Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
16 August 2016
Eight Charged with Conspiring to Traffic Synthetic Drugs into United States from ChinaRead the Press Release
HARRISONBURG, VIRGINIA – Seven individuals who are alleged to have been members of a conspiracy that trafficked controlled substances, including controlled substance analogues (also called synthetic drugs) from Asia that eventually made their way to the streets of Harrisonburg for distribution, have been indicted by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Harrisonburg.
After the synthetic drugs arrived in the United States, this conspiracy distributed them to locations in the Western District of Virginia, New York, Illinois, Pennsylvania, Oregon, North Carolina, South Carolina, Georgia, Texas, Ohio and Michigan. An eighth man, who has pled guilty to being part of the conspiracy, has admitted to providing the drugs to a sub-distributor in Harrisonburg, United States Attorney John P. Fishwick Jr. announced today.
In a superseding indictment filed under seal July 19, 2016 and unsealed in recent weeks following the arrests and initial court appearances of the defendants, the grand jury has charged Jason Bradley, 38, of Chicago, Illinois, his wife, Deborah Ryba, 37, also of Chicago, Ryan Buchanan, 35, of Downers Grove, Illinois, Brian Lister, 29, of Buffalo Grove, Illinois, Nicholas Purintun, 30, of Downers Grove, Illinois, Nayna Taylor, 55, of Charlotte, North Carolina and Edward Taylor, 66, of Charlotte, North Carolina.
According to the superseding indictment, from March 2011 to October 2015, the defendants conspired to traffic controlled substances, including controlled substance analogues, from China and other Asian countries to the United States, including areas in the Western District of Virginia, for the purpose of human consumption. At times during the conspiracy, Jason Bradley and Deborah Bradley lived in China and Thailand and shipped synthetic drugs directly to other members of the conspiracy, who then redistributed them to various locations throughout the United States. The superseding indictment also alleges that some members of the conspiracy engaged in a conspiracy to commit money laundering transactions.
A related conspirator, Robert Justin Schroeder, 36, also from the Chicago, Illinois area, pled guilty under seal in May 2016 to one count of conspiracy to distribute and possess with the intent to distribute controlled substance analogues, and one count of conspiracy to launder money. Schroeder’s guilty plea was unsealed recently in Federal Court in Harrisonburg. Schroeder has admitted that the synthetic drugs would arrive from China packaged in a variety of ways to avoid detection, including smuggled inside of cosmetic fingernail dryers, children’s toys and stuffed animals. Schroeder also admitted that one of his sub-distributors was located in the Harrisonburg-area, and that this individual obtained controlled substance analogues from Schroeder and redistributed them to customers throughout the Harrisonburg-area in the Western District of Virginia. According to Schroeder, this conspiracy was a major wholesale supplier of synthetic drugs to distributors who were shut down during Operation Log Jam, the DEA’s nationwide federal roundup of synthetic drug distributors in 2012. Schroeder admitted that the conspiracy earned over 1 million dollars selling the synthetic drugs.
Those charged in the recently unsealed superseding indictment are as follows:
-
Jason Bradley, 38, of Chicago, Illinois: one count of drug trafficking conspiracy, one count of conspiracy to import controlled substances (including controlled substance analogues), and two counts of money laundering conspiracy.
-
Deborah Ryba, 37, of Chicago, Illinois: one count of drug trafficking conspiracy, one count of conspiracy to import controlled substances (including controlled substance analogues), and two counts of money laundering conspiracy.
-
Ryan Buchanan, 33, of Downers Grove, Illinois: one count of drug trafficking conspiracy, one count of conspiracy to import controlled substances (including controlled substance analogues), and two counts of money laundering conspiracy.
-
Brian Lister, 29, of Buffalo Grove, Illinois: one count of drug trafficking conspiracy, one count of conspiracy to import controlled substances (including controlled substance analogues), and one count of money laundering conspiracy.
-
Nicholas Purintun, 30, of Downers Grover, Illinois: one count of drug trafficking conspiracy, one count of conspiracy to import controlled substances (including controlled substance analogues), and one count of money laundering conspiracy.
-
Nanya Taylor, 55, of Charlotte, North Carolina: one count of drug trafficking conspiracy.
-
Edward Taylor, 66, of Charlotte, North Carolina: one count of drug trafficking conspiracy.
The investigation of the case was conducted by the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS), the Department of Homeland Security (DHS), the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS), Virginia State Police, Michigan State Police, and the Burlington Police Department in North Carolina. Assistant United States Attorney Grayson A. Hoffman will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
-
Detroit Man Admits Distributing Drugs that Caused Overdose Death of Madison County ManRead the Press Release
The guilty plea serves as a landmark prosecution in the efforts to disrupt Detroit’s drug pipeline to Kentucky
LEXINGTON, Ky. – The leader of a drug trafficking organization that brought significant amounts of heroin and fentanyl from Detroit, Mich., to Richmond, Ky., has admitted that he distributed fentanyl that caused the overdose death of a Madison County resident earlier this year.
On Monday, Navarius Westberry, 38, originally from Michigan, but living in Lexington, pleaded guilty to distributing a controlled substance resulting in an overdose death. Westberry faces a minimum of 20 years and a maximum of life in prison, without parole. He will be sentenced on November 8, 2016.
Westberry admitted that, from January 2014 until August 2015, he organized and operated a drug trafficking organization in Richmond that distributed between 750 and 1,000 grams of heroin and 50 grams of fentanyl. Westberry also admitted that, in March 2016, he supplied heroin and fentanyl that led to the overdose death of 25 year-old Corey Brewer. The toxicology report and autopsy showed that Brewer’s death was caused by toxic levels of fentanyl.
One of Westberry’s co-defendants, Benjamin Fredrick Charles Robinson, 21, also from Detroit, previously pleaded guilty to distributing fentanyl that caused another overdose. That victim survived the overdose after receiving medical treatment. Robinson is subject to the same penalty range, as Westberry. Both defendants must serve at least 85 percent of the prison sentences imposed at their upcoming sentencing hearings.
“We have known for some time that the Detroit area is a significant source of supply for the growing amounts of heroin, fentanyl, and other narcotics that are devastating so many Kentucky communities,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “The evidence indicates that the leaders of this conspiracy relocated to Central Kentucky for the sole purpose of establishing a heroin distribution network in our communities. The results, were deadly. This case represents a significant victory in our ongoing efforts to disrupt the “Detroit Pipeline” and is a shining example of effective collaboration between federal and local law enforcement agencies.”
This case marks the first time the U.S. Attorney’s Office for the Eastern District of Kentucky has applied the federal overdose provisions in a case involving defendants from Michigan whose distribution of drugs in Kentucky caused an overdose.
Three others, including Kevin Feltner, 24, of Richmond, Dion Terry Taylor, 23, from Detroit, and Kathy Lashell Brown Miller, 30, also of Richmond, have previously pleaded guilty to their roles in the drug conspiracy and are awaiting sentences.
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and Robert Mott, Acting Police Chief, Richmond Police Department, jointly announced the plea.
The investigation was conducted by the DEA and the Richmond Police. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
Any sentence imposed will come after the Court considers the U.S. Sentencing Guidelines and the federal statutes.
Columbus Bank Robber Sentenced to 17 Years ImprisonmentRead the Press Release
United States Attorney G.F. “Pete” Peterman, III, announced that Victor Butler, age 59, of Columbus, Georgia, was sentenced on August 16, 2016, in Columbus, Georgia, by the Honorable Clay D. Land, United States District Judge, to serve a total of 204 months (17 years) imprisonment, without parole, for bank robbery.
Mr. Butler entered a guilty plea on January 28, 2016, to the robbery of the SunTrust Bank, 2050 Auburn Avenue, Columbus, GA. Mr. Butler approached a bank teller and presented a handwritten demand note stating that this was a robbery. The note also stated that he had a bomb so the teller should do everything he told her to do. Mr. Butler threatened to blow them up if his instructions were not followed, motioning to a backpack he was carrying as evidence of the bomb threat and showed an electronic device which looked like a detonating device to the teller.
Mr. Butler was provided approximately $2,000.00 and fled the bank. The robbery was recorded on video surveillance. Mr. Butler was not wearing anything to hide his identity.
Investigators released an image of the robber to the Columbus media to request the public’s assistance in identifying him. Responses were received from Mr. Butler’s pastor and his probation officer, both of whom positively identified him as the individual from the video who robbed the SunTrust Bank. Mr. Butler was arrested the next day for the robbery. The backpack he used in the robbery was also found by police where he discarded it after the robbery. No evidence of explosives was found with it.
This was Mr. Butler’s third conviction for robbing a federally insured or operated institution. He has previously been convicted for armed bank robbery in 2002 and attempted robbery of a Post Office in 2006. In each of these three robberies Mr. Butler claimed to his victim that he had a bomb in order to secure their cooperation.
“For the past fifteen years this bandit has bullied his victims with the claim that he had a bomb in his backpack. With the lengthy and well-deserved sentence imposed today, he will not have the opportunity to repeat his depredations for a very long time, if ever,” said United States Attorney Pete Peterman.
The case was investigated by the Columbus Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Michael Solis prosecuted this matter on behalf of the United States.
Coal Truck Owner Sentenced to 3-Months’ Home Detention, Owner and Company Pay over $375,000 in Fines, Restitution, and PenaltiesRead the Press Release
ABINGDON, VIRGINIA – A Big Stone Gap coal trucking company and its owner, who previously pled guilty to violating the Federal Mine Safety and Health Act by providing advance notice of safety inspections, were sentenced yesterday in Federal Court, United States Attorney John P. Fishwick Jr. announced.
Hillis Bresee and Bresee Trucking, violated the Federal Mine Safety and Health Act, in approximately February 2012, by giving advance notice of safety inspections and failing to ensure adequate inspections of coal haul tractor-trailers, including braking systems. Hillis Bresee, 63, of Pennington Gap, Va. was sentenced to three years’ probation, which includes a three-month period of home detention with electronic monitoring. Bresse Trucking was sentenced to three years’ probation. In addition, Hillis Bresee and Bresee Trucking must pay $300,000 in civil penalties, a total of $70,000 in restitution to two former employees of the company, and fines of $5,000. The payments must be completed within one year.
“Mining companies and their owners and operators must know that providing advance warning of the presence of safety inspectors who visit mining operations will not be tolerated,” United States Attorney Fishwick said today. “This case also demonstrates the need for mining companies to maintain adequate safety inspection records, maintain safety systems on equipment, and comply fully with the Federal Mine Safety and Health Act. The employees who work in this industry deserve no less.”
The investigation of the case was conducted by the Norton Office of the Mine Safety and Health Administration. Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney Kevin Jayne prosecuted the criminal case for the United States. The civil proceedings were handled by J. Matthew McCracken of the United States Department of Labor, Office of the Solicitor.
Clinton Man Convicted for Federal Heroin Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Olden Minnick, a/k/a “O,” age 53, of Clinton, Maryland, today on charges connected to a conspiracy to distribute heroin and marijuana.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to the evidence presented at his four-week trial, from June 2012 to December 3, 2014, Minnick conspired with Terrance Stanback, Sean Wilson, Christian Byrd, and others to distribute heroin and marijuana. From at least June 1, 2014 to December 3, 2014, Minnick used residences in Clinton, Maryland and Capitol Heights, Maryland, for the distribution and storage of heroin and other controlled substances. Over the course of the conspiracy Minnick used cellular telephones to arrange for the distribution of heroin and was intercepted on several occasions in 2014 arranging to provide distribution quantities of heroin.
Minnick faces a mandatory minimum sentence of 10 years in prison, and a maximum of life in prison, as well as a fine of up to $10 million. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Minnick on December 7, 2016 at 10:30 a.m.
Co-defendant Terrance Stanback, age 52, of Clinton, Maryland, pleaded guilty to his role in the conspiracy on the day before trial and is scheduled to be sentenced on October 14, 2016 at 10:00 a.m. Sean Wilson, age 46, of Randallstown, Maryland previously pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and was sentenced to 11 years in federal prison. Christian Byrd, age 45, of Laurel, Maryland, pleaded guilty to possession with intent to distribute heroin and was sentenced to 15 years in federal prison. Judge Chuang also ordered Byrd to forfeit $440,000, as the proceeds of his drug distribution.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, and the Prince Georges County, Baltimore County, and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Thomas P. Windom, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Cape Coral Man Sentenced to Three Years for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for access device (credit card) fraud and aggravated identity theft. The Court also ordered him to repay $8,070.45 in restitution to his victims and an additional $8,070.45 to the United States in the form of a forfeiture money judgment representing the proceeds he obtained as a result of the offenses.
According to the plea agreement, between December 30, 2014, and April 13, 2015, Fernandez Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout the Florida to purchase various items, including $3,500 of furniture. He also used another person’s means of identification to make a retail purchase.
