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10 August 2016
MS-13 Gangsters Sentenced to Life in Prison for MurderRead the Press Release
ALEXANDRIA, Va. – Jose Lopez Torres, 26, of Falls Church, and Jesus Alejandro Chavez, 25, of Alexandria, were both sentenced today to life in prison for their roles in two murders and one attempted murder in Northern Virginia, among other charges.
According to court records and evidence presented at trial, on Oct. 1, 2013, Torres, along with co-conspirator Jaime Rosales Villegas and others drove to Gar-Field High School in Woodbridge to murder a fellow gang member. However, one of the gang members in the car had not only alerted police to the murder plot, he also recorded phone calls and a meeting during which gang members, including Torres, Villegas, and Pedro Anthony Romero Cruz, who participated from prison on a contraband cell phone, planned the murder. The gang members’ vehicle was under surveillance that night, the victim had been warned to not be at school, and the informant was wearing a body wire.
According to court records and evidence presented at trial, on Oct. 7, 2013, Torres, Omar DeJesus Castillo, Juan Carlos Marquez Ayala, Araely Santiago Villanueva, Jose Del Cid, and three others murdered fellow gang member Nelson Omar Quintanilla Trujillo. The gang believed Trujillo was a snitch, and so the gang members lured him to Holmes Run Park in Falls Church, and brutally killed him by stabbing him with knives and slashing him with a machete. When they were done they buried Trujillo in a shallow grave. Several gang members returned a short time later and, with the assistance of Alvin Gaitan Benitez, reburied the body of Trujillo.
According to court records and evidence presented at trial, on June 19, 2014, Jesus Alejandro Chavez, along with Del Cid and Genaro Sen Garcia murdered Julio Urrutia. Several gang members including Chavez, who had been released from prison a mere eight days earlier, were out looking for rival gang members when they approached a group of young men, flashed their gang signs, and challenged them about their gang affiliation. During the exchange Chavez pulled out a gun and shot Urrutia in the neck at point blank range. Urrutia died from the gunshot wound two days later.
A total of 13 defendants were charged in this case. Of those, six defendants went to trial and were convicted of all charges on May 9. Six defendants pleaded guilty prior to trial, and one defendant was severed from the case and will have a separate trial at a later date. Each defendant convicted at trial faces a mandatory sentence of life in prison. Please see the table at the end of this press release for additional information on each defendant.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Chief of Police, Fairfax County Police Department; Earl L. Cook, Chief of Police, Alexandria City Police Department; and Barry M. Barnard, Chief of Police, Prince William County Police Department, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case. The case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department’s Gang Investigations Unit, the Prince William County Police Department, and the Alexandria City Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Pedro Anthony Romero Cruz
30, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
30 years in prison
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
Life sentence plus 30 years
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
272 months in prison
Juan Carlos Marquez Ayala
23, Falls Church
Murder in Aid of Racketeering
Life sentence
Omar Dejesus Castillo
27, Arlington
Two Counts of Murder in Aid of Racketeering
Two life sentences
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
September 9
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
September 9
Araely Santiago Villanueva
20, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
September 9
Jose Del Cid
20, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
26, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
Two life sentences plus 10 years
Genaro Sen Garcia
21, unknown
Murder in Aid of Racketeering
Life sentence
Long Island Investment Advisor and Law Firm Attorney Indicted in Insider Trading SchemeRead the Press Release
A two-count indictment was unsealed this morning in federal court in Central Islip, New York, charging Tibor Klein, the founder and president of investment advisory firm Klein Financial Services (Klein Financial); and Robert Schulman, a former partner in a Richmond-based global law firm (the law firm), with securities fraud and securities fraud conspiracy.[1] Schulman tipped Klein about the pending merger between Pfizer, Inc. (Pfizer) and King Pharmaceuticals, Inc. (King) that Schulman had learned through his representation of King, and Klein used that material non-public information to engage in securities transactions ahead of the merger announcement. Klein will be arraigned later today before United States Magistrate Judge Gary Brown at the U.S. Courthouse, 100 Federal Plaza, Central Islip, New York. Schulman’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the Albert V. Bryan U.S. Courthouse, 401 Courthouse Square, Alexandria, Virginia.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“As alleged, Robert Schulman and Tibor Klein were licensed professionals who used their positions of trust to fraudulently enrich themselves. Schulman, an attorney, violated the trust and confidence of his client for personal gain by passing along his client’s sensitive and economically valuable information to Klein, his investment advisor, and Klein exacerbated this crime by using the fraudulently-obtained information to trade in a number of his clients’ accounts,” stated United States Attorney Capers. “The charges and arrests announced today reflect our steadfast commitment to hold accountable licensed professionals who use their positions to defraud the financial markets.” Mr. Capers thanked the Securities and Exchange Commission (SEC) for their cooperation and assistance during the investigation.
“These individuals allegedly used proprietary information available solely through their trusted positions for an unfair advantage in the financial market to satisfy their appetite for money. The arrest of Robert Schulman and Tibor Klein exemplifies the commitment of the United States Postal Inspection Service and its law enforcement partners to maintain a fair trading environment for all investors,” stated Inspector-in-Charge Bartlett.
As detailed in the indictment, in May 2009, Schulman began representing King, a pharmaceutical company then based in Bristol, Tennessee, in a patent litigation in the Western District of Virginia on behalf of the law firm. Between July 12, 2010 and August 4, 2010, through his representation of King, Schulman learned of a pending merger between King and Pfizer. On the weekend of August 13, 2010, Klein traveled to Schulman’s residence in McLean, Virginia, to discuss Schulman’s investment portfolio. During that trip, Schulman revealed to Klein that there was a pending merger between King and Pfizer. The following Monday, August 16, 2010, Klein began purchasing King stock for himself, Schulman, and other clients of Klein Financial. Over the next month, Klein purchased more than $585,000 of King stock for himself and his clients.
In addition, on August 16, 2010, Klein informed a registered broker in Florida that he had obtained inside information regarding the King-Pfizer merger and directed the broker to purchase King stock and call options.[2] Between August 16, 2010 and August 23, 2010, the registered broker purchased both King stock and call options. On October 12, 2010, Pfizer’s acquisition of King was publicly announced. The same day, Klein sold all of the King shares he had acquired and generated a profit of more than $300,000 for himself, Schulman, and Klein Financial clients. Also, on October 12, 2010, at Klein’s direction, the broker exercised all of the unexpired call options and sold all of the King stock the broker had purchased, generating a profit of more than $100,000, which the broker split with Klein.
* * *
If convicted, Klein and Schulman each face a maximum sentence of twenty years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David Pitluck is in charge of the prosecution.
* * *
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.
The Defendants:
TIBOR KLEIN
Age: 43
Residence: Melville, New YorkROBERT SCHULMAN
Age: 58
Residence: McLean, VirginiaE.D.N.Y. Docket No. 16-CR-442
[1] The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[2] A call option is the right to purchase 100 shares of a stock at a predetermined price before a deadline in exchange for a premium.
Lincoln Military Housing Agrees to Pay $200,000 to Settle Servicemembers Civil Relief Act ViolationsRead the Press Release
Case Marks First Time the Justice Department has Filed Suit Alleging Unlawful Eviction of Active-Duty Servicemembers
The Justice Department announced today that Lincoln Military Housing, which owns and operates dozens of on-base and off-base military housing communities throughout Southern California, has agreed to pay $200,000 to resolve allegations that it unlawfully evicted active-duty servicemembers and their families by obtaining default judgments against them, in violation of the Servicemembers Civil Relief Act (SCRA). This is the first case that the Justice Department has filed alleging the unlawful eviction of servicemembers from their homes.
The SCRA provides servicemembers with protections against certain transactions that could adversely affect their civil legal rights while they are in military service. Under the SCRA, if a tenant who is on active duty is sued for eviction and does not make an appearance in the case for any reason, the landlord must file an affidavit with the court stating whether the tenant is in military service, showing necessary facts to support the affidavit. To evict a tenant in California, a landlord must first obtain a court order. The complaint alleges that Lincoln Military Housing requested default judgments against servicemembers without filing the affidavits required by the SCRA to alert the court of the tenants’ military status. As a result, servicemembers were put at risk of being evicted without having an opportunity to participate in the case and without having an attorney assigned to represent them.
Despite the fact that the servicemembers who are receiving compensation under the settlement were all in military service at the time of their evictions, Lincoln Military Housing filed affidavits stating that no defendants were in military service.
Under the consent order, which is still subject to approval by U.S. District Court for the Southern District of California, Lincoln Military Housing must pay each aggrieved servicemember $35,000, vacate the eviction judgment, forgive any deficiency balance and ask the credit bureaus to remove the evictions from their credit reports. In addition to compensating the servicemembers, Lincoln Military Housing must pay a civil penalty of $60,000 to the United States.
“Lincoln Military Housing unlawfully evicted active duty servicemembers and their families from their homes,” said Principal Deputy Associate Attorney General Bill Baer. “This settlement rights that wrong and serves as a powerful reminder that we will protect and defend the rights of those who protect us all.”
“Our servicemembers, who risk their lives to protect our freedom, should never return from duty to find their civil rights violated and their families evicted,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue our vigorous and robust enforcement of the SCRA to safeguard the rights of those who defend us.”
“The Servicemembers Civil Relief Act was designed to protect our servicemembers and their dependents answering our nation’s call to duty,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Servicemembers should not have to worry about their families being evicted while they are serving the United States. We will continue to enforce the laws that protect our warfighters.”
The settlement also requires Lincoln Military Housing to make systemic changes to its business practices, including providing SCRA training to its employees and developing new policies and procedures consistent with the SCRA. The policies and procedures will require Lincoln Military Housing and its agents to review the Department of Defense Manpower Data Center (DMDC) database and file a proper affidavit of military service before seeking a default judgment against a tenant in an eviction action.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
This matter resulted from a referral to the Justice Department by the Legal Services Support Team at Marine Corps Air Station Miramar.
This matter was jointly handled by the U.S. Attorney’s Office of the Southern District of California and the Civil Rights Division’s Housing and Civil Enforcement Section. The department’s investigation was done in coordination with the California Office of the Attorney General, which filed its own case today in state court under California’s Rosenthal Fair Debt Collection Practices Act.
KC Man Sentenced for Bank Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man who was shot by police officers was sentenced in federal court for bank robbery and using a firearm in an attempted carjacking.
Steven Marquain Davis, 30, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 12 years in federal prison without parole.
On Nov. 19, 2015, Davis pleaded guilty to bank robbery and to using a firearm during a violent crime (carjacking). Davis admitted that he used a simulated bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Jan. 9, 2015. Davis entered the bank between 4:10 and 4:20 p.m. Davis, holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it, similar in appearance to the remote used on remote control toys. Davis told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis pulled on the door handle and ordered the driver to open the door. When she refused, he pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun and she drove away from the area.
A witness confronted Davis in the street. Davis pointed a handgun at the witness and stated, “What are you looking at?” Davis tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that was designed to look like a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and rendered the device safe.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Revises Regulations to Implement Requirements of ADA Amendments Act of 2008Read the Press Release
A final rule revising the Justice Department’s Americans with Disabilities Act (ADA) Title II and Title III regulations to implement the requirements of the ADA Amendments Act of 2008 (ADAAA) was made available for public inspection by the Federal Register today. The final rule will be published in the Federal Register tomorrow and will take effect 60 days after publication, which will be Oct. 11, 2016.
