury vehicles. Net proceeds of sale are currently over $1,720,000. Additionally, the United States Marshals Service will sell the seized jewelry in an online auction. Once all assets have been liquidated, the United States Attorney’s Office will initiate restoration, which is the Department of Justice‘s process to repatriate proceeds of forfeited assets to crime victims for restitution.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown; Assistant U.S. Attorneys Curt Bohling and Stacey Perkins Rock are responsible for the civil proceedings. It was investigated by the FBI.
16 August 2016
Washington, Pa., Man Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
PITTSBURGH – Ronald McMillian, of Washington, Pennsylvania pleaded guilty in federal court to charges of trafficking in heroin and fentanyl, United States Attorney David J. Hickton announced today.
McMillian, 24, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in August, 2015, McMillian conspired to distribute and possess with intent to distribute, and distributed and possessed with intent to distribute heroin and fentanyl.
Judge Schwab scheduled sentencing for Dec. 13, 2016 at 10 a.m. The law provides for a maximum total sentence of not more than twenty years at each count, a total fine of up to $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Ross E. Lenhardt, of the violent crime section of the U.S. Attorney’s Office, are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation that led to the prosecution of McMillan.
Wakpala Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, man convicted of Abusive Sexual Contact was sentenced on August 15, 2016, by U.S. District Judge Charles B. Kornmann.
Charles Edward Gabe, age 20, was sentenced to 60 months in custody, 5 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Gabe was indicted by a federal grand jury on January 21, 2016. He pled guilty on May 9, 2016.
The conviction stemmed from an incident on January 4, 2016, when a Special Agent (SA) with the Bureau of Indian Affairs (BIA) was dispatched to Mobridge regional hospital for an interview with a minor female, who reported being sexually assaulted by her cousin, Charles Edward Gabe. Earlier in the evening, the victim was sitting downstairs in the living room at her home in Wakpala, South Dakota, when her mom informed her that she was leaving to run an errand. About this same time, Gabe entered the living room and looked out a window to make sure the victim’s mother had left. Gabe closed the curtain to the window and began to tickle and kiss the victim on the neck. Gabe then proceeded to get on top of the victim and shoved his hand down her pants, penetrating her vagina with one of his fingers. The victim tried to get him off of her but could not due to his size and weight. Gabe continued the assault by pulling out his penis and placing the victim’s hand on it. The victim began to cry, at which time Gabe discontinued the assault and fled back to his room.
The following day, Gabe admitted to touching the victim’s vaginal area with his hand, inserting his finger into the victim’s vagina, and placing the victim’s hand on his penis during the encounter.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Gabe was immediately turned over to the custody of the U.S. Marshals Service.
Village of Westfield Employee Sentenced for Illegally Dumping Sewage into Chautauqua CreekRead 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 Andrew Thompson, 34, of Westfield, NY, who was convicted of violation of the Clean Water Act, was sentenced to six months probation and a $10,000 fine by U.S. Magistrate Judge Jeremiah J. McCarthy.
“The very purpose of the Clean Water Act is to protect our most precious natural resource,” said U.S. Attorney Hochul. “This Office will not tolerate any individual -- in particular a public servant who should know better -- deliberately poisoning our nation’s waterways.”
Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that the defendant was the Chief Operator of the Waste Water Treatment Plant for the Village of Westfield, N.Y. On June 12, 2014, a malfunction occurred at the West Side Pump Station located in the Village. The pump station was unable to pump the untreated sewage flowing through the station, which resulted in untreated sewage being discharged into Chautauqua Creek. Based on an alarm that was triggered due to the sewage overflow, Thompson was aware of the discharge of sewage into the creek.
The following day on June 13, 2014, as workers were attempting to fix the pump station, the defendant directed them to discharge the untreated sewage pumped out of the pump station into Chautauqua Creek. Thompson did not have a permit issued under the Clean Water Act for the discharge of the untreated sewage, a pollutant, into the creek and acted negligently in allowing the untreated sewage to be discharged in such a manner.
The sentencing is the result of an investigation by agents of the Environmental Protection Agency, under the direction of Vernesa Jones-Allen, Special Agent-In-Charge and the New York State Department of Environmental Conservation under the direction of Captain Frank Lauricella.Versailles Man Admits Distributing Drugs That Casued Overdose Death of Woodford County WomanRead the Press Release
Guilty plea marks the first case in Central Kentucky in which multiple defendants have been convicted of distributing opiates that caused an overdose death
LEXINGTON, Ky. – The leader of a drug conspiracy in Versailles, Ky., is the second defendant to plead guilty to distributing fentanyl that caused the overdose death of a Woodford County woman.
On Monday, Luis Aguirre-Jerardo, 28, pleaded guilty before U.S. District Judge Karen Caldwell to distribution of a controlled substance resulting in death. Under federal law, anyone convicted of this offense faces a minimum of 20 years and a maximum of life in prison, without parole. Aguierre-Jerardo has entered into a binding plea agreement with the federal government that will result in a sentence of at least 28 and no more than 33 years. He will be sentenced on December 8, 2016.
A co-defendant, Gill Dewayne Garrett, 30, of Lexington, Ky., pleaded guilty in April to the same offense and faces a minimum of 20 years in prison. A third co-defendant, Allen P. White, 24, of Versailles previously pleaded guilty to a conspiracy charge.
“This case demonstrates the power of our initiative to aggressively use tough federal laws punishing those that illegally distribute drugs that result in overdoses,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “As a result of our overdose prosecution initiative, we removed from our streets both the retail drug dealer and his up-the-chain supplier as well. Mr. Aguirre-Jerardo was distributing substantial quantities of counterfeit pills containing fentanyl, a powerful drug killing hundreds throughout the Eastern District of Kentucky. Absent our overdose initiative and the great work of our law enforcement partners, Mr. Aguirre-Jerardo and Mr. Garrett would likely remain engaged in their deadly trade.”
Aguirre-Jerardo admitted that, in July 2015, he provided a counterfeit pain pill to Garrett who distributed the pill to Jolene Bowman. Bowman consumed the pill, and subsequently died of an overdose. The pill looked like Oxycodone but instead contained fentanyl, a powerful opioid as much as 100 times more potent than morphine. Illicitly manufactured fentanyl is increasingly related to overdose deaths in Kentucky. Woodford County Police used Ms. Bowman’s cell phone and traced the source of the fentanyl pill to Garrett and later found that Aguirre-Jerardo had supplied Garrett with the fentanyl that he gave to Bowman.
The autopsy confirmed that the cause of death was a drug overdose. Toxicologists concluded that had it not been for the fentanyl in the pill, Bowman would not have fatally overdosed.
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and James Fugate, Chief of Police, Woodford County Police Department, jointly announced the plea.
The investigation was conducted by the Woodford County Police and the DEA. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
Garrett will be sentenced on December 8, 2016. Aguirre-Jerardo and Garrett must serve at least 85 percent of their prison sentences. Any sentence imposed by the Court will come after consideration of the U.S. Sentencing Guidelines and the federal statutes.