This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office Economic Crimes Unit, and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Buncombe Co. Man Sentenced to More Than Six Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – Erik Corbin Peterson, 47, of Black Mountain, N.C. was sentenced today by U.S. District Judge Martin Reidinger to 75 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Peterson was ordered to serve a lifetime of supervised release and to register as a sex offender. Peterson was also ordered to pay $17,000 in restitution to known victims of child pornography.
Sheriff Van Duncan of the Buncombe County Sheriff’s Office joins U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in December 2013, law enforcement received a tip that an online user was using his e-mail to send child pornography via the Internet. Law enforcement determined that the e-mail account belonged to Peterson, who used it frequently to send to and receive from other unknown e-mail users images depicting the sexual abuse of children. In May 2014, law enforcement executed a search warrant at Peterson’s residence seizing a laptop computer, a desktop computer and an external hard drive. Forensic analyses of those devices revealed that Peterson possessed more than 1,000 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic conduct.
In making today’s announcement, U.S. Attorney Rose said, “Peterson traded online images depicting the horrendous sexual exploitation of children. Then, he had the audacity to describe his depraved conduct as ‘a kind of game that he and some of his friends started.’ The sexual exploitation of innocent and vulnerable victims is not a game. It is a crime. And it is the type of criminal activity that my office takes very seriously. We hope today’s sentence delivers a clear message that possessing, receiving and sharing child pornography will land you in jail for a long time.”
Peterson pleaded guilty in April 2016 to one count of possession of child pornography. He is currently in 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.
U.S. Attorney Rose thanked the Buncombe County Sheriff’s Office for their investigation of this case. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Bullhead Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 15, 2016, by U.S. District Judge Charles B. Kornmann.
Mario Delaney Crow Ghost, age 45, was sentenced to 10 months in custody, 8 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crow Ghost was indicted by a federal grand jury on March 15, 2016. He pled guilty on June 12, 2016.
The conviction stemmed from Crow Ghost failing to register as a sex offender from October 19, 2015, to March 15, 2016, when Crow Ghost had been convicted in U.S. District Court, District of South Dakota, for Sexual Abuse of a Minor.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Crow Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Boise Man Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
BOISE – Michael Wayne Wade, 30, of Boise pleaded guilty today in United States District Court to sex trafficking of children, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, agents with the Idaho Department of Probation and Parole arrested Wade for a felony probation violation in July of 2014. A Nokia Lumina cell phone was seized from Wade and examined by a detective with the Boise Police Department. The cell phone contained texts with a minor that included images of the minor, including one that was sexually explicit. The detective conducted open-source internet searches on Backpage.com and discovered that the images of the minor on Wade’s phone had been posted in an ad for “escort services” in Boise in July and November of 2014. The postings were made using a Backpage.com account for another individual, J.K.
J.K. was arrested by the Boise Police Department in December of 2014, and admitted she worked as a prostitute in Boise, and that Wade was the “boss” who “pimped her.” She admitted Wade asked her to use the minor for a two-girl “date,” which she refused. She admitted posting the minor as an escort on Backpage.com, using the images sent to her by Wade. She further admitted that Wade spoke to her about taking the minor “under her wing,” assisting her in “escorting,” and ensuring that she was “working.” J.K. admitted that she took the minor on at least two “dates” where the minor engaged in commercial sex acts, and that she received money from the minor in exchange for posting the ad and transporting her.
The minor was interviewed and admitted that she participated in a prostitution enterprise with Wade and J.K. She stated she sent the images of herself to Wade for the purpose of being posted on Backpage.com as an escort. The minor stated that J.K. posted her images on Backpage.com, and drove her on at least two “calls” where she engaged in a commercial sex act when she was sixteen years old.
Further investigation by the Boise Police Department and the FBI revealed recorded phone calls and text messages from Wade to J.K. and the minor. The text messages revealed that Wade knew the minor was sixteen years old, that he told her she would be a “star by the time I’m done with you,” encouraged her to “hustle all day,” and told her that J.K. would teach her “the tricks of the trade” and “how to hustle.” Wade also told the minor that she had “mad potential,” could “turn tricks,” and that J.K. would “buy you a room” and “have you got to work this weekend.” Wade then told J.K. that the minor was “all open” and “down to work for the team.”
“This defendant callously victimized a minor, commercially exploiting her for the sexual gratification of others and for his personal profit,” said Olson. “This conviction demonstrates that this office and its law enforcement partners in Idaho are unwavering in our commitment to seek justice on behalf of vulnerable victims and to hold sex traffickers accountable.”
Sentencing is set for November 10, 2016, before Senior U.S. District Judge Edward J. Lodge. Sex trafficking of children is punishable by not less than 10 years’ imprisonment and up to life, 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 Boise Police Department, the FBI, and the Idaho Department of Probation and Parole, and was prosecuted with assistance from the Ada County Prosecutor’s Office. The 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.”
Bassett Man Sentenced on Robbery ChargeRead the Press Release
DANVILLE, VIRGINIA – A Bassett, Virginia man, who committed armed robbery during an intended drug deal, was sentenced today in federal court, United States Attorney John P. Fishwick Jr. announced.
Christopher L. Bowers, 23, of Bassett, Virginia, previously pled guilty in the United States District Court for the Western District of Virginia in Danville to one count of robbery, as a principal and aider and abettor. Today in District Court, Bowers was sentenced to 24 months in federal prison and three years of supervised release thereafter.
“This situation could have ended in much more tragic circumstances,” United States Attorney Fishwick said today. “So often, the mixture of drugs and guns has deadly consequences. We will continue to work with our partners in law enforcement to slow the tide of violence and drug trafficking in our communities.”
According to evidence presented at previous hearings, in the early morning hours of December 10-11 2014, Bowers and an associate, Christopher Strokes, went to a home in Henry County for the purpose of obtaining pills. When Stokes and Bowers arrived, Bowers was armed with a pistol. A disagreement arose over the price of the drugs. At that time, Bowers brandished a firearm and struck one of the victims. Stokes, who was not initially armed, seized a Smith and Wesson .40 caliber pistol belonging to one of the home’s residents, confronted a second victim, demanded money, and then fired the pistol into the wall. Bowers and Stokes then fled with stolen pills, the Smith & Wesson pistol, and approximately $400 in cash.
The investigation of the case was conducted by Department of Homeland Security. Assistant United States Attorney Anthony P. Giorno and Special Assistant United States Attorney Kari K. Munro prosecuted the case for the United States.
Allen Man Sentenced to 36 Months Supervised Release for Assault in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that, WILLIAM CONLEY BOAZ II, age 27, of Allen, Oklahoma, was sentenced to 3 years of supervised release for ASSAULT IN INDIAN COUNTRY (MISDEMEANOR), in violation of Title 18, United States Code, Sections 1152 and 113(a)(4).
The Information alleges that on or about February 18, 2016, in the Eastern District of Oklahoma and elsewhere, while present within Indian Country in the special maritime and territorial jurisdiction of the United States, the Defendant, WILLIAM CONLEY BOAZ II, a non-Indian, did commit an assault against an Indian, who was a spouse or intimate partner, by striking said person on the face.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs. The defendant pled guilty in July, 2016.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
First Assistant United States Attorney Edward Snow represented the United States.
Allen Man Pleads Not Guilty to Involuntary Manslaughter and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter and Assault Resulting in Serious Bodily Injury.
Jeff Sitting Bear, Jr., age 43, was indicted on July 26, 2016. Sitting Bear appeared before U.S. Magistrate Judge Daneta Wollmann on August 12, 2016, and plead not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Sitting Bear committing the offenses by driving a motor vehicle in the wrong lane of traffic while under the influence of alcohol. Sitting Bear collided head on with a motorcycle being driven by the victim on July 2, 2016, near Kyle.
The charges are merely accusations and Sitting Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the South Dakota Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Sitting Bear was released on bond pending trial. A trial date has been set for October 18, 2016.
Alleged Shooter of New Mexico Police Officer Charged with Federal Firearms and Carjacking OffensesRead the Press Release
Ohio Man to be Prosecuted Under Federal “Worst of the Worst” Anti-Violence Initiative
Jesse Denver Hanes, 38, of Columbus, Ohio, has been charged with federal firearms and carjacking offenses arising out of an Aug. 12, traffic stop in Hatch, New Mexico, during which Hanes allegedly shot and killed Hatch Police Officer Jose Chavez and Hanes’ efforts to evade arrest following the shooting. The federal charges against Hanes are contained in a criminal complaint filed this morning in the U.S. District Court for the District of New Mexico.
The federal charges were announced by U.S. Attorney Damon P. Martinez of the District of New Mexico and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. Joining them in making the announcement were Third Judicial District Attorney Mark D’Antonio, Chief James Gimler of the Hatch Police Department, Chief Pete N. Kassetas of the New Mexico State Police and Doña Ana County Sheriff Enrique Vigil.
Hanes is charged with being a felon in possession of a firearm, carjacking and discharging a firearm during a crime of violence. The criminal complaint alleges that Hanes committed these crimes in Doña Ana County, New Mexico, on Aug. 12. At the time, Hanes was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Hanes was arrested this afternoon on the federal charges by the FBI at a hospital in El Paso, Texas, where he is recuperating from a self-inflicted gunshot wound. His initial appearance in federal court in Las Cruces, New Mexico, has yet to be scheduled.
In addition to the charges in the federal criminal complaint, Hanes has been charged with the first-degree murder of Officer Chavez in a criminal complaint filed in the Third Judicial District Court for the state of New Mexico in Doña Ana County. The state’s murder investigation is continuing. Hanes also is facing an unrelated murder charge in Ohio.
According to the federal criminal complaint, on the afternoon of Aug. 12, Officer Chavez executed a traffic stop in Hatch on a Lexus driven by Hanes and in which two other men were passengers. During the traffic stop, Hanes allegedly shot Officer Chavez in the upper torso. Officer Chavez died later that night as a result of the gunshot wound.
The criminal complaint alleges that after Hanes and his passengers fled from the scene of the shooting in the Lexus, Hanes shot himself in the leg/groin-area. After Hanes and his passengers parted company, Hanes stopped at a rest area near Radium Springs, New Mexico, where he allegedly shot a motorist and carjacked the motorist’s vehicle, a Chevrolet. The motorist suffered a serious injury and remains hospitalized in stable condition.
Deputies of the Doña Ana County Sheriff’s Office located the Chevrolet allegedly carjacked by Hanes based on information provided by witnesses and gave chase. The chase ended when Hanes crashed the Chevrolet. After Hanes was taken into custody, a handgun, believed to be the firearm used to shoot Officer Chavez and the motorist, was recovered from the Chevrolet.
If convicted of the crimes charged in the federal criminal complaint, Hanes faces a statutory maximum penalty of 10 years in prison for unlawfully possessing a firearm and 25 years in prison on the carjacking charge. If convicted for discharging a firearm during the carjacking, Hanes faces a mandatory minimum penalty of 10 years in prison, which must be served consecutive to any sentence imposed on the other charges. These potential penalties apply only to the federal charges and are beyond any penalties that may be imposed under state laws.
Charges in criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces office of the FBI, Hatch Police Department, Doña Ana County Sheriff’s Office and New Mexico State Police, with assistance from the Third Judicial District Attorney’s Office. The following agencies also assisted in the investigation: Albuquerque and El Paso offices of the FBI, ATF, DEA, U.S. Marshals Service, Homeland Security Investigations, U.S. Border Patrol, Las Cruces Police Department, El Paso, Texas, County Sheriff’s Office and El Paso Police Department.
Assistant U.S. Attorneys Aaron O. Jordan and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. 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 felony conviction records for federal prosecution with the goal of removing violent, repeat offenders from communities in New Mexico for as long as possible.
Agencias Federales Emiten Directrices Conjuntas Para Ayudar A Los Proveedores De Preparación, Respuesta Y Recuperación Frente A Emergencias A Cumplir Con El Título Vi De La Ley De Derechos CivilesRead the Press Release
Los Departamentos de Justicia, Salud y Servicios Humanos, Vivienda y Desarrollo Urbano, Seguridad Nacional y Transporte emitieron hoy directrices conjuntas para ayudar a asegurar que los beneficiarios de asistencia financiera federal no discriminen en contra de personas y comunidades sobre la base de la raza, el color o el origen nacional al ofrecer servicios de preparación, respuesta y recuperación ante emergencias.
El Título VI de la Ley de Derechos Civiles de 1964 prohibe la discriminación sobre la base de la raza, el color o el origen nacional en programas o actividades financiadas por el gobierno federal. La discriminación en las medidas de respuesta a emergencias de un receptor de financiamiento viola el Título VI de la Ley de Derechos Civiles de 1964.
La directriz sugiere una serie de medidas que los receptores pueden tomar ahora para garantizar el cumplimiento:
- Transmitir información sobre vivienda, servicios de salud u otros servicios relacionados con las emergencias y los derechos de no discriminación a diversos sectores raciales, étnicos y con fluidez limitada en inglés de la población.