Congress passed the ADAAA in response to several Supreme Court decisions that narrowly interpreted the ADA’s definition of disability, leading ultimately to the exclusion from coverage of individuals with cancer, diabetes, epilepsy, attention deficit hyperactivity disorder, learning disabilities and other disabilities. The ADAAA made a number of significant changes to the meaning and interpretation of the ADA definition of disability to ensure that the term would be broadly construed and applied without extensive analysis so that all individuals with disabilities could receive the law’s protections.
Although the ADAAA is already in effect and applies to entities covered under Title II and III of the ADA, the department’s changes to its Title II and III regulations will help clarify the interpretation and application of the ADAAA. These changes also satisfy the Attorney General’s responsibility to publish regulations that are consistent with any congressional changes to the ADA.
“This final rule clarifies Congress’s original mandate that eliminating discrimination against people with disabilities requires an expansive definition of what disability means and who the law covers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department’s regulation sets forth clear new rules, new examples and detailed guidance to ensure that courts, covered entities and people with disabilities better understand the ADAAA.”
The ADAAA’s provisions addressing the definition of disability also apply to Title I of the ADA, for which the Equal Employment Opportunity Commission issued regulations in 2011. The publication of the Title II and Title III rule tomorrow will ensure that the definition of disability is interpreted consistently for these three titles of the ADA.
For more information about the ADAAA, please visit the department’s ADA website or call the ADA Information Line (1-800-514-0301, 1-800-514-3083, TTY). A copy of the preview of the final rule posted by the Federal Register on its public inspection desk can be found today at: https://www.federalregister.gov/articles/2016/08/11/2016-17417/amendment-of-americans-with-disabilities-act-regulations-to-implement-the-americans-with. Once the final rule is published in the Federal Register tomorrow, a copy will be available on the department’s ADA website.
Justice Department Announces Findings of Investigation into Baltimore Police DepartmentRead the Press Release
Justice Department Finds a Pattern of Civil Rights Violations by the Baltimore Police Department
The Justice Department announced today that it found reasonable cause to believe that the Baltimore City Police Department (BPD) engages in a pattern or practice of conduct that violates the First and Fourth Amendments of the Constitution as well as federal anti-discrimination laws. BPD makes stops, searches and arrests without the required justification; uses enforcement strategies that unlawfully subject African Americans to disproportionate rates of stops, searches and arrests; uses excessive force; and retaliates against individuals for their constitutionally-protected expression. The pattern or practice results from systemic deficiencies that have persisted within BPD for many years and has exacerbated community distrust of the police, particularly in the African-American community. The city and the department have also entered into an agreement in principle to work together, with community input, to create a federal court-enforceable consent decree addressing the deficiencies found during the investigation.
“Public trust is critical to effective policing and public safety,” said Attorney General Loretta E. Lynch. “Our investigation found that Baltimore is a city where the bonds of trust have been broken, and that the Baltimore Police Department engaged in a pattern or practice of unlawful and unconstitutional conduct, ranging from the use of excessive force to unjustified stops, seizures and arrests. The results of our investigation raise serious concerns, and in the days ahead, the Department of Justice will continue working tirelessly to ensure that all Baltimoreans enjoy the safety, security and dignity they expect and deserve. I am grateful to all of the community members, local officials, faith leaders and current and former police officers who spoke with us during the course of our inquiry, and whose input will remain critical to our efforts as we move forward. Additionally, I commend the city and BPD for its proactive and collaborative approach to our inquiry and for demonstrating a strong commitment to restoring public confidence by already taking steps to make needed changes. I look forward to continuing our work together to implement urgent and necessary reforms.”
“We found that BPD has engaged in a pattern or practice of serious violations of the U.S. Constitution and federal law that has disproportionately harmed Baltimore’s African-American community and eroded the public’s trust in the police,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The agency also fails to provide officers with the guidance, oversight and resources they need to police safely, constitutionally and effectively. In communities across America, even in communities where trust has been broken, we’ve seen transformative reform rebuild relationships and advance public safety. In the weeks ahead, as we negotiate our consent decree with the city, we will seek input from law enforcement and community members. With the city and commissioner’s commitment to reform, I am optimistic that we will work to drive that same progress in Baltimore.”
In May 2015, Attorney General Lynch announced the comprehensive investigation into the BPD after considering requests from city officials and hearing directly from community members about a potential pattern or practice of constitutional violations. The investigation focused on BPD’s use of force, including deadly force; stops, searches and arrests; and discriminatory policing.
In the course of its pattern or practice investigation, the department interviewed and met with city leaders and police officials, including BPD Commissioner Kevin Davis, former commissioners and numerous officers throughout all ranks of the police department; accompanied line officers on dozens of ride-alongs in every police district; conducted hundreds of interviews and participated in meetings with community members, activists, and other stakeholders; reviewed hundreds of thousands of pages of police documents, including all relevant policies and training materials; and analyzed BPD’s data on internal affairs, use of force, sexual assault cases and pedestrian stops, searches and arrests.
During the course of its investigation, the department found that the legacy of “zero tolerance” street enforcement, along with deficient policies, training and accountability systems, resulted in conduct that routinely violates the Constitution and federal anti-discrimination law. Throughout the investigation, the department heard consistently from both the community and law enforcement that BPD requires significant reforms to address problems that undermine its efforts to police constitutionally and effectively.
The department found reasonable cause to believe that BPD engages in a pattern or practice of:
- Conducting stops, searches and arrests without meeting the requirements of the Fourth Amendment;
- Focusing enforcement strategies on African Americans, leading to severe and unjustified racial disparities in violation of Title VI of the Civil Rights Act and the Safe Streets Act;
- Using unreasonable force in violation of the Fourth Amendment;
- Interacting with individuals with mental health disabilities in a manner that violates the Americans with Disabilities Act; and
- Interfering with the right to free expression in violation of the First Amendment.
The department also identified serious concerns about other BPD practices, including an inadequate response to reports of sexual assault, which may result, at least in part, from underlying gender bias. Another significant concern identified by the department was transport practices that place detainees at significant risk of harm.
In the agreement in principle, both parties agreed that compliance with the consent decree will be reviewed by an independent monitor. The agreement in principle highlights specific areas of reform to be included in the consent decree, including:
- Policies, training, data collection and analysis to allow for the assessment of officer activity and to ensure that officers’ actions conform to legal and constitutional requirements;
- Technology and infrastructure to ensure capability to effectively monitor officer activity;
- Officer support to ensure that officers are equipped to perform their jobs effectively and constitutionally; and
- Community policing strategies to guide all aspects of BPD’s operations and help rebuild the relationship between BPD and the various communities it serves.
The agreement in principle provides a framework for change, but the department will be doing community outreach to solicit input in developing comprehensive reforms. Comments may be provided by email at [email protected].
Throughout the department’s investigation, BPD leadership remained receptive to preliminary feedback and technical assistance, and started the process of implementing reforms. BPD leadership has proactively taken steps to address some of the findings, including updating its policies, instituting new trainings and responding to other issues identified by the department. While these measures are an important start to cooperative reform, a comprehensive agreement is still needed to remedy all of the department’s findings.
In October 2014, city and BPD leadership requested to enter a collaborative reform process with the Justice Department’s Office of Community Oriented Policing Services (COPS office). While the Civil Rights Division opened the pattern or practice investigation in May 2015, the COPS office, the Justice Department’s Office of Justice Programs and others have maintained their ongoing efforts to offer federal resources, such as technical assistance, to the BPD, city officials and community leaders.
This investigation was conducted by the Civil Rights Division’s Special Litigation Section with the assistance of law enforcement professionals pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. Over the last seven years, the Special Litigation Section has opened 23 investigations into law enforcement agencies. The section is enforcing 17 agreements with law enforcement agencies, including 14 consent decrees and one post-judgment order. For more information on the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt.
BPD Findings Report
BPD Agreement in Principle
BPD Executive Summary
SPL Police Accomplishments 8.10.16
Judge Sentences Altoona Man to 2 Years in Prison for Conspiring to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Altoona, Pa., has been sentenced in federal court to 24 months in prison and three years’ supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Matthew Fee, 34, of Altoona, Pa.
According to information presented to the court, from Jan. 9, 2014, to April 17, 2015, Fee conspired to distribute and possess with the intent to distribute a quantity of cocaine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Altoona Police Department, and the Cambria County District Attorney's Office, for the investigation leading to the successful prosecution of Fee.
Investigation Leads to Federal Indictment of Former President of Devil’s Disciples Motorcycle ClubRead the Press Release
BOISE – Scott Arlis Thomas, 42, of Caldwell, Idaho, made an initial appearance today for the crimes of possession with intent to distribute methamphetamine and possession of firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. A federal grand jury indicted Thomas on July 14, 2016.
The two count indictment alleges that on May 13, 2016, Thomas, who had been convicted of trafficking in methamphetamine in 2011, possessed a rifle and on the same date, possessed methamphetamine with the intent to distribute it. At the time of the indictment, Thomas was the president of the local chapter of the Devil’s Disciples Motorcycle Club.
Thomas appeared in court for the first time today and entered not guilty pleas to both charges. Trial is scheduled for October 17, 2016, at the federal courthouse in Boise before Chief U.S. District Judge B. Lynn Winmill.
The charge of possession with intent to distribute methamphetamine is punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. The charge of unlawfully possessing or transferring a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearms and other property used to commit the offenses.
The indictment is the result of an investigation by the Caldwell Police Department, the Treasure Valley Metro Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Task Force was created approximately eleven years ago and is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and Idaho Department of Probation and Parole. The Task Force conducts complex long-term investigation of criminal gangs.
The charges are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indianapolis contractor prosecuted for illegal asbestos removalRead the Press Release
Indianapolis – United States Attorney Josh Minkler today announced that Paul Walker, 56, Indianapolis was prosecuted in federal court for illegally removing asbestos from an inhabited apartment building. Walker was charged with negligent endangerment under the federal Clean Air Act. On Monday, he pleaded guilty and was sentenced by U.S. Magistrate Judge Debra McVicker Lynch to four months of house arrest, two years of probation, and a $2,000 fine.
“Asbestos is a dangerous substance and putting people at risk by illegally removing it is a federal crime,” Minkler said. “If you must remove asbestos, do it the right way and follow the law. If you cut corners to try to save a buck, you will be caught and prosecuted.”
Walker was an Indianapolis-based contractor who performed maintenance and renovation work on an apartment building at 38th Street and Central Avenue in Indianapolis. In mid-2015, Walker agreed to a renovation project that involved removing asbestos insulation from piping and a boiler in the building’s basement. He told the building owner that the abatement work would be subcontracted to a licensed asbestos abatement company so that “all permits and all proper paperwork [would] be submitted to the state and everyone concerned.” He even obtained and sent the building owner a quote for the work from a licensed abatement company.