United States Attorney's Office Announces Successful Results from Overdose Prosecution InitiativeRead the Press Release
A centerpiece of the office’s comprehensive approach to combatting the opioid epidemic, the initiative has resulted in important convictions in three local cases
LEXINGTON, Ky. – As part of a comprehensive approach to combatting the opioid epidemic facing the Commonwealth, in early 2015 the United States Attorney’s Office established an Overdose Prosecution Initiative, which has become an important tool in the battle against illegal drug trafficking in Kentucky.
Under federal law, defendants convicted of drug trafficking involving a Schedule I or Schedule II drug, that results in a death or serious bodily injury (i.e., an overdose), are subject to a mandatory minimum sentence of twenty years or, if they have a qualifying prior conviction, a mandatory term of life imprisonment. This significant penalty has two practical effects on many drug dealers: it gives them an enormous incentive to assist law enforcement in the investigation and prosecution of others, and it represents a potentially enormous deterrent to dealing drugs.
Relying on this impactful sentencing provision, the United States Attorney’s Office, in partnership with the Drug Enforcement Administration, developed a considered plan to increase the use of this penalty provision, to increase the cooperation between federal and state law enforcement and community partners, to train state and local partners on building effective cases for prosecution, and to enhance the law enforcement response to this growing epidemic.
On Monday, three important convictions were obtained in local overdose cases, evidencing the effectiveness of this valuable law enforcement tool. Each of the cases highlights an important aspect of the prosecution initiative and the critical nature of the opioid epidemic.
First, in a case from Woodford County, the initiative resulted in the conviction of both Luis Aguirre-Jerardo and Gill Dewayne Garrett. These men admitted that, in July 2015, they distributed a counterfeit pain pill to a Woodford County woman, who consumed the pill and subsequently died of an overdose. The pill, made to look like Oxycodone, instead contained fentanyl, a powerful opioid as much as 100 times more potent than morphine. The investigation established that Aguirre-Jerardo was a major distributor of these deadly counterfeit pills in Central Kentucky. This case, one of the first to arise from the training provided under the initiative, represents the first time the office has prosecuted not only the street-level dealer, but also his up-the-chain source of supply, for the same overdose. Both men now face more than twenty years in federal prison.
Next, the initiative has now produced the conviction of several members of an organization responsible for trafficking in large amounts of heroin and fentanyl in Madison County. Two of these defendants, Navarius Westberry and Benjamin Fredrick Charles Robinson, both from Michigan, were convicted of distributing drugs that resulted in an overdose – in Westberry’s case, a fatal overdose. Collectively, this organization was responsible for distributing between 750 and 1,000 grams of heroin and 50 grams of fentanyl in Madison County. The investigation revealed that Westberry and Robinson relocated to Kentucky for the sole purpose of establishing a heroin distribution network. Both also face at least twenty years in federal prison.
The Detroit area is a significant source of supply for the growing amounts of heroin, fentanyl, and other narcotics being distributed throughout the Eastern District of Kentucky. This Madison County case marks the first time the office has applied the federal overdose provisions to Michigan defendants who distributed drugs in Kentucky causing an overdose. This case represents an important success in the effort to disrupt the pipeline of illicit drugs that flows from Detroit, into Kentucky.
Finally, in a case from Lexington/Fayette County, the initiative produced the conviction of Fred Rebmann. Rebmann admitted that he distributed fentanyl to a Lexington woman, who was several months pregnant at the time, causing her death. This case places the tragic scope of this epidemic in clear focus and underscores the critical need to continue efforts to educate the public and enhance law enforcement efforts to battle this growing problem.
“We are committed to using every tool available in combatting this terrible epidemic,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “We employ the tough federal law regarding overdoses advisedly, in order to prosecute those who engage in truly predatory behavior, with tragic results. Our initiative is succeeding because of the skill and dedication of our local law enforcement partners, county coroners, and the DEA.”
Since its inception, the Overdose Prosecution Initiative has been the direct source of several important prosecutions and has led to convictions against numerous drug traffickers who, collectively, are responsible for enormous quantities of very dangerous drugs and many overdose deaths in our community. Convictions have been won in every case prosecuted under the initiative that has reached a conclusion. These most recent successes evidence the scope of this growing problem, the effectiveness of the Overdose Prosecution Initiative, and the need for a comprehensive approach to combatting this serious opioid epidemic.
U.S. Attorney's Office and City of Cleveland seek applicants to serve on Community Police CommissionRead the Press Release
The City of Cleveland and the United States Attorney’s Office for the Northern District of Ohio are seeking qualified applicants to serve on the Cleveland Community Police Commission (CPC).
The CPC is a 13-person body created as part of the agreement between the City and the Justice Department to foster police and community communication and understanding and to provide input on reform. It is made up of 10 civilian representatives and one representative from each of the three police unions: the Cleveland Police Patrolmen's Association, the Fraternal Order of Police and the Black Shield.
The appointed members include representatives of faith-based organizations, civil rights advocates, business/philanthropic groups, organizations representing communities of color, advocacy organizations, youth or student organizations, academia and individuals with expertise in the challenges facing people with mental illness or the homeless.
Commission members are picked by an independent Selection Panel appointed by Mayor Frank G. Jackson, in consultation with the U.S. Attorney. The Selection Panel will recommend new CPC members, who will be appointed by the Mayor. The members serve in a volunteer capacity. Applicants to the CPC must live or work in the City of Cleveland.
Applications are due by noon September 6, 2016. For more information about how to apply to become a member of the Cleveland Community Police Commission, go to: http://cpcapplication.org/.
For more information about the CPC’s work, go to: http://www.clecpc.org/
Tohono O’odham Woman Sentenced to Prison for Involuntary ManslaughterRead the Press Release
TUCSON, Ariz. – On Aug. 15, 2016, Monique Pablo-Johnson, 47, of Sells, Ariz., a member of Tohono O’odham Indian Nation, was sentenced by U.S. District Judge Rosemary Marquez to 11 years in custody. Pablo-Johnson had previously pleaded guilty to two counts of involuntary manslaughter.
On June 6, 2013, Pablo-Johnson was under the influence of alcohol and cocaine while driving on SR 86, near Sells, on the Tohono O’odham Nation. Pablo-Johnson had three passengers in the car: her 25-year-old daughter, 7-week-old granddaughter, and adult male cousin. Pablo-Johnson was driving extremely recklessly, well over the speed limit and on the wrong side of the road. As an oncoming vehicle drew near, Pablo-Johnson swerved to her side of the road and lost control. Her car flew off of the road and struck the side of a hill. Pablo-Johnson’s daughter and granddaughter were ejected from the vehicle as they were not wearing seatbelts nor in a child restraint seat, and died from their injuries at the scene. Pablo-Johnson moved from the driver’s seat to the front passenger seat after the crash, and falsely claimed to the police that her daughter was the driver at the time of the crash.