- Involucrarse con diversos sectores raciales, étnicos y con fluidez limitada en inglés de la población y pedirles su opinión para determinar cuál es la mejor manera de personalizar iniciativas de planificación, respuesta y recuperación frente a emergencias;
- Diseminar ampliamente planes de evacuación y preparación para desastres, lo que incluye a sectores con fluidez limitada en inglés de la población;
- Asegurarse de que todas las entidades sepan que la mayoría de los servicios públicos para la protección de la vida y la seguridad ofrecidos por beneficiarios de asistencia financiera federal no tienen restricciones por estado inmigratorio;
- Recabar y analizar periódicamente información sobre las poblaciones potencialmente afectadas para ayudar a asegurar una distribución eficaz y no discriminatoria de recursos y servicios.
“En momentos de emergencia, la ley exige que los beneficiarios de financiamiento federal ofrezcan igualdad de servicios a todas las personas y comunidades,” dijo la Fiscal General Adjunta Auxiliar Vanita Gupta, líder de la División de Derechos Civiles del Departamento de Justicia. “Esta directriz ayudará a garantizar que las personas que necesitan asistencia no sean discriminadas durante futuros huracanes, incendios forestales y otros eventos catastróficos.”
“Nuestra directriz les recuerda a los receptores que las obligaciones de cumplimiento del Título VI no están sujetas a debate,” dijo Leslie Proll, Directora de la Oficina Departamental de Derechos Civiles del Departamento de Transporte. “Se aplica en todo momento y no puede dejar de aplicarse antes, durante o después de emergencias y desastres.”
Además, hoy se están publicando dos nuevos recursos para ayudar a los receptores de asistencia financiera federal: los Consejos y Herramientas del Departamento de Justicia para dar alcance a comunidades con fluidez limitada en inglés en la preparación, respuesta y recuperación ante emergencias; y la Lista de Verificación del Departamento de Salud y Servicios Humanos para los receptores de asistencia financiera federal, que facilita la integración de toda la comunidad a actividades relacionadas con las emergencias.
“Las prácticas discriminatorias en la atención médica pueden poner en riesgo la vida y esto es especialmente cierto en situaciones de emergencias y desastres,” dijo Jocelyn Samuels, Directora de la Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos. “Esta directriz ayudará a los líderes de la comunidad de gestión de emergencias a comprender sus obligaciones bajo el Título VI y las medidas críticas que pueden tomar para brindar un mejor servicio a toda su comunidad, lo que incluye a personas con necesidades funcionales y de acceso.”
Ambos recursos y la directriz se encuentran en los portales de las agencias y el portal de la nueva sección de derechos civiles de la Agencia Federal para el Manejo de Emergencias [Federal Emergency Management Agency (FEMA)] en www.fema.gov/media-library/assets/documents/26070.
“La discriminación no tiene cabida en el proceso de respuesta y recuperación ante desastres,” dijo Willisa Donald, Directora de la Oficina de Igualdad de Derechos de la FEMA. “Todas las personas deben ser tratadas con igualdad cuando se trate de apoyar a los sobrevivientes en su momento de mayor necesidad y esta directriz apoyará nuestra labor para asegurarnos de que las personas con las que nos asociemos compartan nuestros valores de justicia e igualdad.”
“El cumplimiento de los requisitos del Título VI, así como de los requisitos para garantizar la igualdad de acceso a personas con discapacidades según lo exigido por las leyes federales de derechos civiles, se hace aún más importante durante emergencias y desastres para garantizar que no se le deniegue a nadie injustamente servicios y apoyo cruciales,” dijo Megan H. Mack, Funcionaria de Derechos Civiles y Libertades Civiles del Departamento de Seguridad Nacional. “La directriz incorpora los principios de la Meta de preparación nacional y los Marcos de planificación nacional en los que el gobierno federal busca permitir que toda la comunidad, que incluye a personas con orígenes raciales y étnicos diversos y a personas con fluidez limitada en inglés, contribuya a la preparación nacional y se beneficie con ella.”
“Las familias que pierden sus hogares por desastres naturales no deberían sufrir un agravamiento de su situación por culpa de la discriminación en un momento en que sufren por recomponer ese componente esencial de sus vidas,” dijo Gustavo F. Velasquez, Secretario Auxiliar de Vivienda Justa e Igualdad de Oportunidades para el Departamento de Vivienda y Desarrollo Urbano. “La directriz conjunta deja en claro que los receptores de financiamiento federal tienen la obligación de tratar equitativamente a todas las personas afectadas por emergencias nacionales.”
La División de Derechos Civiles y las oficinas de derechos civiles de las agencias son responsables de hacer cumplir el Título VI asegurándose de que sus receptores de asistencia financiera federal no discriminen sobre la base de la raza, el color o el origen nacional. En los siguientes enlaces se puede encontrar información adicional sobre estas oficinas:
División de Derechos Civiles del Departamento de Justicia en www.justice.gov/crt; Oficina de Derechos Civiles de la Oficina de Programas Judiciales en http://ojp.gov/about/offices/ocr.htm; Oficina de Acceso a la Justicia en https://www.justice.gov/atj; la Oficina de Derechos Civiles y Libertades Civiles del Departamento de Seguridad Nacional en https://www.dhs.gov/office-civil-rights-and-civil-liberties; Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos en www.hhs.gov/ocr/; Oficina de Vivienda Justa e Igualdad de Oportunidades del Departamento de Vivienda y Desarrollo Urbano en http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp; y Oficina Departamental de Derechos Civiles del Departamento de Transporte en https://www.transportation.gov/civil-rights.
La Directriz
Accokeek Man Exiled to 10 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George Jarrod Hazel sentenced Bryan Leneil Tiggle, age 32, of Accokeek, Maryland, late on August 15, 2016, to 10 years in federal prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to their plea agreements, between April and May 2015, Tiggle and co-conspirator Sean Michael Midgette conspired to rob a drug dealer. On April 8, 2015, Tiggle met with an undercover ATF agent and agreed to rob a cocaine dealer’s stash house, then split the 12 kilograms of stolen cocaine. Tiggle told the undercover agent that he would bring another individual to the next meeting to discuss the robbery. On April 29, 2015, Tiggle brought Midgette to meet with the undercover agent and discuss the details of the robbery. Tiggle and Midgette stated that they would re-package the stolen drugs before selling their portions, and offered to help the undercover agent to sell his share of the cocaine as well.
On May 8, 2015, the undercover agent spoke with Tiggle and Midgette by telephone and the conspirators confirmed that they were ready to commit the robbery. Tiggle and Midgette drove together to meet the undercover agent at an agreed upon location. Midgette and Tiggle confirmed to the undercover officer that they were armed and Midgette put a duffle bag containing the guns in the back seat of the undercover agent’s vehicle. Tiggle rode with the undercover agent while Midgette followed in another vehicle. Tiggle and Midgette were subsequently arrested by law enforcement.
From the duffle bag, law enforcement recovered a 9 millimeter semi-automatic firearm, a .45 caliber semi-automatic pistol with an obliterated serial number, a black body armor vest, and 64 rounds of ammunition. From Tiggle and Midgette’s vehicle officers recovered three black hoodies, gloves and a black balaclava. A search warrant executed at Midgette’s residence also recovered digital scales, and drug packaging materials.
Sean Michael Midgette, age 33, of Upper Marlboro, Maryland, previously pleaded guilty and was sentenced to 101 months in prison.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew L. Paeffgen and Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.
22 Indicted for Racketeering and Fraud Emanating from Murphy VillageRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Hannah Carroll, Rose M. Mulholland, Kim Mulholland, Caroline Sherlock, Catherine Carroll, Anthony Carroll, Johnny M. Sherlock, Mary Rita Sherlock, Jimmy Gorman, Leslie Gorman, Leslie Ann Sherlock, Jimmy J. Carroll, Mary Costello, Mary Gorman Carroll, Renee Carroll, Rose S. Mulholland, Susan Sherlock Tommy Sherlock, William Carroll, and Johnny Mack, all of North Augusta, South Carolina, and Leonard New and Angela Askew, of Augusta, Georgia; were charged in a 45 count Indictment for Racketeering (RICO) and other crimes related to their fraudulent schemes. According to allegations in the Indictment, the defendants operated out of Murphy Village near North Augusta and committed a number of fraudulent schemes in order to obtain life insurance benefits, food stamps, Medicaid funds, and fraud involving automobile financing.
The Indictment charges all defendants with RICO Conspiracy (18 U.S.C. § 1962), other counts in the Indictment name various defendants in counts charging Mail Fraud (18 U.S.C. § 1341), Wire Fraud (18 U.S.C. § 1343), Structuring monetary transactions to evade reporting requirements (31 U.S.C. § 5324), and Interstate Transportation of Stolen Items (18 U.S.C. § 2314).
The charge of RICO Conspiracy carries a maximum sentence of 20 years and a $250,000 fine; Mail and Wire Fraud each carry a maximum sentence of 20 years and a $250,000 fine; Structuring carries a maximum sentence of 5 years and a $250,000 fine; and the charge of Interstate Transportation of Stolen Items carries a maximum sentence of 20 years and a $250,000 fine. Additionally, these charges include a maximum term of supervised release following imprisonment of 3 years.
This long-term, multi-agency investigation included the Federal Bureau of Investigation; United States Marshal’s Service; United States Department of Agriculture Office of Inspector General; the Internal Revenue Service Criminal Investigative Division; the United States Postal Inspection Service; the South Carolina Attorney General’s Office Medicaid Fraud Control Unit; the South Carolina Department of Social Services; and is assigned to Assistant United States Attorneys Jim May and Jay Richardson from the Columbia Office and Rhett Dehart from the Charleston Office for prosecution.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
#####
15 August 2016
Waterloo Man Sentenced for Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ronald T. Spoor, 52, of Waterloo, NY, who was convicted following a jury trial of production and possession of child pornography, was sentenced to 30 years in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Bradley E. Tyler and Craig Gestring, who handled the prosecution of the case, stated that in December 2012, the New York State Police were alerted by officials at a school in Seneca County, NY, after minor students indicated they had been abused by Spoor. The defendant was interviewed by investigators and admitted to abusing two victims under the age of 10 years old. An investigation into the abuse allegations led State Police to execute a search warrant at the defendant’s Waterloo residence. Troopers seized computer hard drives, two pinhole cameras, and several flash drives. A forensic examination determined that four of the hard drives and a pinhole camera contained videos and images of child pornography including minor boys who had been videotaped by the defendant without their knowledge.
State Troopers notified the Department of Homeland Security for investigative support. Special Agents discovered that the pinhole camera had been installed by the defendant in a bathroom and used by the defendant to record minor children. The defendant also used a pinhole camera to surreptitiously record naked children in his camper. Agents conducted an interview with the defendant during the investigation. In that interview, Spoor admitted to using peer-to-peer software to search for child pornography online using specific search terms. Agents forensically recovered over 18,000 chargeable images involving children as young as toddlers being raped and sexually abused. Some of the material also included sadistic or masochistic images or images depicting violence.
In total, the federal investigation identified an additional three children, known to the defendant, who he victimized. During today’s sentencing, Judge Siragusa called the defendant “socially depraved and morally bankrupt.” He also referred to Spoor as a sexual predator. The federal sentence will run concurrent to Spoor’s state sentence of five years, which he got for performing fellatio on a child less than 10 years of age.
The conviction is the culmination of an investigation on the part of the New York State Police, under the direction of Major Craig Hanesworth and Immigration and Customs Enforcement, Homeland security Investigations, under the direction of Special Agent in Charge James C. Spero.
United States Announces Superfund Settlement to Protect Vital Drinking Water Source at the Fulton Avenue Superfund Site Located in Central Nassau County, New YorkRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, today announced that Genesco Inc. has agreed to clean up contaminated drinking water at the Fulton Avenue Superfund Site (the Site) in the Towns of Hempstead and North Hempstead, New York. The settlement, which is valued at no less than $5.25 million, requires Genesco to ensure the operation and maintenance of water treatment and indoor air treatment systems at the Site, and to monitor groundwater and indoor air contamination at the Site. Genesco will also reimburse EPA for costs incurred in overseeing the work required by the settlement.
The settlement, which was entered on August 15, 2016 by the United States District Court for the Eastern District of New York, in an action brought against Genesco pursuant to the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), commonly known as the Superfund statute. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s high-priority hazardous sites and has responded to environmental emergencies, oil spills, and natural disasters.
The Site in this case includes a 0.8-acre commercial facility at 150 Fulton Avenue in Garden City Park, New York (the Fulton Property), which from approximately 1965 to 1974, contained a fabric-cutting mill that was owned or operated by Genesco. The mill cut and processed knitted fabrics, which were then dry-cleaned with tetrachloroethylene (commonly known as perc), which was disposed of into the environment during the mill’s operations. As a result of these past disposal practices, perc contaminated soil, air and groundwater at the Site. EPA has classified perc as likely to be carcinogenic to humans by all routes of exposure. Chronic (or long-term) exposure to perc can also cause adverse neurological effects, including impaired cognitive and motor neurobehavioral performance, and may also cause adverse effects in the kidney, liver, immune system, hematologic system, and on development and reproduction.