In July 2015, Walker removed the asbestos himself. Doing so saved him the expense of hiring the professional abatement firm, but it also put the residents of the building at risk for exposure to harmful asbestos fibers. Asbestos insulation, when left undisturbed, generally does not pose a risk. Removing asbestos, however, can release asbestos fibers into the air. Federal law describes in detail how asbestos must be safely removed, such as by wetting the asbestos material and carefully removing and disposing of it. Walker failed to follow these rules, and as a result, allowed asbestos fibers to be released.
Later testing revealed that although the asbestos fibers did not reach the inhabited floors of the building, Walker’s actions placed the residents at risk of exposure to asbestos fibers. The asbestos was eventually properly removed by a professional abatement firm, at Walker’s expense. Nevertheless, because Walker’s misconduct put residents at risk for exposure, he faced prosecution for Negligent Endangerment.
"The defendant was responsible for the renovation of an apartment building which he knew contained asbestos and endangered the health and safety of local residents by failing to follow proper asbestos removal procedures," said Jeffrey Martinez, Special Agent in Charge of the U.S. Environmental Protection Agency's criminal enforcement program in Indiana. "The public health dangers of asbestos exposure are well known, and this case demonstrates that those who fail to follow by the law will be held to account."
“The investigation began when the Indiana Department of Environmental Management (IDEM) received a complaint and sent to the site an air quality inspector,” said IDEM Commissioner Carol S. Comer. “The inspection report was evaluated by IDEM’s Office of Criminal Investigations which notified the U.S. EPA’s Criminal Investigations Division in Indianapolis. This conviction sends a clear message that people who willfully defy the law will be fully investigated to ensure human health and the environment are protected. We are grateful for the assistance of our federal partners in this joint investigation.”
Assistant United States Attorney Nick Linder prosecuted this case for the government.
Identity Document Supplier Pleads Guilty for Role in Identity Trafficking SchemeRead the Press Release
An identity document supplier pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Isaias Beltre-Matos, 44, a Dominican national and legal permanent resident formerly of Providence, Rhode Island, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Beltre-Matos was charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, six defendants have pleaded guilty, Alejandro Tello Rojas and Francisco Matos-Beltre await trial and six individuals remain fugitives.
According to the admissions made in connection with today’s plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, Beltre-Matos admitted. Beltre-Matos also admitted that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.
In addition, Beltre-Matos admitted that he sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreement.
The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
IRS Employee Sentenced to Nine Years and Two Months in Prison for Leading $1 Million ID Theft Tax Fraud SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced an IRS employee to nine years and two months in prison for using her access to taxpayer information to lead a complex, multi-year, $1 million stolen identity refund scheme involving hundreds of victims, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation, St. Louis Field Office, Special Agent in Charge Karl A. Stiften, and Treasury Inspector General for Tax Administration, Mid-States Field Division, Special Agent in Charge Ruben Florez.
NAKEISHA HALL, 40, pleaded guilty in February to theft of government funds, aggravated identity theft, unauthorized access to a protected computer and conspiracy to commit bank fraud and mail fraud affecting a financial institution. Chief U.S. District Judge Karon O. Bowdre sentenced Hall to nine years and two months in prison on the charges, ordered her to pay $438,187 in restitution to the Internal Revenue Service, and to forfeit the same amount to the U.S. government as proceeds of criminal activity. Bowdre’s sentence was based in large part on Hall’s role in the extensive scheme and the fact that she abused her position of trust as an IRS employee to commit it.
Hall is the daughter of a long time IRS employee and began working for the IRS in 2000. Hall worked in the IRS Taxpayer Advocate Service office in Birmingham from July 2007 to November 2011. After November 2011, she worked in TAS offices in Omaha, Neb., New Orleans, La., and Salt Lake City, Utah. TAS is responsible for assisting taxpayers who are having difficulties with the IRS. TAS works with victims of identity theft and assists them in removing fraudulent tax information from their accounts and in filing corrected tax returns, if necessary.
“This defendant abused her position of trust as an IRS employee, using her access to compromise taxpayers’ identities to attempt to steal more than $1 million from the agency. She successfully claimed more than $400,000 in fraudulent tax refunds,” Vance said. “Hall victimized United States taxpayers and jeopardized the reputation of the IRS and its division that is intended to assist taxpayers experiencing problems resulting from identity theft. Today’s sentence reflects the outrageous and serious nature of her crime.”
“Misusing her position with the Internal Revenue Service, Ms. Hall stole the identities of American taxpayers and filed false tax returns in their names,” Stiften said. “Today, Ms. Hall is being held accountable for her criminal actions. Refund fraud and identity theft of this magnitude and with this degree of dishonesty and deceit, deserves to be punished to the fullest extent of the law.”
“Violations of federal law, particularly those committed by IRS employees who are entrusted to protect taxpayers’ sensitive information, will not be tolerated and will be prosecuted to the fullest extent of the law,” Florez said. “TIGTA will continue to work closely with the United States Attorney's Office to identify, investigate and hold those individuals responsible for their illegal activities.”
Three co-conspirators have pleaded guilty in the case. Lashon Roberson, 36, of Birmingham, pleaded guilty to conspiracy to commit mail fraud affecting a financial institution and mail fraud affecting a financial institution. Roberson worked for many years in the financial services industry. She was sentenced in July to three years in prison and ordered to pay $119,185 in restitution to the IRS.
Jimmie Goodman, 37, of Birmingham, pleaded guilty to conspiracy to commit mail and bank fraud. Goodman, who had a prior identity-theft conviction, was sentenced in July to three years and five months in prison and was ordered to pay $82,802 in restitution to the IRS and to forfeit that amount to the government.
Abdulla Coleman, 40, also of Birmingham, pleaded guilty to conspiracy to commit mail fraud affecting a financial institution and bank fraud. He is scheduled for sentencing Sept. 14.
According to court records, Hall led Roberson, Goodman, Coleman and at least one other conspirator in the scheme operated out of Birmingham between 2008 and 2011 that involved stealing personal identity information from the IRS to create fraudulent tax returns, and collecting the stolen refunds that were generated.
The defendants conspired to defraud both the IRS and financial institutions, and used the U.S. mail to execute the fraud. The multi-year conspiracy was conducted as follows, according to court records.
Hall obtained individuals’ names, birth dates and Social Security numbers through unauthorized access to IRS computers. She used the personal identity information to prepare fraudulent income tax returns and submitted them electronically to the IRS. Hall requested that the IRS pay the refunds onto debit cards and directed that the cards be mailed to drop addresses that she controlled. Hall solicited and received drop addresses from Goodman, Coleman, Roberson and at least one other person. The co-conspirators also collected the refund cards from the mail.
Hall activated the cards by using the stolen personal identity information. She and her co-conspirators took the money off the debit cards at ATMs or used the cards for purchases. If the fraudulent returns generated U.S. Treasury checks rather than the requested debit cards, the group used fraudulent endorsements in order to cash the checks. Hall compensated Goodman, Coleman, Roberson and the fifth co-conspirator by giving them a portion of the refund money, or by giving them refund cards for their own use.
The theft, aggravated identity, and unauthorized access counts relate to two specific taxpayers’ information that Hall accessed and used in 2010.
IRS-CI and TIGTA investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
Hollister Man Sentenced for Cocaine ConspiracyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced RANDY LYNCH, 50, of Hollister, North Carolina, to 96 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. LYNCH previously pled guilty to this charge on November 9, 2015.
On July 1, 2015, undercover agents with the Department of Homeland Security arranged a delivery of 7 kilograms of cocaine to LYNCH at a truck stop off of Interstate 85 in Vance County. LYNCH drove a tow truck from his wrecker service business to the truck stop and met with agents. Agents arrested LYNCH after he took possession of the 7 kilograms. Agents seized $100,000 from LYNCH’S tow truck that LYNCH had brought to purchase the cocaine. During a search of LYNCH’S residence, agents recovered another $18,450 and two firearms.
LYNCH had been the subject of a long-term investigation conducted by several federal, state and local law enforcement agencies, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation Division, the United States Marshal Service, the North Carolina State Bureau of Investigation, the North Carolina Highway Patrol, the Halifax County Sheriff’s Office, the Vance County Sheriff’s Office, and the Warren County Sheriff’s Office. Agents determined during the investigation, which included interviews of LYNCH’S previous co-conspirators, that LYNCH was responsible for distributing 273 kilograms of cocaine since 1991.
Judge Howard also ordered LYNCH to forfeit the two firearms seized from his residence and $500,000, representing the gross proceeds of the conspiracy. LYNCH satisfied the forfeiture order prior to sentencing by consenting to the forfeiture of the $100,000 seized upon his arrest and the $18,450 seized from his residence. LYNCH satisfied the remaining $381,550 by selling his salvage yard business located in Hollister.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission. The forfeiture was handled by Assistant United States Attorney Steve West.
Habitual Domestic Violence Offender from Zuni Pueblo Sentenced to Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Fabian Tsethlikai, 47, a member and resident of Zuni Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 21 months in prison followed by three years of supervised release for his conviction on a domestic assault by a habitual offender charge.
Tsethlikai was arrested on Feb. 10, 2016, on an indictment charging him with assault of an intimate partner by a habitual offender. The indictment alleged that Tsethlikai committed the offense on Dec. 10, 2014, on Zuni Pueblo in McKinley County, N.M. Tsethlikai was charged as a habitual offender based on his two prior domestic violence convictions in Zuni Pueblo Tribal Court. Zuni Pueblo Tribal Court records reflect that Tsethlikai’s prior convictions occurred in 2010 and 2011.
On May 13, 2016, Tsethlikai pled guilty to the indictment and admitted that on Dec. 10, 2014, he assaulted the victim, his intimate partner, by repeatedly striking her in the face with his fist while driving a vehicle within the Zuni Reservation. He also acknowledged his two prior tribal court convictions.
This case was investigated by the Zuni Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney David Adams pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Grand Jury Returns Superseding Indictment in Deyoung CaseRead the Press Release
SALT LAKE CITY – A federal grand jury returned a superseding indictment Wednesday afternoon charging Curtis Lynn DeYoung, age 60, of Draper, Utah, who acted as president and Chief Executive Officer of American Pensions Services (APS), with obstruction of justice, false declaration before a court of the United States, and making a false statement.
The superseding indictment also includes the 15 counts of mail fraud included in the initial indictment, returned by a federal grand jury in February 2015. The indictment alleges DeYoung misappropriated more than $24 million from the accounts of more than 5,000 customers without their knowledge or consent.
The three new counts in the indictment, Count 16, 17, and 18, relate to alleged efforts DeYoung made to conceal approximately $50,000 worth of personal valuables including precious gems, minted coins, gold and silver coins, and jewelry. The valuables were found in an area above a suspended ceiling at a West Jordan business.
Count 16 alleges DeYoung obstructed justice by concealing, moving, and hiding the $50,000 worth of personal valuables in violation of an April 2014 court order freezing all of his assets. Count 17 alleges DeYoung made a false material declaration before a Court of the United States as a part of a case being litigated before the Court, concealing the $50,000 in personal valuables from the court during a discussion of assets owned by him, his spouse, or any other members of his household. Count 18 alleges DeYoung made a false statement while testifying under oath when he concealed the $50,000 worth of personal valuables from his statement of financial condition.