At sentencing, Judge Marquez sentenced the Pablo-Johnson to eight (8) years of imprisonment for the death of Pablo-Johnson’s seven-week-old granddaughter and three (3) more consecutive years for the death of her daughter. In pronouncing the sentence, the Judge noted that her job was to protect the public from incapacitated drivers like Pablo-Johnson and to warn others that that there are consequences for driving while impaired.
The investigation in this case was conducted by Tohono O’odham Police Department. The prosecution was handled by Serra M. Tsethlikai, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-1361-TUC-RM
RELEASE NUMBER: 2016-063_ Pablo-Johnson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three sentenced for hydrocodone, methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Three people were sentenced today for their role in the distribution of hydrocodone and methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Nelson Joseph Boucher, 33, of Cabins, West Virginia, was sentenced to 21 months in prison for distributing hydrocodone. Boucher pled guilty in April 2016 to one count of “Distribution of Hydrocodone.”
Christina Marie Thompson, 34, of Buckhannon, West Virginia, was sentenced to 78 months in prison for distribution of methamphetamine. Thompson pled guilty in February 2016 to one count of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting.”
Christopher Ray Thompson, 26, of Beverly, West Virginia, was sentenced to twelve months and one day in prison for distribution of methamphetamine. Thompson pled guilty in April 2016 to one count of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting.”
Assistant United States Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated the Boucher case. The Mountain Region Drug and Violent Crime Task Force investigated the Thompson cases.
U.S. District Judge John Preston Bailey presided.
Three Men Get 27-30 Years in Prison for Roles in International Sex Trafficking ConspiracyRead the Press Release
HOUSTON – The first three of six men convicted for their varying roles in an international sex trafficking of minors conspiracy have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson.
Jose William Quintanilla, 41, pleaded guilty just as trial testimony was set to begin Nov. 12, 2015. Adelio De Jesus Batres, 53, and Hugo Alexander Melendez-Gonzalez, 38, had pleaded imediately prior to trial. The remaining three - Francis Yuvinni Guerra Pleitez, 34, Walter Alexander Ejcalon Xalcut, 27, and Mariano Quintanilla-Campos, 33 – had previously entered guilty pleas in the case.
Today, U.S. District Judge David Hittner handed Melendez-Gonzalez a sentence of 327 months in federal prison. Quintanilla was ordered to serve a 360-month sentence, while Batres will serve 330 months. Judge Hittner also ordered them to pay $90,110.00 in restitution to the victims. In handing down the sentence, Judge Hittner noted that he wanted each of the defendants to be “thrown out of the country” after serving their prison sentences. All are citizens of El Salvador who had been residing in the Houston area and are expected to face deportation proceedings following release from prison. Pleitz, Quintanilla-Campos and Xalcut are set for sentencing Aug. 17, 18, and 19, respectively. Pleitz and Quintanilla-Campos are also from El Salvador, while Zalcut is from Guatemala.
Court records demonstrated that from late 2010 to the present, the men conspired to cause persons less than 18 years of age to engage in commercial sex acts. The men employed women and underage girls, transported them to various apartments for the purpose of engaging in sex and shared in the proceeds derived from the illegal activity. Most, if not all, of the females were also aliens illegally within the U.S.
With the exception of Melendez-Gonzalez, who admitted to sex trafficking of a particular minor, the remaining defendants were all convicted of engaging in the overall sex trafficking of minors conspiracy.
All of the defendants had been and will remain in custody.
The charges arose from an investigation conducted by the FBI, Harris County Sheriff’s Office, Houston Police Department, U.S. Customs and Immigration Enforcement’s Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorneys Julie Searle and Douglas Davis are prosecuting the case.
Steve Casaus Sentenced to Ten Years in Federal Prison for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Steve Casaus, 44, of Albuquerque, N.M., was sentenced today to ten years in federal prison for his conviction on a felon in possession of a firearm and ammunition charge. Casaus will serve his federal sentence consecutive to the 39-year state prison sentence Casaus already is serving for his convictions on state child abuse and drug trafficking charges.
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
U.S. Attorney Martinez said that Casaus’ federal prosecution was pursued under the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. According to court records, Casaus has been committing crimes since he was 19, and his convictions include DUI, disarming an officer, aggravated assault on a peace officer, receiving stolen property, credit card fraud, cocaine and methamphetamine trafficking, receiving stolen property, and worthless checks. His convictions also include the child abuse conviction arising out of the death of nine-year-old Omaree Varela for which Casaus received a 30-year state sentence and the consecutive nine-year sentence on a drug trafficking conviction .
Casaus was charged in a criminal complaint on April 25, 2014, with unlawfully possessing a firearm and ammunition on April 21, 2014, in Bernalillo County, N.M. Casaus was arrested after APD officers after they observed what they believed to be a drug deal, and based on an outstanding arrest warrant for failing to appear on a pending state court case. At the time of his arrest, Casaus was in possession of $20,790.00 in cash, 1.3 grams of methamphetamine, drug paraphernalia, and a firearm loaded with six rounds of ammunition.
Casaus was indicted on June 11, 2014, and charged with being a felon in possession of firearms and ammunition on April 21, 2014, in Bernalillo County. Casaus was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
The federal prosecution of Casaus was stayed during the pendency of state court proceedings. Casaus was arrested on the federal charge in Jan. 2016, after he was transferred into federal custody from state custody.
On Feb. 24, 2016, Casaus pled guilty to the federal indictment. The guilty plea was entered without the benefit of a plea agreement.
The case was investigated by the Albuquerque office of Homeland Security Investigations and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh prosecuted the case.
St. Johns County I.T. Specialist Sentenced to More Than 17 Years for Attempting to Meet A Child to Engage in Sadomasochistic Sexual ActivityRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jon Christopher Stoune (45, St. Johns County) to 17 years and 6 months in federal prison for the attempted online enticement of a minor to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. He was also ordered to serve a 10-year term of supervision and to register as a sex offender upon his release. Stoune was found guilty by a federal jury in March 2016.
According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person he believed to be a 14-year-old child. The "child" was actually a detective from the St. Johns County Sheriff’s Office. During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex and was subsequently arrested. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket. A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the St. Augustine Beach Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Springdale Man Sentenced to 75 Months in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jorge Gonzalez, age 38, of Springdale, was sentenced today to 75 months in federal prison followed by three years of supervised release and was ordered to pay a $2400 fine on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, on February 3, 2016, Drug Enforcement Administration agents and task force officers arranged for a controlled purchase of one ounce of methamphetamine from Jorge Gonzalez. On that same day, Gonzalez sold approximately one ounce of methamphetamine for $1,400. The suspected substance was sent to the DEA Laboratory where it was confirmed to be a mixture containing 27.4 grams of actual methamphetamine. Gonzalez was indicted by a federal grand jury on March 16, 2016 and pleaded guilty on May 12, 2016.