Groundwater contamination at the site and has impacted two public water supply wells, known as Garden City Water District wells 13 and 14. Currently, the groundwater entering those wells is treated using an air stripper installed and operated by the Village of Garden City, which forces air through groundwater to remove harmful chemicals, such as perc. The settlement requires, among other things, that Genesco continue the operation and maintenance of the existing treatment systems for the two wells until remedial goals are met. The settlement also requires Genesco to monitor contaminant levels in groundwater at the Site, and to pay EPA’s costs of evaluating chemical vapors that may enter buildings near the Fulton Property. The operation and maintenance of an existing sub-slab ventilation system at the Fulton Property will continue. EPA will oversee Genesco’s work, which implements the cleanup remedy selected in the agency’s 2015 Record of Decision Amendment for the Fulton Avenue Superfund Site.
“This settlement reinforces this Office’s firm commitment to eliminating the hazards posed by sites that threaten public health and safety,@ stated United States Attorney Capers. “We will continue to hold accountable those responsible for causing or contributing to hazardous substance sites.”
“Residents of Long Island rely on groundwater as their source of drinking water, so it is critical that groundwater resources be protected from toxic contamination,” said EPA Regional Administrator Enck. “The EPA will keep working to protect residents of Long Island from the threats of polluted groundwater.”
The settlement was subject to a 30-day public comment period during which no comments were received.
The lead government attorneys for this settlement are Assistant United States Attorney Robert B. Kambic and Assistant Regional Counsel Douglas L. Fischer of EPA.
Defendant:
GENESCO INC.
1415 Murfreesboro Pike, Nashville, TennesseeE.D.N.Y. Docket No. 09-CV-3917
UPS Employee Charged in Puerto Rico-Based Cocaine Distribution SchemeRead the Press Release
BOSTON – A UPS employee was charged in U.S. District Court in Boston in connection with shipping cocaine from Puerto Rico to Massachusetts.
Jorge Carrasquillo-Ortiz, 41, of Toa Baja, Puerto Rico, was charged in a criminal complaint unsealed today with attempted possession with intent to distribute and attempted distribution of 500 grams or more of cocaine. On Aug. 11, 2016, Carrasquillo-Ortiz was arrested in Puerto Rico and was detained following an initial appearance in the District of Puerto Rico.
According to court documents, in March 2016, Carrasquillo-Ortiz was working at United Parcel Service (UPS) in Puerto Rico. On multiple occasions, Carrasquillo-Ortiz accepted large amounts of cash in exchange for arranging for boxes containing multiple kilograms of cocaine to bypass security and be loaded directly onto the plane to Massachusetts.
In June 2016, a cooperating witness made numerous recorded calls to Carrasquillo-Ortiz to arrange for the shipment of six kilograms of cocaine from Puerto Rico to Massachusetts. An undercover officer in Puerto Rico then provided Carrasquillo-Ortiz with a box that contained six kilograms of “sham” cocaine. Carrasquillo-Ortiz allegedly shipped this box to Massachusetts, where it was seized by investigators.
The charging statute provides for a sentence of no greater than 40 years in prison, a minimum of four years and no greater than a lifetime of supervised release and a fine of up to $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. This case was jointly investigated with the DEA’s Caribbean Division. The case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Summary of the Justice Forum in DetroitRead the Press Release
***Photos Below***
In the wake of the recent tragedies in Baton Rouge, Louisiana; Dallas; and St. Paul, Minnesota, Attorney General Loretta E. Lynch convened the first in a series of regional Justice Forums on Aug. 3, 2016, at Wayne State University in Detroit, with regional stakeholders from the law enforcement, youth, faith, non-profit and civil rights communities. The Attorney General, along with other department officials, hosted the Justice Forum to create a working group setting for local community leaders, youth advocates, law enforcement, and state and local officials to critically examine police-community issues in their respective cities and regions and seek solutions together. Attorney General Lynch was also joined by U.S. Attorney Barbara McQuade of the Eastern District of Michigan, U.S. Attorney Patrick Miles of the Western District of Michigan, Assistant Attorney General Karol Mason of the Office of Justice Programs, head of the Civil Rights Division Vanita Gupta, Director Ron Davis of the Office of Community Oriented Policing Services (COPS Office), and Director Paul Monteiro of the Community Relations Service (CRS).
“Law enforcement agencies cannot provide effective policing without the trust of the communities they serve,” said U.S. Attorney McQuade. “The Justice Forum in Detroit gave stakeholders a chance to hear different perspectives, explain the challenges they face, and gain a deeper understanding for how police and community can work together to improve public safety and advance the cause of justice.”
During the working meeting, community members and stakeholders proposed ideas related to training and education, officer safety and wellness, community engagement, positive police-community encounters, diversity, data collection, crisis response, resources, transparency and officer accountability. Many of the ideas focused on strengthening the community from the ground up by building stronger ties between law enforcement and the community – including training for officers and the public on mental health, wellness, and implicit bias; promoting diversity in police departments to reflect their communities; better funding for public education; devoting more resources to community policing efforts; and engaging media to capture positive examples of police-community interactions.
In addition to the various policy ideas raised at the Detroit Justice Forum, below are a few examples demonstrating specific ways in which the local Detroit, Flint and Dearborn communities are working collaboratively to strengthen police-community relations and engagement.
-
Establish and support groups like ALPACT (Advocates and Leaders for Police and Community Trust), which bring together police and community stakeholders on regular basis to discuss police and community relations, promote community trust, and reduce tension. ALPACT has met on a regular basis for 15 years, and has provided a forum to discuss police-related shootings and other issues that test police and community relationships. The ongoing relationships between ALPACT members provide a trusting environment where tensions can be voiced and diffused.
-
For youth, create programs like the Michigan State Police Youth Leadership Academy, where young people can be exposed to careers in law enforcement and get to know police officers at a personal level as mentors.
-
Create more law enforcement-cultural awareness groups, similar to BRIDGES (Building Respect in Diverse Groups to Enhance Sensitivity), which is a partnership between law enforcement agencies and leaders in the Arab and Muslim American communities in the metro-Detroit region. BRIDGES meets quarterly to provide a forum to address issues of mutual concern and to foster better understanding on topics ranging from cultural sensitivity to hate crimes; from police and community relations to law enforcement policies and procedures.
The Justice Forum series will continue over the next several months in cities across the nation. And in the coming months, the Department of Justice will release a Justice Forum After-Action Report outlining the specific recommendations presented at the regional working group discussions. The After-Action Report will provide a rubric for other communities across the country that are seeking ways to help build sustained positive engagement between community members, law enforcement, elected officials and other local stakeholders.
Copied below is a list of invited organizations and speakers that presented at the Justice Forum in Detroit.
Speakers:
Attorney General Loretta E. Lynch
U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan
Congressman John Conyers Jr. of the 13th District of Michigan
Detroit Mayor Mike Duggan
Detroit Police Chief James Craig
Dearborn Chief Ronald Haddad
Flint Police Chief Tim Johnson
Presentation Leaders:
Rev. Wendell Anthony, Detroit NAACP
Prosecutor Kym Worthy, Wayne County
Community leader Eva Garza DeWaelsche, SER Metro
Darnell Blackburn, Michigan Commission on Law Enforcement Standards
Marcell Payton, NSO Youth Initiative and MBK-Detroit
Invited Organizations:
Michigan Commission on Law Enforcement Standards
Michigan Association Chiefs of Police
Skillman Foundation, My Brother’s Keeper Detroit
American-Arab Anti-Discrimination Committee (ADC)
NAACP Detroit
New Starlight Baptist Church
Arab American Civil Rights League
Black Lives Matter
Grosse Pointe NAACP
DLIVE Program
Anti-Defamation League
Hudson-Webber Foundation
LGBT Detroit
Greater Grace Temple
Downtown Detroit Partnership
Neighborhood Services Organization
Wayne State University Center for Peace, Conflict Studies
Detroit Hispanic Development Corp.
Michigan Roundtable Diversity/Inclusion
Congress of Communities
New Detroit
Macomb NAACP
Black Family Development
National Action Network
2nd Ebenezer Church
American Civil Liberties Union
Sinai Hospital Trauma Intervention
Equality Michigan
High School and College Students
-
Seven Defendants Sentenced in Extensive Drug Trafficking and Identity Theft SchemesRead the Press Release
Seven defendants were sentenced for their participation in extensive identity theft and drug trafficking schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Juan J. Perez, Director, Miami-Dade Police Department, and Dexter M. Williams, Chief, Miramar Police Department, made the announcement.
On August 12, 2016, Eddie Elistin, a/k/a “Horse,” a/k/a “Edith Elistin,” was sentenced to 72 months in prison, to be followed by three years of supervised release. On July 28, 2016, Michael Descolline, a/k/a “Fat Mike,” was sentenced to 30 months in prison, to be followed by three years of supervised release. On July 14, 2016, Odenia Samson, a/k/a “Pimp,” was sentenced to 122 months in prison, to be followed by five years of supervised release. On May 31, 2016, Ensi Prudent, a/k/a “Chuck,” was sentenced to 66 months in prison, to be followed by three years of supervised release. On May 16, 2016, Saintana Daniel was sentenced to 15 months in prison, to be followed by three years of supervised release. On July 14, 2016, Ingrinesia Mathis, a/k/a “Bri,” was sentenced to a year and a day in prison, to be followed by three years of supervised release.
Defendant Samson previously pled guilty to conspiring to possess cocaine and Ethylone with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(C); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Defendant Prudent previously pled guilty to possession of cocaine with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(l)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(l)(A)(i). Defendant Daniel previously pled guilty to conspiring to possess with the intent to distribute cocaine, in violation of Title 21, United States Code, Sections 846(a)(1) and 841(b)(1)(C). Defendants Elistin, Descolline, and Mathis pled guilty to conspiring to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2). Elistin and Descolline also previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Samson sold narcotics to Prudent and Daniel, and Prudent also sold narcotics to other individuals for Samson. Samson and Prudent each possessed a firearm in furtherance of their drug trafficking crimes.
Court documents further indicate that during the execution of search warrants, law enforcement agents discovered more than 3,000 individual victims’ personal identification information (PII) including names, dates of birth, and Social Security numbers, at residences were Samson, Mathis, Elistin, and Descolline lived. Law enforcement agents also intercepted calls where Elistin and Samson discussed using the PII of victims and incarcerated individuals to receive fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, Miami-Dade Police Department, and Miramar Police Department. The case is being prosecuted by Assistant United States Attorney Jamie R. Garman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Second Trafficker Convicted of Distributing Dangerous Counterfeit Viagra and CialisRead the Press Release
HOUSTON – A 47-year-old Pennsylvania man has entered a guilty plea to charges related to a conspiracy to traffic in counterfeit Viagra and Cialis and for smuggling, trafficking and introducing the misbranded prescription drugs into interstate commerce, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration - Office of Criminal Investigations (FDA-OCI) and Acting Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The FDA regulates pharmaceuticals in the legitimate medical products supply chain to ensure that U.S. consumers have access to safe and effective medications,” said Grinstead. “Those who attempt to circumvent FDA’s regulation place the public’s health at risk. We will continue to defend the consumer’s right to medications that are safe, effective and properly labeled, rather than false, potentially harmful substitutes.”
Victor Lamar Coates, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with convicted co-conspirator Martez Gurley, 41, of Napa, California, to traffic in counterfeit and misbranded Viagra and Cialis, and introducing those drugs in interstate commerce. Both drugs are prescription medications. Coates admitted to illegally distributing at least 10,288 counterfeit and misbranded tablets, including tablets he illegally imported directly from China. FDA, Eli Lilly and Company and Pfizer Inc. conducted testing on the counterfeit tablets which revealed the tablets did not contain the ingredients listed on the labeling. Some of the Viagra tablets contained the compound 2-MBT, an ingredient not part of authentic Viagra.
U.S. District Judge David Hittner accepted the plea today and set sentencing for Nov. 8, 2016. Gurley was convicted in June 2015 for his role in the conspiracy and is scheduling for sentencing Nov. 22, 2016.
Each faces up to five years in prison for the conspiracy and for introducing misbranded drugs into interstate commerce as well as up to three years for introducing misbranded drugs into commerce. FDA-OCI and HSI conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
San Benito Man Arrested for Posing as LVNRead the Press Release
McALLEN, Texas ‐ A San Benito man falsely holding himself out as a Licensed Vocational Nurse (LVN) has been charged and arrested for aggravated identity theft and making false statements, announced U.S. Attorney Kenneth Magidson.
Juan Manuel Perez, 35, turned himself in to authorities today. He is expected to make his initial appearance before U.S. Magistrate Judge U.S. Magistrate Judge Dorina Ramos at 10:00 a.m. tomorrow.