APS was a Utah corporation formed around 1983. It acted as a third-party administrator for self-directed individual retirement accounts. According to the indictment, beginning in 1998 and continuing until April 2014, DeYoung devised a scheme to defraud and obtain money from APS customers through the use of false and fraudulent representations, promises, and omission of material facts. The indictment alleges DeYoung misappropriated the funds of more than 5,000 APS customers held in two of the three APS bank accounts known as the “Master Trust” accounts which comingled all APS customer cash, including cash deposited into customer IRA accounts and cash generated from customer IRA investments.
The indictment alleges DeYoung used the misappropriated funds from the Master Trust accounts to make personal high-risk, unsecured investments. DeYoung misappropriated the money without notifying APS customers, knowing that the money did not belong to him and that he was using it for purposes not authorized by APS customers, the indictment charges. According to the indictment, neither APS nor DeYoung had discretionary authority or control over the APS customer funds. APS was responsible only to disburse funds as directed by the beneficiaries.
According to the indictment, around Oct. 31, 2009, DeYoung made a false accounting entry in APS records in the amount of $24,789,313.65 to conceal the fact that he misappropriated these funds. DeYoung continued to solicit new customers to engage APS as a third-party administrator and concealed the fact that the total cash balances in customer accounts did not equal the amount of cash available in the APS Master Trust accounts because he had misappropriated more than $24 million dollars, the indictment alleges.
In an effort to conceal his scheme, beginning in 1998 and continuing until January 2014, DeYoung mailed false APS account statements to all APS customers that contained inflated cash balances. These inflated cash balances did not equal the amount of cash actually available in the APS Master Trust accounts. The indictment alleges DeYoung knew that APS customers would rely on these statements in determining the value of their APS accounts.
The indictment also includes a notice of intent to seek forfeiture of a sum of money equal to the value of the proceeds of the scheme to defraud, which is approximately $24,789,313.65, upon conviction of any offense in the indictment.
The potential maximum penalty for each count of mail fraud in the indictment is 20 years in prison and a fine of $250,000. The potential penalty for obstruction of justice is 10 years in prison. Making a false declaration before a court of the United States and making a false statement each carry potential five-year sentences. A summons will be issued to DeYoung to appear in federal court for an arraignment on the new indictment.
The case is being investigated by special agents of the FBI and prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Office in Salt Lake City.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Grand Forks Bank Robber Sentenced to Federal PrisonRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 10, 2016, Charlene Mae Corona, 40, Crookston Minn., was sentenced before US District Judge Ralph R. Erickson to serve 9 years in federal prison for two counts of Bank Robbery. Judge Erickson also ordered that Corona pay $21,890.26 in restitution, serve 3 years supervised release, and pay a $100 special assessment to the Crime Victims’ Fund.
At approximately 1:30 p.m. on September 30, 2015, Corona entered the Bremer Bank located at 921 North Washington St., Grand Forks, ND, and demanded money from the teller. Corona pulled out a knife and pointed it at one of the employees who then provided money to Corona, and Corona placed the money into a tote bag. An investigation was initiated by the FBI and Grand Forks Police Department.
On October 12, 2015, Corona entered the Citizens Community Credit Union located at 1215 N. 42nd St., Grand Forks, ND, and, while displaying a handgun, threw down a black bag and demanded money from a bank teller.
Surveillance video from each of the robberies showed that the same female committed both of the robberies. Law enforcement received tips that the robber was Charlene Mae Corona, who was later arrested in Moorhead, Minnesota.
This case is being investigated by the Federal Bureau of Investigation (FBI), Grand Forks Police Department, Grand Forks Sheriff’s Department, and the Moorhead Police Department.
First Assistant US Attorney Keith Reisenauer prosecuted the case.
Former insurance agent headed to prison for Federal arson and witness tampering crimesRead the Press Release
BECKLEY, W.Va. – A Hurricane man was sentenced today to a total of nine years in federal prison: seven years for a federal arson crime followed by a consecutive sentence of two years for an unrelated federal witness tampering crime, announced United States Attorney Carol Casto. Jimmie Arnold Harper, Jr., 36, previously pleaded guilty to aiding and abetting arson and conspiracy to tamper with a witness. As part of his sentence, he was also ordered to pay over $320,000 in restitution.
Harper was a Nationwide Mutual Insurance agent with an office in Winfield. Harper admitted that on September 14, 2015, he arranged for a fire to be set at his own residence at 7 Stonegate Drive in Scott Depot. Harper planned for the use of a long-range remote firing system to ignite the fire. He placed a chair with a tire in it in an interior room of his residence with the intent for that area to be the ignition spot of the fire. After staging the area, the drywall was knocked out so that the fire would spread farther into the framing of the house. Prior to setting the fire, Harper moved his valuables, such as furnishings and personal items, out of the residence and into a storage unit in the Winfield area. He also arranged to be out of town so the residence would be empty. Another individual drove by the residence in the early morning hours and hit the button on the remote firing system to ignite the fire. The Teays Valley Fire Department was dispatched to the residence, and one firefighter fell through the floor in the kitchen and sustained minor burns to his lower extremities. On September 15, 2015, Harper called in a fire claim to his insurance company, Auto Club Insurance Association, for $624,200 in structural damage and $468,150 in personal property loss.
On December 23, 2015, Seth T. Radcliffe, a longtime friend of Harper’s, was facing kidnapping charges in an unrelated case. Harper admitted that on January 24, 2016, he met with witnesses in Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper spoke to Radcliffe about the plan and obtained a letter written by Radcliffe that was read aloud during the meeting. The meeting took place in Harper’s vehicle in the parking lot of a convenience store in MacArthur in Raleigh County. During the meeting with the witnesses, Harper emphasized that the kidnapping charges against Radcliffe needed to go away because of the severe penalties. Harper also suggested limiting answers that could be damaging to Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper admitted that he knew Radcliffe’s letter was not factually correct and was intended to corruptly influence witness testimony. Unbeknownst to Harper, the passenger in the vehicle during the meeting was acting as a confidential informant for law enforcement and recorded the entire meeting.
On January 26, 2016, a federal grand jury sitting in Beckley returned an indictment against Seth T. Radcliffe for one count of kidnapping and one count of discharging a firearm during a crime of violence. On February 9, 2016, a grand jury subpoena was served on Harper for the letter written by Radcliffe. On January 24, 2016, prior to the meeting with the witnesses in Radcliffe’s case, Harper directed the confidential informant to remove the last page of the letter. This page contained 12 numbered paragraphs written by Radcliffe setting forth points Radcliffe wanted to make to defeat the charges. After receiving the grand jury subpoena, Harper instructed the confidential informant to throw the last page of the letter out of his car window along Interstate 77. Law enforcement recovered this page of the letter on February 9, 2016, from Interstate 77.
The West Virginia State Police Bureau of Criminal Investigation, the West Virginia State Fire Marshal’s Office, the West Virginia Office of the Insurance Commissioner, the FBI, and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Former Town Manager Sentenced on Bank Fraud ChargeRead the Press Release
ABINGDON, VIRGINIA – The former town manager of the Town of Coeburn, who previously admitted to fraudulently applying for and receiving credit in the town’s name and using the Town’s credit for personal expenses, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Loretta Ilene Mullins Mays, 49, of Coeburn, Virginia, previously pled guilty to one count of bank fraud. Today in District Court, the Hon. James P. Jones sentenced Mays to imprisonment for a term of one year and one day. In addition, the Court ordered Mullins to make restitution to the Town of Coeburn in the amount of $20,313.
“When public officials abuse the power placed in them by the citizens they serve for their own financial gain they must be held accountable,” United States Attorney Fishwick said today. “This United States Attorney’s Office will continue to prosecute instances of public corruption and ensure the integrity of those holding public offices.”
Mays was the Town Manager for the Town of Coeburn, Virginia from March 27, 2006 to February 14, 2013. While Town Manager, Mays applied for and received credit cards in the name of the Town of Coeburn and then used the credit cards for personal expenses. She also used the legitimate Town of Coeburn credit card and lines of credit, to fraudulently obtain personal goods and services.
The investigation of the case was conducted by the Virginia State Police and the Federal Bureau of Investigation with assistance provided by the Dickenson County Commonwealth’s Attorney’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former Staff Sergeant at Seymour Johnson Air Force Base Sentenced to 15 Years for the Receipt of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today STEVEN C. DAVIDSON, 36, of Pikeville, North Carolina, was sentenced to 180 months imprisonment followed by a lifetime of supervised release by United States District Judge Louise W. Flanagan, for one count of receipt of child pornography.
DAVIDSON was previously a member of the United States Air Force assigned as an Air Traffic Controller at Seymour Johnson Air Force Base at the time of his offense. On January 13, 2016 DAVIDSON pled guilty to the charge.
On November 5, 2014, the Air Force Office of Special Investigations at Seymour Johnson Air Force Base (SJAFB) in Goldsboro, North Carolina, initiated an investigation after a government computer was utilized to conduct online searches for material related to child exploitation and child pornography (CP). The individual was subsequently identified as DAVIDSON, a Staff Sergeant in the United States Air Force (USAF), based on his military login credentials. On November 19, 2014, agents seized four government computers that DAVIDSON accessed within the past year. On the same date, agents conducted a search of the defendant’s residence and seized a computer. Based on the investigation, DAVIDSON used a computer to receive, trade, and store CP. Forensic examination uncovered at least 720 images and 30 videos depicting CP.
The criminal investigation of this case was conducted by the Air Force Office of Special Investigations (AFOSI) and the Wayne County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Somerset County High School Teacher Admits Enticing Boy to Engage in Criminal Sexual Conduct OnlineRead the Press Release
NEWARK, N.J. – A Branchburg, New Jersey, man who previously worked as a high school music teacher today admitted soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David M. Adams, 30, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Adams admitted that, between May 2014 and September 2014, he used the internet, including Skype, to induce a victim who was less than 18-years-old to engage in sexually explicit conduct. In exchange for allowing Adams to view the conduct on Skype, Adams paid the victim using PayPal and other means.
During that time, Adams was a music teacher at Eisenhower Middle School in Roxbury, New Jersey. Subsequently, Adams was a music teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
The charge to which Adams pleaded guilty carries a maximum penalty of life in prison, a mandatory minimum prison sentence of 10 years in prison and a $250,000 fine. Adams will be required to register as a sex offender. Sentencing is scheduled for Nov. 30, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Terence S. Opiola, with the investigation leading to the guilty plea. He also thanked the Branchburg Police Department and the Somerset County Prosecutor’s Office for their assistance in this case.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michael Baldassare, Esq. and Dillon Malar, Esq., Newark
Former Pitcairn Man Charged with Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A former Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment, returned yesterday, named Arthur Linsenbigler, 45, who last known addresses were in Pitcairn, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from Feb. 3, 2015, to June 20, 2016, Linsenbigler, who had been convicted of the felony sex offense of Rape By Forcible Compulsion in 1991, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Owner of Investment Firms Arrested for $8 Million FraudRead the Press Release
RICHMOND, Va. – Merrill Robertson, Jr., 36, of Chesterfield, former owner of two Richmond area investment firms, was arrested this morning for his role in an investment fraud scheme that caused over $8 million in losses to his clients.