This case was investigated by the Drug Enforcement Administration agents and task force members. Assistant United States Attorney Amy Driver 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
South Carolina Man Sentenced to More Than Six Years for Tax Fraud ConspiracyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a South Carolina man to 75 months in prison on false claims conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Carmichael Cornilus Hill, 34, of Greenville, S.C. was also ordered to serve three years under court supervision and to pay $219,118 as restitution to the Internal Revenue Service.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; and Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division, join U.S. Attorney Rose in making today’s announcements.
According to court records and today’s sentencing proceedings, Hill provided his two co-conspirators, Senita Birt Dill and Ronald Jeremy Knowles, with fraudulently-obtained personal identification information of individuals which Dill and Knowles used to file more than 1,000 false tax returns resulting in the collection of more than $3.5 million in fraudulent tax refunds. According to court records, Hill obtained the individuals’ personal information (including names, dates of birth and social security numbers) through a variety of ways, including from an unindicted co-conspirator with access to that information. Hill then provided that information to Dill and Knowles for use in the tax fraud scheme. Court records indicate that Hill provided approximately 26% of the stolen identifications used to file the fraudulent returns.
Court records indicate that Dill and Knowles shared with Hill and other co-conspirators the fraudulently-obtained refunds. Court records also show that, at times, Hill permitted Dill to directly deposit the fraudulent refunds into his bank account.
Hill pleaded guilty in April 2016 to one count of false claims conspiracy and one count of aggravated identity theft. He will be ordered to report the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Dill and Knowles, formerly of Mill Spring, N.C., were previously sentenced to 324 and 70 months in prison, respectively, for their involvement in the conspiracy. Two additional defendants, Yolanda Kitson and Cara Michelle Banks were sentenced to 72 and 70-month prison terms for their participation in the tax fraud scheme.
The investigation was handled by IRS-CI, USPIS, and the U.S. Secret Service.
Assistant U.S. Attorney Don Gast of U.S. Attorney’s Office in Asheville was in charge of the prosecution.
Seven Luzerne County Residents Charged with Participating in A “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton indicted seven people on August 9, 2016, for participating in a conspiracy to sell the substance alpha-pyrrolidinopentiophenone (a-pvp), commonly referred to as “bath salts.” The indictment was unsealed today following the arrests of defendants.
According to United States Attorney Peter Smith, the indictment alleges that the defendants obtained the bath salts from suppliers in China and distributed it to customers in Luzerne County and elsewhere during March 2014 to January 2016. The grand jury also alleges that the conspirators used violence, intimidation, and possessed firearms in furtherance of the drug trafficking activities.
Those charged in the drug conspiracy are:
--William Wylie, age 47, of Wilkes-Barre;
--Jason Randazzo, age 43, of Mountain Top;
--Daniel Fitzgibbon a/k/a “Diz,” age 46, of Wilkes-Barre;
--Robert Benussi III, age 25, of Kingston;
--Kerry Wylie, age 24, of Wilkes-Barre;
--Kevin Peterson, age 32, of West Pittston;
--David Popish, age 37, of Pittston.
William Wylie, Kerry Wylie and Jason Randazzo are also charged with conspiracy to import a-pvp from China, and an attempt to possess with intent to distribute a-pvp on December 21, 2015.
William Wylie is further charged with possessing a firearm in connection with drug trafficking, and possessing a firearm as a convicted felon.
The charges against the defendants resulted from an investigation by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
William Wylie faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of life in prison if convicted of the firearms related to drug trafficking charge, up to 10 years in prison if convicted of the felon in possession of a firearm charge, and up to 20 years in prison on each of the conspiracy to distribute and import a-pvp counts.
Kerry Wylie and Jason Randazzo each face up to 40 years in prison if convicted of the conspiracy to import and distribute a-pvp counts. The remaining defendants face up to 20 years in prison if convicted of the conspiracy to distribute a-pvp count.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill County Couple Charged with Use of Counterfeit Credit Card and Money Laundering Schemes over Four Year PeriodRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 26, 2016, a federal grand jury in Scranton indicted Carrie F. Aker and Mario M. Valentine, a Shenandoah, Pennsylvania couple, for conspiracy to commit wire fraud using counterfeit credit cards, and with laundering the proceeds of their fraudulent activities. Aker and Valentine also are charged with aggravated identity theft, credit and debit card frauds, and with possessing credit and debit card-making equipment. The indictment was unsealed today following the arrests of the defendants.
According to United States Attorney Peter Smith, the indictment charges Aker, age 44, and Valentine, age 33, with obtaining credit and debit card account information of other individuals from unindicted co-conspirators and from black market internet websites. Aker and Valentine allegedly manufactured counterfeit credit and debit cards using the information, traveled to locations at which the actual cardholders resided, and used the counterfeit cards at retail stores. The couple also allegedly used aliases and forged names and signatures on credit and debit card receipts. The activities took places from in or about November 2011 through September 2015.
The indictment also alleges that Aker and Valentine engaged in money laundering activities with the proceeds of their credit and debit card frauds by purchasing pre-paid gift cards and retail items at retail stores, reselling the cards and items or uploading the card balances to payment processor accounts, and then using and disbursing the funds via cash, checks and bank accounts.
The investigation was conducted by the Federal Bureau of Investigation and by the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious charges are up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory two-year term of imprisonment, to run consecutive to any other term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Santa Fe Man and San Pedro Woman Sentenced for Robbing Bank in EspanolaRead the Press Release
ALBUQUERQUE – Fidel Naranjo, 27, of Santa Fe, N.M., and Kendra Brophy, 29, of San Pedro, N.M., were sentenced today in federal court in Albuquerque, N.M., for convictions arising out of the Dec. 2, 2015 robbery of a bank in Espanola, N.M. Naranjo was sentenced to a 40-month term of incarceration followed by three years of supervised release, and Brophy was sentenced to a year of probation to be served under home confinement with electronic monitoring followed by five years of supervised release. Brophy also was ordered to perform 300 hours community service and complete a 90-day inpatient substance abuse treatment program.
Naranjo and Brophy were arrested in Dec. 2015, on criminal complaints charging them with robbing the New Mexico Bank and Trust branch located at 411 Carr Lane in Espanola, N.M. on Dec. 2, 2015. According to the complaint, Naranjo robbed the bank by approaching a bank teller, threatening to shoot her, and demanding money. Naranjo left the bank and was driven away from the scene by Brophy.
Naranjo and Brophy were subsequently indicted on Dec. 17, 2015, and charged with bank robbery.
In April 25, 2016, Naranjo pled guilty to the indictment and admitted that on Dec. 2, 2015, he robbed the New Mexico Bank and Trust in Espanola, by entering the bank and demanding money from the teller.
Brophy pled guilty to a felony information charging her with misprision of a felony on April 21, 2016. In entering her guilty plea, Brophy admitted that on Dec. 2, 2015, her codefendant Naranjo robbed a bank while she waited nearby. Brophy admitted concealing the identity of the bank robber and the cash he obtained during the robbery, and failing to notify the authorities about her codefendant and the robbery.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Edward Han.