According to charges, Perez obtained employment with Cleveland Health Care LLC in McAllen in January 2015, falsely claiming to be an LVN. Perez presented a license number, but it allegedly belonged to another individual of the same name. Perez is not licensed by the Texas Board of Nursing and is not a LVN, according to the criminal complaint.
The charges allege that Perez posed as an LVN, conducted patient home visits and provided medical services from January 2015 through July 2016 while employed with Cleveland Health Care.
The criminal complaint further alleges Perez had utilized the stolen identification to gain employment with various other area health care institutions including Harlingen Medical Center and Valley Baptist Medical Center.
If convicted of making false statements relating to health care matters, Perez faces up to five years in federal prison and a possible $250,000 maximum fine. The aggravated identity theft charge carries a mandatory two‐year additional prison term, upon conviction, which must be served consecutive to any other prison sentence.
The Department of Health and Human Services‐Office of Inspector General, FBI and Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
A criminal complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Roaming Shores man sentenced to 21 years in prison for drug and firearms crimesRead the Press Release
A Roaming Shores man was sentenced to more than 21 years in prison for federal drug and firearm crimes, law enforcement officials said.
James E. Brooks, 41, was previously found guilty in U.S. District Court on six counts, including distribution of heroin and crack cocaine, possession a firearm during a drug trafficking crime and being a felon in possession of firearms and ammunition.
Brooks still has charges pending in state court related to the death of Alesha Bell.
Brooks distributed crack cocaine and heroin in August 2015, and possessed a firearm during those crimes, according to court documents.
On August 20, 2015, Brooks possessed a Walther, model P22, .22 Caliber Pistol; a Winchester, model 50, 12 gauge shotgun; and a Winchester, model 120, 12 gauge shotgun, despite previous felony convictions including drug abuse, burglary, aggravated robbery with a firearm specification, felonious assault, escape, and felonious assault with a firearm specification, all in the Trumbull County Court of Common Pleas, according to court documents.
“This defendant has spent most of his adult life terrorizing people,” U.S. Attorney Carole Rendon said. “This long prison sentence is appropriate given this defendant’s actions.”
“I would like to recognize the dedicated work of the TAG Task Force, the Ashtabula County Sheriff’s Office, and the Ashtabula County Prosecutor’s Office,” Acting ATF Special Agent in Charge Brad Earman said. “Cooperation with our law enforcement partners multiplies our efforts to remove violent criminals from the streets and make our communities safer.”
“I very much appreciate the cooperative partnership that exists between my office and the US Attorney’s Office, along with the various state and federal law enforcement agencies,” said Ashtabula County Prosecutor Nicholas M. Iarocci. “This case is a perfect example of such partnership, as the charges were divided and coordinated in such a way so as to maximize the amount of incarceration which Mr. Brooks could receive. A number of serious charges remain pending in the Ashtabula County Common Pleas Court against Mr. Brooks involving the death of Alesha Bell, including involuntary manslaughter, human trafficking, kidnapping, tampering with evidence, compelling prostitution and gross abuse of corpse, along with several drug possession charges.”
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ashtabula County Sheriff’s Office, the Warren Police Department, the Ohio State Highway Patrol, Ohio BCI&I and the TAG Law Enforcement Task Force.
Registered Sex Offender Sentenced for Sexual Exploitation of a TeenRead the Press Release
BOSTON – A registered sex offender was sentenced today in U.S. District Court in Springfield in connection with persuading a 16-year-old boy to travel to New York to engage in sexual activity.
Ronald S. Brown, 53, of Williamstown, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 10 years of supervised release. In November 2015, he pleaded guilty to one count of interstate travel with intent to engage in illicit sexual conduct with a minor and one count of possession of material involving the sexual exploitation of minors.
Brown, a registered sex offender based upon a prior conviction for a sexual assault of a 14 year-old, engaged in thousands of online interactions with a 16-year-old boy between Dec. 27, 2012 and Jan. 19, 2013, to persuade him to run away from his Midwestern home to engage in sexual activity. On Jan. 7, 2013, Brown sent the boy a one-way ticket to fly to Newark International Airport in New Jersey, and on Jan. 19, 2013, Brown picked the boy up at the Newark airport, and then transported him to New York to engage in sex. On three separate dates, Brown also sexually exploited the teenager by producing visual images of the minor engaging in lewd and lascivious conduct.
The boy was recovered in New York after his mother alerted police that her son was missing and believed to be meeting with Brown. During an interview on Jan. 20, 2013, Brown falsely told a federal agent that he believed the child to be 18 years old.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was investigated with assistance from the Massachusetts State Police, the Williamstown Police Department and the New York State Police. It was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Portland Man Sentenced to 14 Years for Robbing Five Financial InstitutionsRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel. (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II, announced that Jimmy Odong, 26, of Portland was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 14 years in prison for robbing three credit unions and two banks in 2015. He was also order to pay $26,790 in restitution. The charges arose from the robberies of University Credit Union in Portland on May 14, 2015; TruChoice Federal Credit Union in Portland on May 26, 2015; CPort Credit Union and Bank of America, both in Portland, on June 19, 2015; and Key Bank in Freeport, Maine, on July 17, 2015.
In the robberies, Odong was captured on bank security cameras wearing a hat or wig that partially disguised his appearance, he demanded cash from tellers, and he brandished what appeared to be a gray or black semiautomatic handgun. Odong has been in custody since July 23, 2015, when the FBI and Portland Police arrested him in Portland for the Key Bank robbery after a partial palm print of Odong was recovered from a stolen vehicle he used in the robbery.
Before imposing sentence, Chief Judge Torresen stated that bank robberies such as the ones committed by Odong are extremely serious offenses, especially when a weapon is brandished. She stated that the tellers and the customers often suffer emotional trauma that continues well beyond the date of the crime. Judge Torresen also told Odong that his crimes affected the entire banking industry in this area because no bank felt safe.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these bank robberies were quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Oak Brook Doctor Sentenced to Two Years in Prison in Connection with Kickback Scheme at Sacred Heart HospitalRead the Press Release
CHICAGO — A federal judge sentenced an Oak Brook doctor to two years in prison for illegally receiving benefits in exchange for referring elderly patients to Sacred Heart Hospital on Chicago’s West Side.
DR. VENKATESWARA R. “V.R.” KUCHIPUDI was convicted in March on one count of conspiracy to defraud the United States, and nine counts of illegally soliciting or receiving benefits in return for referrals of patients covered under a federal health care program.
U.S. District Judge Matthew F. Kennelly imposed the sentence Friday in federal court in Chicago.
“Medical professionals of every kind must know that patient need should be the only factor influencing decisions concerning patient care,” Assistant U.S. Attorney Joel M. Hammerman argued in the government’s sentencing memorandum. “Patients are not commodities to be bartered or monetized.”
Dr. Kuchipudi, 69, was one of ten defendants convicted in the multi-year investigation of the now-shuttered hospital at 3240 W. Franklin Blvd. in Chicago. From 2001 through April 2013, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The scheme earned Sacred Heart millions of dollars in reimbursements from Medicare and Medicaid.
The prior convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, chief operating officers; and four other physicians. Sacred Heart closed in 2013 in the aftermath of a federal law enforcement search of the hospital and the arrests of principal executives and Dr. Kuchipudi.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team, a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
Evidence at Dr. Kuchipudi’s five-week trial revealed that he was one of Sacred Heart’s most prolific sources of patient referrals. In exchange for his referrals, Sacred Heart provided Dr. Kuchipudi with free labor in the form of a physician, physician assistants and nurse practitioners. The free labor was provided not only inside Sacred Heart but also in Chicago-area nursing homes where many of Dr. Kuchipudi’s patients resided. Sacred Heart allowed Dr. Kuchipudi to bill Medicare and Medicaid for the services of the physician assistants and nurse practitioners as if he employed them himself.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Mr. Hammerman and Assistant U.S. Attorneys Diane MacArthur, Kelly Greening and Brian Wallach.
North Park Gang Member Sentenced to 11 years in Prison for His Leadership Role in a Racketeering Conspiracy Involving Sex Trafficking and ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – August 15, 2016
Assistant U.S. Attorneys Alessandra P. Serano (619) 546-8104 or Joseph J.M. Orabona (619) 546-7951
SAN DIEGO, CA – A member of the Black Mob/Skanless Enterprise, which consisted of two North Park-based criminal street gangs, was sentenced to 11 years in prison today for his leadership role in a racketeering enterprise involving sex trafficking of minors and adults as well as assault and robbery.
Aaron Dwayne Pittman, aka “Q-Tip” or “Lil’ Q-Tip,” acting as a pimp, supervised, managed, and maintained adult females as they engaged in prostitution in San Diego, Phoenix, Orlando, Honolulu, and other cities throughout the United States. He was sentenced on the charge of RICO conspiracy before U.S. District Court Judge John A. Houston.
As detailed in his plea agreement, Pittman, a member of the Black Mob criminal street gang, conspired with other members of the Black Mob/Skanless Enterprise from at least the late 1990s through December 2013 to engage in a pattern of racketeering activities, including sex trafficking, robbery, and assault, in San Diego County and elsewhere in the United States. In carrying out the conspiracy, Pittman purchased flights, posted online ads, and promoted prostitution of females working for him – which Pittman referred to as “Team Tip.” As part of the conspiracy, Pittman admitted he robbed one of his prostitutes and forcefully assaulted another individual outside of a night club in San Diego. Pittman also admitted that the Black Mob/Skanless Enterprise enriched its members through recruiting and maintaining minor and adult females to work as prostitutes.
In imposing the 11-year sentence, Judge Houston stated that Pittman’s conduct was “not victimless criminal activity.” Judge Houston also noted that Pittman made a “lavish living out of pimping” and that Pittman had “little regard for the women who [he] controlled.” In addition to sentencing Pittman to 11 years in prison, Judge Houston also ordered the forfeiture of several vehicles, computers, other electronic devices, and pimp-related paraphernalia (i.e., ornate cups known as “pimp cups” which are commonly possessed by pimps as symbols of their status). Following his release from prison, Pittman will be placed on three years of supervised release.
“Sex trafficking is a crime that has long-lasting and devastating effects on the women and girls who are controlled by pimps like Mr. Pittman,” said U.S. Attorney Laura Duffy. “The 11-year sentence imposed for one of the leaders of the Black Mob criminal street gang demonstrates the seriousness of this crime and will hopefully deter other criminal street gangs from engaging in such activity.”
“This sentence sends a message that lives are not to be bought and sold,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI, along with our partners, work tirelessly to rescue those forced into this modern day slavery and hold accountable those who wish to profit from the abuse of others. If you have information about human trafficking, we urge you to contact the Child Exploitation Task Force/San Diego FBI at 858-320-1800; or the National Human Trafficking Resource Center at 1-888-373-7888.”
The federal racketeering statute known as “RICO” historically has been used to prosecute mobsters and organized crime, but federal prosecutors have been using the statute on street gangs in recent years because the gangs are increasingly acting as organized criminal enterprises especially in sex trafficking and prostitution.
This case was the result of the collaborative work by the Federal Bureau of Investigation’s Child Exploitation Task Force and the San Diego Police Department.
DEFENDANT Criminal Case No. 13CR4510-JAH
Aaron Dwayne Pittman (1) Age: 34 San Diego, CA
aka “Q-Tip,” “Lil’ Q-Tip”
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 1962(d) B Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum penalties: 20 years in prison, $250,000 fine, 3 years of supervised release.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Nitro meth dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Nitro man pleaded guilty today to a federal methamphetamine charge, announced United States Attorney Carol Casto. Shawn Keathley, 26, entered his guilty plea to distribution of methamphetamine.
Keathley admitted that on March 20, 2014, he sold methamphetamine to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place in the parking lot of a restaurant in Cross Lanes. Keathley further admitted to having distributed methamphetamine for approximately five months in the Nitro area.
Keathley faces up to 20 years in federal prison when he is sentenced on November 30, 2016.
The Metropolitan Drug Enforcement Network Team, the Kanawha County Sheriff’s Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Milwaukie Man Sentenced to Prison for Stealing from his Disabled CousinRead the Press Release
PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, was sentenced to 30 months’ imprisonment for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 68, was sentenced by U.S. District Court Judge Anna Brown on Monday for his commission of wire fraud that was ongoing for more than 22 years. Braun was also ordered to pay $573,604 restitution and serve a three-year term of supervised release.
According to court records, prior to 1984, Braun’s cognitively-disabled cousin, A.M., was residing with his parents in California. A.M.’s father was a retired Navy commander, and had purchased an annuity through the Defense Finance and Accounting Services (DFAS) on behalf of A.M. in the event of the father’s death. In 1984, when A.M. was 22 years-old, both of A.M.’s parents died within a few months of each other. Braun, then 37 years old, was appointed as the legal guardian of A.M., and brought A.M. to Oregon. As A.M.’s legal guardian, Braun became the recipient of the DFAS annuity payments on A.M.’s behalf, and was required to use the payments for A.M.’s care, and to notify DFAS if he was no longer A.M.’s guardian.