According to the affidavit filed in support of the criminal complaint, in 2009, Robertson and a co-conspirator started Cavalier Union Investments, LLC. Between 2009 and 2015, Cavalier obtained at least $8 million from over 40 investors. During this time, Robertson made material misrepresentations and omissions about the use of investor funds, the assets securing investor funds, and the investment vehicle into which investor funds would be deposited. Robertson also signed promissory notes with many investors that guaranteed a specific rate and return, pledged that investment funds were secured by tangible assets, and provided many investors with annual statements that misrepresented the value of their investment at the time and the account number where investment funds were supposedly located. During a deposition with the U.S. Securities and Exchange Commission (SEC) in October 2015, Robertson acknowledged that Cavalier failed to pay back the approximately $8 million in principal invested with the company and stated that Cavalier currently has no income or assets. Robertson admitted that he often commingled business, personal and investor funds. Robertson stated that he used investor funds to pay for personal expenses such as his mortgage and car payments.
In a parallel action, the SEC today announced civil charges against Robertson.
Robertson faces a maximum penalty of 20 years in prison if convicted of conspiracy to commit wire fraud. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Robertson’s arrest. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.
This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC) and is currently being investigated by the FBI's Richmond FIeld Office, IRS-Criminal Investigations, U.S. Postal Inspection Service, and the Virginia State Corporation Commission
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-mj-197.
Former Marine Sentenced for Sexual Exploitation of a ChildRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Aransas Pass man has been ordered to prison following his three convictions of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. John Anthony Perez pleaded guilty in May 2016.
After a lengthy hearing that concluded late today, Senior US. District Judge Hayden Head sentenced Perez to 250 months federal prison on each count to run consecutively. The 750-month total sentence will also be followed by 20 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. Judge Head also ordered $150,000 in restitution to be paid to each victim for a total of $450,000.
Perez came to the attention of authorities after authorities learned of the sexual assault of three young children. The children were identified and confirmed the abuse. Perez was identified as the perpetrator and admitted to sexual assaulting the three children and taking sexual explicit photographs and videos of the abuse. Perez admitted his interest in child pornography started when he was deployed overseas with the U.S. Marine Corps.
At today’s hearing, the court heard testimony from a Homeland Security Investigations (HSI) agent. The agent described the additional videos and images of child pornography Perez possessed, many of which depicted the sexual exploitation of infants, bondage and bestiality. A psychologist who evaluated the children also told the court that Perez had first abused the young children when they were toddlers.
In March 2016, law enforcement executed a search warrant at Perez’s residence and seized various electronic devices. Forensic examination led to the discovery of 37 videos and 189 images of Perez sexual assaulting three children. Authorities also discovered 494 other videos and more than 16,000 other images of child pornography.
Perez was arrested on the federal charges in March 2016 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Former LCN Boss Arrested in Connection with the Murder of a Federal WitnessRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), was arrested today and charged with murder of a witness.
Francis P. Salemme, 82, was arrested this morning in Connecticut and is scheduled to appear in U.S. District Court in Boston today at 3:00 p.m.
In the early 1990s, Salemme was the “boss” of the New England La Cosa Nostra until he was indicted on racketeering charges in 1995 and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of Steven A. DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the U.S. Marshals Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
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.
Former LCN Boss Arrested in Connection with the Murder of a Federal WitnessRead the Press Release
This press release is issued jointly with the U.S. Attorney for the District of Massachusetts
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), was arrested today and charged with murder of a witness.
Francis P. Salemme, 82, was arrested this morning in Connecticut and is scheduled to appear in U.S. District Court in Boston today at 3:00 p.m.
In the early 1990s, Salemme was the “boss” of the New England La Cosa Nostra until he was indicted on racketeering charges in 1995 and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of Steven A. DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the U.S. Marshals Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
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.
Former Indiana man indicted on fraud chargesRead the Press Release
Alleged to have swindled friends and acquaintances out of nearly $1 million
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today nine fraud-related charges against a former Indiana man who owned a business in Indianapolis. Larry M. Westby, 64, currently residing in Vanderbilt, Michigan, was indicted by a federal grand jury sitting in Indianapolis on five counts of mail fraud, three counts of money laundering and one count of fraud in the offer or sale of securities.
“Perpetrators of fraud crimes not only jeopardize their victims’ financial security, but they also rob their victims of the trust they once had in their own judgment and in others,” said Minkler. “When a person or business intentionally deceives Indiana investors with promises of financial benefits that do not exist, were never intended to be provided, or were misrepresented, they will be prosecuted by this office to the fullest extent of the law.”
Westby was a licensed respiratory therapist and president of LMW, Inc., a company purported to be selling respiratory therapy protocols to doctors. The protocols allowed doctors to perform treatments inside their own offices, rather than in a hospital.
In January 2010, Westby began using the LMW website to communicate with current and potential LMW investors indicating he was exploring selling his company for a substantial profit. In these communications, Westby allegedly made false statements about the nature of LMW, its financial condition, and the risk and status of investments in LMW. For example, Westby allegedly told potential investors that LMW was about to be sold for $36.5 million to a company called Global Spot in an effort to convince investors to buy LMW common stock. Unbeknownst to investors, Global Spot was a non-existent, sham entity. Westby also concealed from his investors that he had not registered LMW with the Indiana Secretary of State as a company properly registered to engage in the issuing of stock certificates. Nor did Westby tell investors that he had failed to properly register LMW common stock certificates with the Secretary of State.
Through these false communications, Westby took in more than $985,000 from his investors, which funds he then used to purchase two vehicles, repay a personal loan, pay personal credit card bills, and buy a vintage basketball court for his home.
IRS Criminal Investigation Special Agent in Charge, James D. Robnett stated, “IRS Criminal Investigation did what we do best…follow the money! IRS CI plays a critical role in locating the money and prosecuting the offenders who steal from honest Indiana investors.”
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, "Today's arrest sends a clear message that illegal business practices will not be tolerated. The Federal Bureau of Investigation and our law enforcement partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans."
This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State.
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Westby faces up to 20 years imprisonment if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven guilty in federal court.
Former High School Teacher Sentenced for Distributing Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former teacher at St. Elizabeth High School in St. Elizabeth, Mo., was sentenced in federal court distributing child pornography.
Stephen Gregory Strobel, 26, of Jefferson City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 10 years and one month in federal prison without parole. The court also ordered Strobel to serve 15 years on supervised release following his incarceration.
On April 18,2016, Strobel pleaded guilty to distributing child pornography.
In April 2014 a Wooster, Ohio woman discovered that her 13-year-old daughter had engaged in a sexually explicit Internet chat with Strobel. On May 12, 2014, investigators contacted Strobel at St. Elizabeth High School. Strobel admitted he had exchanged pornographic photos with the 13-year-old victim and that she had sent him pornographic photos and a video. According to court documents, Strobel then distributed that video to another person.
Strobel also told investigators that he had traded photos of underage girls with various people online. He never asked the ages of the children depicted, but estimated them to be between the ages of 13 and 15. Strobel estimated that he had received 15 photographs of underage children, the youngest being five or six years old. He stated that he had sent approximately 10 photos of underage children to other people and had also shared videos depicting underage children.
According to court documents, Strobel sent photos depicting child pornography to other individuals throughout the United States, including users who were identified as possible children with whom Strobel was communicating, engaging in sexual role playing and exchanging suspected child pornography images.
Investigators identified a video and approximately 500 images of child pornography on Strobel’s iPhone.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Missouri State Highway Patrol, the FBI, the Ohio Attorney General’s Office and the Wayne County, Ohio, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Financial Broker Sentenced for Obstructing IRS Laws, Ordered to Pay More Than $848,000 in RestitutionRead the Press Release
Memphis, TN – A Germantown man has been sentenced to federal prison for obstructing IRS laws, and is ordered to pay more than $848,000 in restitution. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, John Ballard, 47, of Germantown, Tennessee, was a former securities/investment broker for NFP Securities. Ballard failed to file and pay income tax returns from 2000 to 2008. Ballard’s delinquency caused him to owe more than $848,000 in back taxes.
By falsely claiming to the Internal Revenue Service (IRS) that he was unemployed and unable to find employment, Ballard was able to avoid satisfying his tax obligations.
Despite owing the government, Ballard was paid approximately $522,140.79 in 2009 alone from his then-employer NFP Securities.
In April 2016, Ballard pleaded guilty before U.S. District Judge Sheryl H. Lipman to one count of obstruction of IRS laws.
On Tuesday, August 9, 2016, Judge Lipman sentenced Ballard to 18 months in federal prison. Following his release, Ballard will be required to serve three months at a halfway house. He has also been ordered to pay more than $848,000 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation.
Assistant U.S. Attorney Damon K. Griffin prosecuted this case on the government’s behalf.
Former Federal Law Enforcement Agent Agrees to Pay $40,000 to Resolve False Claims Act AllegationsRead the Press Release
Douglas daCosta of Livermore, California, has agreed to pay $40,000 to resolve allegations that he submitted false claims to the government for paid sick leave when he worked as a federal law enforcement agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Justice announced today.
“When a law enforcement officer misuses taxpayer funds, he does a disservice to his colleagues who serve with professionalism and distinction,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that we will not hesitate to hold individuals accountable if they misuse taxpayer funds.”
“Federal agents must be held to answer when they breach the public’s trust,” said Special Agent in Charge Elise Chawaga of the Department of Justice Office of Inspector General’s Fraud Detection Office. “The Office of the Inspector General remains vigilant in its effort to uncover government waste, fraud and abuse and to recover all ill-gotten gains.”
The United States alleged that daCosta submitted the false requests while working as a criminal investigator for the ATF’s San Francisco field division in 2009. From January 2009 until his retirement in June 2009, daCosta claimed more than 80 days of paid sick leave for which he was not eligible, according to the government’s allegations. Specifically, the United States alleged that daCosta falsely represented to his supervisors that he was undergoing extensive treatment for cancer, going so far as to provide a forged letter from a physician to support his claims. The government contends, however, that daCosta did not have cancer and was not undergoing any such treatments. Additionally, at the same time that daCosta was feigning illness to receive paid sick leave from the government, he was working in the private sector, according to the government’s allegations.
This matter was handled by the Civil Division’s Commercial Litigation Branch in conjunction with the Department of Justice’s Office of the Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former Community Health Clinic CFO Involved in Complicated Scheme to Defraud the Government Sentenced to 17 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former chief financial officer of an Alabama non-profit health clinic for the poor and homeless to 17 years in prison for a complicated scheme to defraud millions of dollars from two non-profit health clinics and the federal government health agencies that provided most of their funding, and for a separate scheme to defraud a life insurance company that involved identity theft against a physician.
Chief U.S. District Judge Karon O. Bowdre sentenced TERRI McGUIRE MOLLICA, 50, of Birmingham, to 15 years for the $11 million fraud involving the two clinics, Birmingham Health Care and Central Alabama Comprehensive Health in Tuskegee, and for mail fraud connected to the insurance fraud. The fraud against the two clinics also led to money laundering by Mollica and the filing of false tax returns. Those crimes were included in the 15-year sentence. For the aggravated identity theft of a physician on a phony death certificate, Mollica received an additional two years in prison. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson announced today’s sentencing.
As part of Mollica’s sentence, she must forfeit $1,961,397 to the government as proceeds of illegal activity,.