Salem Man Sentenced to 2 Years of Probation for Making False Statement to A Federal AgencyRead the Press Release
CONCORD, NEW HAMPSHIRE: United States Attorney Emily Gray Rice announced that Steven A. Petrillo, 46, of Salem, New Hampshire, was sentenced to 2 years of probation after a jury found him guilty of making a material false statement to the Department of Veterans’ Affairs.
Petrillo was indicted on February 10, 2016, by a federal grand jury in Concord, New Hampshire. The indictment charged him with providing a false statement to the Department of Veterans’ Affairs in connection with seeking a position as a pharmacist at the VA Medical Center in Manchester, New Hampshire. In his application, Petrillo certified that he had never been discharged from any former employment. During a jury trial in May of 2016, testimony from several witnesses established that Petrillo had been terminated from two prior pharmacist positions.
Petrillo was sentenced by Chief Judge Joseph Laplante of the United States District Court for the District of New Hampshire.
This case was investigated by the Department of Veterans’ Affairs and the Drug Enforcement Administration. Assistant United States Attorney Helen White Fitzgibbon prosecuted the case on behalf of the United States.
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Sacramento Jury Convicts Southern California Man in $5M Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, after a six–day trial, a federal jury found Andre Antonio Walters, 36, of Long Beach, guilty of four counts of mail fraud, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.
Acting U.S. Attorney Phillip A. Talbert stated: “The funds set aside for unemployment insurance are intended to benefit hard-working Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those that the funds are intended to protect. We will continue to investigate and stop fraud schemes such as this that harm California workers.”
“Andre Walters conspired to defraud the California Employment Development Department of over $5 million. Walters and his co-conspirators stole money that was intended for American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance system from those who exploit benefit programs,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant United States Attorneys Jared C. Dolan and Matthew M. Yelovich are prosecuting the case.
Walters is the sixth individual to be convicted for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 35, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 51, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 31, of El Monte, is scheduled to be sentenced on November 17, 2016.
Walters is scheduled to be sentenced by Judge Nunley on November 3, 2016. Walters faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. 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.
Rhode Island Man Sentenced to 20 Months for Travelling Interstate to have Sex with a MinorRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William McNeill, 23, of Cumberland, Rhode Island, was sentenced today in U.S. District Court by Judge George Z. Singal to 20 months in prison and five years of supervised for travelling interstate to engage in sexual conduct with a minor. He will also be required to register as a sex offender, and while on supervised release his access to minors, computers, and the Internet will be restricted.
According to court documents, in the fall of 2014, McNeill met a 14-year-old girl from Cumberland County online. On about October 18, 2014, following several weeks of communicating with the juvenile in a sexually explicit manner, McNeill travelled from North Carolina to Maine to meet and have sexual relations with her.
The case resulted from a joint investigation between the Naval Criminal Investigative Service and the Bridgton, Maine Police Department.Rapid City Woman Sentenced for Mail FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, woman convicted of Mail Fraud was sentenced on August 15, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Danelle Arlene Newman, a/k/a Danelle Marshall, age 36, was sentenced to five years’ probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $23,246.95 in restitution.
Newman was charged on November 17, 2015, and pled guilty on April 29, 2016. The charge related to Newman fraudulently completing and mailing deeds to restricted Indian lands belonging to her mother to the Office of Special Trustee for American Indians and then using the money for her personal benefit.
This case was investigated by the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Ben Patterson prosecuted the case.
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 August 15, 2016, by U.S. District Judge Roberto A. Lange.
Jeremy Eagle Bear, age 26, was sentenced to 12 months and one day in custody, 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Eagle Bear was indicted by a federal grand jury on April 13, 2016. He pled guilty on June 7, 2016.
Eagle Bear was convicted of Sexual Abuse of a Minor in federal court in January 2014. He was sentenced to 18 months of custody, followed by 6 years of supervised release. Eagle Bear is required to register as a sex offender for 25 years following his conviction and to update his registration within three business days of relocating or changing employment. In October 2015 Eagle Bear registered with an address in Rapid City. On December 10, 2015, Eagle Bear was to report to the U.S. Probation Office in Pierre, South Dakota, and he failed to do so. On December 15, 2015, the probation office was unable to locate Eagle Bear at his apartment in Rapid City, and an arrest warrant was issued. In March 2016, Eagle Bear was found living in Parmelee, South Dakota, and he was arrested. Eagle Bear did not update his sex offender registration between December 2015 and March 2016.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Eagle Bear was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man sentenced for possessing counterfeit moneyRead the Press Release
ELKINS, WEST VIRGINIA – Jonathan J. Ross, 30, of Elkins, West Virginia, was sentenced to eight months in prison for possessing counterfeit money, United States Attorney William J. Ihlenfeld, II, announced.
Ross was found in possession of four hundred and fifty dollars in counterfeit currency. He pled guilty in February 2016 to one count of “Uttering Counterfeit Obligations and Securities – Aiding and Abetting.”
Assistant United States Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Clarksburg Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Prime Contractor Employee at U.S. Military Bases Admits $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) admitted today his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Paul J. Fishman announced.
James Conway, 45, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
The wire fraud charge to which Conway pleaded guilty carries a maximum potential penalty of 20 years in prison. The charge for accepting unlawful kickbacks to which Conway pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Nov. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes and Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Philadelphia Man Charged with Possession by A Convicted FelonRead the Press Release
An Indictment[1] was filed today charging Anthony Poole, 35, of Philadelphia, Pennsylvania with possession of firearm by a convicted felon, announced United States Attorney Zane D. Memeger.
If convicted, defendant faces a maximum of ten years imprisonment, three years of supervised release, and a substantial fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pair Sentenced on Health Care Fraud, Conspiracy ChargesRead the Press Release
ABINGDON, VIRGINIA – A pair of former lab professionals, who were convicted of billing Medicaid, Medicare, TennCare and a variety of other insurance companies following a bench trial earlier this year, were sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr., Virginia Attorney General Mark R. Herring and HHS Office of Inspector General Special Agent in Charge Nick DiGiulio announced today.
Beth Palin, 50, and Joseph D. Webb, 55, both of Bristol, Tenn., were convicted on April 7, 2016 following a bench trial of one count of conspiracy to commit health care fraud and health care fraud. Yesterday in United States District Court, Palin and Webb were both sentenced to 36 months in federal prison and ordered to pay $1,436,887 in restitution.
“These defendants stole over a million dollars from health care programs designed to provide care to those who need the most help. Medicare and Medicaid are not a means to line the pockets of fraudsters like Ms. Palin and Mr. Webb,” United States Attorney Fishwick said today. “I am thankful for the work of the Virginia AG’s Office, Medicaid Fraud Control Unit and all of our law enforcement partners who worked on this case. It is important for us to keep fraud and abuse out of these very important social programs.”
“Palin and her associates exploited important safety net programs and the prescription drug abuse crisis to benefit themselves to the tune of over a million dollars,” said Attorney General Mark Herring. “We will continue to work with U.S Attorney Fishwick and other local, state, and federal partners to crack down on this kind of theft and fraud, and to address the problem of heroin and prescription drug abuse from every possible angle.”