Shortly after bringing A.M. to Oregon in 1984, defendant placed A.M. in the Fairview Training Center, and defendant thereafter had limited contact with him. Social service notes from 1984 state that "The Brauns are [A.M.’s] only family and are very concerned and active people." Case-worker notes in 1989 state that Braun had not been very involved with A.M.
In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian. Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care. Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments directly into Braun’s bank account. As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account, with the payments ranging from $1,500 to $2,700.
Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.
A.M. has resided in residential facilities for the past 30 years with only Social Security benefits as income.
According to court records, A.M.’s current guardian was alerted to the fraud when A.M. received a notice from the Internal Revenue Service advising A.M. that taxes were owed on A.M.’s income. After further inquiry, the guardian learned of the substantial annuity payments that A.M. had not received and notified police.
Braun pleaded guilty to the theft in March and argued for a probationary sentence with home detention.
In its court filings, the government argued for a prison sentence, stating that Braun’s criminal conduct was ongoing for more than 22 years, and that since his guardianship of A.M. was terminated in 1990, he had stolen his cousin’s benefits more than 250 times as he repeatedly converted A.M.’s funds to his own use each month. The government further argued that Braun had taken advantage of his cousin’s vulnerability and inability to communicate while betraying the trust of his cousin, uncle, and DFAS.
The government further stated "one of a parent’s greatest fears is whether a surviving child will be properly cared for in the event of the parent’s death. Defendant’s uncle took great measures to ensure that his son – who would require life-long care – had sufficient funds and a trusted family member to care for him. In return, defendant abandoned his cousin financially as well as emotionally, at a time when A.M. had no other family to care for him."
During the sentencing proceedings, the court heard from A.M.’s current Guardian Care Manager who stated he was saddened by the many missed possibilities for A.M. because of his limited resources, and questioned the quality of life A.M. could have had if he had received the funds that were intended for his special needs.
While imposing the sentence, Judge Brown described the repetitive nature of the offense and stated that she had "not seen anything comparable" to Braun’s fraud during her years as a judge and seeing many fraudulent schemes. Judge Brown also stated that the extraordinary breach of trust warranted a prison sentence, and that a probationary sentence would not reflect the seriousness of the offense.
The case was investigated by the Washington County Sheriff’s Office, and prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Miami-Dade Resident Convicted of Illegally Possessing Ammunition After Shooting at the Liberty Square Housing ComplexRead the Press Release
A Miami-Dade resident was convicted by a jury in federal court for being a felon in possession of ammunition, after he shot an AK-47 firearm in the Liberty Square Housing Complex.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Division, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Willie Wilcher, 35, of Miami, was convicted after a three-day trial for being a felon in possession of ammunition and is scheduled to be sentenced before U.S. District Judge Donald M. Middlebrooks on October 11, 2016.
According to evidence presented at trial, on the afternoon of December 29, 2015, Wilcher walked into a convenience store in Liberty City with an AK-47 and was caught on video threatening to kill other individuals. Wilcher then left the store, got into his car, and drove across the street to the Liberty Square Housing Complex and immediately began shooting the firearm. Two nearby officers heard the gunshots and rushed to the scene, where law enforcement recovered multiple types of ammunition, including six 7.62 x 39 mm (AK47) shell casings in the road, and Wilcher’s car, which had crashed after knocking down a cement electrical pole. Officers also observed several bullet holes in the passenger side door and rear window of Wicher’s car, consistent with shots being fired from inside the vehicle. Fortunately, no one was injured during the shooting.
A subsequent investigation revealed that, when Wilcher exited his vehicle and fled the scene, he left behind a rental receipt in his sister’s name, a parcel addressed to him, his iPhone with his fingerprint, and his fingerprints on the driver’s side door of the car. He also left behind eleven 7.62 x 39 mm (AK47) shell casings in the vehicle. Wilcher was previously convicted of a felony and was not legally permitted to possess the recovered ammunition.
Mr. Ferrer commended the investigative efforts of the FBI and MPD. Mr. Ferrer also thanked the Miami Dade Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Miesha Shonta Darrough and Jonathan Kent Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Fraud Charges for Role in $4.2 Million Home Health Care SchemeRead the Press Release
A Miami man pleaded guilty today to charges related to his role in a $4.2 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ramon Collado Gonzalez, 56, pleaded guilty to one count of conspiracy to defraud the United States and make false statements in connection with a federal health care benefit program before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Sentencing has been scheduled for Oct. 24, 2016.
As part of his guilty plea, Collado Gonzalez admitted that in approximately March 2014, he was recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Golden Home Health Care Inc. (Golden), a home health care agency in Miami, to falsely and fraudulently represent himself to be Golden’s owner. Collado Gonzalez further admitted that in return for hiding Mildrey Gonzalez’s and Alfaro’s ownership interests, he received a monthly payment and periodic bonuses from them, despite the fact that he did not do any actual work for Golden. Instead, he simply signed Medicare applications and other documents for the purpose of facilitating submission of claims to Medicare and concealing Mildrey Gonzalez’s and Alfaro’s ownership interests, he admitted.
According to admissions made as part of the defendant’s plea, Golden received approximately $4.2 million from Medicare as a result of false and fraudulent claims submitted during the time Collado Gonzalez served as its nominee owner.
In June 2016, Mildrey Gonzalez and Alfaro were separately charged in an indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering, among other charges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Massac County Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 10, 2016, Brandon L. Watson, a/k/a "Dubb," 29, of Metropolis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Watson, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 151 months’ imprisonment, 4 years’ supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Watson was involved with co-defendant Gary Skinner and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner, who was residing in St. Louis, was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Watson was responsible for the distribution of more than 907 grams of ice. Skinner has pled guilty to his role in the methamphetamine conspiracy and is currently being held without bond pending an August 24, 2016, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Mammoth Lakes Doctor Pleads Guilty to Removing Archeological ResourcesRead the Press Release
FRESNO, Calif. — Jonathan Cornelius Bourne, 59, of Mammoth Lakes, pleaded guilty today to unauthorized transportation of archeological resources and unauthorized excavation, removal, damage, or defacement of archeological resources, Acting U.S. Attorney Phillip A. Talbert announced.
On September 17, 2015, a federal grand jury returned an indictment against Bourne, charging him with violations of the Archeological Resources Protection Act. Bourne had been collecting artifacts and archeological resources since 1994. He documented each item and has voluntarily turned over to the government an estimated 20,000 archeological items that he had collected from public lands. Bourne has agreed to pay $249,372 in restitution to the United States.
According to the plea agreement, on October 14, 2010, Bourne altered a small prehistoric site, cremation site, and burial cairns in the Humboldt-Toiyabe National Forest in Nevada. He removed glass trade beads and transported them to his home in Mammoth. On January 10, 2011, Bourne altered a large prehistoric site in Death Valley National Park and removed a tool made from a bighorn sheep horn and three incised stone tablets, which were found in Bourne’s home.
This case is the product of an investigation by the United States Forest Service, the National Park Service, and the Bureau of Land Management. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
Bourne is scheduled to be sentenced on November 7, 2016, by U.S. District Court Judge Lawrence J. O’Neill. Bourne faces a maximum statutory penalty of two years in prison and a $20,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Justice Department Settles Immigration-Related Discrimination Claim Against San Diego Staffing CompanyRead the Press Release
The Justice Department reached an agreement today with TEG Staffing Inc., also known as Eastridge Workforce Solutions, a temporary staffing agency headquartered in San Diego, to resolve allegations that their Mira Mesa, California, office discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that from at least March 2014 until at least September 2015, Eastridge had a pattern or practice of requesting specific immigration documents from non-U.S. citizens for the Form I-9 and E-Verify processes. In contrast, Eastridge allowed U.S. citizens to present whichever valid documents they wanted to present to prove their work authorization. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present from the Lists of Acceptable Documents to prove their work authorization, such as a driver’s license and unrestricted Social Security card. It is unlawful for an employer to limit employees’ choice of documentation because of their citizenship or immigration status.
Under the terms of the settlement agreement, Eastridge will pay $175,000 in civil penalties, and among other provisions, will undergo department monitoring and review of its processes for verifying the work authorization of newly hired employees.
“Staffing agencies and employers must comply with federal law to ensure they don’t discriminate against lawful, authorized U.S. workers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “Workers who get a job through a staffing agency should not confront unfair and unlawful barriers to joining the workforce and contributing to our economy.”
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.
This matter was handled by Equal Opportunity Specialists Tran-Chau Le and Abigail Olson, and Senior Trial Attorney Liza Zamd of the OSC.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they have been subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.
Eastridge Settlement
Justice Department Files Lawsuit Against United Airlines for Violating Employment Rights of U.S. Air Force ReservistRead the Press Release
WASHINGTON – The Justice Department filed a complaint today alleging that United Airlines Inc. violated the employment rights of U.S. Air Force Reservist Lieutenant Colonel Daniel Fandrei under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
According to the complaint, United violated USERRA by denying Fandrei employment benefits during his military leave that it grants to other employees for similar types of leave. Specifically, the complaint alleges that United failed to credit Fandrei with sick leave for his active duty deployment in 2012 and 2013. During that time, Fandrei was mobilized as a KC-10 pilot in Southwest Asia. Fandrei served his country as part of the Air Force from 1990 until 2016.
“Individuals who serve bravely in our armed forces should be treated fairly by their employers while they are actively deployed,” said Principal Deputy Associate Attorney General Bill Baer. “Through the department’s newly-created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our armed forces.”
“USERRA ensures that servicemembers like Lt. Col. Fandrei who answer our nation’s call to duty don’t return to civilian life and find their employment benefits denied and their civil rights violated,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce the law to safeguard the rights of those who defend our country and protect our freedom.”
“Lt. Col. Fandrei has made many sacrifices to serve our nation honorably, including spending months away from his job and family,” said U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and benefits, and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.”
The lawsuit filed by the United States seeks damages equal to the amount of Fandrei’s lost benefits caused by United’s failure to comply with USERRA. It also seeks an order requiring United to comply with all provisions of USERRA.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment prior to, during and following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. Under USERRA, the department has authority to represent a servicemember if the department is satisfied that the servicemember is entitled to the rights or benefits being sought.
Fandrei initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Illinois. The Justice Department has prioritized the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Complaint
Justice Department Files Lawsuit Against United Airlines for Violating Employment Rights of U.S. Air Force ReservistRead the Press Release
The Justice Department filed a complaint today alleging that United Airlines Inc. violated the employment rights of U.S. Air Force Reservist Lieutenant Colonel Daniel Fandrei under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
According to the complaint, United violated USERRA by denying Fandrei employment benefits during his military leave that it grants to other employees for similar types of leave. Specifically, the complaint alleges that United failed to credit Fandrei with sick leave for his active duty deployment in 2012 and 2013. During that time, Fandrei was mobilized as a KC-10 pilot in Southwest Asia. Fandrei served his country as part of the Air Force from 1990 until 2016.
“Individuals who serve bravely in our armed forces should be treated fairly by their employers while they are actively deployed,” said Principal Deputy Associate Attorney General Bill Baer. “Through the department’s newly-created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our armed forces.”
“USERRA ensures that servicemembers like Lt. Col. Fandrei who answer our nation’s call to duty don’t return to civilian life and find their employment benefits denied and their civil rights violated,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce the law to safeguard the rights of those who defend our country and protect our freedom.”
“Lt. Col. Fandrei has made many sacrifices to serve our nation honorably, including spending months away from his job and family,” said U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and benefits, and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.”
The lawsuit filed by the United States seeks damages equal to the amount of Fandrei’s lost benefits caused by United’s failure to comply with USERRA. It also seeks an order requiring United to comply with all provisions of USERRA.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment prior to, during and following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. Under USERRA, the department has authority to represent a servicemember if the department is satisfied that the servicemember is entitled to the rights or benefits being sought.
Fandrei initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Illinois. The Justice Department has prioritized the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
United Airlines Complaint
Jeffrey E. Thompson Sentenced for Conspiring to Violate District of Columbia Campaign Finance LawRead the Press Release
WASHINGTON - Jeffrey E. Thompson was sentenced today to three months of incarceration, to be followed by 90 days of home confinement, for his involvement in a scheme in which he and his companies secretly channeled about $3.3 million in illegal contributions to at least 28 political candidates and their campaigns.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Thompson, 61, of Washington, D.C., pled guilty on March 10, 2014, in the U.S. District Court for the District of Columbia, to two felony charges. One was a federal offense: conspiring to violate federal campaign finance laws and to submit false filings to the Internal Revenue Service. The other was a District of Columbia offense: conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance.