Mollica pleaded guilty last year to 19 counts related to the fraud against the government -- six counts of wire fraud affecting a financial institution, eight counts of mail fraud affecting a financial institution and five counts of money laundering. She also pleaded guilty to four counts of filing false tax returns, and to one count of mail fraud and one count of aggravated identity theft related to the life insurance fraud.
In June, a federal jury convicted Jonathan Dunning for his role in the scheme against the health clinics and the federal funding agency. His sentencing is set for Oct. 14.
Mollica's fraud against the government, as outlined in court records, is as follows:
She was the chief financial officer of the non-profit BHC clinic from April 2005 through November 2008. She also performed fiscal duties for CACH, the Tuskegee non-profit clinic intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
Between January 2008 and March 2012, Mollica aided others in diverting about $11 million in federal grant money and assets and property of BHC and CACH to numerous private entities using "Synergy" in the name. Mollica and others retained authority over the affairs of BHC and CACH as they operated the Synergy entities. Mollica then conducted financial transactions to transfer money from the private entities to herself and others, illegally receiving about $1.7 million through the scheme.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constituted the overwhelming majority of BHC and CACH funding during the relevant time.
Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics.
The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Melissa Kay Atwood, Tamarra Matthews-Johnson and John B. Ward prosecuted the case.
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Former Chief Financial Officer Sentenced to 20 Months’ for Role in $30 Million Bank Fraud SchemeRead the Press Release
Earlier today, Thomas Torre, the former Chief Financial Officer of Metro Fuel Oil Corp., was sentenced to 20 months’ imprisonment, three years of supervised release, and ordered to forfeit $800,000 in criminal proceeds. On May 20, 2015, Torre pled guilty to conspiring to commit bank fraud by overstating Metro Fuel’s accounts receivable in order to draw from a revolving line of credit issued by New York Commercial Bank (NYCB). The fuel company later filed for bankruptcy after fraudulently obtaining over $30 million from NYCB. The sentencing proceeding was held before United States District Judge Pamela K. Chen.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the agency responsible for leading the government’s investigation in this case.
For sixty consecutive months, from 2007 to July 2012, Torre submitted false certificates to NYCB that falsely overstated the company’s accounts receivables. The bank used the information in the certificates to determine the amount Metro Fuel could borrow on its revolving line of credit. Torre misrepresented the true accounts receivable by deliberately failing to account for the cash payments received from customers and by creating fictitious invoice amounts. By September 2012, the fuel company could no longer pay its bills and filed a voluntary petition for bankruptcy. At the time of the bankruptcy, the company owed NYCB more than $30 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
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’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.
The Defendant: Thomas Torre
Age: 63
Albertson, New YorkE.D.N.Y. Docket No. 14 - CR - 514 (PKC)
Five Individuals Indicted in August Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2016 Federal Grand Jury.
"The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
WILLIAM HENRY CRAIG, age 26, of Wagoner, Oklahoma
Possession Of An Unregistered Firearm (Destructive Device)
Possession Of An Unregistered Firearm
Possession Of A Firearm With An Obliterated Serial NumberThe Indictment alleges that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, a CBC (Companhia Brasileira de Cartuchos), Model 151, 20 gauge shotgun, with a barrel of less than 18 inches in length and an overall length of less than 26 inches, not registered to him and from which the manufacturer's serial number had been removed, altered and obliterated, which had been shipped and transported in interstate or foreign commerce.
The charges arose from an investigation by the Wagoner Police Department, the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by no more than 10 years imprisonment, a fine up to $10,000.00 or both and Title 18, United States Code, Sections 922(k) and 924(a)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Kristin Harrington
THOMAS ZACHARY PETERS, age 32, of Lansing, Michigan
Failure To Register As Sex Offender
Felon In Possession Of Firearm And AmmunitionThe Superseding Indictment alleges that from in or about November 2015, the exact date being unknown, until on or about June 1, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan, in Eaton County, on or about April 7, 2005, for the offense of Criminal Sexual Conduct-2nd Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act and having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition.
The charges arose from an investigation by the Pittsburg County Sheriff’s Department and the United States Marshals Service. The charges are in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), and Title 18, United States Code, Section 922(g)(1), each charge is punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
BRADLEY DEWAYNE BAILEY, age 39, of Messer, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about May 17, 2016, July 6, 2016 and July 18, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Choctaw County Sheriff’s Office, the Hugo Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
MICHAEL FERRARIE EUBANKS, age 57, of Atoka, Oklahoma
HYDIE ROYLENE EUBANKS, age 58, of Atoka, Oklahoma
Theft Of Government Funds
Concealment Of A Material Fact
False Statements
Forfeiture AllegationThe Indictment alleges that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, having a value in excess of $1,000.00 and in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such events with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive and spend Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.
The Indictment further alleges that on or about June 10, 2015 and again on or about December 21, 2015, in the Eastern District of Oklahoma, the defendants did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The charges are in violation of Title 18, United States Code, Sections 641 & 2, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both; Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2; Title 18, United States Code, Section 1001, all punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
Fifteen Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down prison terms ranging from as much 235 to 51 months to 15 methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The 15 defendants sentenced today and yesterday in U.S. District Court in Statesville are:
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Gregory Ryan Ellis, 39, of Jefferson, N.C. was sentenced to 235 months, followed by 5 years of supervised release. (5:15-cr-68)
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Todd Phillip Radar, 39, of Tonawanda, New York, was sentenced to 235 months, followed by 5 years of supervised release. (5:15-cr-45)
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Teofilo Salinas Cervin, 44, of Mexico, was sentenced to 210 months, followed by 5 years of supervised release. (5:16-cr-20)
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William Mitchell Lee Pope, 36, of Connelly Springs, N.C., was sentenced to 146 months, followed by 5 years of supervised release. (5:15-cr-44)
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Donald Ray Newton, 34, of Byron, Georgia, was sentenced to 131 months, followed by 5 years of supervised release. (5:15-cr-57)
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Eric Germaine Summers, 29, of Statesville, was sentenced to 121 months, followed by 5 years of supervised release. (5:15-cr-73)
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Adam Houston Stokes, 29, of Sherman Oaks, California, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-78)
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Codey Wayne Michaels, 25, of Valdese, N.C., was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-76)
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Anthony Gwyn Lackey, 39, of North Wilkesboro, N.C., was sentenced to 92 months, followed by 5 years of supervised release. (5:15-cr-68)
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Ryan Lewis Craig, 33, of Conover, N.C., was sentenced to 83 months, followed by 4 years of supervised release. (5:15-cr-46)
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Blake Adam Masters, 27, of Clarkesville, Georgia, was sentenced to 78 months, followed by 4 years of supervised release. (5:15-cr-50)
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Lindsey Jordan Price, 22, of Taylorsville, N.C., was sentenced to 63 months, followed by 3 years of supervised release. (5:15-cr-44)
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Jennifer Irene Brown, 35, of Mooresville, N.C., was sentenced to 63 months, followed by 3 years of supervised release. (5:15-cr-50)
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Xavier Watson, 25, of Virginia Beach, Virginia, was sentenced to 51 months, followed by 3 years of supervised release. (5:13-cr-25
These prosecutions stem from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by ICE’s Homeland Security Investigations (HSI), and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and a host of law enforcement agencies throughout North Carolina, Texas, Georgia, and Tennessee.
To date, more than 90 individuals have been convicted as a result of the long term investigation. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized multiple kilograms of crystal methamphetamine, $100,000 in U.S. currency, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies involved for their investigative efforts. Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville Man Indicated on Threatening to Bomb Social Security Administration Building
Ronnie Vaughn, age 69, of Greenville, South Carolina, was charged in a 1-count indictment. Ronnie Vaughn was charged with Willfully Making a Threat – Explosive Materials, in violation of Title 18, United States Code, Section 844(e), which carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Protective Service and is assigned to Assistant United States Attorney D. Josev Brewer of the Greenville office for prosecution.Georgia Man Indicated on Aggravated Identity Theft in Connection with the Use of Mail and the Filing of Federal Tax Returns
Cristobal Guevara Castelan, age 30, of Palmetto, Georgia was charged in a 4-count indictment. Cristobal Guevara Castelan was charged with Fraud in Connection with Identification Information, in violation of Title 18, United States Code, Section 1028, which carries a maximum penalty of 15 years imprisonment and a maximum fine of $250,000; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, which carries a 2-year term of imprisonment consecutive to any other term of imprisonment imposed and a maximum fine of $250,000; and 2 counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341, which carry a maximum penalty of 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney D. Josev Brewer, of the Greenville office for prosecution.The Acting United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fargo Resident Pleads Guilty to Tax EvasionRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 9, 2016, Gary Spencer Smith, 61, Fargo, ND, pled guilty before US District Judge Ralph R. Erickson to an Information charging him with Attempt to Evade and Defeat the Payment of Tax.
"Gary Spencer Smith’s attempt to evade tax by failing to report his income, failing to file tax returns for 13 years, and failing to pay his taxes was a theft from the American taxpayers. It is a felony offense that carries severe consequences," said Shea Jones, Special Agent in Charge, IRS Criminal Investigation, St. Paul Field Office. "The IRS and U.S. Attorney’s Office remain determined and vigilant in uncovering such schemes to cheat the honest taxpayers."
Beginning in 1999 through 2010, Smith concealed and attempted to conceal a large part of income from the Internal Revenue Service (IRS). Although he earned substantial income between 1999 and 2010 as an independent contractor selling steel buildings for another corporation, he failed to timely file returns with the IRS and evaded payment of most of his income taxes, which totaled approximately $243,488 during that period. In an effort to evade paying taxes, Smith created his own corporation, Strong Steel Buildings Inc., and requested that income and paychecks be made payable to his corporation rather than to him in order to avoid the filing of 1099s with the IRS.
Judge Erickson has set sentencing for Oct. 31, 2016, at 10:00 AM, at the US District Court, Fargo, ND.
Smith faces a maximum penalty of 5 years’ imprisonment, a $250,000 fine, 3 years supervised release, and a $100 special assessment.
This case is being investigated by the Internal Revenue Service - Criminal Investigation Division.
Assistant US Attorney Scott Schneider is prosecuting the case.
El Paso, Texas, Man Facing Federal Drug Trafficking Charge in New Mexico Following Seizure of 41 Pounds of CocaineRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Gerry Billy Olivas, 39, of El Paso, Texas, with a cocaine trafficking offense after Olivas waived a preliminary hearing. Olivas was remanded into custody pending trial.
Olivas was arrested on Aug. 3, 2016, on a criminal complaint alleging that he possessed approximately 18.8 kilograms (41.44 pounds) of cocaine in Otero County, N.M. According to the complaint, Olivas was arrested on Aug. 3, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint south of Alamogordo, N.M., allegedly seized approximately 16.2 kilograms (35.71 pounds) of cocaine from Olivas’ vehicle. The agents also seized approximately 2.6 kilograms (5.73 pounds) of cocaine from a storage unit located in El Paso that was allegedly owned by Olivas.
If convicted of the charge in the criminal complaint, Olivas faces a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Alamogordo station of the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Defendants Who Conspired with Others to Traffic in Analogue Substance SentencedRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced an additional two sentencings today in the ongoing prosecution of a 22-member conspiracy that brought a controlled substance analogue to Southwest Virginia from as far away as China.