“Clinical labs play a critical role in providing care for people on Medicare,” said Nick DiGiulio, Special Agent in Charge for the Office of Inspector General at the U.S. Department of Health and Human Services. “Lab professionals who aim to get rich quick by cheating patients and taxpayers, as in this case, can expect to pay a high price for their crimes.”
According to evidence presented during the bench trial by Assistant Attorney General and Special Assistant United States Attorney Janine Myatt, Webb and Palin owned Bristol Labs, which was a lab that specialized in urine drug screen testing. Bristol Labs worked with Dr. Charles Kim Wagner, a medical doctor licensed by the Drug Enforcement Administration to prescribe Suboxone. Wagner opened what purported to be a substance abuse treatment program that involved only medication assisted treatment using Suboxone in Bristol, Virginia. His practice accepted cash payment only and charged $250 for an initial visit and $100-$110 each week thereafter. Wagner’s office was located next to Bristol Labs in an adjacent office suite within the same physical building as Bristol Labs. Drug screenings were required for Wagner’s patients at each weekly visit and Wagner sent 100 percent of his patients to Bristol Labs for their drug screenings.
Although patients paid cash for doctor’s appointments, they could use Medicare or Medicaid to pay Bristol Labs for prescriptions and the cost of urine drug screenings. The type of drug screening Wagner ordered depended solely on the method of payment. If a patient was uninsured or “self-pay,” Wagner ordered a $25 dip-stick or “quick cup” urine drug screen from Bristol Labs. However, if a patient was paying via insurance, Medicaid or Medicare, Wagner ordered two separate, automated screens performed by Bristol Labs and by another confirmation Lab in Denver, Colorado. These patients paid nothing out of pocket, however Medicare, Medicaid or their insurance company would be billed between $120-$1,800 for these tests each week. These tests were medically unnecessary and Wagner did not use the results of the tests to direct patient care.
Palin and Webb eventually opened their own addiction practice in Gate City, Virginia, called Mtn. Empire Medical Care. Palin and Webb instituted a nearly identical drug testing protocol to the one at Wagner’s practice, self-pay patients paid an extra $25 and got a quick cup test while insured patients got two automated screens which were billed to their insurance companies and paid nothing out of pocket. These expensive tests were medically unnecessary.
In total, this conspiracy fraudulently billed Virginia Medicaid, TennCare, Medicare, Aetna, Optum/United Health Care, Anthem/Blue Cross-Blue Shield of Virginia, Anthem/Blue Cross-Blue Shield of Tennessee and Cigna, $14,278,340 for medically unnecessary urine screens.
Dr. Wagner died during the course of this investigation and was therefore not charged in this matter.
The investigation of the case was conducted by Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, United States Health and Human Services-Office of Inspector General, the Tennessee Bureau of Investigation, the Internal Revenue Service, the Bristol, Virginia Police Department, The Virginia State Police, the Bristol, Tennessee Police Department, the Scott County Sheriff’s Office and the United States Marshals Service. Assistant Attorney General and Special Assistant United States Attorney Janine Myatt and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
PNC Bank to Pay $9.5 Million for Failing to Engage in Prudent Underwriting Practices for Loans Guaranteed by the U.S. Small Business AdministrationRead the Press Release
Baltimore, Maryland – PNC Bank N.A. has agreed to pay the United States $9.5 million to settle claims under the False Claims Act in connection with the issuance of loans guaranteed by the U.S. Small Business Administration (SBA). PNC is a national banking association with its principal offices located in Pittsburgh.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Small Business Administration Inspector General Peggy E. Gustafson; and SBA General Counsel Melvin F. Williams, Jr.
“Banks that are trusted to make loans backed by the SBA have a duty to apply proper lending standards, because the United States is obligated to pay when federally-backed loans default,” said U.S. Attorney Rod J. Rosenstein. “The government will vigorously pursue lenders that fail to enforce reasonable lending standards and stick the taxpayers with the bill for bad loans.”
“This case is the latest example of the significant, positive results achieved through the combined efforts of the SBA and the Department of Justice to uncover, and forcefully address, civil fraud committed in connection with SBA's lending programs,” said SBA General Counsel, Melvin F. Williams, Jr. “Rooting out, and vigorously pursuing, instances of civil fraud committed by those who participate in the lending programs of SBA is among the highest priorities of this Agency.”
“The SBA Office of Inspector General will aggressively investigate wrongdoing in SBA programs,” said Inspector General Peggy E. Gustafson. “SBA’s loan programs are designed to provide eligible small businesses access to capital to finance and grow their businesses, and SBA’s preferred lenders have a responsibility to apply prudent lending standards in making these loans.”
The SBA Act allows banks to partner with the SBA to make loans to qualified small businesses. Participants in the SBA’s Preferred Lenders Program (PLP), like PNC, have authority to make and close these loans without obtaining the prior approval of the SBA. Banks are required to comply with terms and conditions, including SBA regulations, standard operating procedures (“SOPs”), and prudent lending standards, when making loans under the Preferred Lenders Program. In the event a borrower defaults on the loan, SBA guarantees to repay the lender 75% of the balance of the loan.
As a PLP lender, PNC approved 74 SBA-guaranteed loans that were brokered by Jade Capital & Investments LLC (“Jade Capital”) through its principals, including Joon Park (“Park”). Beginning in 2006, certain Jade Capital loans went into default. PNC submitted guaranty claims to SBA for payment for many of the defaulted loans. The SBA approved the claims for 24 loans and paid PNC the SBA-guaranteed portion of the unpaid balance of the loans at the time of default, minus any recovery from the liquidation of business assets.
The U.S. Attorney’s Office for the District of Maryland subsequently prosecuted Joon Park and others associated with Jade Capital, for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the SBA, with resulting losses of over $100 million. Joon Park and other defendants admitted in plea agreements that they created and submitted false and fraudulent documents to secure PNC’s loan approval. For example, Joon Park and others used computer software programs to alter bank statements, and created false management resumes, profit/loss figures, and gift letters, among other documents. PNC in turn approved the loans based on the documentation provided by Joon Park and others. Joon Park and five other defendants were convicted for their roles in the scheme and sentenced to federal prison.
The United States contends that it has civil claims against PNC with regard to the Jade Capital Loans for failing to adhere to requirements as a PLP lender, including demanding adequate bank and IRS tax records from the borrowers, ensuring that the borrowers had the ability to repay the loans, and failing to apply prudent lending standards. Moreover, PNC sought payment on SBA guarantees even though PNC should have known that SBA requirements to recover on the guarantees were not met.
U.S. Attorney Rod J. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Roann Nichols, the SBA Office of Inspector General and the SBA Office of General Counsel for the collaboration that resulted in the settlement announced today. The claims settled by this agreement are allegations only; there has been no determination of liability. Criminal charges against Jade Capital and its co-owner Loren Park, who is a fugitive, are still pending.