The plea agreement, which was contingent upon the Court’s approval, called for the Court to dismiss the federal charge against Thompson at sentencing on the condition that he cooperate with a broader investigation into illegal campaign spending. The plea agreement limited the period of incarceration for the federal charge to a period of up to 18 months of incarceration. Because Thompson complied with his obligations under the plea agreement, the charge was dismissed today by the Honorable Colleen Kollar-Kotelly.
The plea agreement limited the period of incarceration for the remaining District of Columbia offense to a maximum of six months of incarceration. In addition to periods of incarceration and home confinement, Judge Kollar-Kotelly ordered Thompson to pay the maximum $10,000 fine allowed by the District of Columbia offense. Also, following his prison time, he will be placed on three years of supervised release.
At sentencing today, the government noted that Thompson’s cooperation exposed a longstanding culture of corrupt spending in District of Columbia campaigns.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea, he admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012.
TCBA received millions of dollars under contracts with District of Columbia and federal government entities. DCHSI owned D.C. Chartered Health Plan, Inc. (Chartered), a corporation that contracted with the District of Columbia government to provide managed care services to a substantial number of District of Columbia residents. Chartered’s contract with the District of Columbia, paid primarily by the federal government, totaled about $300 million each year.
According to a statement of offense submitted at the time of Thompson’s guilty plea, Thompson secretly provided more than $1,445,000 for off-the-books, or “shadow campaigns,” on behalf of seven candidates seeking office in the District of Columbia from 2006 to 2011. The largest such amount was over $653,000 to pay for campaign activities of a candidate in the 2010 mayoral race. He also secretly spent more than $130,000 for a voter registration drive on behalf of one candidate and agreed to pay another candidate $200,000 - along with other benefits - to withdraw from the 2006 mayoral race. Thompson also entered into a $150,000 consulting agreement with the competing candidate on behalf of TCBA. Also, according to the statement of offense, between 2006 and 2011, Thompson utilized at least 75 conduits to make contributions to at least 15 mayoral and D.C. Council candidates in excess of $500,000.
From February 2008 through May 2008, according to the statement of offense, Thompson secretly channeled about $608,750 to fund a shadow campaign for a candidate running for President of the United States. Thompson also secretly provided $50,000 to help a civic organization pay for a lawsuit in Texas challenging the two-step voting process in that state, in which voters were allowed to vote twice, once in a primary and once in a caucus. He also provided $150,000 for a political demonstration organized by the civic organization in Washington, D.C. The funds for the lawsuit and the demonstration were to assist the campaign of the preferred presidential candidate. Also, between 2006 and 2012, Thompson utilized at least 32 conduits to make contributions to at least 13 federal candidates and a political action committee of at least $250,000.
In addition, after the federal investigation into campaign finance irregularities began in 2011, Thompson engaged in various efforts to obstruct the investigation.
Thompson is among 14 people who pled guilty to charges in a broader investigation related to federal and local political campaigns. He is among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Ellen Chubin Epstein and Lionel André, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Michael K. Atkinson and Special Assistant U.S. Attorney Jonathan P. Hooks, who represented the government at sentencing.
Internet Scammer Convicted of Telemarketing Fraud and Obstruction of JusticeRead the Press Release
SAVANNAH, GA: On August 12, 2016, after a week-long trial before U.S. District Court Judge William T. Moore, Jr., a federal jury convicted conman Stacy Paul Waddell, 44, of wire fraud, sale of counterfeit coins, and tampering with official proceedings.
According to the evidence presented at trial, Waddell and others acting at his direction littered the internet with advertisements offering to sell gold and silver coins at deeply discounted prices. Waddell received responses from dozens of people throughout the United States and abroad. Waddell then lied about availability of the coins and falsely promised quick delivery times to get customers to wire transfer money into bank accounts controlled by Waddell. After those payments were received, Waddell pocketed his victims’ funds and used them to gamble at casinos and purchase expensive clothes and other accessories. Waddell further lied to his victims when they would ask about the status of their unfulfilled coin orders. Additionally, Waddell knowingly sold counterfeit gold coins to at least one of his victims and then attempted to destroy those coins after a federal grand jury indicted him for selling fake gold. According to a forensic analysis, Waddell bilked his victims out of no less than $600,000 between 2013 and 2015.
Waddell is a serial scam artist whose criminal history in the Savannah area — much of which involves offenses of deceit and deception — stretches back to the late 1980s. In 1991, Waddell checks totaling nearly $5,000 on a closed account. In 1992, he staged multiple car accidents and falsely reported his car to have been stolen in order to obtain approximately $36,000 through fraudulent insurance claims. On more than a dozen occasions in 1993, Waddell forged checks totaling more than $7,300. In 1995, Waddell shoplifted electronic equipment, stole a U-Haul truck, and fled to Nevada before the U.S. Marshals Service located him eight months later. While serving his prison sentence for theft of the U-Haul vehicle, Waddell prepared and submitted false tax returns to the IRS using the names and personal identification information of other inmates. For that conduct, Waddell was convicted in 2004 of making false claims to a federal agency. Following his release from prison, Waddell quickly violated the terms of his supervision, and the court imposed a maximum sentence. The gold and silver coin scheme that led to his most recent conviction was launched shortly after Waddell regained his liberty in 2011.
On each of the four telemarketing-related wire fraud counts, Waddell faces a term of imprisonment of up to 25 years, a fine of up to $250,000, and three years of supervised release. He also faces 20 years in prison for obstructing justice and 15 years of imprisonment for selling counterfeit coins. There is no parole in the federal system.
United States Attorney Edward J. Tarver stated, “For more than two decades, Stacy Waddell preyed on hardworking, innocent people in the Southern District of Georgia and in other judicial jurisdictions. Through his latest scam, Waddell used the internet and fake coins to steal hundreds of thousands of dollars, much of which he spent on himself and lost gambling at various casinos. Predators like Waddell should be taken off of the streets. The Department of Justice and this U.S. Attorney’s Office will continue its work with our federal and state law enforcement partners to ensure that happens.”
The United States Secret Service and United States Postal Inspection Service investigated the case with assistance from the Pooler Police Department and Armstrong State University Police Department Cyber Forensics Division. Assistant United States Attorneys Brian T. Rafferty and Theodore S. Hertzberg prosecuted the case and represented the United States at trial. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Georgia man sentenced to Federal prison for methamphetamine traffickingRead the Press Release
CHARLESTON, W.Va. – A Georgia man who was caught with methamphetamine and a stolen pistol in a Summersville hotel was sentenced today to two years and eight months in federal prison, announced United States Attorney Carol Casto. Daniel Branden O’Dell, 34, previously pleaded guilty to possession with intent to distribute methamphetamine.
On October 30, 2015, a Nicholas County Deputy Sheriff responded to a disabled vehicle call on U.S. Route 19. The vehicle, a 2015 BMW, had been reported stolen from Atlanta and was unoccupied when the officer arrived. After a brief investigation, officers learned that O’Dell had wrecked the vehicle and gotten a ride to a hotel in Summersville. When police arrested O’Dell at his hotel room, they found methamphetamine and a loaded .45 caliber pistol that had been stolen in Cobb County, Georgia. O’Dell admitted to transporting the methamphetamine from Georgia to sell in Pennsylvania. He also admitted to being a felon and told police he had purchased the stolen firearm in Georgia. O’Dell has a lengthy criminal history that includes numerous theft and drug-related felony convictions.
This case was investigated by the Nicholas County Sheriff’s Department and the Summersville Police Department. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun violence. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Former Oregon State Police Forensic Scientist Pleads Guilty to Stealing Controlled Substances by Fraud and DeceptionRead the Press Release
PORTLAND, Ore – U. S. Attorney Billy J. Williams, Deschutes County District Attorney John Hummel and the Oregon District Attorneys Association, announced that former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon, pleaded guilty today in federal court, to using her position as a Forensic Scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Facts of the crime are set forth in court documents filed today. This prosecution resolves any potential state charges stemming from this criminal conduct.
Larsen appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of obtaining a controlled substance by misrepresentation, fraud and deception. U. S. District Judge Anna J. Brown presided over Larsen’s guilty plea and will sentence her on December 12, 2016 at 2:00 p.m. The parties are jointly recommending the Judge impose a 36-month term of incarceration followed by a term of supervised release with conditions, including community service.
The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. Assistant U.S. Attorney Pamala R. Holsinger and Special Assistant U.S. Attorney Stephen H. Gunnels (Deschutes County District Attorney’s Office) are prosecuting the case. Multnomah County Chief Deputy District Attorney Donald N. Rees served as a Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorneys Association.
Former IRS Employee Sentenced to over a Year in Prison for Filing Multiple Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Kimberly English, 53, of Fresno, today to 15 months in prison and ordered her to pay $33,780 in restitution to the IRS for filing a fraudulent tax return by an employee of the United States and making an opportunity for a person to defraud the United States, Acting United States Attorney Phillip A. Talbert announced.
According to court documents and evidence at trial, English was an employee of the IRS in Fresno when she prepared and filed her own fraudulent tax returns for tax years 2011 and 2012. She also prepared and filed tax returns for others, including her daughter and her daughter’s boyfriend for the same tax years. The returns identified in court included fraudulent claims for false deductions and credits, such as the number of dependents and eligibility for the child tax credit. The false returns allowed English and other taxpayers to obtain undue tax refunds or improperly reduce their tax liabilities.
“When IRS employees file fraudulent tax returns, the public’s confidence in the IRS is eroded. This unethical and criminal behavior by an IRS employee with knowledge of the system will never be tolerated and will be investigated and prosecuted to the fullest extent of the law,” stated Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration.
Judge Drozd ordered English to begin serving her sentence on September 21, 2016.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorneys Patrick R. Delahunty and Angela L. Scott prosecuted the case.
Former Canton resident sentenced to 13 years in prison for tax fraudRead the Press Release
Two people were sentenced to prison for their roles operating a $4.8 million fraud conspiracy involving nearly 1,000 people who resided in Northeast Ohio, said U.S. Attorney Carole S. Rendon and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Allen D. Miles, 58, of Little Rock, Arkansas, formerly of Canton, was sentenced to more than 13 years in prison. He previously was found guilty of multiple counts, including conspiracy to commit wire fraud and aggravated identity theft.
Zinara M. Highsmith, 37, of Fayetteville, Georgia, was sentenced to 42 months in prison. She previously pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
“These defendants’ preyed on faith – people’s faith in their ministers and faith in their government,” Rendon said. “These defendants betrayed that faith to get rich and now will be held accountable.”
“Today’s sentencings should send a clear message to would-be criminals -- you will be caught and you will be punished,” Enstrom said. “Identity theft is a contemptible modern-day scourge and we will continue to pursue criminals who prey on innocent victims.”
Highsmith filed approximately 2,750 false tax returns containing false refund claims of more than $4.8 million. Approximately 964 false claims were made on behalf of people living in Northeast Ohio, according to court documents.
Highsmith formed the Atlanta-based tax-preparation business WE XL LLC in 2010. From March 2011 through July 2011, Highsmith partnered with Miles in a scheme to file false tax returns. Miles’ role was to recruit and obtain personal identification information from claimants and to provide that information to Highsmith, who was responsible for the preparation of the false returns. Miles did this in large part by inducing other ministers and church leaders in various states, including Ohio, to solicit members of their congregations to apply for benefits under the so-called government stimulus program, according to court documents.
Some of the claimants were residents of Northeast Ohio who provided their personal identification information to a pastor in Canton and to a relative of the Canton pastor. They, in turn, forwarded the information to Miles, according to court documents.
As instructed by Miles, the claimants were told they could receive their “stimulus” payment by direct deposit or on a debit card. Miles told pastors to request a $50 “donation” from each claimant, according to court documents.
Miles forwarded the claimants’ personal identification information to Highsmith to use in preparing false tax returns. Highsmith never had any contact with a claimant or any of the other pastors used by Miles to recruit or enlist claimants, according to court documents.
Highsmith instructed associates, including Ve Sayavong, of Jonesboro, Georgia, how to prepare false income tax returns using Turbo Tax software, which they did by reporting false occupations and wage income, and by falsely claiming a variety of tax credits, including the AOC Education Credit, the Making Work Pay Credit and the Earned Income Credit, according to the court documents.
All of the returns requested that $125 be deposited into a bank account controlled by Miles and $275 be deposited into a bank account controlled by Highsmith, according to the information.
Based on the false claims, the IRS issued refunds totaling more than $3.9 million, with more than $500,000 from those refunds going to bank accounts controlled by Highsmith, according to court documents.
Sayavong was previously sentenced to nearly three years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Carmen Henderson following an investigation by the Internal Revenue Service.
Five Individuals Have Been Sentenced to Federal Prison on Drug Charges in Spirit Lake ConspiracyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 8, 2016, Winterhawk Leonard Oldrock, 37, Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson to serve 7 years in prison for Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance. Judge Erickson also sentenced Oldrock to serve 3 years of supervised release and to pay a $100 special assessment to the Crime Victims’ Fund.