Brian Junior Ramey, 24, previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 50 grams of alpha-PVP, a controlled substance analogue. Today in District Court, Ramey was sentenced to 15 months in federal prison.
In a separate hearing, Lakyn Jade Wells, 28, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 10 kilograms of alpha-PVP, was sentenced to 60 months in federal prison.
“This prosecution has put an end to a trafficking operation that was bringing large amounts of these dangerous substances into Southwest Virginia,” United States Attorney Fishwick said today. “The sentences receives by these defendants should serve as an example that the Department of Justice takes the trafficking of these analogue substances just as seriously as other illegally drugs and will be treated as such.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, Ramey, and others members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Customs Officer Arrested in Bank Fraud Case that Alleges He Stole Mail Containing Checks from International Mail Facility in TorranceRead the Press Release
LOS ANGELES – A longtime U.S. Customs and Border Protection (CBP) officer has been arrested on federal charges that allege that he stole mail from the International Mail Facility (IMF) in Torrance and arranged to have an accomplice deposit checks obtained from the stolen mail.
Carlos Canjura, 54, of Van Nuys, was arrested yesterday without incident by special agents with the FBI. The arrest came after Canjura, who has been a CBP officer since 2008, was named in an eight-count indictment that was returned by a federal grand jury on August 4.
At an arraignment yesterday afternoon in United States District Court, Canjura pleaded not guilty to the charges in the indictment and was released on his own recognizance.
According to the indictment, Canjura was a CBP Officer assigned to the IMF, where his duties included examining mail and parcels coming into the United States for contraband, counterfeit goods, and possible fraudulent financial checks or credit cards. The IMF is operated by the United States Postal Service and serves as a location where international mail is processed by CBP officers and other personnel to ensure compliance with federal law before being delivered to addresses in the United States.
"The public should be able to use the mail without fear that officials charged with safeguarding the system are not abusing it for their own benefit," said United States Attorney Eileen M. Decker. "Mr. Canjura not only abused his position as a federal officer by stealing international mail, he also sought to use the stolen mail in an elaborate scheme to defraud banks and line his own pockets. In so doing, he violated the public trust he swore to uphold."
According to the indictment, while working at the IMF, Canjura stole mail that contained traveler’s checks and third-party checks. Canjura allegedly provided the stolen checks to other people, who altered the checks and deposited them into bank accounts at Bank of America.
The indictment specifically alleges that Canjura stole four checks with a cumulative value of more than $15,000.
“Americans must be able to trust officials handling their mail which conveys highly valuable information, to include our identification and financial data,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to holding accountable those, like Mr. Canjura, who abuse their positions of trust and threaten our security for personal gain.”
The indictment against Canjura charges him with four counts of bank fraud and four counts of possession of stolen mail. The case has been assigned to United States District Judge Beverly Reid O’Connell, who has ordered the parties to appear on August 15 for a trial setting conference.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each charge of bank fraud carries a statutory maximum penalty of 30 years in prison, and each charge of possession of stolen mail carries a maximum sentence of five years in prison.
The investigation of this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and CBP’s Office of Professional Responsibility.
Cheektowaga Woman Sentenced for Money Laundering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nannette Brown, 47, of Cheektowaga, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to two years probation and a $500.00 fine by Chief U.S. District Judge William M. Skretny.
"It is often said that those who assist criminals are every bit as guilty as those who commit the initial offense,” said U.S. Attorney Hochul. “This case is an example of that principle."
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the defendant conspired with her son, Tyshawn Bradley, to use the proceeds of Tyshawn Bradley’s cocaine distribution network to purchase real estate located in Buffalo. Brown admitted that her son asked her to purchase the following properties in her name in order to conceal Tyshawn Bradley as being the true owner of the properties: 8 Norway Park; 16 Cornwall Avenue; 514 Dodge Street; and 33 Gerhardt Street.
Brown, Tyshawn Bradley and nine others were arrested in April 2013 and charged with conspiracy to traffic 280 grams or more of crack cocaine and 500 grams or more of cocaine within the Perry Housing Projects. All 11 defendants have been convicted.
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for this nation's illegal drug supply.
Canadian Resident Sentenced in Sextortion CaseRead the Press Release
An Ontario man was sentenced today to 30 years in federal prison after having pleaded guilty to charges related to the sexual exploitation of two minor girls, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Field Office, and Chief Michael Patton of the West Bloomfield Police Department.
According to court records, from October through December 2013, Antonio P. Fontana, 59, coerced and enticed a 15-year-old girl (“Victim 1”) residing in the Eastern District of Michigan into performing various sexual acts for him in front of an Internet webcam on an almost daily basis. Fontana first began communicating with the victim on an Internet website, where he was posing as a 16-year-old boy. Fontana recorded many, if not all, of the sexual acts he forced Victim 1 to perform. Fontana threatened to post the recordings of Victim 1 on the Internet and to send them to her friends and family if she did not continue to perform sexual acts for him. When Victim 1 ultimately attempted to stop speaking to Fontana in late December 2013, Fontana continued to communicate with Victim 1 and her mother in an attempt to coerce Victim 1 into continuing to communicate. At various times in January and February, 2014, Fontana followed through with his threats, and sent sexually explicit images of Victim 1 to Victim 1’s email contacts and her mother.
Fontana committed similar conduct from November to December 2014 with a second minor victim (“Victim 2”), a 14-year-old girl in the Eastern District of Michigan. Further investigation revealed that Fontana had similarly exploited children from all over the world, including several in the United States, Finland and England
“This defendant used the internet to exploit and extort innocent children in the most humiliating way. The bravery of the child in this case to come forward and report the perpetrator's conduct certainly prevented other children from being exploited this way.”
"Mr. Fontana hid behind the anonymity of the Internet to target and sexually exploit children in the most reprehensible of ways," stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. "This investigation proves the reach of the FBI, along with its local, state and federal partners, is a long one; in this case even across international borders. The protection of our children from depraved predators and online threats will remain a priority as long as there are those who would sexually exploit our children."
“Predators that target children via the Internet are not limited by state or national jurisdictional boundaries,” said Chief Patton. “The entire West Bloomfield community is thankful for the efforts and cooperation of the local, federal, and international law enforcement partners which led to this indictment.”
Fontana was extradited to the United States from Canada last year.
McQuade praised the work of the Special Agents of the FBI, the officers from the West Bloomfield Police Department and the detectives from the major crime unit of the Durham Regional Police Service, Ontario, Canada. The case is being prosecuted by Assistant United States Attorneys Douglas Salzenstein and Matthew Roth.
California Man Sentenced to 7 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS CEDILLO, 33, last residing in Los Angeles, Calif., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 84 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, on November 14, 2013, members of the Drug Enforcement Administration’s New Haven Task Force followed a white Cadillac Escalade that CEDILLO was driving to a store where CEDILLO purchased items used to process and package illegal drugs. After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage. Agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car. After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin. CEDILLO was arrested at the time.
A subsequent search of a residence in Danbury connected to CEDILLO revealed approximately $400,000 in cash.
CEDILLO has been detained since his arrest. On May 19, 2016, he pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin.
This matter was investigated by the DEA’s New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Derby and Meriden Police Departments, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Caledonia Investments to Pay $480,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C. against Caledonia Investments plc for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when it acquired voting securities of Bristow Group Inc. in February 2014. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Caledonia Investments has agreed to pay a $480,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Daniel P. Ducore, Assistant Director for Compliance, Bureau of Competition, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. E-mailed comments should be sent to: [email protected]. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Caledonia CIS
Caledonia Complaint
Caledonia Explanation
Caledonia PFJ
Caledonia Stipulation
CEO of Steel Contractor on World Trade Center Site Convicted at Trial of Fraud in Connection with Program Designed to Encourage Participation of Minority and Women-Owned BusinessesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LARRY DAVIS, President and Chief Executive Officer of DCM Erectors, Inc. (“DCM”), and DCM itself, were convicted of engaging in a fraudulent scheme to violate the Port Authority’s Minority and Women-Owned Business Enterprise Program (“M/WBE Program”), which is designed to increase the role of minority and women-owned businesses working on its projects. DAVIS was convicted after an eight-day jury trial before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found in its guilty verdict today, Larry Davis, the CEO of DCM Erectors, used fraud in connection with nearly a billion dollars of construction contracts on One World Trade Center. The construction work awarded to Davis came with the obligation to employ minority and women-owned businesses, an obligation that Davis shirked and then lied about. We cannot allow major public projects – particularly ones on the sacred World Trade Center site – to be built on a foundation of fraud. By its verdict today, the jury of New Yorkers made clear that it will not.”
According to the Complaint, Indictment and evidence presented at trial:
DCM specialized in steel erection for large construction projects. Since at least March 1999, DAVIS has owned DCM and served as its President and Chief Executive Officer. In 2007, DCM was awarded an approximately $256 million contract for work to be performed on One World Trade Center and in 2009, DCM was awarded an approximately $330 million trade contract for work to be performed on the World Trade Center Port Authority Trans-Hudson (PATH) Transportation Hub (collectively, the “World Trade Center Project”).
The work to be performed by DCM for the World Trade Center Project included, but was not limited to, structural steel supply and erection, supply and installation of metal decking, drafting and engineering, and surveying.
The Port Authority’s M/WBE Program is designed to ensure that M/WBEs receive work on its projects and applied to the World Trade Center Project. Pursuant to the M/WBE Program, all contractors, including contractors such as DCM, were obligated to make good faith efforts to enter into subcontracts with M/WBEs, with a goal of 17 percent of the overall contract amount to be given to M/WBEs (12 percent for MBEs and five percent for WBEs).
In order to satisfy the M/WBE Program, DAVIS engaged in a fraudulent scheme in which he caused DCM to claim that certain work was performed by a minority-owned business, Solera/DCM Joint Venture LLC (“Solera/DCM,” and a woman-owned business, GLS Enterprises, Inc. (“GLS”), when, in truth and in fact, DCM itself performed such work or arranged for such work to be performed by other non-M/WBE contractors.
Solera/DCM was a joint venture between DCM and a minority owned business, Solera Construction, Inc. (“Solera”), which was owned by Johnny Garcia, a qualified minority business owner who previously pled guilty for his role in the fraudulent scheme. Solera/DCM was purportedly owned 60 percent by Solera and 40 percent by DCM. DCM and DAVIS established Solera/DCM as a joint venture majority owned by Solera with the express purpose of using it to satisfy MBE requirements on public construction projects.
From 2009 through 2012, DAVIS caused DCM to misrepresent to the Port Authority that Solera/DCM performed certain work on the World Trade Center Project when, in truth and in fact, the work, including metal decking and steel procurement, was performed by a non-minority contractor or by DCM itself. To facilitate the fraud, DAVIS directed Solera/DCM to place laborers who worked for a non-minority contractor performing metal decking on Solera/DCM’s payroll and then invoice DCM for such laborers’ time and also created certain invoices and directed Garcia to sign them to make it appear as if Solera/DCM procured steel, when, in truth and in fact, DCM did so. DCM claimed MBE credit for work purportedly performed by Solera/DCM on the World Trade Center Project. As part of the fraudulent scheme, DCM paid Garcia a total of at least $2 million ($150,000 in annual salary and additional monthly payments).