Owner of EMATS Pleads Guilty to Conspiracy and Tax ChargesRead the Press Release
ABINGDON, VIRGINIA – A local business owner, who employed at least one person he knew was receiving federal disability benefits, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to conspiracy and tax charges, United States Attorney John P. Fishwick Jr. announced.
Jonathan I. Bowerbank, of Rosedale, Va., pled guilty today to one count of conspiracy to defraud the Social Security Administration and one count of impeding internal revenue laws.
“The disability benefit provided by the Social Security Administration is meant to be a source of stability for those too disabled to work. It is not a means for paid employees to supplement their income,” United States Attorney Fishwick said today. “We will continue to devote resources to ridding the system of fraud and abuse, and will continue to hold accountable employers who falsely report wages so that employees may continue to collect disability benefits to which they are not entitled.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jennifer R. Bockhorst, Bowerbank has been the controlling owner and president of EMATS Inc., since November 1998. From 2003 to 2012, Bowerbank employed Billy Vance and Brenda Vance, who were his next door neighbors.
Billy Vance had been collecting disability benefits since 1987. To hide the fact that Billy Vance was gainfully employed, EMATS Inc. reported all of the payments for the work performed by Billy Vance on Brenda Vance’s Form W-2. This had the effect of hiding Billy Vance’s ability to work from the Social Security Administration As a result, Billy Vance received $186,677.10 in disability benefits to which he was not entitled. Billy Vance and Brenda Vance previously pled guilty to disability fraud charges and repaid the government all of the money fraudulently obtained.
Bowerbank also admitted today that he failed to properly report to EMATS bookkeepers which credit card expenses were personal expenses rather than business expenses. As a result, Bowerbank’s income was underreported on three years of his tax returns.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations and the Social Security Administration – Office of Inspector General. Assistant United States Attorneys Jennifer R. Bockhorst and Randy Ramseyer, as well Gregory E. Tortella and Joseph M. Giannullo, trial attorneys for the Department of Justice’s Tax Division, prosecuted the case for the United States.
Orange County Man Who Embezzled Millions of Dollars from Three Different Employers Sentenced to over 10 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man who pleaded guilty to embezzling approximately $1.4 million from his employer – while he was pending sentencing in another $2.6 million embezzlement case – has been sentenced to 121 months in federal prison.
Peter Suk Lee, 49, a resident of the City of Orange, was sentenced late yesterday by United States District Judge David O. Carter.
Lee pleaded guilty earlier this year to a bank fraud charge and admitted that he embezzled company funds from Contempo Inc. USA, a family-owned, Los Angeles-based business that imports and distributes fashion accessories.
Judge Carter noted that the founders of Contempo, who had immigrated from South Korea, had grown Contempo into a successful business that “created jobs and hope” for other immigrants. But Lee had destroyed their “great American dream,” Judge Carter said.
From August 2014 through September 2015, Lee was the controller at Contempo. During this time, Lee embezzled money by forging the signatures of the company officers on 92 unauthorized checks that were made out to him and several associates. The total value of these checks was $1.38 million. Lee admitted that he deposited $393,400 embezzled from Contempo into his personal TD Ameritrade account, and caused other embezzled funds to be wired to casinos for his use.
When he embezzled the funds from Contempo, Lee was pending sentencing in another federal case in which he admitted embezzling approximately $2.65 million from Glovis America, Inc., an Irvine-based automotive logistics company where Lee had been employed as the accounting manager. In the Glovis case, Lee pleaded guilty in April 2015 to three counts of wire fraud for the embezzlement that spanned October 2009 through June 2011.
When he pleaded guilty in May in the Contempo case, Lee also admitted that he stole approximately $70,000 from Orion Technology, Inc. in Anaheim, where he worked in 2014, between his stints at Glovis and Contempo.
“Mr. Lee’s crimes caused significant damage to three different employers, one of which was forced to lay off 20 employees and is struggling to keep its doors open,” said United States Attorney Eileen M. Decker. “This defendant went to great lengths to continue his theft, including attempting to hide his second embezzlement from court officers preparing a pre-sentence report regarding his first embezzlement.”
Lee “admitted that he used embezzled Glovis money to pay personal bills, for instance for his auto insurance, his credit cards and his mortgage, as well as for gambling,” prosecutors wrote in a sentencing memorandum filed with the court. “Likewise, defendant used the money he embezzled from Contempo for more than just gambling; he transferred substantial sums to his personal brokerage account and gave large amounts to a female associate who used the money to pay her rent; purchase jewelry, home furnishings and appliances; and cover her living expenses.”
As part of Lee’s sentence, Judge Carter ordered Lee to pay $2,890,527 in restitution to his victims.
Judge Carter yesterday also sentenced another participant in in the Glovis fraud. John Wootae Kim, 46, of Irvine, who opened a fraudulent bank account as part of the embezzlement scheme, was sentenced to 30 months in federal prison.
In relation to the scheme that targeted Contempo, a second defendant has pleaded not guilty and is scheduled to go on trial before Judge Carter in January. Hyemi Kim, 35, of Los Angeles (Mid-Wilshire), is charged in a grand jury indictment with bank fraud and interstate transportation of stolen property.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
These cases were investigated by the Federal Bureau of Investigation. The cases are being prosecuted by Assistant United States Attorneys Ranee Katzenstein of the Major Frauds Section and Mark Takla of the Terrorism and Export Crimes Section.
Ohio man pleads guilty to Federal gun crimesRead the Press Release
CHARLESTON, W.Va. – An Ohio man pleaded guilty today to federal gun charges, announced United States Attorney Carol Casto. Austin Russell Ash, 21, of Belpre, entered his guilty plea today to one count of possession of a firearm with an obliterated serial number and one count of possession of a firearm by an unlawful user of a controlled substance.
As part of an investigation in June 2015, the Parkersburg Police Department conducted a search at the house where Austin Ash resided on Laird Avenue in Parkersburg. During the search, law enforcement discovered a CBC, 715T model, .22 caliber rifle with an obliterated serial number in Ash’s bedroom. Ash admitted to law enforcement that he possessed the gun and that he had removed the serial number. He further admitted to law enforcement that at the time he possessed the gun he was a user of marijuana.
Ash faces up to 15 years in federal prison, up to five years for possession of a firearm with an obliterated serial number and up to 10 years for possession of a firearm by an unlawful user of a controlled substance. His sentencing is scheduled for December 1, 2016.
The Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Odessa Lawyer Admits Making False Statement to Federal AuthoritiesRead the Press Release
Rahul Malhotra, 46-year-old principal owner of Malhotra Law Firm, P.C. in Odessa and citizen of Canada, faces up to five years in federal prison after pleading guilty today to making a false statement to federal authorities announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
Appearing before United States Magistrate Judge Henry J. Bemporad in San Antonio, Malhotra admittedly lied to federal authorities about his ownership of the law firm--a violation of his Visa conditions. According to court records, in March 1997, Malhotra entered the United States as a Non-immigrant “TN” Visa holder to begin working at a law firm in Odessa. In 2000, Malhotra purchased the practice and the office space from its owner. When questioned in October 2014, Malhotra told investigators that another lawyer was the majority shareholder of the Malhotra Law Firm when in fact, he was self-employed as the proprietor of the law firm.