Oldrock and four other defendants have been convicted for conspiring to distribute methamphetamine in Devils Lake ND, as well as within the Spirit Lake Reservation. The following individuals have previously been sentenced for their involvement in this conspiracy:
• Nestor Lopez Jr., 26, Devils Lake, 10 ½ years
• Theresa Rose Lopez, 29, Devils Lake, 4 years
• Janet Joyce Oldrock, 34, Fort Totten, 7 years
• Fernando Lopez, 19, Devils Lake, 3 years
U.S. Attorney Myers stated "this case is a great example of state, local, and federal agencies working together to address a problem that continues to carry a devastating impact on the families and communities in this state, including those of the Spirit Lake Nation. Hopefully this sends a message that serious consequences await those who chose to foster this devastation."
This case was investigated by the Bureau of Indian Affairs-Fort Totten, the Lake Region Narcotics Task Force, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Brett Shasky prosecuted the case.
Final Defendant in RICO Indictment Targeting East Coast Crips Street Gang Pleads Guilty to Federal RICO and Narcotics OffensesRead the Press Release
LOS ANGELES – The 16th and final defendant in a racketeering indictment that targeted the East Coast Crips (ECC) street gang, which claims a large swath of territory in South Los Angeles, pleaded guilty today in United States District Court to federal charges.
Gregory Sutton Jr., 40, of South Los Angeles, pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to distribute marijuana and being a felon in possession of a firearm. As a result of the guilty pleas, Sutton, who was an associate of the gang, faces a statutory maximum sentence of 35 years in federal prison when he is sentenced by United States District Judge Beverly Reid O’Connell on November 7.
Previously in this case, 15 other ECC members and associates have pleaded guilty, with most of them admitting to being part of the RICO conspiracy. The ECC indictment was the third in a series of racketeering indictments brought by federal grand juries following investigations by the FBI into the criminal activities of Blood and Crips gangs that claim territories in Los Angeles
“Criminal street gangs make their livelihood by distributing narcotics and preying on the people that live in the neighborhoods they claim as territory,” said United States Attorney Eileen M. Decker. “Today’s guilty plea marks the end of one phase of the prosecution of the East Coast Crips, but my office will continue to bring cases like this one seeking to cripple street gangs operating in our community.”
The ECC racketeering indictment arises out of an investigation that started in March 2011 when the FBI and the Los Angeles Police Department (LAPD) began looking into the racketeering activities of the gang, which claims a large swath of South Los Angeles running from 1st Street to 190th Street, between the 110 Freeway and Central Avenue. The ECC gang is believed to have approximately 850 members and is comprised of multiple “sets.” According to various court documents, members of the gang engage in a variety of violent crimes, home invasion robberies, firearms violations and the sale of narcotics, including crack cocaine and marijuana. According to court documents, members of the gang routinely engage in the distribution of crack cocaine near elementary schools.
“The successful outcome of this case is the result of a strong partnership among federal and local law enforcement officials and prosecutors utilizing a variety of statutes including RICO,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to work with local police to identify gangs whose members terrorize their communities with violence and intimidation to further their criminal enterprise.”
Previously in this case, Rashaad Howard, a senior member of the ECC and the lead defendant in the indictment, pleaded guilty to conspiring to violate RICO and possession with the intent to distribute crack cocaine. Howard, 38, of South Los Angeles, was sentenced earlier this year to five years in prison by Judge O’Connell.
Many of the other 14 defendants in the indictment who have pleaded guilty have been sentenced to prison terms of as long as 80 months. In addition to Sutton, three other defendants are pending sentencing.
The case against ECC is being prosecuted by Assistant United States Attorney Reema El-Amamy of the Organized Crime Drug Enforcement Task Force.
Federal Court in South Carolina Orders Robert S. Leben and Amy L. Leben to Pay over $10 Million in Restitution and Penalties in CFTC Anti-Fraud Enforcement ActionRead the Press Release
Contact Person: Dennis Holden (202) 418-5088 & Steven Adamske (202) 418-5080
In a Parallel Criminal Action, Robert Leben Was Sentenced to 40 Months in Prison
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Chief Judge Terry L. Wooten of the U.S. District Court for the District of South Carolina entered a summary judgment Order against Defendants Robert S. Leben and Amy L. Leben of Columbia, South Carolina, in a CFTC enforcement action charging the Lebens with misappropriating pool participant funds and failing to register as commodity pool operators (see CFTC Press Release 6881-14). In addition, the CFTC Complaint charged Robert Leben with issuing false statements and fraudulently soliciting pool participants by guaranteeing returns and the safety of each pool participant’s principal investment. The Complaint also charged Amy Leben with improperly accepting and commingling pool participant funds.
The Court’s Order requires the Lebens to pay restitution to victims in the amount of $2,551,596, disgorgement in the amount of $109,787, and a civil monetary penalty in the amount of $7,654,788. The Order further imposes permanent trading and registration bans and prohibits the Lebens from violating the anti-fraud and registration provisions of the Commodity Exchange Act and CFTC Regulations, as charged.
The CFTC’s Complaint had alleged that between August 2008 and March 12, 2014, the Lebens, by and through the commodity pool Structured Finance Group Corporation (SFG), fraudulently solicited and accepted at least $3.2 million from at least 12 members of the general public to trade commodity futures contracts through a pool; that the Lebens traded only a portion of the pool participant funds in futures accounts in the name of Amy Leben, as well as in the name of the pool; and that they sustained net losses for the majority of the period. The Court’s Order finds that the Lebens misappropriated at least $2 million of the pool participant investor funds for their personal use, while representing to investors that the money would be used by SFG to purchase U.S. Treasury debt obligations and commodities. According to the Court Order, the Lebens used the misappropriated funds to purchase a house, vacations, a pool, an irrigation system, a car, cosmetic surgery, as well as to provide funds to family members and to pay everyday living expenses.
The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
Robert Leben Indicted on Criminal Charges, Ordered to Pay Restitution to Victims, and Sentenced to Prison
On December 16, 2014, Robert Leben was indicted on criminal charges arising from the same fraudulent conduct that was the subject of the CFTC’s action (see United States v. Robert S. Leben, No. 3:14-cr-858 (D.S.C.)). On October 8, 2015, Robert Leben pled guilty and on April 14, 2016, was sentenced to 40 months in prison and ordered to pay restitution to victims of the fraud.
The CFTC appreciates the cooperation of the South Carolina Attorney General’s Office and the Office of the U.S. Attorney for the District of South Carolina in this matter.
The CFTC Division of Enforcement staff members responsible for this case are Amanda Burks, Michael Loconte, Erica Bodin, Elizabeth Davis, and Rick Glaser.
* * * * * *
CFTC’s Commodity Pool Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Commodity Pool Fraud Advisory, which warns customers about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Employee of a Silver Spring Non-Profit Sentenced to over 2 Years in Federal Prison for Stealing over $270,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Monica Kendrick, age 47, of Walkersville, Maryland, today to 27 months in federal prison, followed by three years of supervised release, for wire fraud arising from a scheme in which she embezzled money from her employer. Judge Chuang also ordered Kendrick pay restitution of $271,921.06, the total amount of loss resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Ebert of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, In May 2014, Kendrick was hired as the office and finance administrator for a non-profit organization located in Silver Spring, Maryland, which acted as a trade association for the herbal products industry. Almost immediately after being hired, Kendrick began stealing money from the company. From May 2014 to November 2015, Kendrick wrote over 80 unauthorized checks from the company and deposited the fraudulent checks into a bank account. She then withdrew the illicit proceeds from the account.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.
District Man Sentenced to 20 Years to Life in Prison for 1997 Murder of Woman in Northwest WashingtonRead the Press Release
WASHINGTON – John F. General, 52, formerly of Washington, D.C., was sentenced today to 20 years to life in prison for the 1997 murder of a woman at an apartment building in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
General was found guilty by a jury in December 2014, following a trial in the Superior Court of the District of Columbia, of second-degree murder. He was sentenced by the Honorable Lynn Leibovitz.
According to the government’s evidence, on the morning of Nov. 26, 1997, the partially clothed body of the victim, Deborah McKinney, was discovered in a stairwell of an apartment building in the 900 block of M Street NW. The District of Columbia’s Office of the Chief Medical Examiner determined that Ms. McKinney, 38, was killed by means of asphyxiation.
Although there were no eyewitnesses to this murder, the government’s evidence showed that Ms. McKinney encountered the defendant and that a violent encounter ensued. Based on the evidence, General pressed his hand or other body part over Ms. McKinney’s mouth and applied life-taking pressure to her mouth, chest and neck. During this assault, she fought to save her life. In doing so, she injured General, causing him to bleed on her shirt. However, she was no match for the defendant, and he killed her by cutting off the air she needed to live.
General was identified as a suspect in January 2010 through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. General’s DNA was in the system as a result of an earlier conviction in a case in the District of Columbia. DNA testing confirmed that his blood and semen were on the scene of Ms. McKinney’s attack. He was arrested in May of 2010.
“This cold case was revived when a DNA hit connected John General to the long-ago murder,” said U.S. Attorney Phillips. “This prosecution shows the power of DNA and other forensic evidence to secure justice even after many years have passed.”
“It is our hope that this sentencing brings some sort of closure to the victim's family and friends after so many years,” said Chief Lanier.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner and the District of Columbia Department of Forensic Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Sandra Lane, Mia Beamon, Jason Manuel and Benjamin Kagan-Guthrie, and Victim/Witness Security Specialists David Foster and Katina Adams.
Finally, they commended the work of Assistant U.S. Attorneys Sharon Donovan and Adrienne Dedjinou, who prosecuted the case.
Derek Galanis Pleads Guilty in Manhattan Federal Court to Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DEREK GALANIS pled guilty today to manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company. GALANIS pled guilty to conspiracy to commit securities fraud and securities fraud before U.S. Magistrate Judge Kevin Nathaniel Fox.
U.S. Attorney Preet Bharara said: “As he admitted in his guilty plea today, Derek Galanis conspired to have Gerova issue more than $70 million worth of shares for no legitimate business purpose and to hide Jason Galanis’s control of those shares. Galanis and his co-conspirators then artificially manipulated Gerova’s stock price so that they could secretly cash out for massive profits. Derek Galanis is the fourth person to plead guilty in this stock fraud scheme that left many victim investors holding worthless shares.”
According to the allegations contained in the Indictment filed against DEREK GALANIS and his co-conspirators, and statements made in related court filings and proceedings[1]:
The Gerova Scheme
From 2009 to 2011, DEREK GALANIS, along with his co-conspirators Jason Galanis, John Galanis, Jared Galanis, Gary Hirst, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on the co-conspirators, without adequate disclosure of Jason Galanis’s role in directing the transactions or the benefits received by Jason Galanis and his co-conspirators.
As a part of the scheme to defraud, Jason Galanis obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for Jason Galanis. DEREK GALANIS, a longstanding friend of Shahini’s, recruited Shahini to the scheme, telling Shahini in an email, “All we need is a foreign national we trust which is where you come in my friend.” DEREK GALANIS, Jason Galanis, John Galanis, Jared Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, John Galanis and Jared Galanis, with DEREK GALANIS’s knowledge, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts through manipulative trading, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock. In total, DEREK GALANIS and his co-conspirators sold nearly $20 million worth of Gerova shares from the Shahini Accounts for their own benefit.
In contrast, unsuspecting Gerova shareholders were left with a worthless investment. More specifically, in March 2011 the New York Stock Exchange (“NYSE”) halted trading of Gerova and in April 2011 Gerova asked the NYSE to delist its securities. By November 2, 2011, Gerova’s stock price had bottomed out at $0.00 per share.
* * *
DEREK GALANIS, 44, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Jason Galanis, 46, pled guilty on July 21, 2016, to two counts of conspiracy to commit securities fraud, each carrying a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense.
John Galanis, 73, pled guilty on July 20, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Gavin Hamels, 40, pled guilty on March 22, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Trial against defendants Gary Hirst and Jared Galanis is scheduled for September 12, 2016, on charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, and with regard to Jared Galanis, on charges of investment adviser fraud and misprision of a felony. Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to those defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 is 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, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (Gary Hirst, Jared Galanis, and Ymer Shahini), the charges described herein constitute only allegations.
Derby Man Sentenced to Prison for Distributing Prescription Narcotics, Cocaine and SteroidsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK PECORA, 55, of Derby, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing prescription narcotics, cocaine and steroids.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that, in addition to steroids, PECORA and others were distributing prescription pills and cocaine.
PECORA was arrested on April 29, 2015. On May 1, 2015, investigators searched his residence and seized numerous prescription narcotic pills, steroids, 350 grams of cocaine, two .308 caliber rifles and two 12 gauge shotguns.
On January 25, 2016, PECORA, a previously convicted felon, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone. In pleading guilty, also admitted that he unlawfully possessed firearms.
PECORA has been detained since his arrest.
On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.