The owner of GLS was Gale D’Aloia, who served as GLS’s President and previously pled guilty for her role in the fraudulent scheme. D’Aloia had been a long-time employee of DCM performing payroll management services for DCM and DAVIS’s related companies (the “Davis Group”). In 2004, D’Aloia left DCM and began performing the same payroll management services for DCM and the Davis Group through her company, GLS, which she registered as a WBE with the Port Authority.
From 2009 through 2012, DAVIS and DCM misrepresented to the Port Authority that GLS performed surveying work, and fraudulently claimed WBE credit for GLS’s purported surveying work, on the World Trade Center Project when, in truth and in fact, the surveying work was performed by DCM itself. To facilitate the fraud, DAVIS directed D’Aloia to place unionized surveyors on GLS’s payroll who had been on DCM’s payroll and then to certify such payroll and also to invoice DCM for the workers even though DCM continued to actually supervise them. As compensation for engaging in the fraudulent scheme, DAVIS paid GLS up to 10 percent of each week’s total gross payroll for the surveyors, which totaled hundreds of thousands of dollars.
* * *
DAVIS, 65, of Mississauga, Ontario, Canada, was convicted of one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. He is scheduled to be sentenced November 15, 2016.
Mr. Bharara praised the investigative work of the Port Authority’s Office of Inspector General; U.S. Department of Labor, Office of Inspector General; IRS-Criminal Investigation; and DOT-OIG.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone and Kan M. Nawaday are in charge of the prosecution.
Brothers Sentenced for $12.9 Million Software Piracy SchemeRead the Press Release
ALEXANDRIA, Va. – Donnetto Deantoni, 44, of St. Michael, Minnesota, was sentenced today to one year and one day in prison for his role in a $12.9 million software piracy scheme. Deantoni was also ordered to forfeit over $4.4 million in proceeds and to pay the victim, Autodesk, Inc., over $12.9 million in restitution.
Donnetto Deantoni’s brother, Deonnetti Deantoni, who led the conspiracy, was sentenced to 40 months in prison in April, and ordered to pay over $6.5 million in forfeiture and over $7.7 million in restitution.
Donnetto Deantoni pleaded guilty on April 12. According to court documents, over the course of a 26 month conspiracy the brothers conspired to distribute pirated versions of nearly $13 million worth of copyrighted engineering and design software belonging to Autodesk, Inc. They sold this software to engineering firms at deeply discounted prices using websites designed to make the software appear legitimate and went to great lengths to conceal their scheme. For example, the brothers interacted with customers under the false name “Monica Simpson,” and created a false entity, the “National Software Licensing Association,” to endorse their products.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge James C. Cacheris. The case was prosecuted by Assistant U.S. Attorneys Kellen S. Dwyer and Maya D. Song, along with First Assistant U.S. Attorney Tracy Doherty-McCormick.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-50.
Brentwood Man Indicted on Charges Relating to the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A Brentwood resident was indicted yesterday by a federal grand jury on charges of production, receipt, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Mukesh Khawas, age 29, of Pittsburgh, PA, as the sole defendant.
According to the indictment, from June 14, 2016, to June 15, 2016, Khawas produced visual depictions and images of the sexual exploitation of a minor. The indictment further alleges that from June 14, 2016, to June 15, 2016, Khawas knowingly received images containing material depicting the sexual exploitation of a minor. The indictment further alleges that from June 14, 2016, to June 15, 2016, Khawas knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum sentence of 20 years imprisonment for the production, receipt, and possession of child pornography counts, a fine of $765,000.00, and a term of up to a lifetime of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Allan Ebel, 63, of Boise pleaded guilty today in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, an electronic device at Ebel’s residence downloaded images of child pornography from a website based in Switzerland on at least six occasions in August of 2014. In July of 2015, agents with the Department of Homeland Security, with assistance from the Boise Police Department and the Ada County Sheriff’s Office, executed a search warrant at Ebel’s residence in Boise, Idaho, seizing numerous computers and electronic storage devices. Agents with the Department of Homeland Security conducted a forensic examination of the devices, and discovered images of child pornography saved in folders on a desktop computer and an external hard drive, and evidence that the devices were owned and used by Ebel. In the plea agreement, Ebel admitted possessing 4,688 images and 31 videos containing child pornography on the desktop computer and external hard drive.
Sentencing is set for October 25, 2016, before Senior U.S. District Judge Edward J. Lodge.
Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Ebel also agreed to forfeit the desktop computer and external hard drive used in the commission of the charged offense.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Boise Police Department and the Ada County Sheriff's Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Bloods Gang Member Pleads Guilty to Sex Trafficking a ChildRead the Press Release
NORFOLK, Va. – Keiawn Demarco McDonald, 23, of Virginia Beach, pleaded guilty today to charges of sex trafficking of a child. McDonald is the seventh and final member of this sex trafficking ring to be convicted (see chart below).
According to the statement of facts filed with the plea agreement, in the fall of 2015 McDonald, who is a member of a Virginia Beach-based set of the Bloods street gang, recruited a minor girl to engage in prostitution at various hotels in Norfolk, Chesapeake, and Virginia Beach. McDonald photographed the victim, posted online advertisements for her commercial sex services, and arranged prostitution appointments for her. McDonald also instructed the victim about how to conduct appointments with customers and monitored her activities by text message during her appointments. He required the victim to provide him with all the money she earned from her prostitution activities.
McDonald was indicted by a federal grand jury on March 9, and faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on December 15. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr2.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Keiawn Demarco McDonald
23, Virginia Beach
Sex Trafficking of a Child
Sentencing set for December 15
Cordario Marcell Uzzle
23, Virginia Beach
Sex Trafficking of a Child
Sentenced on June 3 to 151 months
Darryl Trashaun Threat
22, Virginia Beach
Sex Trafficking of a Child
Sentenced on June 9 to 292 months
Tajaika R. Blackston
19, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentenced on June 10 to 100 months
Keith Deontai Threat
22, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentencing set for September 16
Shade Audrey Castro
23, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentencing set for October 27
Gary Anthony Hassell
26, Virginia Beach
Sex Trafficking of a Child
Sentencing set for October 28
Avon Man Charged with Distributing Heroin Involved in Overdose Death of East Haddam ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KERRY SCANLAN, 20, of Avon, was arrested yesterday on a federal criminal complaint charging him distributing heroin involved in an overdose death of an 18-year-old in East Haddam. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Following his arrest, SCANLAN appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that SCANLAN arranged to purchase heroin from a source in Hartford. On March 18, 2016, the victim drove to Avon, picked up SCANLAN and then drove to Hartford to purchase heroin.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, the Connecticut State Police and the East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Atlanta man sentenced to Federal prison for role in mail theft and check counterfeiting conspiracyRead the Press Release
BECKLEY, W.Va. – An Atlanta man was sentenced today to a year in federal prison and ordered to pay almost $17,000 in restitution for his role in a mail theft and counterfeit check cashing conspiracy, announced United States Attorney Carol Casto. DeAndre Smith, 23, previously pleaded guilty to conspiracy to commit postal theft and making and uttering counterfeit securities.
Smith admitted that on two occasions in November 2015, he traveled, along with a group of other conspirators, from Atlanta to Beckley. Once in Beckley, Smith and the group targeted businesses and stole checks out of mailboxes. Smith and his co-conspirators then used the information from the stolen checks to make counterfeit checks, which they then cashed at local banks.
The United States Postal Inspection Service and the Beckley Police Department conducted the investigation. Assistant United States Attorney Eric P. Bacaj is in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Air Conditioner Thief Sentenced for Violating Clean Air ActRead the Press Release
COLUMBUS, Ohio – Shannon Wayne Harrold, 48, of Glenford, Ohio, was sentenced in U.S. District Court to 54 months in prison and ordered to pay $29,045 in restitution for violating the Clean Air Act by cutting the tubing on air conditioning units he was stealing, which released a regulated refrigerant into the environment.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Jeffery Martinez, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Franklin County Prosecutor Ron O’Brien announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, in August and September 2015, Harrold engaged in a scheme to steal air conditioner units in order to sell the copper and parts from the units at scrap yards. He targeted suburbs in Central Ohio, stealing several units and dismantling them on site. Harrold was arrested on September 18, 2015 following a high-speed chase with the police, during which Harrold drove through several residential neighborhoods at more than 90 miles per hour.
“The defendant’s actions hurt businesses financially and put human health at risk,” Ohio Attorney General Mike DeWine said. “We helped investigate the case and we’ll continue to work with our task force partners on others like it to protect Ohioans.”
“Refrigerants deplete the ozone layer which protects people from the harmful effects of ultraviolet radiation such as skin cancer, so it’s imperative that they are handled properly and in accordance with the law,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Through the illegal venting of refrigerants and the sale of stolen air conditioner parts, the defendant violated the Clean Air Act, which protects public health and clean air. EPA and its law enforcement partners are committed to the investigation and prosecution of illegal conduct that jeopardizes public safety.”
Acting U.S. Attorney Glassman commended the investigation of this case by the U.S. EPA, Ohio Bureau of Criminal Investigation (BCI), Franklin County Prosecutor’s Office, Franklin County Sheriff’s Office, Westerville Police Department, Whitehall Police Department, Gahanna Police Department, Ohio EPA and Columbus Division of Police, as well as Assistant United States Attorney J. Michael Marous and Special Assistant U.S. Attorneys Heather B. Robinson and Brad J. Beeson, who are representing the United States in this case.
9 August 2016
Two Niagara County Men Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an 11 count indictment charging Timothy Laubacker, 25 of Lockport, NY, and Travis Guerriera, 26, of Olcott, NY, with conspiracy to distribute and receive child pornography, distribution of child pornography, receipt of child pornography, and cyberstalking. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine. Laubacker also is charged with production of child pornography and attempted production of child pornography which carry a minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment and information revealed in Court, in September 2015, Victim 1 reported to the Niagara County Sheriff’s Department that she received unsolicited communications from an individual on Facebook. The individual threatened to distribute and post images that Victim 1 sent to her then-boyfriend Travis Guerriera when she was about 14 years old.
During the investigation, it was determined that Laubacker was the individual who had contacted Victim 1 on Facebook. The investigation also determined that the co-defendant, Guerriera, had shared the initial images of Victim 1 with Laubacker. Victim 1 did not send the images requested by Laubacker. Thereafter, Laubacker posted a link on an anonymous website containing pornographic images of Victim 1.
In June 2015, Laubacker attempted to entice a second victim (Victim 2) via Facebook to produce pornographic images. When Victim 2 didn't comply, Laubacker threatened to distribute images that he claimed to have of Victim 2. These threats continued until November 2015. Laubacker made initial contact with Victim 2 during his former employment as a behavioral health aide at a mental health facility. Laubaker was terminated from that employment in late December 2015 for inappropriate communications with another minor female.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Laubacker was released on bail; a detention hearing is set for Guerriera on August 15, 2016 at 11:15 a.m.The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Niagara County Sheriff’s Department, under the direction of James Voutour. The task force includes the Buffalo Police Department, the Cheektowaga Police Department and the Niagara County Sheriff’s Department. Additional assistance was provided by the St. Louis, MO office of the FBI.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.