Malhotra remains on bond pending sentencing scheduled for 9:00am on November 17, 2016, before United States District Judge Orlando Garcia.
This investigation was conducted by HSI agents together with U.S. Citizenship and Immigration authorities. Assistant United States Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the Government.
Oakland Resident Sentenced to Nine Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Anton Coker was sentenced to nine years’ imprisonment today after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Jeffrey S. White, United States District Judge, following a guilty plea entered on April 19, 2016.
As part of his plea agreement, Coker, 42, of Oakland, admitted he had previous felony convictions which prevented him from being entitled to legally possess firearms or ammunition. Nevertheless, between June 30, 2015, and July 31, 2015, Coker possessed and sold to a confidential informant and undercover agents a total of five guns and ammunition. During the same period, Coker also sold crack cocaine from his Oakland residence. On August 17, 2015, agents executed a search warrant at Coker’s residence and the storage unit next to it. In the storage unit, agents seized two more handguns and ammunition that Coker admitted belonged to him.
Coker was indicted on August 27, 2015, and charged with four counts of being a felon in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, he pleaded guilty to one count and admitted the conduct underlying the other three counts, which were dismissed.
Judge White also sentenced Coker to a three-year period of supervised release, to commence after Coker completes his prison sentence. Coker has been in custody since his arrest in January of 2016. He will begin serving his sentence immediately.
Assistant U.S. Attorney Jonas Lerman is prosecuting the case with assistance from Assistant U.S. Attorney Denise Barton and Jeanne Carstensen. The prosecution is the result of an investigation by the ATF with the assistance of the United States Marshal’s Service.
New Madrid County Man Sentenced on Federal Charges Involving Farm Subsidy and Crop Insurance FraudRead the Press Release
Cape Girardeau, MO – Bobby David Lowrey was sentenced to 24 months in prison on multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.
According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.
Bobby David Lowrey placed farms in other people’s names in order to obtain federal farm subsidy payments that he was not entitled to receive under the Direct and Counter-Cyclical Payment Program. The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-Cyclical Payment Program.
From 2007 to 2012, Bobby David Lowrey obtained $240,367 in direct and counter-cyclical payments in the name of John Radin Farms. Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012.
The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security, and reported that his employees were on a temporary layoff, when in reality they were still working and being paid. The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of Unemployment Insurance benefits being paid to employees that they were not eligible to receive.
Bobby David Lowrey, Parma, MO, pled guilty in May to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud. He appeared today in Cape Girardeau for sentencing before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks handled the case for the U.S. Attorney’s Office.
New London Man Charged with Gun, Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JAMES BOWERS, 30, of New London, with one count of possession of a firearm by a previously convicted felon and one count of possession with intent to distribute marijuana. The indictment was returned on July 20, 2016.
BOWERS appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges.
It is alleged that on June 30, 2016, BOWERS possessed a stolen .45 caliber handgun and marijuana that he intended to distribute. It is further alleged that, prior to that date, BOWERS was convicted of state and federal felony offenses.
BOWERS has been detained since his arrest on related state charges on June 30.
On October 6, 2008, BOWERS was sentenced in U.S. District Court in New Haven to 120 months of imprisonment and eight years of supervised release for possession of a firearm by a previously convicted felon and possession with intent to distribute crack cocaine. He was released from federal prison in December 2014 and is currently on supervised release.
If convicted of the charges, BOWERS faces a maximum term of imprisonment of 10 years on the firearm charge and a maximum term of imprisonment of five years on the drug charge. He also faces an additional term of imprisonment if he is found to have violated his supervised release.
This case has been assigned to Senior U.S. District Judge Alfred V. Covello in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force-East, which includes members from the Norwich, Groton City and New London Police Departments. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
New Effington Man Sentenced for Illegal Use of the InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a New Effington, South Dakota, man convicted of Attempted Trafficking in Involuntary Servitude or Forced Labor was sentenced on August 15, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Toby Magnuson, a/k/a “Scooby,” age 45, was sentenced to 6 years of imprisonment and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Magnuson was one of four men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2015 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. The conviction stemmed from Magnuson responding to an online advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Magnuson believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $100.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Magnuson was immediately turned over to the custody of the U.S. Marshal's Service.
Navajo Woman from Arizona Sentenced in New Mexico for Federal Involuntary Manslaughter and Assault ConvictionRead the Press Release
ALBUQUERQUE – Miranda Rentz, 41, an enrolled member of the Navajo Nation who resides in Red Valley, Ariz., was sentenced today in federal court in Albuquerque, N.M., for her conviction on involuntary manslaughter and assault charges. Rentz will serve an 84-month prison sentence followed by three years of supervised release.
Rentz was arrested in Jan. 2015, on a criminal complaint charging her with involuntary manslaughter and assault resulting in serious bodily injury. According to the complaint, Rentz killed one victim and seriously injured another when she crashed her vehicle head-on into the victims’ vehicle. At the time of the crash, Rentz while driving under the influence of alcohol. Court documents indicate that the assault victim suffered fractures to her right collarbone, ribs, upper chest wall and right wrist, had brain bleeding and a bruised left lung. The crash occurred on Jan. 17, 2015, in a location within the Navajo Indian Reservation in San Juan County, N.M. Rentz was subsequently indicted on the same charges on Feb. 25, 2015.
On Jan. 20, 2016, Rentz pled guilty to the indictment and admitted killing one victim and assaulting the second victim, causing her to sustain serious bodily injury, by driving recklessly while under the influence of alcohol. Rentz acknowledged that the alcohol rendered her incapable of exercising clear judgment and a steady hand in operating the vehicle. Rentz admitted that she operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Nampa Man Pleads Guilty to Access with Intent to View Child PornographyRead the Press Release
BOISE – Troy A. Paul, 48, of Nampa pleaded guilty today in United States District Court to access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, agents with the Department of Homeland Security learned that an electronic device at Paul’s residence viewed images of child pornography on a Russian photo-sharing website several times between January and June of 2014. Further investigation revealed that a device at Paul’s residence received an e-mail in March of 2014 which contained images of child pornography. In February of 2015, agents with the Department of Homeland Security interviewed Paul, where he admitted viewing child pornography on the Russian photo-sharing website, and receiving images of child pornography in his e-mail account. Paul admitted viewing images of child pornography in his e-mail account approximately 100 times, using an iPhone assigned to him by his employer. In March of 2015, agents with the Department of Homeland Security served a search warrant for the contents of Paul’s e-mail account, and discovered e-mails containing images of child pornography.
Sentencing is set for November 9, 2016, before Senior U.S. District Judge Edward J. Lodge.
Access with intent to view child pornography is punishable by up to 20 years’ imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the FBI and Ada County Sheriff’s Office, and 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.”